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HomeMy WebLinkAbout05-23-1995 • a r CITY COUNCIL AGENDA PACKET 5-23-95 i • t r ~~r • as • ~ e nita N a ..._..1.,~.......,.~.- anendalte ~ I nip AGENDA CITY OF DENTON CITY COUNCIL May 23, 1995 Closed Meeting of the City of Denton City Council on Tuesday, May 23, 1995 at 5:15 p.m. In the Civil Defense Room of City Hall, 215 E. McKinney, Denton, Texas, at which the following items will be considered: NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO CLOSED MEETING AT ANY TIME REGARDING A14Y ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. 5:15 p.m. 1. Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Discuss City's participation in City of Rusk, 9t, alv QT and answer of city in GTE v. Denton case. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 ' 1. Discuss the acquisition of property for expansion of the city's landfill. C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 1. Discuss the appointment process for part-time Municipal Judge. Work S, ssion of the City of Denton City Council on Tuesday, May 23, 1995 at 6:00 p.m. in the City Council Chambers of City Hall, 215 E. McKinney, Denton, Texas at which the following items will be considered: NOTE: A Work Session is used to explore matt.-s of interest to one or more City Council Members or the City Manager for the purpose of giving staff direction into whether or not such matters should be placed on a future regular or specs meeting of the Council for citizen input, City Council deliberation and formal • city action. At a work session, the City Council generally rt,:eives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual '.c organization proposing council action, if invited by City Cc,:ncil or City Manager to participate in the session. Participation by individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public O input. Although work Sessions are public meetings, and citizens • • have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City i t • • Agendas Council, prior to the beginning of the session, a written report 2 2 regarding the citizen's opinion on the matter being exp~ored. U Should the Council direct the matter be placed on a regular meeting then proposedsaction,i which will be made r available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. 6:00 p.m. 1. Receive a report, hold a discussion and give staff direction regarding the options for the PHH Fantus recommendations. 2. Receive a report and hold a discussion regarding strategic electric rate issues relating to future TMPA power costs. 3. Receive a report and give staff direction regarding the history of the current hotel occupancy contracts and discuss a schedule for recipient budget presentation and contract renewal. 4. Receive a report, hold a discussion and give staff direction regarding the council annual planning session. C E R T I F I C A T E I certify that the above notice of meeting was bulletin board at the city Hall of the City f Denton t Texas, ton the day of (p.m.) 1995 at o'clock (a.m.) CITY S- ECRETARy IOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN A CCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY H ADVANCE OF EARING LIMPA IMPAIRED REQUESTED G AT INTERPRETERS LEAST 48 HOUFOR RS THE 4 THE SCHEDULED MEETING. SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS DEVICES FOR "E DEAF (TDO) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGI; INTERPRETER AE SCHEDULED '!HROUGH THE CITY SECRETARY'S OFFICE, ACCT, 31 r t • a e DENTON 00~~ F D F to 000~~ qOp 0 0 Oct ~ p OUP r 0000 ooD ° N T OooO aoaooo i i is } CITY N COUNCIL • • Agerna~da 5~~/ ~peadaltem o1 May 2 ltB l" CITY COUNCIL AGENDA ITEM 1(bs T0: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager RE: TMPA ELECTRIC RATE STRATEGY RECOMMENDATIONr Receive a report and hold a discussion regarding strategic plan for electric rates relating to TMPA future costs. SUMMARYr Denton receives 65~ of its electrical energy from TMPA. The present cost of that energy is 5.24/kwh. TMPA is planning on closing it's Grimes county lignite mine and purchasing high grade coal from the Powder River Basin (PRB) mines in Wyoming. With this conversion plus several cost cutting efforts at the Gibbons Creek plant 404/kwh estimates are that the cost of TMPA power should be reduced to TMPA's present debt payment is approximately $75 million per year but is scheduled to increase to $130 million per year by 2008. Denton's share of this is approximately 21.5ir to 225k. Without considering inflation, this increase in debt service will cause the TMPA rates to crease frorr the proposed 4.04/kwh to 5.3 or 5.54/kwh by 2008. There re proposals to continue with TMPA rates of approximatel, 4.84/kwh and set aside the remaining savings resi' t-ing from the PR9 conversion in a special escrow fund -o be used to pay off debt in future years, primarily frc,m 2004 to 2017. The City of Denton has been positioning itself to use some local electric depart"e~.- reserve funds to help offset these future increases in TMPA d4 bt but additional • funds or TMPA rate cuts will be necessary to reL,in competitive eclectic rates. Some TM, z, cities need all of the TMPA rate cuts passed back to their city so that they can have competitive rates today. Since this issue affects all four TMPA cities, it is necessary that the four cities collectively decide on a common rate stabilization strategy and inform their respective TMPA • Boardmembers of their desires. • • i • Q • f 4g aNo Late CITY COUNCIL AGENDA Page 2 2 0~ 5 Exhibit 11 shows the electric departments strategic plan for using reserves to hold rates competitive. Without the use of these reserves or proper use of TMPA reduced costs Denton's electric rates may not be competitive in the 2005 to 2017 time period. Three possible options for how the TMPA cost reductions could be used for rate stabilization are: 1. TMPA lower rates to just cover costs a) Advantage Lower rates today Better assurances TMPA will not spend funds for unnecessary purposes. b) Disadvantage - Somme cities may not set aside any of the savings for future TMPA rate increases, When TMPA rates are increased in the future to pay for increase debt service, one or more cities may not be abe to pay the higher rates due to competition over the rates they charge in their own city. This could force the fiscally prudent cities to help "ba±.l out" the less fiscally prudent c~lties. 2. TMPA lower rates slightly but keeps majority of savings to be used for paying off future debt service a) Advantage ' - A uniform rate stabilization is A applied for all four cities and the risk- of some cities not being able to pay future Yates as per note in 1(b) above is substantially reduced. I, b) Disadvantage I TMPA staff and Board may not be , • i inclined to hold costs as well as with Option 1, t 0 0 • m • Agenda No CITY COUNCIL AOBNDA Date/ Page 3 34~. -TMPA may spend funds for unnecessary purposes 3. TMPA lower rates slightly and set up four separate escrow funds, each controlled by one of the cities. a) Advantage -TMPA may be more inclined to hold rates down -TMPA may not he able to spend funds unnecessarily -Each city can release their own escrow funds to meet that cities particular needs b) Disadvantage -similar to 1 (b) above -legally may be difficult to accomplish -some question of how much control cities can have over such escrow funds, Additional information will be available at the Council work session, 4VRctfly mit . Harrell City Manager • Prepared ~by:, / y 1 R. E. Nelson, Executive Director of Utilities • Ex;iibits: S I Graph, TMPA debt service ~ II Electric Cash Reserves & Annual Cash Net income I G? ♦ e i TMPA DEBT SERVICE x AS OF 9/30/94 (Exlsiing) tX 160 - - ..1 1, N i 100 - O 1 60 e I 0 0 - - iO 1998 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Denton has programmed 21.60% for 1998. s Denton's portlon for 1908 `18.807 Mliflon ~j u • 0 • ,4. 1 ELECTRIC CASH RESERVES r & ANNUAL CASH NET INCOME 90 F4 H 40 - - - 30 x 10 0 _ -10 - _ 1999 1998 2000 2002 2004 2008 2008 2010 2012 2014 2018 2018 ® Cumulative Cash Reserves F Annual Cash Net Income • Ra• In•rn~• 0.00 1.40 1.41 1,41 1.47 1,47 1.47 0.42 1,48 1,37 8.17 8191 7.17 8.12 4.41 4.01 1,04 9,00 4.14 0,11 1,11 4.97 ,11 ~y MIN on 3.30 100 3,00 3.04 3.00 0.03 3,00 3.00 2,00 7.03 3.00 3,00 3.00 3.00 3,34 4.00 4100 3.00 3100 2.00 3,00 3.40 . 0•w•f Celt -.013.1,43 4,18 4.10 8,11 4,44 4,31 4,49 4.18 3.94 4,48 4.14 1.21 4031,31 3.43 3.43 4.42 1,14 3.41 I,Y1 •/.17 CALCULATED FOR F.Y. 1999 l►~ U j c, 0 r DENTON oaaSV000oooaoo Opd.~ ~o ~o a o ( © 4 O D oo~o'' O N °~aano 0 000 CITY COUNCIL . r { • • ApA"~_ 61 fc$3 CITY of DENTON, TEX48 MUNICIPAL BUILDING • 215 E MCKINNEY • OEM TON, TEXAS 76201 (817) 566.8200 • DFW METRO 434.2529 MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Jon Fortune, Chief Finance Officer DATE: May 19, 1996 SUBJECT: REVIEW OF PROCESS TO DEVELOP CONTRACTS WITH HOTEL OCCUPANCY TAX RECIPIENTS Pursuant to Texas Tax Code, municipalities may impose a seven percent tax on hotel occupants to be used to promote tourism and the convention and hotel Industry. To accomplish this goal, the City contracts with various organizations in the community that promote tourism and the convention and hotel industry to receive a percentage of hotel occupancy tax revenue. Curren0y the City distributes hotel occupancy tax revenue to the following recipients: 1 - Denton Chamber of Commerce - Convention and Tourism Bureau 2 - Greater Denton Arts Council 3 - Denton County Historical Foundation 4 - Denton County Historical Museum 6 • North Taxes State Fair Association in addition, the City retains a sinall portion of this revenue to fund eligible expenses, which are used to reimburse the General Fund for Campus Theater expenses. Each of the above recipients is under a six month contract which is valid April 1, 1996 through • September 30, 1996. Recently, the process to develop current contracts with each of j the above recipients was comnleted. d The process began in SeptF ; of ! 994 when the City Council 6ppointed a Council sub- committee consisting of Mayor Castieberry, Mayor Pro Tom Brock, and Council Member Perry to review the distribution of hotel occupancy tax revenue and make a • recommendation to Council regarding the uses of the funds. At the time the committee r was established, the contracts with recipients were to expire March 31, 1996, which provided approximately six months to conduct a thorough examination. To begin , the committee asked staff to conduct a survey on the various uses and allocation of the tax in other cities, while the committee began an extensive review of State Statute and City Code relating to the administration of the tax. "Dedicated to Quallry Semice" • Q • c~ • WON o ~gendaltefrl, Memo to Mayor and Council Members 1a1F r - May 19, 1995 Page 2 To confirm that the recipients of tax revenue were complying with the legal uses of the funds, the committee asked the City's Internal Auditor to conduct an audit of each recipient, and asked recipients to complete a questionnaire seeking to determine how each organization uses hotel occupancy tax revenue to encourage and promote tourism and the convention and hotel industry, To conclude each audit, recipients were asked to appear before the committee to make a presentation regarding their uses of the tax. During this period several other organizations not receiving any funding from hotel occupancy `ax funds approached the committee seeking funding, These organizations (Denton Historic Landmark Commission, Denton Main Street Association, and the Denton Festival Foundation) also were asked to complete the questionnaire and appear before the committee. f In February, the sub-committee received a presentation from Corgan & Associates f regarding proposed improvements to the City's Civic Center. The sub-committee f considered the use of a portion of hotel occupancy funds to renovate or expand the Civic Center. According to State law, the City can use up to seventy-five (76%) of hotel occupancy tax receipts to fund Civic Center improvements. The final phase of the sub-committee's review was to examine various funding scenarios and develop a recommendation to City Council. Once again, the sub- committee recommended renewing contracts with the previous recipients. However, modifications