CITY OF SANTA FE ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING AUGUST2 27, 2024 7:00 P.M. COUNCIL CHAMBERS 12002 HWY. 6, SANTA FE, TEXAS  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 Gary Summerville Director Ryan McCamy  Absent:  The Invocation was given by' Vice President Crable, and the pledge to the U.S. Flag and to the Texas Flag was led  by President Wylie. Citizens' Comments: There were no comments from citizens. Reports  a. Approval of Board Minutes from the Regular Meeting of July 30, 2024  Motion by Secretary/rreasurer O'Connell to approve the Economic Development Corporation (EDC) Board of Directors (Board) minutes from ther regular meeting on July 30,2024, seconded! by Director Summerville. The motion Economic Development Corporation (EDC) Executive Director Rudy Zepeda presented the quarterly investment  passed unanimously.  b. Quarterly Investment Report April - June 2024  report fori the 3d quarter of the 2024 fiscal year. The current cash accounts include:  Beginning book value of alli investments: $3,132,715.74 Ending book value of alli investments: $3,308,339.81 Interest earned during 3ud quarter of the 20241 fiscal year: $34,871.89  Mr. Zepeda stated that the interest earned during the 3rd quarter of the 2024 fiscal year was more than was budgeted. The EDC will contribute an additional $400,000 into al Logic account which gains a 5.44% interest rate, Vice President Crable questioned whether the investments can be moved in and out at the EDC's discretion, orif thei investment ist foras set term. Mr. Zepeda explained thati the EDC can deposit or withdraw funds fromi the accounts  SO the 4th quarter of the 2024 fiscal year will realize even more interest gained.  at any time and it takes approximately 24 hours for each transaction. C. Current Budget Update & Financial Statements, period ending July 2024    Minutes (cont) 08/27/2024 Page2of7  Economic Development Corporation (EDC)Executive Director Rudy Zepeda gave an overview of the current budget  and financial statements as of July 31, 2024: Current Revenue: $674,254 Current Expenses: $270,617 Ending Fund Balance: $3,399,684  Current Net Revenue over Expenses approximately: $403,637  d. Sales Tax Report July 2024 (Collected in June, Received in August)  Economic Development Corporation (EDC) Executive Director Rudy Zepeda gave an overview of the sales tax  report for. July 2024 sales:  Year-to-date sales are at 3.1% above the amended budget, which equals $30,200 above the amended July total revenue to the EDC was $88,344, which represents a 13.5% increase over July 2023.  budget  Year-to-date revenue is up: approximately 7.1% compared to 2023.  Vice President Crable asked whether the $3,670,704 figure shown ont the balance sheet for fixed assets was related to a project completed by the EDC. Mr: Zepeda explained that figure was related to the FM 1764 infrastructure project and that those assets would be transferred to the' Water Control and Improvement District (WCID) #8 at the end of the year. Mr. Zepeda needs to consult with the auditors of the City of Santa Fe's financial records on how Economic Development Corporation (EDC) Coordinator Josh Dearing presented an overview of the Community  the auditors would liket to see that asset transfer displayed within the financial records.  e. Economic Development Update Services Department for July 2024:  Total permits issued - 446 (compared to 437 permits issued in July of 2023) Fees collected $38,682 (compared to $39,792 collected in July of 2023) Completed inspections - 271 (compared to 226 inspections in July of 2023) Mr. Dearing also provided updates for ongoing commercial projects, including:  New residential construction permits issued - 97 (compared to 95 permits issued in July of 2023)  Hubcap Grill - Finishing interior work Texas Department of Transportation  Whataburger - Interior trades are continuing, and al lot of their fixed equipment has been installed Starbucks - Submitted a new drainage plan which should help permitting with the City of Santa Fe and the RC Systems - Interior construction continues, and they poured concrete for their retention pond 646RV Park - Began pouring concrete for interior road, but are being delayed by weather conditions Mulberry Farms Gas Station and Shopping Center - Approved by Planning and Zoning Commission and Kwik Kar Buildout - Approved by Planning and Zoning Commission, and includes closing existing car wash Director Summerville asked if the 646 RV Park development was located on FM 646 South and Mr. Dearing  the development includes multiple retail pad sites from the public and conversion of the bays to service bays  confirmed thati iti is on FM6 646 South next to the Fraternal Order of Eagles facility.    Minutes (cont) 08/27/2024 Page 3of7  Director Schwertner questioned whether the property for the 646 RV Park was already zoned for that use or ifit was re-zoned for the development oft the 6461 RVI Park. Mr. Dearing stated that there was no variance granted or re-  zoning for the property to his knowledge.  