Economic Development Corporation

FINAL - MINUTES OF THE NEW BRAUNFELS ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING OF THURSDAY, JUNE 20, 2024 Amended 6/17/2024 AGENDA 1. CALL TO ORDER President Kathy Meurin called the meeting to order at 5:00PM. 2. ROLL CALL Present: Larry Hammonds, Kristen Carden, Shane Hines, Jason Hurta, Tera Thompson, Kathy Meurin, and Don Austin Also in Attendance: Mayor Neal Linnartz 3. APPROVAL OF MINUTES A) Approval of the May 16, 2024 workshop meeting minutes President Meurin introduced this item. Director Hines motioned to approve, Director Hurta seconded the motion, and the workshop minutes from May 16, 2024 were unanimously approved. B) Approval of the May 16, 2024 regular meeting minutes President Meurin introduced this item. Director Thompson motioned to approve, Director Carden seconded the motion, and the regular meeting minutes from May 16, 2024 were unanimously approved. 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 June 2024 Treasurer’s Report President Meurin introduced this item. Sandy Paulos, Director of Finance, presented on this matter. Ms. Paulos identified a 12.7% increase in sales tax collections for April 2024; with adjustments removed, current to current collections increased by 8.8%. Through the first seven months of the fiscal year, collections are up 7.5% and Thursday, June 20, 2024 New Braunfels Economic Development Corporation Regular Meeting  remain above the FY24 budget projection. Ms. Paulos shared additional graphs indicating projected revenues, current commitment projections, infrastructure investments, the projected capacity for additional expenditures, and the proposed ending fund balance to FY26. 6. DISCUSSION AND ACTION A) Public hearing, discussion, and possible action approving an expenditure of up to $20,000,000 to purchase up to 100 acres out of the AM Esnaurizar Survey No. 1, Abstract 1, Comal County, Texas, pursuant to section 501.101 of the Texas Local Government Code. President Meurin introduced this item. Jeff Jewell, Director of Economic and Community Development, presented a PowerPoint addressing this matter. He provided background on the property, its current zoning, and acreage for each of the three tracts. Mr. Jewell also outlined the terms of the executed Letter of Intent which includes: (1) purchase of the 100 acres at $12M at closing with $1M paid annually for eight years with interest at 3% annually, (2) right of first refusal on the remaining two tracts, and (3) dedication of right of way for the Kohlenberg Road project. The final purchase amount is subject to an appraisal. He also presented graphs identifying the NBEDC's financial capacity to include projected revenues, expenditures, and the projected fund balance for FY24 to FY29. Jonathan Packer, President & CEO, New Braunfels Chamber of Commerce, outlined two potential uses for the property to include a Texas State Technical College (TSTC) campus or a business park. Mr. Packer presented a brief background of TSTC, the Lone Star FAME program, the legislation allowing TSTC to operate in Comal/Guadalupe counties, and the programs that TSTC offers at the Central Texas Technology Center. Mr. Packer also highlighted the opportunities for adding a business park or TSTC campus on this property and shared an aerial map of the area as an emerging industrial cluster. Mr. Jewell and Mr. Packer answered questions from the Board. President Meurin opened the public hearing at 5:20PM. Mr. Jackie Nolte, a New Braunfels ETJ resident, spoke in support of the purchase. President Meurin closed public hearing at 5:25PM. Director Hines motioned to approve the expenditure, of up to $20,000,000 to purchase the proposed land; Director Hurta seconded Thursday, June 20, 2024 New Braunfels Economic Development Corporation Regular Meeting  the motion which was unanimously approved. Both Mayor Linnartz and President Meurin spoke in support of the property acquisition and the property seller. B) Presentation and discussion on a proposed project expenditure to advance Phase 2 of the Gruene 16 Project President Meurin introduced this item. Jeff Jewell, Director of Economic and Community Development, presented a PowerPoint addressing this matter. He provided the Board a brief background on the planning efforts for addressing the NBEDC-owned "Gruene 16" property near HD Supply off Gruene Road. In Fall 2023, Economic and Planning Systems (EPS) started working on phase one of the project to address community goals, market capacities, and to hone a development vision for the property. Phase one has been finalized and three themes have emerged based on stakeholder feedback: visitation, creativity, and local focus. The next phase of the project will include test fit and yield studies to understand the three possible land uses, a financial feasibility model, and a draft RFP which will be ready for solicitation in early 2025. The estimated cost of phase two is $60,000 with $15,000 rolling forward from the previously authorized unused funds from phase one. Plans are to present this item for potential action at the July regular meeting. Mr. Jewell answered questions from the Board. 7. 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 Pine Tree 3. Project Aqua 4. Project Lark 5. Project Texas 6. Project Gather 7. Project Madeline Thursday, June 20, 2024 New Braunfels Economic Development Corporation Regular Meeting  President Meurin introduced this item. The Board entered into Executive Session at 5:41PM. The items were discussed in the following order: Project Texas, Project Care Package, Project Madeline, Project Pine Tree, Project Aqua, Project Gather, and Project Lark. No action was taken. The Board returned to open session at 6:25PM. 8. ADJOURNMENT President Meurin adjourned the meeting at 6:26PM. By: ______________________________ KATHY MEURIN, PRESIDENT Thursday, June 20, 2024 New Braunfels Economic Development Corporation Regular Meeting