were proposed to each contract. Several of the more major proposed changes included changing the term of the contract from four and one half to two and one half years, making quarterly reports mandatory prior to distribution of funds, and establishing proof of insurance requirement to lessen the City's liability, Plus, the sub-committee proposed establishing a funding cap that limited the maximum amount of hotel occupancy tax distributed to each recipient. Under past contracts, any increase in hotel occupancy tax revenue was distributed to each recipient, which required a budget amendment. The City Attorney advised the sub-committee that the funding cap would prevent the • need for a budget amendment, which is only possible to meet a grave public necessity resulting from an unforeseen circumstance at the time the budget was adopted. The proposed cap was calculated by taking a three year average of the actual hotel occupancy funds distributed to the recipients minus approximately one percent. However, the cap for the Denton County Historical Foundation was calculated by taking approximately one-half the three year average. Any hotel tax receipts in excess e of the raps would be placed in a reserve for use to complete Civic Center renovation,;. • • • tJ s • 4getKiaNo 4pends! Memo to Mayor and Council Members r]atc3 S May 19, 1995 Page 3 The subcommittee completed their study and presented the above proposal to Council In mid February. During the discussion some concerns were expressed regarding the proposed funding. A motion was made to modiiy the committee's recommendation by changing the funding cap from a percentage of a three year average to the actual 1994.95 budgeted amount, tend change the contract term from two and one half years to six months. The motion to modify the contract term to six months was nade to enable Council the opportunity to revisit funding scenarios and provide a more long term contract solution prior to September. The above has outlined the history toward development of current recipient contracts, As mentioned above, each of these contracts expire September 30, 1995, Recipients are scheduled to present their budgets to Council in late July and early August, and will require further direction regarding anticipated funding prior to their budget presentation. I hope this Information is helpful. If you have any questions please advise. Thank you. I JF:af AFFOOE38 i i i 1 • r..w....+.~-....-.y.N. • . err wYa A" :1 r. t • • ,f 1r,- :1. ,j!'-'_, ~ qu',ijivt ~ E~r,~'r~[t ~ • 0 DENTON oooooao0Oooo . ppo~ o D 4P ~ 000 00 ~O p0 . o O c o 0 ©d o .419 00~ ~'o rv ~ ~ 00 opoa 00000 000 a aQ ® CITY . COUNCIL r a • • Aardalt CITY of DENTON, TEXAS MUNICIPAL BUR DING • DENTON, TEXAS 76201 • TELEPHONE (817) 566.8307 Office of the City Manager MEMORANDUM TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager DATE: May 19, 1995 SUBJECT: Annual Council Planning Session Pursuant to Council direction, Staff has determined that the four candidate sites for the annual planning session are available on the weekend of July 21-22. The attached summary and table reflect the costs associated with reservation and attendance at each of the four sites. A quick review of the table reveals that the Marriott Solana has a very competitive room rate should Council elect to stay overnight. As before this information includes the cost for meals, meeting room, and audio-visual equipment, Typically, Staff brings their own equipment and this defrays this cost. It is important to note that the meeting room charge is only $25 for Friday and there is no charge for Saturday. The Radisson Hotel is also available on this weekend. The room rate to stay overnight is $55 plus tax per person. There are two options for meals and the cost for the meeting room is $225 per day if there are no meals. if meals are included, then there is no charge for the meeting room. The cost person would be approximately $43 if Council chose not to stay e overnight. Typically, the agenda for the planning session is structured so that Friday is reserved for presentations on issues that the • Council needs to consider. Accordingly, we typically have anywhere from 15-20 people for. Friday for lunch as this allows Council the opportunity the interact with the Staff. However, on Saturday, lunch usually includes the Council, the Facilitator, and minimal Staff thereby reducing the number and cost for lunch. The Radisson Hotel has priced their lunch in consideration of these numbers, • Mr. Bob Saunders is available on this weekend and has agreed to r r serve as the facilitator. Pending your approval of the dates and the selection of the meeting site, Staff will make reservations for him. "Dedicared io Qualki, sen'ice" ~_r. 71 • ~de~o q5-0 Please advise if I can provide additional information. on. ~j RESPECTFULLY SUBMITTED, A Ll V. H City 6MManagerrell Prepared by; Josep Portugal Assistant to o the City Manager Attachments: 1. Annual Planning Session Summary 2. Table of costs • i i i j ,i 1iJ ql d~, • VeNaNo_ 1295 CITY CQUNCIL PLANNING S$882014 4ganda~,..,.,.- OPTI9 1: MARRIOTT SOLANA HOTEL, WESTLAKE (817) 430-0038 3d~ CONTACT PAUL MANGENELLI 0 MARRIOTT SOLANA HOTEI,:$62.00 PER NIGHT, SINGLE OCCUPANCY. CONFERENCE ROOM RENTAL FEE OF $25.00 FOR FRIDAY AND NO FEE SATURDAY. MEAL: $6.00 FOR MORNING COFFEE BREAK, $14.00-16.00 FOR LUNCH, AND $5.00 FOR AFTERNOON BREAK. ALSO INCLUDES PASS TO USE SPORTS CLUB EXERCISE EQUIPMENT. OPTION 2: RADISSON HOTEL, 565-8499. CONTACT LAURA PEGUES "MEETING PLAN II OR III" AND THE "CONFERENCE COFFEE BREAKS". AUDIO-VISUAL EQUIPMENT RENTAL FEES BASED ON WHAT IS NEEDED: OVERHEAD PROJECTOR-$35.00; SCREEN-$8.00; T.V.-$25.00; VCR- $25.0~); SLIDE PROJECTOR-$25.00. CAN ALSO BRING OWN A-V EQUIPMENT. Meeting Plan II - $1.2.60 per person (up to 15 people) $ 9.90 per person (16 or more people) includes meeting room all day; coffee, tea, water, Danish in a.m. Replenish coffee and tea and add sodas, candy and cookies in p.m. Meeting Plan III - $17.60 per person (16 or more) I Includes meeting room allday, coffee, tea, water, Danish in a.m, Replenish coffee and tea and add sodas, candy and cookies in p.m. Also includes soup, salad, pasta, deli bar for lunch. OPTION 3: DFW AIRPORT HILTON, EXECUTIVE CONFERENCE CENTER, (817) 481-8444. CONTACT ANNA UNDERWOOD $89.00 PER NIGHT, SINGLE OCCUPANCY. $50.00 PER PERSON PER DAY PLUS TAX & GRATUITY FOR THE EXECUTIVE CONFERENCE CENTER, INCLUDES BUFFET LUNCH IN CONFERENCE DINING ROOM, TWO DAILY BREAKS (MORNING BREAK COMPARABLE TO CONTINENTAL BREAKFAST), MEETING ROOM AND AUDIO-VISUAL EQUIPMENT. • OPTION 4: SHERATON GRAND AT DFW, (21.4) 929-8400. CONTACT LISA NOVOSAD $74.00 PER NIGHT, SINGLE OCCUPANCY. NO SET UP FEE FOR MEETING ROOM IF WE HAVE MEALS. CONFERENCE ROOM FEE $150.00 PER DAY • (ONLY $50 PER DAY IF LUNCH CATERED IN). AUDIO-VISUAL EQUIPMENT AVAILABLE ON RENTAL BASIS OR CAN BRING OUR OWN. MEALS: • 4 DINNERS BEGIN AROUND $23.00; LUNCH $12.00; BREAKFAST $8.75. BREAKS: $5.00 PER PERSON. ! o 4 W • s 1995 CITY COUNCIL PLANNING SESSION { HOTEL DATA'S ROOM RATS KE"S NSETINO RBI A-V EQUIP. COSTRPER PERSON MARRIOTT SOLANA 7/21-22 $62,00 $27,00 $25,00 HOTEL + TAX $35,00 $118.50 per person Fri, only per day - No charge includes for Sat, breaks & j lunch RADISSON HOTEL 7/21-22 $55,00 Meeting $125,00 f (DENTON) + TAX Plan II or $35.00 $98.00 per day Meeting for room Plan III onl DFW AIRPORT 7/21-22 HILTON CONFERENCE $89,00 included $50.00 included $199,00 CENTER + TAX in per person conference per day + room fee ratuit SHERATON GRAND 7/11-22 $74,00 $5 per • AT DFW + TAX $150,00 $5,00 $10'7,50 person per day or each break $50 per $12,50 for day if lunch lunch is catered I nniMCmapn 4 I • • CITY of DENTON, TEXAS MUNICIPAL BUIL DING # 215E McKINNEY @ DENTON, TEXAS 76201 18 17} 566.8200 @ OFW METRO 434.2529 MEMORANDUM TO: Mayor and Members of the City Council FROM: Lloyd Harrell, City Manager DATE: May 19, 1995 SUBJECT: Analysis of the PHH Fantus Study At the Tuesday evening City Council work session we will begin an in-depth discussion with Council intended to focus on determining the best strategic plan for economic development for this community. It is important that we proceed carefully in order to embrace this important opportunity to turn the corner on our economic development program. Attached is a detailed analysis of the PHH Fantus recommendations for which the City has been designated to take the leadership role. On those recommendations where action has already been taken or is in process a status report has been given. On those recommendations needing specific Council direction, background information is given along with various options for City Council's consideration. Each section of your notebook focuses on a separate strategy for where the City is taking the lead. Those highlighted sections shown with a columnar indicator of XX on the workplan submitted to Council several weeks ago are the primary items being discussed this Tuesday. The other items are being handled by the Chamber of Commerce. I have also attached background information on the City's existing • partnership including the current contract, and a history of the City's funding. Please call me if you need any further detail. • Lloyd I rrell, City Ma ager ' • • "bedicawd In Qualhv sem,lce " • O , r • f- Qa • May 19, 1995 Page 2 Attachmentst • History of City's contribution to the Partnership funding. • Copy of the current contract for the economic development Partnership. • Organizational chart of the existing Partnership structure. • Key Partnership activities chart. • Listing of advantages of an economic development corporation. • a\wp51\dwN JO) . • f i ~~i ~ i, a. • • • CHAMBER OF COMMERCE FUNDING UTILITY FUND DOLLARS FY94! 5 , ~ v ' :t FY93194 „ k .4 FY92/93 , ; ~ ~ 4~ ,fir , FY91/92 1 FY90191 t I FY89r9o r - f rRa j , , f FY88189 ";x , FN 88!87 1 $0 $10,000 $20,000 $30,000 $40{_ aoo $60,000 $60.000 s70,000 • o • • ADVANTAGES OF AN ECONOMIC DEVELOPMENT CORPORATION • SINGLE MISSION • UNITED • QUICK HIGH LEVEL DECISION MAKING a FOCUSED EFFORT • STRATEGIC • OPENS DOOR TO FUNDING OPPORTUNITIES • NECESSARY FOR HALF CENT SALES TAX • SMALLER AND MORE MANAGEMENT ORIENTED • ACCOUNTABLE - PERFORMANCE DRIVEN • • SENDS MESSAGE THAT ECONOMIC DEVELOPMENT PROGRAM IS PROFESSIONAL AND READY TO DO BUSINESS AND MAKE DEALS RETURN ON INVESTMENT PHILOSOPHY • c~a e • CHAMBER OF CITY COUNCILCOMMERCE BOARD I ECONOMIC DEVELOPMENT _ PRESIDENT CITY MANAGER - - - - - r ADVISORY r _ BOARD.. VICE-PRESIDENT ~ EXECUTIVE ! -DEVELOPMENT DIRECTOR ALLIES INVESTORS ECONOMIC • -D- -EVE - - ~I I MS/ED - - ECONOMIC DEVELOPMENT COORDINATOR • G\ • i Ei\W9D0C$\0R0\CNANCR.AND ORDINANCE NO. 9 ~.3 2 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE FOR THE PURPOSE OF PROVIDING FOR A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT] AUTHOR- IZING THE EXPENDITURE OF FUNDS THEREFOR) AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: =10N I. That the City Manager is hereby authorized to execute Amendment No. 1 to an agreement between the City of Denton and the Denton Chamber of Commerce for the purpose of providing for a program to promote economic development, a copy of which is attached and incorporated by reference herein. SECTION Ii. That the expenditure of funds as provided in the agreement is hereby authorized. The amount shall not exceed Twenty-five Thousand ($25,000.00) Dollars for the purpose of providing reimbursement for one-half of the cost of conducting an economic analysis. SECTION III, That this ordinance shall become effective E immediately upon its passage and approval. PASSED AND APPROVED this the gKd day of L., 1994. BOB CASTLE BERRY, MAYO ATTEST: JENNIFER WALTERS, CITY SECRETARY • BY APPROVED AS To LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: • G> m AKENDKENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE WHEREAS, on August 15, 1989, the City of Denton, Texas ("City") and the Denton Chamber of Commerce ("Chamber") entered ir..:o an Agreement for an economic development program ("Agreement"), a copy of which is attached hereto as Exhibit "A"; and WHEREAS, the Chamber has requested funding for the purpose of conducting an analysis of Denton's competitive marketing capabili- ties and the city wishes to amend the Agreement to provide for such analyses; NOW, THEREFORE; W I T N E S E