Finance and Government Committee

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE COUNCIL BRIEFING ROOM WEDNESDAY, JULY 10, 2024 AT 3:30 PM MINUTES CALL TO ORDER Chairwoman Clemson called the meeting to order at 3:30 p.m. PRESENT Chairwoman Jorja Clemson Deputy Mayor Pro Tem Junior Ezeonu ABSENT Council Member Kurt G. Johnson STAFF PRESENTATIONS 1. EMS Transport Rates Proposal PRESENTED 2. Financial Update PRESENTED 3. Enterprise Resource Planning Project Update PRESENTED CONSENT AGENDA The full agenda has been posted on the city's website, www.gptx.org, for those who may want to view this agenda in more detail. Citizens may speak for five minutes on any item on the agenda by completing and submitting a speaker card. Deputy Mayor Pro Tem Ezeonu asked for clarification on consent agenda item six. Motion to approve consent agenda item four, table consent agenda item five and motion to recommend approval of consent agenda items six and seven to City Council made by Council Member Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 4. Minutes of June 4, 2024, Finance and Government Committee Meeting Approved on Consent Agenda Finance and Government Committee – July 10, 2024 Page 1 of 4  5. Renewal #2 and contract Amendment # 3 for Christmas decorations, installation, disassembly, and monthly maintenance during the holiday season with DFW Holiday Kings, Inc., for a total price of $178,350.75 annually or $862,358.75 if all renewals are executed TABLED 6. Annual Contract for Event Sponsorship and Management Services from JL Event Pro, LLC (up to $49,999 annually) through a Master Interlocal Agreement with the City of Irving, Texas. The contract will be for one year with the option to renew for one additional one-year period totaling $99,998 if all extensions are exercised Approved on Consent Agenda 7. Purchase (1) new Starcraft Allstar 24’ Passenger Bus ($129,552) for Parks, Arts and Recreation from Model 1 Commercial Vehicles located in Irving, Texas through a Cooperative Agreement with Houston-Galveston Area Council (HGAC) (Reviewed by the Finance & Government Committee on 7/10/2024) Approved on Consent Agenda ITEMS FOR INDIVIDUAL CONSIDERATION 8. Resolution Authorizing the City Manager to Execute a Chapter 380 Agreement for economic development incentives with Mars Partners, Ltd. And Poly-America, LP Economic Development Director Rashad Jackson along with Economic Development Business Manager Terry Jones presented this item to the committee noting Poly-America, LP currently operates a 1,600,730 square foot manufacturing campus at 2000 West Marshall Drive, which is owned by Mars Partners, Ltd., which are both privately owned by the Ross family. Founded in 1976, when Steven Grant Ross bought a landfill of plastic waste and hauled it 500 miles to North Texas, started a plastics recycling business and turned it into construction and agricultural film. Poly-America is part of a group of privately held corporations headquartered in Grand Prairie, Texas, run by Ross’ son, Michael Ross. In its 48-year-history, Poly-America has grown into one of the country’s largest plastics recycling and manufacturing operations, recording an estimated $500 million a year in annual revenue. Poly-America produces several product lines, all within the polyethylene family. The group of companies comprises the world's largest producer of polyethylene construction film and the highest quality commercial trash bag manufacturer in the United States. Poly-America is also the most technologically advanced and largest recycler and compounder of polyethylene in the world. The company is a fierce defender of its plastic patents, which include patents for items such as drawstring trash bags and scented trash bags. Over the years, the United States Patent and Trademark Office has recognized Poly-America’s innovation by granting over 10 patents, including the Drawstring Trash Bag, Elastic Drawstring Trash Bag, Scented Drawstring Bag, most familiar trademarked as Husky. Poly- America has been awarded a contract to produce a new line of household trash bags and is considering construction of a new 275,000 square foot manufacturing plant in either Texas, Minnesota, South Carolina or Nevada and will employ an estimated 250+ full-time employees with benefits (in addition to 2,658 current full-time employees at its Grand Prairie plant). As an incentive to relocate the new manufacturing plant and operations to Grand Prairie, staff Finance and Government Committee – July 10, 2024 Page 2 of 4  is recommending a seven-year, 75% property tax rebate on the added value of ad valorem real estate and business personal property improvements to induce Mars Partners and Poly- America to locate new extensive manufacturing lines to Grand Prairie. In addition, as an incentive to situs construction sales tax to Grand Prairie, staff is recommending the City of Grand Prairie enter into a separate contract to provide a partial sales tax rebate on construction materials purchased to complete the new development and rebating one-quarter of the 1% documented general sales tax revenue. As additional consideration, the City of Grand Prairie is currently in negotiations with Poly-America, under the direction of Mr. Ruark Mershan (General Counsel at