New Business  a. Consideration with possible action on approvinga aresolution amending the budget fort the City of Santa Fe Economic Development Corporation for the fiscal year beginning October 01, 2023 and ending Economic Development Corporation (EDC) Executive Director Rudy Zepeda explained that expenses from fiscal year 2023 were moved to fiscal year 2024 related to the FM 1764 infrastructure project. The goal was to close out those expenses in fiscal year 2023 but there were some delays in the project and the final payment was realized Director Helpenstill asked for confirmation that the budget amendment included funds that were already budgeted Motion by Secretary/Treasurer O'Connell to approve Resolution 2024-03 to amend the City of Santa Fe Economic Development Corporation budget for the fiscal year beginning October 01, 2023 and ending September 30, 2024, b. Discussion with possible action on creation of a committee to review applications for the Business Economic Development Corporation (EDC)Coordinator Josh Dearinge explained that the guidelines for thel Business Expansion Attraction and Retention (BEAR) program require that the EDC Board of Directors (Board) create a committee to review applications for funding through the program. Mr. Dearing stated that iti is upt to the Board as to how many members they can appoint to the committee, who the members of the committee are and when they would like the committee to meet. Mr. Dearing stated that ifthe committee were comprised of four (4) or more Board members then the meetings of the committee would constitute a quorum, which would require calling a public Secretary/Treasurer O'Connell stated that she did not feel that the Board needed to stipulate meeting dates and times because the Board doesn't know when it may receive an application for funding, and the committee should President Wylie suggested that there should be no more than three (3) Board members appointed tot the committee President Wylie asked whether the Board would like to decide which members to appoint to the committee during the meeting or whether they should! be appointed atal later date. Mr. Dearing explained that thei item could be tabled ifthe Board desired and that the Board will meet again in September before the BEAR program is officially active. Vice President Crable suggested that the Board appoint members during the meeting due to there being a short Mr. Dearing stated that the Board could add members to the committee or subtract members from the committee in the future. EDC Executive Director Rudy Zepeda stated that the Board could appoint alternates to the committee in case the voting members of the committee were unable to attend a meeting to review an application for funding.  September 30, 2024  during fiscal year 2024.  for the project, which was confirmed by Mr. Zepeda.  seconded by Director Schwertner. The motion passed unanimously.  Expansion Attraction and Retention (BEAR)program for approval or denial  meeting.  determine when it is available to meet once an application is received.  and the Board agreed with President Wylie.  agenda and Secretary/reasurer O'Connell agreed.    Minutes (cont) 08/27/2024 Page 4of7  Director Helpenstill àsked Mr. Dearing if he would serve as a chairman of the committee. Mr. Dearing stated that he should not be a voting member of the committee and should serve more as a facilitator. Mr. Dearing will assist applicants with their applications and to avoid any perception of bias, he should not be a voting member but would Director Summerville asked what the role of a review committee member entails. Mr. Dearing explained that the EDC will receive an application, he will alert the review committee that an application has been received, he will schedule a meeting time that is convenient for the applicant and committee members, the applicant will describe the project that they are requesting funds for during the meeting and the committee will decide whether to approve Vice President Crable stated that parameters have already been set through the BEAR program's guidelines and any funding requests should be in alignment with those parameters. Vice President Crable compared the BEAR programguidelines to at temporary program that the EDC administered when they dispersed COVID-19 relief funds. Secretary/lreasurer O'Connell asked if Mr. Dearing could deny an application before presenting it to the review committee if the application does not meet the program's guidelines. Mr. Dearing explained that he could deny applications that do not meet the criteria of the program, but there can also be gray areas with applications. Mr. Dearing used an example that resurfacing of a parking lot would be considered maintenance for the! business owner under the BEAR program, however, resurfacing a parking lot as part of an expansion of the parking lot to allow for Mr. Dearing explained that he will encourage applicants to submit itemized cost estimates with their applications SO that the review committee can evaluate each individual cost. This would allow for the committee to approve certain improvements contained in the application while denying the items that do not fit the criteria of the program. Director Schwertner asked whether an application would be presented to the EDC Board once itl has been approved by the review committee. Multiple Board members stated that the review committee would have full authority to approve