T H: ARTICLE I. That the City and the Chamber hereby amend Article 1 o, the Agree- ment to read as follows; 3. DUt1eg_of Office. The duties of the Oftii, of Economic Development shall include the following: (a) Preparation, in consultation with the C :_,;tee, of a written comprehensive Economic Development ("Plan") to be approved by the Chamber's Board of. Dir.;-. s and city Council. (b) Performance of an annual review and amendme,.., as neces- sary, in consultation with the Committee, of the Dian. (Tg~ become effective, any amendments to the Plan -11 approved by the Chamber's Board of Directors ind c..,n %.icy Council.) v (c) Maintenance of a liaison with the Texas Department of Com- 1 merce and other public and private agencies and organiza- tions that would promote the purpose of the Plan. (d) Preparation and maintenance of a comprehensive fact book and other publications that would provide information to interested persons as to the City's population., employment base, private and public institutions and facilities, and other significant characteristics and resources of the city. (e) Initiation and maintenance of contact with, which shall • r include making presentations to, desirable industrial prospects so as to promote their interest in locating within the area. I ~ O • • Render advice to the City of +.he progress of the Plan at such times as requested by tl:e City. To this and, the Office will provide monthly prograt reports to the City through the minutes of the Chamber's Board meetings. The Office will also present quarterly reports that include the sources of expenditure of funds, major projects, number of industrial prospects who vis£tid Denton and industries locating in Denton to thr Denton City Council, Public Utilities Board and such other groups as the parties may determine. (g) The conduct or commission of studies for the purpose of special analysis or research to enhance the City's market- ing capabilities, as identified and mutually agreed upon by City and Chamber. ARTICLE II. That Article 4 be amended by the r.d~ltion of a new paragraph, which shall be and read as follows: With respect to the services described in Article 3 1-1, the City shall reimburse the Cha ar for one-h if of to cost of conducting an eoonoLic a• lysis for the surpor if enhancing the City's mark.- r capabilities) provi. , however, that the raimbursem all not exceed the su f $25,ooo. ARTICLr II. In all other respects, the tart ,nd condJ1 ,u of the Aq,4e- ment, as executed by the parties o: ,;he 191"- say of August, 1909 4hall remain in full force and effect. EXECUTED this ah~ day of 1994. CITY OF ^vMON, TEXAS • BY: BOB CASTLEBERRY, MAYOR ATTEST: ® JENNIFER WALTERS, CITY SECRETARY • • BY; PAGE 2 • APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY SCrp'~ t DENTON CHAMBER OF COMMERCE eYt CHARLES W. CARP ER, PRESIDENT i • I { Ea\4~DOC4\K\CMAINEK,A1p PAGE 3 ca 4-4 616E F t NO. -za AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE PROVIDING FOR A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the attached agreement between the City of Denton and the Denton Chamber of Commerce providing for a program to promote economic development is hereby approved. SECTION II. That the •-diture of de in a. ;:ith the regimen. hereby a _ -ized. SRCTIOi1 III, iat the ~d agree me t shall, ti all resp.,c'- supercedb the agree ien between is CiCy an, the Chambi author' ;ed by Ordinanc, 86• and ax .uted on t~.e 27th day of ivtober 1986. ` I S' r LV. That this c dinanc. shall become effective immed'{ t'fy upon its passage an approv Pi "D AND ..?PROVED this tho (`~da f {yy~, 19L ATTEST; LO ETARY PROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCHO CITY ATTORNEY BY: , i, A 4 9~ - 1616L THE STATE OF TEXAS § ECONOMIC UEVELOPMENT PROGRAM THE OF COUNTY OF DENTON § RAND THETDENTONECHAM BERI F COMMERCEN This Agreement is made between the City of Denton, Texas, ("City"), and the Denton Chamber of Commerce ("Chamber") for the purpose of providing for a program to promote economic develop- ment through the joint effort of the parties hereto, who, in consideration of their mutual promisee, agree as follows: 1. Office of Economic Davelo sent Created. During the term of this greement the am er e a ma nta n an Office of Economic Development (r'Office") managed by Director of Economic nevelopment ("Director"), who shall be hi- an a Full-time einlloyse of the Chamber to perform the dutl a of the Office. ~ Economic f , o ment Committee Cr,ited. In n 'er to to a program r economic eve opment, tTte partie, agree th an Economic j velopment Committee ("Committee") will be e olished. The members of the Committee. who shall represent diverse 1 into fists of the community, shall be appointed by .e Chambers B, rd of Directors, but A 11 include one member of the City's I )lic. p ities Board, a mbers of the City Council and two mvlc of the City, as ieignated by the City. Subject to spproval the Committee, he Chamber Pr tdent shall have t - autho, to hire the rector of E comic Development. 'he Chambe 'res'.dent shal• •ipervise tb daily activities c :he Directo_ '.d gay termina_ he Dirac, The Committee - rove 0 ntment of - -o serve as Direct_ ~ Economic -upment, and sh«i, act in an advisory role to the Directo 3. Duties of Office. The duties of the Office of Economic Development shall include the following: a) Preparat+,n, i. ^onsultation with the Committee, N of a written comprehensive Economic Development Plan ("Plan") to be a roved by the Chamber's Board of Directors and City Council. b) Performance of an annual review and amendment, as necessar , in consultation with the Committee, 0 the Plan. (To become effective, any amendments to the Plan shall be approved by e the Chamber's Board of Directors and the City A O Council.) 0 0 • • 450 " c) Maintenance of a liaison with the Texas Industrial Commission and other public and private agencies and organizations that would promote the purpose of the Plan. d) Preparation and maintenance of a comprehensive fact book and other publications that would provide informariun to interested persona as to the City's popular-ion, employment base, private and public institutiona and facilities, and other significant characteristics and resources of the City, e) Initiation and maintenance of contact with, which shall include making presentations to, desirable industrial prospects so as to promote their interest in locating within the area, f) Render advice to the City of the progress of the Plan at such times as requested by the City. To this end, the Office will provide monthly program reports to the City through the minutes of the Chamber's Board Meetings. The Office will also present quarterly reports that include the sources of expenditure of funds, major projects, number of industrial prospects who visited Denton and industries locating in Denton Co the Denton City Council, Public Utilities Board and such other groups as the parties may determine. 4. Support Services and FundiM. The Chamber shall provide the office apace, equ pment a d- support staff necessary to the operations of the Office of Economic Development. The City shall provide funding as approved in the City's budget which shall be adopted on or before the 20th daq of September of each year. Of the amount appropriated for each year, the City shall pay the Chamber one-half on October let and the remaining half shall be paid on the following Ap•11 1st. Thereafter, the City shall provide annual funding fi the amount appropriated for that purpose by the (;).ty Counci.. • Any funds provided by the City pursuant to this Agreement shall be retained in an account separate from the Chamber's general operAting fund and shall only be used for the ppurpcies provided for in this Agreement. The Office of Economic Development shall keep current and accurate records of all funds received and expended, which shall be subject to inspection by 0 the City at all reasonable times. • • PAGE 2 0 • • • 01' The Chamber Economic Development Office shall provide monthly status reports to the City on the progress of the Economic Development Program, which shall include a description of expenditures of the Office made with funds appropriated by the City. Annually, during the budget process, the Chamber shall submit a program budget request to the City Manager. The City shall then evaluate the progress of the Chamber Economic Development Program and, at that time, determine whether to continue appropriations to support the office the following fiscal year. 5. Statue of Office. The Office of Economic Development created under this greement shall be under the direct super- vision and control of the Chamber and all personnel of the office shall be considered employees or agents of the Chamber. The Chamber shall be responsible for the payment of all benefits or liabilities of such employees or agents, including the withholding or payment of personal income or social security taxes, as provided by appplicable law, and the payment of worker's compensation premiums. The Chamber shall maintain policies of insurance in the minimum amounts required by law to protect against liability arising from the operation of any vehicles used by employees of the Office and the Chamber agrees to defend against, and indemnify and hold the City harmless from any claim arising from any negligent act of such employees. atioa Initial Payment, This Agreement 6. Term TMin shall bee ect or a term o one year from the execution hereof, and shall be automatically renewable for successive period of one year without the necessity of any action on the part of the parties hereto, unless during any successive term, the City shall, after the initial funding provided for herein, fail to appropriate funding for any successive year, in which case this Agreement shall terminate. In any case, however, either party may terminate this Agreement by giving written notice to the other thirty (30) days advance notice, in which case any unexpended funds provided by the City shall be raturnad to the City. City shall transfer the remaining funds allocated in the • budget for Economic Development irk fiscal year 1988-89 to the Chamber. Such funds shall be used only in accordance with Section 3 hereof. Executed this Jday of 1989. • e4tLl 1 0 0 CITY DENTON, TEXAS PAGE 3 • • • -4'5 2 ATTEST: itETRiY 61TY OF ENTON, TEXAS APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY., DENTON CHAMBER OF COMMERCE BY: AiAA, UL ~R1 ATTEST: SECRETARY • • ' • • PAGE 4 • d • a 452 - ATTEST; FE TERS, CITY SECRETARY WALT Ty OF ENTON, TEXAS APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY: e iI ' li)N CHAMBER 0 ;ONMERCE B' ; ATTEST: SECAEW • I PAGE 4 j ECONOMIC DEVELOPMENT PROGRAM CITY OF DENTON/DENTON CHAMBER OF COMMERCE PARTNERSHIP KwY AREAS AMBER OF COMMEF X C,^Y OF DENTON TARGETED RECRUITMENT/ Pr.im,ry marketing ane follow- Technical support and liaison PROSPECT FACILITATIOIN up Pros, -,tus dr:elopment Fi'm :smmission Memb lip Fil jordlnator SMALL BUS1, DEVELOPMENT ton Center for Small jr Center for Small jiness Bur )as Advisory Board re' sentation o-sponsor seminars and ,etworking opportunities r ant referral INDUSTRY JRT/ Local industry visitation. industry visitation, t;TENTION Identify and attract vb,. ombudsman role and contractors Relocation assistance Mayor's aremkfasts Relocation assistance CAPITALIZE ON UNIVERSITY Research and technical Town/Gown Consortium ® ASSETS transfer Training grants SITE DEVELOPMENT Identify and promote Map production 4 A Cost analysis of infrastructure MIS/M 0!/ l3H M i ECONOMIC DEVELOPMENT PROGRAM CITY OF DENTON/DENTON CHAMBER OF COMMERCE PARTNERSHIP KEY AREAS CHAMBER OF COMMERCE CITY OF DENTON IMAGE BUILDING AND MARKETING Media relations Ordinance revision Marketing materials/videos Specialized maps and Community profile public,tions Fact book COMMITTEE LIAISON AND/OR Economic Development Advisory City Economic Develo COORDINATION Board Team pment Marketing task force Economic Development Technical Task Force North Central Texas Council of Governments Economic Develo ent Roundtable JOINT ACTIVITIES North Texas Commission Pursue F.M, 1499 Infrastructure planning and resource identification A C7 A M.9/13) 0!