Poly-America) for the acquisition of a 1-acre land site located adjacent to the City of Grand Prairie’s Community Gardens (SEC of Tyre & Manning Streets). In the event of a successful title deed of this 1-acre parcel to the City of Grand Prairie prior to the construction commencement of the new 275,000 square foot manufacturing plant, staff is recommending an enhanced incentive of nine-year, 75% property tax rebate on the added value of ad valorem real estate and business personal property improvements to induce Mars Partners and Poly-America to accelerate the timeline of a successful title deed. In addition, staff is recommending the City of Grand Prairie enter into a separate contract to provide a partial sales tax rebate on construction materials purchased to complete the new development and rebating one-half of the 1% documented general sales tax revenue. Deputy Mayor Pro Tem Ezeonu said his concerns are the environmental impact in case of a fire at this facility and does not support the proposed tax incentive. Chairwoman Clemson concurred adding this facility is close to Tyre Park. Chairwomen Clemson asked that the record show the Finance and Government Committee is not in support and recommends bringing forward to Council for review and consideration. 9. Contract with Krunchies Popcorn, LLC for one year with four one-year renewal options for food and beverage concessions at Prairie Lights with a 20% commission back to the City estimated at $85,000 annually based on gross revenues collected by vendor totaling $425,000 (estimate), if all extensions are exercised Special Events Manager Emily Linares presented this item to the committee noting Krunchies Popcorn, LLC will provide food and beverage concessions inside the Holiday Village tent at Prairie Lights nightly through the run of the event. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 10. Consent to sublease agreement between Lynn Creek SMI, Inc, LLC/Lynn Creek SMI Series LLC and Rockin’S Bar and Grill for the restaurant at Lynn Creek Park Marina, subject to approval by the United States Army Corp of Engineers Director of Parks, Arts, and Recreation Ray Cerda presented this item to the committee noting Lynn Creek SMI, LLC, who are the operators of Lynn Creek Marina, has negotiated a sublease agreement with Rockin’S Bar and Grill for cosmetic improvements and operation of the existing restaurant at Lynn Creek Marina. Mr. Brian Keelan of Lynn Creek SMI, LLC gave a brief presentation to the committee providing an overview of Rockin'S Bar and Grill, current locations in the metroplex, proposed menu, benefits to Grand Prairie, benefits to Lynn Creek Marina and added Rockin’S will fund the cosmetic improvements to the existing restaurant to update the look and enhance the overall customer experience. The improvements will include Finance and Government Committee – July 10, 2024 Page 3 of 4  updating the paint, flooring and signage but will not change the footprint of the building. The City will not be responsible for funding any improvements. The new sublease agreement will be for a term of one year. Rockin’S Bar and Grill will pay the City 5% of monthly gross revenues. This revenue share is governed by the current terms of the City’s lease with the Marina operators and is not subject to negotiations. Based on the Tenant improvements to the restaurant operations, the Marina is estimating annual revenue of $1,200,000.00 from the restaurant, and under existing operations, the revenue is at approximately $370,000.00. This will potentially increase City revenue from $18,500.00 in rent related to the restaurant operations to $60,000.00 annually. The current sublease agreement between the City and Lynn Creek SMI, LLC requires the City consent to any additional sublease of the premises. This agreement is under review by the US Army Corps of Engineers and will not be executed until both the City and the US Army Corps of Engineers approve of the agreement. Chairwoman Clemson said she was in favor of the proposed improvements. Deputy City Manager Megan Mahan said Parks staff and Mr. Keelan have been working diligently on this project and are excited to bring Rockin'S Bar and Grill to Lynn Creek Marina. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 11. Construction Contract Amendment No. 2 with Modern Contractors, Inc. in the amount of $92,115.00 for Public Safety Storage Facility work, including site utility revisions, change of site soil preparation methods, added dumpster enclosure, door hardware credits, backflow preventer changes, full panel concrete replacement, structural pier reconciliation, electrical cord drop provisions, lighting changes and credit for third-party owner testing charges Director of Design and Construction Andy Henning presented this item to the committee reviewing the purpose of the request and funding history noting the primary function is to store the emergency generators, office space, shop space and additional storage. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. EXECUTIVE SESSION No executive session was held. CITIZEN COMMENTS There were no citizen comments. ADJOURNMENT Chairwoman Clemson adjourned the meeting at 4:54 p.m. Chairman Jorja Clemson Finance and Government Committee – July 10, 2024 Page 4 of 4