or deny applications but would present their decisions to the Board. President Wylie stated that he felt informing the Board of the committee's decision is important sO that the Board can inform the community of what Mr. Dearing stated he could add a new topic to upcoming Board agendas to address any applications that have President Wylie stated that he would be confident in whoever is appointed from the Board to the review committee and that he trusts each Board member to make the appropriate decision for approval or denial of an application. Director Summerville asked who would physically write the check for grant reimbursement. Mr. Zepeda explained that he would write the check and the authorized signatories for the EDC would signi it. Mr. Zepeda also stated that Mr. Dearing could create a document detailing the vote of each review committee member that would be signed by Mr. Dearing and the Finance Director, indicating that the approved funds are available. This document would also Director Schwertner stated that she wanted to be sure that everything was legal in the event that the EDC would need to enact the claw back clause within the BEAR program. Mr. Dearing stated that the program's guidelines and criteria had been reviewed by the City Attorney, which includes the claw back clause. Mr. Dearing stated that the claw back clause isi intended fori improvements that would not permanently enhance the businesses' property, such as signage that was approved through the program but had to be taken downi if the business went out of business.  collect and provide all oft the applicant's information to the review committee.  or denyt the funding request.  more customer parking may be considered.  projects have been funded through the BEAR program.  been approved by the review committee during the previous month.  serve as the back up for the check in the event of an audit of the program.    Minutes (cont) 08/27/2024 Page 50f7  Director Schwertner stated that she had concerns about al business improving a lease space and then moving out of the lease space. Mr. Dearing explained that the application process for a leased property requires the business owner and the property owner to apply jointly, and that a business owner cannot make improvements to al leased President Wylie stated that he would like to approve the review committee in phases and requested a motion on Motion by Secretary/lreasurer O'Connell to appoint three (3) Board members toi the review committee with one (1) alternate Board member, seconded by Director Summerville. The motion passed unanimously. Director Schwertner stated that she would like to serve on the review committee. Secretary/reasurer O'Connell stated that she would like to serve on the review committee. President Wylie stated that he would like to serve as the alternate member to the review committee. Vice President Crable stated that he believes it makes sense for him to serve on the review committee based on his experience, but his decision would depend on the time commitment that is required to serve on the committee. Secrelary/Treasurer O'Connell asked whether an applicant would be required to appear before the review committee to have their application considered. Mr. Dearing explained that iti is not a requirement to appear before the review committee, but it would be helpful for the applicant as ita allows the applicant to describe the project that they are applying for and allows the review committee to ask the applicant questions about the project. Secretary/reasurer O'Connell asked ift there could be a timeframe implemented for the review committee to review applications. Vice President Crable suggested that the review committee could meet twice a month to review applications and to allow for one (1) week to make a decision to approve or deny the application. Mr. Dearing explained that the program's guidelines have submission deadlines and requirements, and the proposed review Director Schwertner questioned if there would be a maximum grant amount implemented for the program. Mr. Dearing stated that there is no maximum grant amount stipulated in the guidelines. Mr. Dearing explained that each application will be reviewed on a case-by-case basis and the review committee has the discretion to approve or deny any portion of the grant request. Vice President Crable asked for clarification that the review committee could scale back the funding amount requested by an applicant. Secretary/Treasurer: O'Connell asked if an applicant requested $50,000, could the review committee only approve $25,000 and Mr. Dearing confirmed that as correct. Director Schwertner said that shel had concerns about a company receiving al bulk of or the entirety of the program's funds and then not being able to fund subsequent applications. Vice President Crable responded that he initially wanted a maximum amount instituted, but after thinking about it more, he decided that ifap project came before the President Wylie asked Vice President Crable if he would serve as the third member of the review committee and Directors Helpenstill and Summerville agreed to serve as additional alternates in the event that President Wylie  property without the property owner's permission.  