/17/91 1 i; +y "11. fE 0 t 45 O 0 i~ PHH FANTUS COMPETITIVE ANALYSIS ' RECOMMENDATIONS I ECONOMIC DEVELOPMENT STRUCTURE With the economic development landscape dramatically changing, a more focused, well-funded, and strategic effort is required to maintain a solid, desirable pace of development in the face of strong competition on a regional, national and even international basis. Adequate funding has been unavailable to the program. Also, the Economic Development Advisory Board (EDAB) is unnecessarily large, and communication between staff and board has not been especially strong. RECOMMENDATION #I: Revamp the economic development program through establishment of a new organization structure, the raising and expenditure of more money, seeing appropriate expectations and managing to them, and a focus on brand-building. oomie Cify Chamber ECONOMIC DEVELOPMENT STRUCTURjD Recommendation #1 opmeat of of Action TtenAa_.. _ oration Commerce Comments Streamline economic development program by XX X City staff will coordinate meetings reducing size of EDAB to perhaps the five between City Council and the Chamber individuals who the City Council would ultimaBoard to determine the appr opriate size of appoint to the Economic Development Corporathe new Board and to appoint new EDAB .Z r members. b. Build an ongoing strategic planning process within XX The new EDAB will develop a new 0 the E DC that anticipates and analyzes strategic plan. developments that effect Denton's competitive position. Attendance at trade shows and traditional advertising should have a limited place in Denton's overall economic development 0 campaign. 0 XX = Leadership role X=Participation February 1, 1995 1 • • STAFF RESPONSE TO PITH FANTUS RECOMMENDATIONS ECONOMIC DEVELOPMEN'r STRUCTURE Recummendation #1: R:.vamp the economic development program through establishment of a new organization structure, a. Streamline economic development program by reducing size of the Chamber Economic Development Advisory Board (FDAB) to perhaps the five individuals who the City Council would ultimately appoint to the Economic Development Corporation (EDC). Option A - No Change to Existing Economic Development Program Structure Option B - Continue with Existing Structure with Streamlined Economic Devclopment Advisory Board Option C - Create an Economic Development Corporation. Charge the new EDC with l review of staffing, office setting, technology demands and further charge them with establishing performance measures. If is very important to determine the most appropriate profile of nnembers of an EDC. It would be well to consider the following areas of expertise to drive the economic development program commercial real estate law, major banking experience, major industrial/corporate chief executive officers, economic development professionals, and City Council representation, if desired. Should the City Council determine that the economic development program should continue in its present structure, fanius, City and Chamber staff recommend that the current Economic Development Advisory Board inembcrship be immediately reduced to a more manageable number (5 to 7). The City Council and Chamber of Commerce Board of Directors could each appoint three members to serve on the new "streamlined" advisory board. Staff recommends (hat the Mayor serve as the seventh member and Chair on the new advisory hoard. The proposed change in membership would require an amendment to the currant agreement between the City and the Chamber ol'Commerce. This, recommended structure is appropriate in light of the increasing support role the City is • • playing in the partnership. When the parti.ership was formed about eight years ago, it was intended that the City would provide one-third of the prog;arn dollars and private sector contributions would supply two-thirds of the funds. Over the years, private sector contributions have decreased, and the partnership has become more or a fifty-fifty, relationship. In addition, it • tD _ cr • PHH Fantus Recommendations Staff Response appears that additional public funds might be necessary if we are to implement recommendations that come out of the Vision program. As the City plays a larger role in providing support, it seems logical that the Mayor should be the individual to chair the newly structured Economic Development Advisory Board. We envision this board as a temporary structure until such time that Council has determined the appropriate approach to funding our economic development program. Should the economic development sales tax be adopted, a stronger Council role may be dictated. In visiting with other cities, staff has collected information on economic development organizations. The following attachments represent information on funding of other Texas cities and articles of incorporation and/or by-laws of other economic development corporations: Attachment A: Survey of Texas economic development organizations providing annual budget and how the organizations are tirndod, Attachments B: Articles of incorporation and/or by-laws of economic development corporations from the following cities: B I Rock Hill, South Carolina B2 Abilene, Texas B3 Garland, Texas B4 Allen, Texas B5 Paris, Texas B6 Longview, Texas 1{ • i 2 r • s r 1-Ndvit'~/4, ylcS • • 7'exas Economic Develop, wit 01yan/zat/ons Survey .ylr e I. r' r October - D&uember 1994 Annual EO Percent E D Motor Oigonlloton Conlocl Norne Population Operation it) $ Per PuWk; $ Ilum $ burn 0111or F 1> Poll Clly N Adds ass A Phone Served "at cupllo Fur Wing Cily County Public 5 lux Site Abilene Abllarn Ind Foundation Charlle 1NOnigoolc 108,094 $875,000 $5.39 93,0% $575,000 40 SU Sr 40 P 0 Box 2218 916.877.7241 Wants 79004 AnmdOo Aulallla ED Michael Bourn 200,000 $040,000 $3,20 IOU 0% $040,Ixx1 $a s0 4 u 600 S. Tyler, # $ 2098 Boo 379-6411 Amarillo 79101 Arlinglon Arlinglon Cbelnbor Toni Crova is 205,200 $400,000 $1.43 49,0% 1200,OW $0 In 110 4 0 PO Box 1400 817.270.2813 Arlinglon 70004 Athens Athens ED Narb Gatlin I1,OOO $90.000 $0.10 100.0% $9U40txi $U $n , y rl 100 Wool 7ylar 51. 903,8784817 Alhana 76761 Austin Auslln Chamber A 120109 Ngalou MONO $435,000 $0.44 04% S0 $0 10 No 00 PO Box 1987 612.470-9363 Austin 70161 Day City Mategordn County hid. Fnd. Rlchard Knaplk 31,000 $21,000 SQ V 0.0% $0 10 f0 v, 2.5 0 PO Box 765 409.2490333 Bey City 77404 Benbrook Banbrook Chamber Use Blaylock 20,000 $30,000 $1.60 50.0% $15,000 $o so 140 1.5 ; PO Box 28746 911.249.4451 ; Banb(ook 78128 0 Borgor Borger ED DnvtdWitcher 18,810 $180,000 $0.06 1000% $150,0) so SO 30 a r P 0 Box 9280 008.274.5311 3+ Borger 79006 rt t, a n Brady McCulloch County Ind. Fnd. Kim King, Brady Ntl Bnk 8,600 $10,000 $2.12 100,0% 518,000 50 SO a: 0.5 101 S. First Box 111, Brady 18828 tD Brady 76826 916.897.2104 d K, Bronll4nr Branham lad. Found. Richard O'Malloy 271000 $05,000 $2,41 100.0% $45.51x1 $19,r4x1 se Ito l11 1 314 8. Austin 409.830.36" Brenham 77833 h H, h..w.. MrA r..rr lliw.J Iwi 1''. n•r r ,M1 • W • I • Ae -UM Motor 01gord7arral Annual ED Percnnl ' Conl0cl Nam^ City Popufonon ppelollon ED F U 8 AUdlots Mrolle Spop PulNlc $ rrpin $ burn Olhn j f 11 Sit 114 Sowed 8udgol copliu Inre Any 0t Y CouiNy Puler. r rN Sn/. ' Brownwood Brownwood ED J^Illes n. CaroPbell ` PO 807. 1309 34,OW S f IO,UW B r $3.24 I 11O.tx)o 80A8.8781 311 SU 241 y Brownwood 70004 Brynnl Bryan7CUllege SloAon ED noben Worley 110,002 Colleyo Stpllorr 1307 Memorial, St. 210 }AU7,000 $452 0A.5% f231,Ui70 r SlA0,W0 }U list Af, 409.280.1765 Bryan 77002 Childress ChUdreas ED L-anyHutton 71100 350,000 PO Box 10 817.937.8829 f7.lA 100.0% }50,IXX) fU SU %'r LS Chtldreaa 79201 Cleburne Johnson Co, lurl Found. Lloyd Moss 9 PO Box 65 100,000 6170,OW $1.70 11 817.845•8844 84,0% }47,750 }ItN1,IN1(I 311 Nn 75 Cleburne 70033 carpus clulso corpus Chdsll ED Wayne Boling 1201 Shoreline 36 U,OW $620.0m) 31.74 72,2'% 3216,INN) 812•0036571 377,uU+7 SIOA,rXN1 r7o XU Corpus chneu 70403 Donlon Donlon Cbernbor Kan Burdkk PO DrawarP 88,000 }132,313 $1.95 19 7% 384.735 }p 817.302718 I 311 f hr 7 O Donlun 70202 1 I III Pnae El Paso Chamber, Ind Ow Bert Dlamondsleln NB Civic center Plata 838,800 SA 78,UW $030 440'a }114,I70(r 918.894.0500 571,750 32:1,7 n0 It,) GU El Paso 79901 • El Paso Oily of III Paso James Valdez 838,800 $945,802 $1,49 #7 CIVIC Center Pleas 918.833.428A 83.5'% S445,979 St) 5155,1X0 Ito 12 U El Paso 70099 rust Worth Fort Worth Chemise, Bill Thornton 00,000 777 Ta loi, #900 O,OOV feoo,aro 31,7A 00% s0 7 U17•~38.2491 110 EO No IUU Foal Worth 781G2 Freoporl Blarosporl ED Bill Oelnwe 210 W. 2nd, $I# 208 181,707 S160.000 f013 31,3% 409.2394418 fU fU fSU,OW No 2.5 ' Fraoporl 77641 081vesion Balvirelon ED Joan Weaver PO Box 8029 89,1100 f207,000 $3,81 409.7828358 U'0% fU Sri $U 1411 20 Onlveelon 77553 NP, I, I'~.nl nr, If r'+/+ I,w♦„1 IVII r',I'1 1 .+-.w~n~.~..._..rw~....•~Y. ♦ ♦ r•~n~~rrM•l.Y,:.iMYM: I r, li••• • • • z Mnlol Olgaldtallon Arun ad FU Pnlc~nl l C011100 Name Popufulioh ~pamllon EU $ ;,Of II CRY Afters Public 6 Plltn le $ horn $ flora 0111v I 'l) Skill + Solvod hudgel. rnpilo rummoi (illy Cuiurly 1'iOrLc $ Irv !an• Omlaud CITY 01 OOrland Hany Swanson 192,000 r 2134 W. Kingsley, SI J4 ESib,bW 52.89 b1.0% EA5(I,Uf1U }n }q r 2'i 214•20.5.2791 It, Gmlend 7SU4I v , Ollmor GifnlvUUp9ltul Cnly ED Small Dunes PD Box 788 35,W0 140,000 $1 14 1000% f2U.W(I !20,000 SII Ira 1 u 903-043-401 1 Glmm 15644 Grand Prairie PO Box 530011 ' 214.680eNe~ 104,789 $305,000 $2.91 100,0% $305,uou fU 214.8.0020 fV No 4 tl Oland Plolde 75050 r Ornpovlne Grnpevlne Chamber daily Henln PO Box 300 J3.000 !40,000 f 1.21 75p±6 817.481.1622 fJll,fxlll }(1 fU Ilo 1 q Olnpovhle 70051 Hereford UOeI Smllh County Chamber F. ! Michael Can PO Box 192 20,000 $70000 $350 1000% 806.36A$333 f10,0IK1 }(I fN !h 2 rl lferatord 79045 j l I lllisbor0 74111ebora Chamber John Pdckells, Jr. 15,000 PO Box 350 017.5822481 $10,UW }LW 1111'K fU }u }n 1111 Iu I lfllil 78645 Jacksonville Jmckaonvllls Chamber Kirk German PO Box 1231 15,200 $60^0 $4 55 10U.0% SOO,WU 803898.2217 f0 fU r7n 3 5 Jeckeonvllfo 15706 • Kllyme Hpgore ED Amends Nobles 11,098 $115,0011 PO Box gBU 903.984.SDOI !10.38 10(1016 E115,UW to EU Kilgore 75063 Laredo Laredo Dev. Foundallon Prank Leah PU Box 1435 135,000 !316,000 $2.33 38,114 E7(LUVQ EUV,VUU 512-122-0503 EU !fu 0 U I p Laredo 78042 • Levelland CIIy of Levekand Nlck Oaburn z~ PO Box 1170 14,000 $70,(80 fR 71 WAR f IU,000 8118.894.0113 fU f0 310 U S Lavolland 79338 'e Lewl*lfo City of LewlavlAe Chile Cox PO Box 298002 6lrooo 699,203 $110 100.016 !69,203 211.218.3750 f0 $U Nu LU Lewisville 78029 IJ., /„wrw, Iln rRtw,•AIiWV.J IYO1 Ilqe 1 t' r • • • MaIo1 Olganltollorr Annuol ED Perceul'•1. Clly Conlocl Nome PopuWUon pperolbn ED E U RAddress A Phone ` • S por Pobrfc $ from S Irum oUr,, ~1 f U V Slnu , f Served Budyol cnpli0 ha xllryl CIr Cnuidy f`ur dtr ~ri I,rs Slrq . LongWev7 Longview ED MikeBtrotimide 911 NW Loop 281, #251 73,000 $772,A27 f19 5n IW 0Y, f772,n2! Longview 76804 903.7®8'7878 Sri }r1 i' it Lubbock Clly of Lubbock nod EHIS 190,0JU PO Box 20W 800787.2050 $302,42D $1.91 1W.Ij% Lubbock 79423 Sa1i2,n2 r }0 }p Nn 311 MCAlten MCAUenED Nancy Pryor 84015. 33rd 51. 96,000 $700,0W $8.24 100.0% $7110,0111) McAtren 70503 612.882.2878 SO So No IUU Midland Midland Chnmber Thomas Bllnson i P 080x 1890 110,300 915.683.3381 $335,W0 $3.04 500% fI97,5U0 Str SU fin n Mldlend 79702 A11. pleasant MI. Plensnn171IIus Climb PO box 1237 903Toby.87Abney 28,000 $IW,IIW $4.00 9.0'6 }p 28507 MI. Pleeeenl 76456 SII Su Nu 1 9 N6w81xunfels New Blounrela Clranrb6r Tom Pwdunl 85,000 PO Box 3%1417 210826.2389 S25,tlW S0,45 0.0% $n }n r New 81101111161178131 Sri Un I .1 Odessa 06ee16 Chamber NoN McDonald, Jr. P 0 Sox 3028 128,000 1268,000 $212 IW U% f765.f1W SO 916-332-9111 ill Nn A U Odessa 79780 • Pails Lnm6r County Chamber ' Oery vest 1851 Cluksvitle 43,94D 5100,009 $228 10011% 5100 WO Palls 75480 903.784•2801 50 5U 1 y Phan Pharr Ind. PUUndollon netPh OBAnda i I DO Auslln Ur. 48,000 $2W,0W $4,44 50,9% 210787.743f $1W,OUf1 to fu qp prlau 70677 ~ Plnlnvtew Pfail' vl9WO1010 Co. Ind Dredy Elder 3009011c11 nd. 28,000 $150.000 Wool 33.3% (75,009 525,001 808.2938838 fn Nu 0 U PRlnvlew 78972 Plano Plano ED Cole Morven 180,(100 $225,000 4W0PiastonPeak, #AIW 214.988.3700 $7,41 1000% l225,[NN) Sir fu Ilu 7,11 Plano 75093 I,rn h.n w.r nn.6y.,n,y rr.,.,,r IoOI A 0 .•r ' • c~ • • ,M111001 ED Pelr,nul r+ Jvlaiul OrgoOlallon 7 ! 