Economic Development Corporation

FINAL - MINUTES OF THE NEW BRAUNFELS ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING OF THURSDAY, AUGUST 17, 2023 AGENDA 1. CALL TO ORDER President Kathy Meurin called the meeting to order at 5:02 PM. 2. ROLL CALL Present: President Kathy Meurin, Brian Cox, Stuart Hansmann, Larry Hammonds, Kristen Carden, Shane Hines, and Don Austin (5:08 PM). Also in Attendance: Mayor Neal Linnartz 3. APPROVAL OF MINUTES A) Approval of the July 20, 2023 regular meeting minutes President Meurin introduced this item. Director Carden motioned to approve the July 20, 2023 regular meeting minutes. Director Cox seconded the motion which was approved unanimously. B) Approval of the August 3, 2023 special-called meeting minutes President Meurin introduced this item. Director Hines motioned to approve the August 3, 2023 special-called meeting minutes. Director Hansmann seconded the motion which was approved unanimously. 4. CITIZEN'S COMMUNICATIONS This time is for citizens to address the Board on issues and items of concerns not on this agenda. There will be no Board action at this time. None. 5. TREASURER'S REPORT A) Presentation and discussion of the August 2023 Treasurer’s Report President Meurin introduced this item. Jared Werner, Assistant City Manager, presented a Powerpoint Thursday, August 17, 2023 New Braunfels Economic Development Corporation Regular Meeting  addressing the August 2023 Treasurer's Report. Mr. Werner identified an overall sales tax increase of 5.2% for the month of June. June's sales tax revenue is one of the higher months of the fiscal year because of the start of the tourism season. Mr. Werner shared additional graphs and data to show projected fund revenues, current commitment projections, the projected capacity for additional expenditures, and projections for ending fund balance through 2025. 6. DISCUSSION AND ACTION A) Presentation, discussion, and possible action approving a proposed professional services agreement with the City of New Braunfels President Meurin introduced this item. Jeff Jewell, Economic and Community Development Director, presented this item. Mr. Jewell provided the Board a summary of the proposed annual Professional Services Agreement (PSA) to include an increase of $115,413 to address the full funding of an Assistant Project Manager in the Transportation and Capital Improvements Department (TCI) and funding of the Economic and Community Development Department Administrative Assistant to move from part-time to full-time. The PSA also provides administrative and professional support to the Corporation on behalf of many departments and divisions at the City, to include contract development and management, pay applications, company and incentive auditing services, fiscal impact analysis, record keeping, and the costs for a workforce housing consultant. The Board was provided an initial presentation on this topic at its July 20, 2023 regular meeting. Mr. Jewell answered questions from the Board. Director Cox motioned to approve the proposed PSA with the City of New Braunfels. Director Hansmann seconded the motion which was approved unanimously. B) Public hearing, discussion, and possible action approving an expenditure of up to $89,160 to Economic & Planning Systems, Inc., for a planning and feasibility study for a possible public/private partnership, a project authorized under 505.102 of the Texas Local Government Code; and authorizing the President to execute said agreement. President Meurin introduced this item. Thursday, August 17, 2023 New Braunfels Economic Development Corporation Regular Meeting  Mr. Jewell presented this item. At the June 16, 2023 NBEDC Workshop, the Board directed staff to move forward and obtain a consultant to address the 16-acre property it owns on Gruene Road. The primary goal of the proposed expenditure is to obtain a planning and feasibility analysis for a potential private/public partnership for the property. This study would be the first step of a three-step process which may result in a request for development proposals. The third step may include a development agreement to execute the NBEDC's vision for the property. The expenditure is for up to $89,160 and may be completed in 90-120 days. This process would also include workshops with stakeholders such as the NBEDC and the City Council. Mr. Jewell answered questions from the Board. Mr. Packer provided insight about the value of the property and the importance of obtaining expert guidance and direction. President Meurin opened the public hearing at 5:20 PM. No comments were made. President Meurin closed the public hearing at 5:20 PM. Director Hines motioned to approve an expenditure up to $89,160 to Economic & Planning Systems, Inc., for a planning and feasibility study for a possible public/private partnership. Director Carden seconded the motion which was approved unanimously. C) Presentation and discussion of a proposed project expenditure for the north ramp reconstruction at the New Braunfels National Airport President Meurin introduced this item. Mr. Jewell presented this item. He provided an overview of New Braunfels National Airport (BAZ) and its value as an economic and community development asset. A summary of completed airport projects, a review of the 2019 Airport Master Plan, identification of prior and current funding partners, highlights of NBEDC's prior investments to BAZ for projects, and operational growth and fuel sale graphs were also provided. Mr. Jewell reminded the Board that BAZ operates as an enterprise fund which means it is a self-funding division. Overall, BAZ has 54% in revenue growth since 2018. Mr. Jewell touched on additional financial metrics to include ground and hangar lease space and BAZ's absorption of debt issuance, the evolution of BAZ, and a review of upcoming projects. The proposed project expenditure would address BAZ's largest aircraft parking area Thursday, August 17, 2023 New Braunfels Economic Development Corporation Regular Meeting  and primary overflow apron. The project would remove and replace all existing pavement which is in varying levels of deterioration which would improve operational safety and continue to support revenue generation. TxDOT has recognized this as an key priority and will cover 90% of the costs and a 10% match is required. The total cost of the project is $8M. Preliminary engineering for the project is complete. BAZ is able to contribute $200,000 from operational revenues, however this would drain all reserves. This expenditure will be requested for consideration at an upcoming NBEDC meeting. Mr. Jewell answered questions from the Board. President Meurin shared her appreciation for Dr. Lee, BAZ's Director. D) Presentation and discussion on the creation of a Workforce Housing Trust Fund President Meurin identified that this item will be addressed at a later time. 7. EXECUTIVE SESSION The Board did not convene into Executive Session. In accordance with the Texas Government Code, Section 551.071, the Board reserves the right to retire into executive session concerning the items listed on this agenda to consult with its attorney. In addition, the Board may convene in executive session on any of the following items, with any final action being taken in open session: A) Deliberate issues regarding economic development negotiations in accordance with Section 551.087 of the Texas Government Code: 1. Project Care Package 2. Project Camp Unicorn 3. Project Maverick Deliberate the pending/contemplated litigation, settlement offer(s), and matters concerning privileged and unprivileged client information deemed confidential by Rule 1.05 of the Texas Disciplinary Rules of Professional Conduct in accordance with Section 551.071 of the Texas Government Code: 1. Frantic Holdings 8. ADJOURNMENT President Meurin adjourned the meeting at 5:38 PM. By: ______________________________ KATHY MEURIN, PRESIDENT Thursday, August 17, 2023 New Braunfels Economic Development Corporation Regular Meeting