the number of Board members to serve oni the review committee.  timeframe would satisfy those submission requirements.  review committee that was worthy of substantial funding, theni it should be approved.  Vice President Crable agreed to do SO. would be unavailable.    Minutes (cont.) 08/27/2024 Page 6of7  President Wylie suggested that ar motion ber made to create at three (3) person review committee comprised of EDC Board members with alternates, but not to specify which Board members would comprise the committee to allow for flexibility to review applications for funding. Vice President Crable stated that hel believes the committee should rely on the strengths of each Board member and appoint Board members to review applications in which they have Mr. Zepeda suggested that a motion be made to create a three (3) person review committee comprised of EDC Board members with the rest oft the Board members serving as alterates, with the caveat that a review committee member could recuse themselves from an application review and suggest an alternate member to review the Motion by Director Schwertner to create a three (3) person review committee comprised of Director Schwertner, Secretary/lreasurer O'Connell and Vice President Crable with the remaining EDC Board members serving as alternates, with the capability of any review committee member to recuse themselves from an application review and suggest an alternate Board member review the application, seconded by Director Helpenstill. The motion C. Discussion on upcoming Economic Development conferences and which Board of Directors members Economic Development Corporation (EDC) Coordinator Josh Dearing explained that the Texas Municipal League (TML)Economic Development Conference, International Council of Shopping Centers (ICSC) Red River and ICSC Las Vegas conferences are all approaching. Although the conferences are still a few months away, many oft the President Wylie stated the TML Economic Development conference is a great conference and includes great speakers. Secretary/Treasurer O'Connell stated that she gained al lot of information from the conference. Secrelary/lreasurer O'Connell and Director Schwertner stated that they would like to attend the TML Economic EDC Executive Director Rudy Zepeda stated that he would like for Mr. Dearing to attend the TML Economic Secretary/reasurer O'Connell asked what ICSC: stands for. Mr. Dearing explained thati itis the International Council of Shopping Centers, and the conferences are comprised of local and national retailers. Attendees have the opportunity to try to recruit the retailers to their communities, schedule meetings with the retailers and invite them Directors Helpenstill and Summerville said that they are interested in attending the TML Economic Development  experience.  application in which they! have more expertise.  passed unanimously.  are interested in attending them  conferences fill up quickly and accommodations need to be made in advance.  Development conference.  Development conference and Mr. Zepeda would attend his annual financial conference.  to your community.  conference, but would have to check their calendar and get back to Mr. Dearing.  Citizens' Comments and Announcements  Secretary/reasurer O'Connell reminded the Economic Development Corporation (EDC) Board of Directors (Board) about the Sunrise with Santa Fel breakfast with the Santa Fe Chamber of Commerce ont the morning ofWednesday, August 28th at Santa Fe City Hall at 7:45 a.m. Secretary/Treasurer O'Connell said that there would be a ribbon  cutting for the newly created office space for the EDC Coordinator during the breakfast.    Minutes (cont) 08/27/2024 Page7of7  Secretary/Treasurer O'Connell announced that there was an after-hours mixer with the Santa Fe Chamber of Secretary/Treasurer O'Connell announced the Santa Fe Chamber of Commerce is holding a public servant's luncheon at Dayspring Church on Wednesday, September 11th. The luncheon honors the Santa Fe Independent School District Police Department, City of Santa Fe Police Department, Santa Fe Fire and Rescue, Galveston County Sherriffs Office, Galveston County Constable's Office and the University of Texas Medical Branch Police EDC Coordinator Josh Dearing provided an update on the office buildout at Santa Fe City Hall to create an office space for Mr. Dearing. Mr. Dearing stated that K.R. Allen Construction, LL.C. provided a final punch list to complete the scope of work for the office buildout. The final punch list includes re-painting the City Council Chamber side of the newly installed walls to match the existing paint color, install a vertical trim piece where the new wall meets the old wall to disguise the slight offset in the walls, removal of an exit sign and mounting ofaf fire extinguisher. Mr. Dearing also displayed ar new retractable banner for the EDC and postcard sized promotional materials for the  Commerce at Kat's BBQ on Thursday, August 29th.  Department.  Business Expansion. Attraction and Retention (BEAR) program.  Adjournment  Secretary/reasurer O'Connell motioned to adjourn the meeting, seconded by Director Summerville. The motion  passed unanimously, and the meeting adjourned at 7:55 p.m.  Brpup Bob Wylie, President  ATTEST:  Gb