1 F i) Confaci Po SolnlNved ed r City s Addlsn R MXNIe O elollo11 ED $ par Poole, $ bwu $ bolo UIbri1 C U Moll R ! calkle 1`UrX1bvj Cily Cuurdy nuhllc S Irlr 5p r, Round hock Round Flock ChamUor Pldl Brewer 212 6. Mahn 612.265.5808 40500 (150,000 f3,7U 333% f6(I,fN1U to su Ile In FlOund Flock 78664 Sail 7uulelu Sne Angelo Chnjabor Pool MnIkY 115,000 f2J(1,INX) }ry,lluu f2.71 :H 094 }p Hn z 500 fllo Conclle 916-855-4138 }Ilu,rmn San Angelo 16903 San Amoldo Snn Anlomlo Lu Found. Mello tlomendet Ir200,fg0 f1,2W,tl0U PO Box 1828 612.226•f394 f1.W 11.114 fu fll $5M. M1 Na U.U San Anlonlo 78280 Saguln City of Srquln Jlm Gandy 19,000 PO Boa 691 f92,179 f4.86 100 U% (97,17 r 210,379-3212 EU fU '.S 2.U Segulr 76150 Sllarmnn shenuml CImu+Ver had Richardson PO Boa 1029 31,400 (127,600 f4.04 100.694 fl?i,01N1 $0 903.890•J184 fn nu !n Sherman 76091 Swoalwnlar Swealwi for Enlerplba Ior ED Tim Fenbrou h PO Boa 784 915 23&5488 18,000 (00,000 (133 100.0$ fnll,MNl fU f1J s'r 15 swomwala 79550 i Temple Ten Ode ED Brodle Allen i PO Box 1343 60,000 f502,0W $11.64 IWAR 56021XN1 all 817.770.8332 fU fU Nn f Temple 78503 tylel tylm ED Tom MullimslErk Davis 65.0w (428,000 1214 17.114 x a25.JNX1 fU Ile Shc PO Box 2004 903.593.2004 f47,a1N) Tyler 76710 Vernon Vernon Bunkloss Devetupment Earl Joy 15, PO Cox 2037 000 $130,V00 f0.87 100, 0% (139,1X111 Si 0 817.682.8502 f0 $11 21) Vo non 16384 Viclorla Viclorle ED Fran Invln PO Box7 77,000 S215.00() (2,79 40.2% (03,600 011,500 SIU.f1U0 f!o 3.0 612.678•0241 Vklorla 77902 Waco 010310( Waco C7lember Cur11s Clevsland ' PO Box 1220 190,000 (350,000 $104 57,1% fIW,IIOfI SIUf?IX1V 817.7620551 fV Fle Z. r, I Waco 78703 1du /rrw4r, IH, d,y+rN lMn„1 Ia'I ..ram«~. _..~w_.pr.. , • .r.w-- e. fr: k,_. I'.,Pr 1 t ra a t Maim 01"ihOllon Alewol CU I'mcnnl Conlacl NOlne COY POpWOIfa1 S ( Peroltar CU $ I I) Y Addivis A Phone Solved Pet M1ArlIC I $ Unlrr $ loon 0111mi f p 4nlr e udger "Ala heelhlg COY Ccrwdy public y- Im Sim ~ Wleldla Fells W.F. Board 01 Commerce PO Box 1060 Carol NOwcroh IJ6,DOD SJ66,600 f2,06 0,U% MI 1-7212741 SII fU $U 170 10 Wichlla Falls 76307 Includ" SIDD,DW lOChamber for bushress lalalllorr Bryan . $I40,D0o; College Slolloa • SI4O,D00; Iotelluon kilo by Chamber Includes $100,000 ED budgnl al Chamber 3 t 1 i t i t I iibr li,w,v~~ Ihrrifw.o l i+wq !W1 \3 $~S l \ Y ! i A 1 ~Z 4~4! Ir~~r r1 W, • as • s 1 r V~ i0 1 Pareli! 100101 Orpont701wn ConloclNome Aunupl ED D CITY Ill Addrais Popuf0lbn operoma to $ psi Public $ 90m F a y loom Ph" loom Olhor F I) skill _ Salved 8uopel capita FutWing COY Crnauy Public $ lug We ll totals 55 7,299,Y25 515,349.449 52.111 91.9?6 411.:195 7q;' sr.4 V1,17. I'm Average per caplle to S $2.10 Average : clly burdlug . 54.2% Average % counly lunding Avelage % publlc lunding 9S Average ED S por stall . one eta If pH $",We r Average populatton served per elnlt. ale Mali psi 40,600 t$ s t Plrr hr«.u«r lFvRry«nlrw«✓ Ivy I'apr 1 r • a+ • BYLAWS OF i ROCH HILL ECONOMIC DEVELOPMENT CORPORATION ARTICLE--I Name and Office Section I. KMB, The name of the Corporation is HRock Hill Economic Development Corporation," Section 2. Princical office, The )rincipal office of the Corporation will be located in Rock Hill City Hall. Section 2. Other Offices, The Corporation soy have offices at such other place or places as the Board of Directors may designate from time to time, ARTICLE II Purpose The purpose of the said Corporation is to further economic development in the City of Rock Hill) to promote and assist in the growth and development of business concerns, including small business concerns within the City of Rook Hill) to promote and assist in the development of residential housing in the City of Rock Hill; and to engage in those activities which are in furtherance of, or related to, the purposes heroin stated. The principal objective of the Corporation shall be to benefit the City economically by fostering increased employment opportunities and by expansion of business and industryl thereby, loosening the burdens of government and combating community deterioration, *Adopted at the organizational Hosting of the Corporation held on February 7, 1981. Revised by the Board of Directors on April 2, 1985, 1 Revised by the Board of Directors on July 25, 1991 1 . q' • g • Said corporation is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United Staten Internal Revenue Law), Notwithstanding any other provision of these articles, this Corporation will not carry on any other activities not permitted to be carried on by (a) a Corporation exempt from Federal income tax under sections 501(c) (3) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States internal revenue law or (b) a Corporation, contributions to which are deductible under section 170(c) (2) of the Internal Revenue Code of 1954 or any other corresponding provision of any future United States internal revenue law. Any monetary profits or other benefits which flow to Directors of the Corporation shall be incidental to the Corporation's function, In the event of dissolution, the residual assets of the organization will be Q turned over to one or more organizations which themselves are exempt as organizations described in sections 501(c) (3) and 170(c) (2) of the Internal Revenue Code of 1954 or corresponding sections of any prior or future law, or to the Federal, State, or local government for exclusive public purpose. ARTICLE III Section 1, CoAWA tion, The Board of Directors of the Corporation shalt consist of not lees than twenty-five (25) nor more than fifty (50) members, The Board members shall serve for three (3) year terms and are eligible for reappointment. Members of the Hoard of Directors shall serve no longer than nine (9) years consecutively. Except than 1) Board members who are officers of the Corporation at the and of their three (3) • consecutive terms on the Board of Directors may serve on the Board for an additional three (3) year _ 2 y • a~ • term; and, 2) the city Manager, and members of the Rock Hill City Council serving on the Board of Directors shall not be subject to any limitation in their length of service. The torms of the membership of the Board of Directors shall be staggered so that one-third of the members are reappointed each year, except that the initial membership shall be exempt from thin requirement for a period of three years. Applications for membership on the Board of Directors will be reviewed by the Executive committee and approved as the Committee may deem appropriate within the limits of this section. The Board of Directors shall contain representatives from the following four groupst 1. Local Government 2. Private Sector Lending Institutions 3. Community organizations 4. Business organizations Section 2. $g.Mlar Maitinae. Regular annual meetings of the Board of Directors shall be held each February or as soon 0 thereafter as is possible for the purpose of electing the officers and Executive Committee, and for transacting such other business as may come before the members. Section Notification of Meetings, The Secretary/Treasurer of the Corporation is responsible for notifying members of the time, place and purpose of meetings, whether regular or special in writing at least seven (7) days before such meetings. section 4. SlliOtllJO• A mejcrity of the Board members shell { constitute a quorum. Section S. Bnecial N"tJayy. A special meeting of the Board of Directors may be celled by the Chairman or by a majority of the executive committee or on the written request of at least twenty-five (21) percent of the Board members. Section 5. oraanization, The chairmen, and in his absence, the 'lice Chairman, and in the absence of the Chairman and Vice • Chairman, a chairman chosen by the members present, shall preside at each meeting of the members and shall act as chairman thereof, 3 • w • Meetings of the membership shall be governed by the current edition of apbArt'e Rulesof order to the extent that such rules do not conflict with these Bylaws or with any special rules of order that the Corporation may adopt. ARTICLE IV Executive Committee section 1. Powers. The corporate powers, business and property of the Corporation whall bo exercised, conducted and controlled by the Executive Committee, in addition to the powor and authority conferred upon them, the Executive Committee may exercise all such powers of the Corporation and do all such lawful acts and things as are not by law prohibited or limited, and which are not required to be done by the members, unless written consent of the members In provided. Section 2. composition. Thcte shall be seven (7) members of the Executive Committee not including the secretary/Treasurer of the 0 Corporation. The Executive Committee shall be elected from among the Board of Directors of the Corporation and shall include at least one (1) attorney, one (1) representative of a financial institution and two (2) members of the Rook Hill City Council. Section 1. Election and Term of Office, Members of the Executive Committee shall be elected at the regular annual meeting of the Board of Directors by a majority of the votes cast at :;uch meeting. If an election of the Executive Committee Is not held on the day designated by the Bylaws of the Corporation, such election may be hold on any other day, at a special meeting of the Board called and held for that purpose. The term of office of each member of the Executive Committee shall begin immediately after his election, and shall continue until the next 4 • 1- rrA • annual meeting of the Board. It n Committee member's successor is not elected on the day designated for that purpose, he shall hold his office and discharge his duties until his successor is elected. Section 4. Vacancies. In came of vacancies occurring on the Executive Committas through death, resignation, disqualification, disability or any other cause, such vacancy may be filled from the Board of Directors by a majority vote of the surviving or remaining Executive Committee members then in office. Section S. Reauler NpAUan. Regular meetings of the Executive Committee shall customarily be held at its principal office and will occur at least onus every other month. Section 6. otiticetion of Meetincs, The Secretary/ Tree surer of the Corporation is responsible for notifying Executive Committee members of the time and place of meetings whether regular or special In writing at least seven (7) days before such meetings. Section 7. QygYum, A quorum of the Executive Committee shall not be les■ than tour (4) members for the transaction of business at any meeting. Section S. SmaCial MettJj=, Special meetings of the Executive Committee for any purpose or purposes shall be called by the Secretary/Treasurer of the Corporation at the request of the chairman or upon written request of s majority of the Executive Committee members. Section 9. oraanira ion, The Chairman, and in his absence the vice Chairman, and in the absence of the chairman and vice Chairman, a chairman pro tam, chosen by the Committee members present, shall preside at each meeting of the Executive Committee and shall act as chairman thereof. Meetings of the Executive Committee shall be governed by the current edition of gobert,s R"" of ardor to the extent that such rules do not conflict with these Bylaws or with any special rules of order that the Committee may adopt. • i j _ g . • w • &RTICLE V officers Section 1. Executive Officarm. The executive ot•icars of the corporation shall be a Chairman, vice chairman and Secretary/Treasurer. The Chairman, vice Chairman and Secretary/Treasurer shall be elected by the Board of Directors at its annual misting. Section 2. Duties, a• QlAirmaO - The Chairman shall preside at a?1 deetings of the board of Directors and the Executive Committee and, except as any much duty may be imposed upon some other officer by resolution of the Executive Committee, the Chairman shall perform all such duties as art customarily entrusted to and performed by the Chairman of a South Carolina Corporation. o b, Vice Chairman - The Vice Chairman shall assume the duties of the chairman in the absence of the Chairman. o. Secretary/Treasurer - The Secretary/Treasurer shall assist the chairman in establishing end maintaining the Corporation's books of account, shall be adequately bonded, and shall have custody of all corporate funds which shall be deposited in such bank or banks or any other insured financial institution as may be designated by the Executive CommLttee. The Secretary/Treasurer shall serve as an ex-officio non-voting member of the Executive Committee. The Secretary/Treasurer, or his representative, shall i also record the proceedings of Board and Committee meetings, maintain membership records and notify members of meetings in accordance with these Bylaws. 