Economic Development Corporation

FINAL - MINUTES OF THE NEW BRAUNFELS ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING OF THURSDAY, FEBRUARY 15, 2024 AGENDA 1. CALL TO ORDER President Kathy Meurin called the meeting to order at 5:04 PM. 2. ROLL CALL Present: Kathy Meurin, Kristen Carden, Larry Hammonds, Shane Hines, Jason Hurta, and Tera Thompson Absent: Don Austin 3. APPROVAL OF MINUTES A) Approval of the January 18, 2024 regular meeting minutes President Meurin introduced this item. Director Carden motioned to approve, Director Thompson seconded the motion, and the January 18, 2024 regular meeting minutes were approved unanimously. Director Hines motioned to approve, Director Hurta seconded the motion, and the January 24, 2024 workshop meeting minutes were approved unanimously. B) Approval of the January 24, 2024 workshop meeting minutes 4. CITIZENS' 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 on the February 2024 Treasurer’s Report President Meurin introduced this item. Jared Werner, Assistant City Manager, presented on this matter. Mr. Werner identified a 15% decrease in sales tax collections received in Thursday, February 15, 2024 New Braunfels Economic Development Corporation Regular Meeting  December 2023. A recent review of the collections indicated a negative audit adjustment of about $145,000 which was identified as an error by the Comptroller's Office and will be reimbursed in March. Factoring in this error, the sales tax collections for Fiscal Year Quarter 1 are slightly above projections. Additional graphs were provided showing projected revenues, current commitment projections, infrastructure investments, the projected capacity for additional expenditures, and the proposed ending fund balance to FY26. 6. ADVISORY TEAM REPORT A) Presentation and discussion on a Quarterly Advisory Report President Meurin introduced this item. Jonathan Packer, President & CEO, and Michele Boggs, Senior VP, of the New Braunfels Chamber of Commerce presented an Economic Development Annual Report addressing the first completed year of the Confluence Strategic Plan. The work addresses strategic priorities including: (1) Attract quality jobs in target industries, (2) Align and optimize the workforce, (3) Create competitive office and industrial spaces, (4) Execute proactive land use and development, and (5) Strategic opportunities for regional prosperity with a focus on childcare and entrepreneurship. 7. DISCUSSION AND ACTION A) Public hearing, discussion, and possible action approving an expenditure of up to $1,501,742 to the New Braunfels Youth Collaborative for the renovation of the gymnasium at 407 West Mill Street, a project authorized under 505.152 of the Texas Local Government Code. President Meurin introduced this item. Director Hammonds abstained from this item and left the room. Mandi Scott, Economic and Community Development Manager, presented on this matter. Ms. Scott provided a summary background on the New Braunfels Youth Collaborative (NBYC) and plans for its renovation of the gymnasium at 407 West Mill Street. Once the renovations are complete, the gymnasium will support after school programming, sports leagues, fitness, and additional instruction. Funding and project cost numbers were also presented. The proposed grant will help address costs to cover HVAC, roof repairs, furniture, Thursday, February 15, 2024 New Braunfels Economic Development Corporation Regular Meeting  equipment, flooring, parking, fixtures, updates to meet ADA compliance, design, engineering, construction, and other related expenses. One payment of $250,000 will be issued upon contract execution, and four additional payments will be reimbursed as paid invoices are submitted at 25%, 50%, 75%, and 100% project completion; the reimbursement term is 18 months. The NBYC plans to start construction in Spring 2024 with a scheduled completion in 2025. Ms. Scott answered questions from the Board. President Meurin opened the public hearing at 5:30 PM. No comments were made. President Meurin closed the public hearing at 5:31 PM. Director Hurta motioned to approve the project expenditure of up to $1,501,742, to the New Braunfels Youth Collaborative for the renovation of the gymnasium at 407 West Mill Street. Director Carden seconded the motion which was unanimously approved. B) Public hearing, discussion, and possible action approving an expenditure of up to $700,000 to the City of New Braunfels for the construction of Common Street Pedestrian Improvements, a project authorized under 501.103 of the Texas Local Government Code. Director Hammonds