1 6 • m • ARTICLE VII General Provisions Section 1. "Al. The seal of the Corporation shall be a disc containing the corporate name, but any sign, seal, mark, design or impression used or intended to be used by the authorized officer of the corporation as and for a seal shall be the seal of the Corporation, Section 2. Bylaws Suoolamentarv. These Bylaws are Intended to suppisment state laws pertaining to non-profit corporations. In the event of conflict between these Bylaws and state laws, the state requirement shall prevail. Section 1. F.iAQal Year. The fiscal year of the Corporation shall begin on the first day of January in each calendar year and shall terminate on the last day of December. Section 4. Acenta and Atfnr"eye, The Executive committed say hire or appoint such agents and attorneys for the corporation as It may does proper and may, by written power of attorney, authorize such agents and attorneys to represent the Corporation in transacting any business said corporation is authorized to transact. These authorized officials may sign, acknowledge and execute any and all contracts and instruments for the Corporation as said Corporation would do if acted upon by its regularly elected and qualified officers, Section S. J.DAIvnIfication. Every person who is or had been an officer, staff member, Executive Committee member or Board member of the Corporation shall be indemnified by the Corporation against all expenses reasonably incurred by any such party in connection with any action, suit or proceeding to which any such party may be a party defendant, or with which that party may be threatened by reason of or growing out of or in relation to that party being or having been a director, officer, Executive Committee member or staff member of the Corporation. The term • • "expenses" Includes amounts paid in satisfaction of judgements or 7 _ s • in settlement, other than amounts paid to the Corporation itself. The corporation shall not, however, indemnify any officer, Board Member, executive Committee member or staff member in relation to matters as to which that party shall be adjudged liable for negligence or misconduct in the performance of that party's duties as much officer, Board member, Executive Committee member or staff member. Further, the Corporation shall not indemnify any officer, Board member, Exacutivs Committee member or staff member in cams of settlement unless such settlement shall be approved by m majority of the Executive Committee of the corporation then in office other then those involved (regardless of whether or not such majority constitutes a quorum.) ARTICLE VIII Adoption and Amendment These Bylaws may be adopted by a majority vote of the Directors present at a regular meeting of the Corporation. The Bylaws may be amended by a majority vote of the nirectors present at a regular meeting, provided the proposed amendment has been submitted to all of the Corporation's representatives in writing at lust seven (7) days before the meeting. 1/ + 1 1 s ,J Mai, r Q :I.Va Cp, ?p 9iatr of =%uuth Carolina i CERTIFICATE OF INCOVOUTION fly TIC SLCHF7day or S11rr. LacCLMNF DYTtATULhr ) 11 MCNEU, R06rnl 1. IM N.nn, :.01 Ptl.,J Cu.., L.. HAL, V non IV1J A. hl.m, L:: r.J, ''.<h It11, Sc r. u ur mo, r of d. ,.6rm m , V n,..rpHn, rd r n w,Hron nr m,n, it d.r nL~ n al JLCH n[r, i.v'•t:dC CCr[lJAwvf t:dJ:aalldV nhuh hn 1 Jul, "J u.^d01> mt.t'l 64 1n Ihr litre dry of e •b"atl , A P. 1) 0) , 6h .eh Sw,uary of Sun a w1,11,A drtbtehoe nn nt runh. Thu, u I. pl d ,4 e6rrw,d aym,u n.n will ja lm if IM by Owl a itttl..hr. N M wJ willimilon, d.y in A.140i A.d dw•N.d is q'i, Iw IArnry.,.twe, Thal, IN .Nd nryowaMS 41dk w dwrn N howl Lot" a we caws Iw pelyesvr, FM+iwrl, Sol F.urrul, Ch1MINa No M olweat, ry pwp«e. or 1q No N M N WHO Ru "a Had It nw wprwl Ht r4 rvgoll N pndt w Is 14 le.+Am , rhnw.w lieu a 11ow IYR r Not 14 ww.aw N hit. 1«11,6, 1[a.d1r w pwRnnr, eM All tMN deli nr Hw W ilh Raw X111 Craning owe l , o aoslppe, prWd.N In It* n Cw„Jy N fork , het 6ree tl•r• their IM dwo wd D«IufuA wit be MW. AHa tVwurµ 9.61 thwime u.nd NhI4A0 (Who, "will vol Nlnleea, rlmT TMH nwkrr ad owlrlwo, n1 as IN" V•A SLCD:tD: TS. A~01'h• lw"H J ^erra 10" it We "I LL CCOMYI IC CUTIAM(yT CORKR III ICy rjrpM rho Piece N wMch it prop.. nl I41poen«1w M1•rwed U City No 1111 is.10matsn it plat R.ecte "111. Sc r0UR7 N: TM pkrpw N 14 uld IoeOerd Carprr« I. Tees pave of this sold Cotpara4m 1s to father soolCUlC dr.bpwt rll w city at IR1tlt will to plaom rd aelet N th1 gtwtt aid de lepwt of wsuesea :arASrd, LHO IL" W"L bw Ulato IrerOtlra within Use rLtY Of kwll lLLl11 to pwCV4 and lettK Law u» dtwtQ M t of reuMLal hCVAjjg Lit, this Pity at NGI M110 hi to wge9a Ln utlae attl gqm %*U h Jra in tYtt'esrarwJa of, Of IC11R0d W, iha Fury a herel e•Jted, SSV prl it-Lia J otl1aa rJM Of W 0)tpOnI Null led to bwlsflt rho City aaobeloLLly by ("Is" Ill asd mVi hA-. OW tunltlao tied }r n-pawILM if b'u'M.} rod W&uVj t)estwby, JHsa LM tM Haiti of 9o)wneellt end eo'bet1(19 WrIMLY derv10ratlm. iud Corpnretlol is otywLLlad aarllltlwaly for at)rttabla, 1ClJy/o1u, ah•Yati4i OW Ktattile MwWOI+, ppimuic1ttim", fir maii ParpOalt Vale nl3lrlnq O! deserlbwt Lai to, 0 tat10N Ult 8rilof 1*5[ittlr l i O convapaWrq pwllOn 09 My !u[un UnAUd Wart Inttmal Mhw.rr lull • Nb iUwt "M MY Oelrr PtWUW of those lertAC149. this Cotporauon will rot cases/ m my eal.)r aetlviLLa rot trrnlttel La be OLATI+d m by WI I cori a iCill on of w" em r rits v wrrL~ III,,, ~ -4Ilrtl Ili of ties LAmr4j 1154 CSPMWU4 plowttlCn Of cry future LMlted Stator Lntsttltl r&Mlaf IM or Ili) a rbtpordtM, ranULtwil v to Witch ,eta dVOCtlbla Wdst halm 170(0) L2I Of the Inutrlel Mvtnu 00,1s of 1951 or my otleir mrr"Wd• Ind ptovl.lO11 of any fatusa mitnl States, [htortul tM)ua Low, tiny Irp'wtiry Prfltlte Or Cities bailouts H1,10 flaw 0, Dtlwrfon at its, CmSUraUo, t1WI to Im Worm sal to Ve Nrporatlin'a fu LLM. In Ve MIC of dissolution, t1tv tcolJwl aokeLa 01 tho Ot,rlltacim will to tuol►1 floor to ono Or con oMaumlrnB kILLth ch.naalyos Jae samil as or9.uLL Uttar doesuad N Wot two 50110101 end l7c 121 Of thm LIOI MevetA Coe of 1951 or wttCalanlVy art fOnR Or my pri)r or future Iris, Or re tM W4141, Cute, Or lOrel 9over t (Or awCLutby Lvblla FirTH, The n.ow. an/.«Wew« N NI 5lle pre T ttm P,•No1, of Non IIkM wl w 1144»1 arc Atli 132 n, CWF*"tota, Rtak "Lit, Sc Cealttoo Vratr hp 1 Ane, Lelia 046 $nllNwlaW or., Rock Hitt, Sc Caon.ttel IYrAOf j~ 1410e001 Ri.Sall In St. jeli C0., ll Illilr SC Csenltto Mr-tter luny Nil 105) Cveytal Vt., Rock "lll. SC Caallltee PYOH Ilonty woods 711 C, Plack, Rock Mill, SC Congttfo H+^COr Nolrord A. wlloon, Jt, 014 SNgowood, fare HILL, SC [nL Unen ROoorl L. IHHVIOH 2101 ShlloM 0111., Oak Hit[ ' vice Cna.Vro Joleun 0. tanrord 109 Onubrovk Or., Rock Hill, $C Swplfnryll. U.r:r SlAlll. 1eN dui Am. W L. iluorpwr..d art pupetvitl- Nw.r. TuualOwt I !Oily T. C tilRCLL. Saul wt of Sai ht "nun d 1'w r.dantr .1 mn onr,l, 6t rn, r • H TV, y. CW. d 19A uJ M. wnrmhlwy '.hurJa honer des a,n t1.r ud nr,„n Clam to Et a L..II pt,1 . o ol. wn,A al tl.e nlhn "..n plmbeo 1,J un,Awnul, nU luh,arN 111 At Um,blinnl 1641 Ali 11. 141- J L. y,J ('h.p a Ih 1, W 11, G.I, of IYu .red A,u . nrnJwory Ih. n,.. r CI V CS A,..l ...J IN •.14.1 .61 1t, it. N C.I u11" IAJ lSlh Jet 4 L•olwq } In IM view N our LwJ vne UalanJ Ally haMltd .'J y . BY ud In lhJfw husdrN wJ ` r ^ rennU, low of the 1•dyted«n tl d,r ~ ~,4t Ja W0,15 INr N Amrnra / ' f0M T. CA1ULrljt . S«1a.ry tie Sol, „ . w.o..ArA,w.,sr.. O 1 ,It urn J `w ih dkg~m • • ARTICLES OF INCORPORATION P DEVELOPMENT PORATION OF A NON-PROFIT CORPORATION ENE, INC. ABILENE, TEXAS s ' i • a, • ARTICLES OF INCORPORATION OF DEVELOPMENT CORPORATION OF ABILENE, INC. A NON-PROFIT CORPORATION ABILENE, TEXAS THE STATE OF TEXAS 3 COUNTIES OF TAYLOR AND JONES ~ WE, THE UNDERSIGNED natural persons, not less than three in number, each of whom is at least 18 years of age and each of whort is a qualified elector of the City of Abilene, Texas (which is a duly established City under the Texas Constitution), acting as incorporators of a public instrumentality and r~on-profit economic development corporation (the "Corporation") under the Development Corporation Act of 1979, Tex. Rev. Civ. Stat. Ann. Art. 5190.6, with the approval of the governing body bf the City of Abilene, Tex.s (the "City"), as evidenced by the Resolution attached hereto and made a pert hereof for all purposes, do hereby adopt the following Articles of Incorporation for the Corporation: ARTICLE I NAME The name of the Corporation is DEVELOPMENT CORPORATION OF ABILENE, INC. ARTICLE IT NON-PROFIT CORPORATION The Corporation is a non-profit corporation specifically governed by Section 4A of the Development Corporation %ct of 1979, Tex. Rev. Civ. Stat. Ann. Art. 5190.6. ARTICLE III DURATION The period of duration of the Corporation is perpetual. ARTICLE IV PURFCSE The Corporation is organized exclusively for the purposes of benefiting and accomplishing public purposes of the City of Abilene, Texas, by promoting, assisting, and enhancing economic • development activities for the City as provided by the Development • Corporation Act of 1979 as amended. AMU" i • ~ w • The Corporation shall have and exercise all of the rights, Powers, privileges, authority, and functions given by the general laws of Texas to non-profit corporations by the Texas Nonprofit Corporation Act, Tex. Rev. Civ. Stat. Ann. Art. 1396-1.01 et. seq., and the additional powers as provided in Art. 5190.6, S23, including the issuance of bonds. If any conflict should arise between these statutes regarding the Corporation's powers, Art. 5190.6 shall control and govern the Corporation. ARTICLE V INITIAL REGISTERED OFFICE AND AGENT The street address of the initial registered office of the Corporation is 555 Walnut Street Abilene Texas 79601 Abilene, Texas, an t e name o t to n tisl registered agent at such address is Dale Ferguson ARTICLE VI DIRECTORS The affairs of the Corporation shall be managed by a Board of Directors. The number of Directors constituting the initial Board of Directors of the Corporation is five (5). The names and addresses of the persons who are to serve as the initial Directors and the dates of expiration of their initial terms as Directors are as follows: 1 Director-end Address Term irei 11-30-92 I r 11-30-92 - 11-30-91 11-30-91 11-30-90 2 • • The initial terms of office for the Directors shall be two (2) Directors with three (3) year terms, two (2) Directors with two (2) year terms, and one (1) Director with a one ( 1 ) year term, as designated by the Mayor and City Council. No member of the Board shall serve more than two (2) consecutive terms. The Mayor shall appoint the Directors of the Corporation with the approval of the Council. The number of Directors shall be five (5). The Directors shall meet at least one (1) of the following qualifications: (a) serve, or have served, as Chief E):scutive Officer of a company; or (b) serve, or have served, in a position of executive management of a company; or (c) nerve, or have served, in a professional capacity; or (d) have experience equivalent to any of the above qualifications. After the for three (3) yeasts al Any+avacancy office occurring Directors shall be hfilled by appointment by the Mayor with approval by the City Council, Each of Each Director, h including the initial Directors, sh lli be t eligible for reappointment. Directors are removable by the governing body of the City for cause or at will. The Directors shall serve as such without compensation except that they shall be reimbursed for their actual expenses incurred in the performance of their duties as Directors. ARTICLE VII MEMBERSHIP/STOCIC The Corporation has no members and is a non-stock corporation. 3 • • ARTICLE VIII AMENDMENTS These Articles of Incorporation may at any time and from time to time be amended as provided in the Development Corporation Act of 1979 so as to make any changes therein and add any provisions thereto which might have been included in the Articles of incorporation in the first instance. Any such amendment shall be effected in either of the following manners; (1) the members of the Board of Directors of the Corporation shall file with the governing body of the City a written application requesting approval of the amendments to the Articles of Incorporation, specifying in such application the amendments proposed to be made, such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is advisable that the proposed amendments be made and shall approve the form of the proposed amendments, then the Board of Directors of the Corporation may amend the Articles of Incorporation by adopting such amendments at a meeting of the Board of Directors and delivering articles of amendment to the Secretary of State, or (ii) the governing body of the City may, at its sole discretion, and at any time, amend theme Articles of Incorporation, and alter or change the structure, organization, programs or activities of the Corporation, or terminate or dissolve the Corporation (subject to the provisions of the Development Corporation Act of 1979, and subject to any limitation provided by the constitutions and laws of the State of Texas and the United States of America on the impairment of contracts entered into the Corporation) by written resolution adopting the amendment to the Articles of Incorporation of the Corporation or articles of dissolution at a meeting of the governing body of the City and delivering articles of amendment or dissolution to the Secretary of State, as provided in the Development Corporation Act of 1979 or upon election as provided j in the Act. Restated Articles of Incorporation may be filed with I the Secretary of State as provided in the Development Corporation Act of 1979. A.RTICLR IX INCORPORATORS The name and street address of each incorporator is: A Dale Ferguson 1311 Summoners Lane, Abilene TX 79602 Tom Ceniglis 1394 S. Pioneer, Abilene TX 79605 4 Gary McCaleb 834 Harwell, Abilene, TX 79,501 • 4 1 • m - • ARTICLE X AUTHORIZATION The City has specifically authorized the corporation by Resolution to act on its behalf to furthar the public purposes stated in said Resolution and these Articles of Incorporation, and the City has by eaid Resolution approved these Articles of Incorporation. A copy of said Resolution is attached to these Articles of Incorporation and made a part hereof for all purposes, ARTICLE XI DIVIDENDS No dividends shall ever be paid by the Corporation and no part of its net earnings remaining after payment of its expenses shall be distributed to or inure to the benefit of its Directors or officers or any individual, firm, corporation or association. No part of the Corporation's activities shall be oarryinr on propaganda, or otherwise attempting to influence legislatioat, and it shall not participate in) or 1,ntervene in, (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. ARTICLE XII DISSOLUTION If the Corporation aver should be dissolved when it has, or is entitled to, any interest in any funds or property of any kind, real, personal or mixed, such funds or property or rights thereto shall not be transferred to private ownership, but shall be tronsfarred and delivered to the City after satisfaction or provision for satisfaction of debts and claims. SZOMID: INCORPORATORS I 1 i ~!+yii r r r ( li r Al, 40 • ca - BY-LAWS ~ Q P DEVELOPMENT CORPORATION OF ABILENE, INC, A NON-PROFIT CORPORATION ABILENE, TEXAS • • Q • a BYLAWS OF DEVELOPMENT CORPORATION OF ABILENE, INC. ' A NON-PROFIT CORPORATION ABILENE, TEXAS SECTION I OFFICES 1.01 Registered Of lice and Reaietered Agent The Corporation shell have and continuously mai n State of Texas a registered office, and a registeredntagentin ai whosethe office is identical with such registered office, as required by the Texas Non-Profit Corporation Act. The Board of Directors may, from time to time, change the registered agent and/or the address of the registered office, provided that such change is appropriately reflected in these Bylaws and in the Articles of Incorporation. WalnuthStreet, Abilene, Texas 79601, Corporation is at such address iat 555 s the Corporation, whose mailing address in P. o. Box 60, Abilene, Texas 79604. 1.02 Prinaipal~ Of~ fine The principal office of the Corporation in the State of Texas shall be located in the City of Abilene, County of Taylor, and it may be, but need not be, identical with the registered office of the Corporation. SECTION II PURPOSES ?.OS PUrDOlae The Corporation is a non-profit corporation specifically • governed by the Texas Development Corporation Act of 1979, as amended. The purpose of the Development Corporation of Abilene, Inc. is to promote, assist, and enhance economic development in accordance with the Articles of Incorporation. i i • o 0 0 SECTION III MEMBERS 1-01 Members The Corporation shall have no members. SECTION IV BOARD OF DIRECTORS 4.01 Board of Directors The business and affairs of the Corporation and all corporate powers shell be exercised by or under authority of the Board of Directors (the "Board"), appointed by the governing body of the City of Abilene, and subject to applicable limitations imposed by the Texas Non-Profit Corporation Act, the Texas Business The Corpooaratirdomay c by contr ct, resolution rpor otlherwise these genera. or limited or special power and authority to the,otfioeres Band employees of the Corporation to transact the general business or any special business of the Corporation, and may give powers of attorney to agents of the Corporation to transact any special business requiring such authorization, The Board may plan and direct its work through a Director of Economic Development, who will be charged with the responsibility of carrying out the Corporation's program as adopted and planned by the Board, The Board may contraot with another entity for the services of a director. 4,02 Number and ualilicationa The authorized number of Directors of this Board shall be five The Mayor shall appoint the Directors of the Corporation with the approval of the Council. The number of Directors shall be five Each Director shall meet at least one (1) of the following qualifications: (a) serve, or have served, as Chief Executive Officer of a company; or (b) serve, or have served, in a position of executive management of a company; or (c) serve, or have served, in a professional capacity; or (d) have experience equivalent to any of the above qualifications. 2 0 0 • a~ The City Council shall consider an individual's experience, accomplishments, and educational background in appointing members to the Board to ensure that the interests and concerns of all segments of the community are considered. 1.03 Bonds The President, Vice President, and Treasurer of the Board shall each give an official bond in the sum of not less than One Hundred Thousand Dollars ($100,000.00). The bonds referred to in this section shall be considered for the faithful accounting of all monies and things of value coming into the hands of such officers. The bonds shall be procured from some regularly accredited surety company authorized to do business in the state, The premiums therefor shall be paid by the Corporation. A copy of each officer's bond shall be filed with the City Secretary, !.04 oenersl Duties of tho Board The Board is hereby required to perform the following dutiest 1. The Board shall develop an overall economic development plan for the City which shall include and set forth intermittent and/or short term goals which the board dooms necessary to acoomplieh compliance with its overall economic development plan. Such plan shall be approved by the City Council of the City of Abilene. The overall development plan developed by the Board shall be one that incl.udoe the following slomentes a. An economic development strategy to permanently bolster the business climate throughout the city, b. Strategies to fully utilize the assets of the city which enhance economic development. C, Identification of strategies to coordinate public, private, military and academic resources to develop and enhance business opportunities for all citizens of Abilene, This plan shall include methods to improve communication and cooperation between the above-mentioned entities, including, but not limited to Abilene Reinvestment Zone Number one (*Tiro), AEDC, and the Abilene industrial foundation. d, Assurance of accountability of all tax moneys expended for its implementation of the overall economic development plan. 3 • A 6, Identification of strategies and provide for Implementation of identified strategies for direct economic development as defined in this Section, f. An annual work plan outlining the e,--tivities, tasks, projects and programs to be undertaken by the Board during the, upcoming fiscal year. The annual work plan shall be submitted with the annual budget as outlined in Article 7.02 of these Bylaws. g, To assist the Board in the implementation of the overall economic development plan, the Board may seek out and employ a Director of Economic Development. The Director of Economic Development shall be responsible to the Board and shall act as the Board's chief administrative officer and shall assist the Board in carrying out the duties of the Board as set forth in this section. The Board shall, in the annual budget, make provisions for the compensation to be paid to the Director of Economic Development and such compensation to established by the Board shall comprise the salary and benefits paid to the Director of Economic Development for his/her services, h. The Director of Economic Development may employ such personnel as may be necessary to discharge the Corporation's assigned duties. The compensation for all such employees shall be set by the Board in its annual budget and ouch compensation so established by the Board shall comprise the salary and benefits for such employees, and provided further, no such employee shall be hired until such time as the Board has establiohod such compensation for the position in question, 1. The Director of Economic Development shall be hired by the Board with the approval of the City Council and may be removed by a vote of 3 members of the Board. 2. The Board shall review and update its overall economic development plan twice each year to ensure that said plan is up to date with the current economic climate and is capable of meeting Abilene's current economic development needs. • 3. The Board shall expend, In accordance with State law, the tax funds received by it on direct economic development where such expenditures will have a direct benefit to the citizens of Abilene, • q a AM • • As used in this article, "direct economic development" shall mean the expenditure of such tax funds for programs that directly accomplish or aid in the accomplishment of creating identifiable new fobs or retaining identifiable existing gobs including fob training and/or planning and research activities nocessa:ry to promote said job creation, The Corporation's focus will be primarily in the areas of: a. Business retention and expansion b. Formation of new businesses c. Business attraction 4. The Development Corporation of Abilene, Inc. shall make reports to the City Council of the City of Abilene, The Development Corporation of Abilene, Inc. shall discharge this requirement by reporting to the City Council in the following manner: a. The Development Corporation. of Abilene, Inc, shall make a detailed report to the City Council once each year. Such report shall include, but not be limited to, the following[ 1. A review of al), expenditures made by the Board in connection with their activities involving direct economic development as defined in this article, together with a report of all other expenditures made by the board. 2. A review of the accomplishments of the board in the area of direct economic development, 3. The policies and strategy followed by the Board in relation to direct economic development together with any new or proposed changes in said policies and strategy. 4. The activities of the board for the budget year addressed in said annual report, together with any proposed change in said activity as said activity or activities relate to direct economic development, 5. A review of the activities of the Board in areas of endeavor other than direct economic • development together with any propor•ed changes in such activities. 