returned. President Meurin introduced this item. Scott McClelland, Assistant Director of Transportation and Capital Improvements, presented on this matter. Mr. McCllelland shared that the project will add new sidewalks, curb ramps, and driveway approaches on Common Street from Liberty Ave. to Loop 337. Two additional protected pedestrian crossings will also be constructed at Lamar Elementary and the Library/Fairgrounds. This project coordinates with other city projects to provide broad pedestrian connectivity. This project will receive federal funding for 80% of the construction costs with a 20% construction match requested from NBEDC. Mr. McClelland reviewed the next steps with plans to advertise for construction bids beginning in Spring 2024. Mr. McClelland answered questions from the Board. President Meurin opened the public hearing at 5:36 PM. No comments were made. President Meurin closed the public hearing at 5:36 PM. Thursday, February 15, 2024 New Braunfels Economic Development Corporation Regular Meeting  Director Hines motioned to approve the project expenditure, of up to $700,000, to the City of New Braunfels for the construction of Common Street Pedestrian Improvements. Director Hammonds seconded the motion which was unanimously approved. C) Public hearing, discussion, and possible action approving an expenditure of up to $7,200,000 to the City of New Braunfels for the construction of Castell Avenue Phase 1 - Coll Street Drainage Improvement, a project authorized under 501.103 of the Texas Local Government Code. President Meurin introduced this item. Scott McClelland, Assistant Director of Transportation and Capital Improvements, presented on this matter. Mr. McClelland provided an overview of the project to include improving the roadway on Coll Street, developing an internal storm drain system, adding concrete sidewalks on both sides of the street, enhanced landscaping and trees, and to relocate electric and telecommunication lines underground. This initial presentation was provided to the NBEDC at their workshop meeting on January 24, 2024. Although the design is only at a 60% completion estimate, the funding commitment is being requested by the City in order to initiate telecommunications companies' design work. Additional funds may be requested once the 100% design work is complete. Construction is planned for Summer 2026 to late 2027. President Meurin opened the public hearing at 5:42 PM. No comments were made. President Meurin closed the public hearing at 5:43 PM. Director Hurta motioned to approve the project expenditure, of up to $7,200,000, to the City of New Braunfels for the construction of Castell Avenue Phase 1 - Coll Street Drainage Improvement. Director Carden seconded the motion which was unanimously approved. D) Discussion and update on Texas State Technical College and the TX FAME Program President Meurin introduced this item. Jeff Jewell, Director of Economic and Community Development, introduced Mr. Mike Anderson, Vice President of Operations of Texas State Technical College (TSTC) at the Central Texas Technology Thursday, February 15, 2024 New Braunfels Economic Development Corporation Regular Meeting  Center. Mr. Anderson presented an update from TSTC highlighting recent successes with the Lonestar FAME (Federation of Advanced Manufacturing Education) program and indicated an additional welding program and Industrial Systems program will be offered in Fall 2024. Mr. Anderson also shared that Texas State Technical College tuition is offered as a money-back guarantee; if graduates are not able to find a high paying job within 6 months of graduation, the full tuition is refunded. Mr. Jewell provided an additional update to the Board. The initially approved grant to TSTC was provided as "up to $1,000,000" and the anticipated equipment reimbursement was initially around $830,000. A second request has been made for another $112,000 in equipment, bringing the total equipment reimbursement to around $942,000 - under the initial approved amount. 8. 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 Aqua 2. Project Bronco 3. Project Camp Unicorn 4. Project Care Package 5. Project Gather President Meurin introduced this item. The Board entered into Executive Session at 5:54 PM. Items 2 through 5 were not discussed. Item 1 was discussed. No action was taken. The Board returned to open session at 6:28 PM. 9. ADJOURNMENT President Meurin adjourned the meeting at 6:28 PM. By: ______________________________ KATHY MEURIN, PRESIDENT Thursday, February 15, 2024 New Braunfels Economic Development Corporation Regular Meeting