6. The annual required report shall be made to the City Council no later than May 1 of each year, • S ~ r • yr~,..r .....~.r.... , , _ .ti._......-., -1Y- all, • as • 7, The annual report shall be considered by the City Council for Its review and acceptance, b, The Board shall be regularly accountable to the City Council for all activities undertaken by them or on their behalf, and shall report on all activities of th.o Board, wtnther uischarged directly by the Board or by any person, firm, corporation, agency, association or other entity on behalf of the Board, This report shall be made by the Board to the City Council semi-annually with the first report being made May 1, 1990, and a similar report being made each succeeding six (6) months, but in no event shall a period of time more than six (6) calendar months be allowed to elapse between such reports. The semi-annual report shall include the following; 1. Accomplishments to date as compared with the overall plan or strategy for direct economic development, 2. Anticipated short term challenges during the next semi-annually reporting period together with recommendations to meet such short term challenges. 3. Gong term issues to be dealt with over the succeeding twelve-month period or longer period of time, together with recommendations to mast such issues with emphases to `1e planed on direct economic development, 4. A recap of all budgeted expenditures to date, together with a recap of budgeted funds left unexpended and any commitment made on said unexpended funds. The recap of expenditures shall set forth separately those expenditures made in connection with direct economic development and those expenditures made by the Board in the discharge of its other duties. 4,45 implied Duties The Development Corporation of Abilene, Inc, is authorized to do that which the Board deems desirable to accomplish any of the • purposes or duties set out or alluded to in Section 4.04 of these Bylaws and in accordance with State law, i s • 6 J i i • 4.06 Tenure The initial terms of office for the Directors shall be two (2) Directors with three (3) year terms, two (2) Directors with two (2) ;'ear terms, and one (I ) Director with a one ( 1 ) year term, as designated by the Mayor and City Couleil. No member of the Buard shall serve more than two (l) consecutive terms, The Mayor shall appoint the Directors of the Corporation with the approval of the Council, The number of Directors shall be five (5). After the initial term of office the Directors shall serve for three (3) years. Directors shall be removable at any time by the City Council by vote of five (5) council members. 4.07 Vacancies Any vacancy occurring shall be filled by appointment by the Yayor with approval by City Council, 4.08 Meetinge The Board shall meet at least once each month at a place and time to be determined by the President. All meetings of the Board shall provide notice thereof as provided and set forth in Vernon's Annotated Civil Statutes Articla 6252.17, at seq. Any member of the Board may request that an item be placed on the agenda by delivering the same in writing to the secretary of the Board no later than ten (10) days prior to the date of the Board meeting, The President of the Board shall set regular meeting dates and times at the beginning of his/her term. Notice of any meeting shall be given to the public in accordance with the requirements of the Taxes Open Meetings Act. The notice shall contain information regarding the particular time, date, and location of the meeting and the agenda to be considered. All meetings shall be conducted in accordance with the Texas Open Meetings Act. The annual meeting of the Board of Directors shall be the second Tuesday in December of each year, at 9:00 a.m. 4.09 Attendance Regular attendance of the Board meetings in required of all Members. The following number of absences may constitute the need for replacement of a member; three (3) consecutive absences, or • attendance reflecting absences constituting 50 of the meati.igs over a 12-month period. In the event replacement is indicated, the member will be counseled by the President and, subsequently, the President shall submit in writing to the City Secretary the need to replace the Board member in question, 0 , 7 0 0 4 • g 4. 10 Quorum k' For the purpose of convening a meeting, a si;,ple majority of the appointed number of appointed Directors then nerving on the Board shall constitute a quorum. For purposes of ti-naacting the business of the Corporation at any meeting, a simple majority of the appointed Directors shall constitute a quorum If there is an insufficient number of Directors present to convene the meeting, the presiding officer shall adjourn the meeting. 4,11 Compensation The duly appointed members of the Board shall serve without compensation, but shall be reimbursed for actual or commensurate cost of travel, lodging and incidental expenses while on official business of the Board in accordance with State law. 4.12 Votinat Action of the Board of Directors Directors must be present in order to vote at any meeting, Unless otherwise provided in these Bylaws or in the Articles of Incorporation or as required by law, the act of a simple majority of the Directors present at any meeting for which a quorum is present shall be the sot of the Board of Directors. In the avant t conflict of hat a Director is aware of a conflict of interest or potential Director hallnbringtthe isamertoathe attention of the meeting and shall abstain from the vote, unless the Board determines that no conflict of interest exists. Any Director may bring to the attention of the meeting any apparent conflict of interest or potential conflict of interest of any other Director, in which case the Board shall determine whether a true conflict of interest exists before any vote shall be taken regarding that particular matter, The Director as to whom a question of interest has been raised shall refrain from voting with regard to the determination as to whether a true conflict exists, 4.13 Board's Relationehi With City Council In accordance with State law, the City Council shall require that the Development Corporation of Abilene, Inc, be responsible to it for the proper discharge of its duties assigned in this article. All policies for program administration shall be submitted for Council approval, and the Board shall administer said programs accordingly. The Board shall determine its policies and direction within the limitations of the duties herein imposed by • contracts' enlaws the tered into Articles with l the n City, and Incorporation, budget andsfiduciary responsibilities. • s • I ! a ~ • 4.14 Board's Relationship With Adminiatrativs Departments of the C1tY Any request for departments of the City shall services be made a by the Band or Ito idesignee :n writing to the City Manager. The City Manager may approve such request for assistance from the Board when he finds such requested services are available within the administrative departments of the City and that the Board has agreed to reimburse the administrative department's budget for the costs of such services so provided. Any requests for legal assistance shall be made by the Board or its designee to the City Attorney, The City Attorney may provide such assistance when such services are available and the Board has agreed to reimburse the City for cost providing the legal services. SECTION V OFFICERS 5.01 officers of the Corporation The elected officers of the Corporation shall be a President, Vice President, Secretary, and Treasurer, The Board may resolve to elect one or more Assistant Secretaries or one or more Assistant Treasurers as it may consider desirable. Such officers shall have the authority and perform the duties of the office as the Board may from time to time prescribe or as the Secretary or Treasurer may from time to time delegate to his or her respective Assistant, Any two (2) or more offices may be held by the same person, exoept the office of President. 5.02 Selection of officers The initial President and Vice President shall be elected by the Board and shall serve a term of one (1) year. On the expiration of the term of office of the original Presidont and Vice President, the Board shall select from among its Members individuals to hold such office. The term of office of the President and Vice President shall always be for a period of one year; provided, however, that the President and Vice President continue to serve until the election of their successors. The Secretary and Treasurer shall be selected by the members of the Board and shall hold office for is period of one (1) year; • provided, however, that they shall continue to serve until the election of their successors. Elections shall be held at the annual meeting of the Board. II i • 9 • , 1 7-Y • • 5,03 Vacancies Vacancies in any office which occur by reason of death, resignation, disqualification, removal, or otherwise, may be filled by the Board of Directors for the unexpired portion of the term of that office, in the samle manner as other officers are elected to the Board, 5,01 Presiden The President shall be the presiding officer of the Board with the following authority; 1. Shall preside over all meetings of the Board, 2. Shall have the right to vote on all matters coming before the Board. 3. Shall have the authority, upon notice to the members of the Board, to call a speotal meeting of the Board when in his judgment such meeting is required. 4. Shall have the authority to appoint standing committees to aid and assist the board in its business undertakings or other matters incidental to the operation and functions of the Board. 5. Shall have the authority to appoint ad hoc committees which may address issues of a temporary nature of concern or which have a temporary affect on the business of the Board. In addition to the above mentioned duties, the President shall sign with the Secretary of the Board any deed, mortgage, bonds, contracts, or other instruments which the board of Directors has approved and unless the execution of said document has been expressly delegated to some other officer or agent of the Corporation by appropriate Board resolution, by a specific provision shall these perform all duties incident to theioffice, and such .ether duties as shall be prescribed from time to time by the Board cf Directors, 5.05 Vice President In the absence of the President, or in the event of his or her inability to act, the Vice President shall perform the duties of the President. when so acting, the Vice President shall have all power of and be subject to all the same restrictions as upon the • 10 ' • e e President, The Vice President shall also perform other duties as from time to time may be assigned to him or her by the President, u 5.06 Secretary W The Secretary shall keep, or cause to be kept, at the registered office a record of the miniitns of all meetings of the Board and of any committees of the Board, The Secretary shall also file a copy of said Minutes with the City and the same to be given, in accordance with the provisions of these Bylaws, or as required by the Texas Open Meetings Act or the Texas Open Records Act or other applicable law. The Secretary shall be custodian of the corporate records and seal of the Corporation, and shall keep a register of the mailing address and street address, if different, of each director. i 5.07 Treasurer The Treasurer shall be bonded for the faithful discharge of his/her duties with such surety or sureties and in such sum as the Board of Directors shell determine by Board resolution, but in no event shall the amount of such bond be less than an amount equal to the average of the sums which the Treasurer has access to and the ability to convert during a twelve (12) month period of time, The Treasurer shall have charge and custody of and be responsible for all funds and securities of the Corporation, The Treasurer shall receive and give receipt for money due and payable to the Corporation from any source whatsoever, and shall deposit all such moneys in the name of the Corporation in such bank, trust corporation, and/or other depositories as shall be specified in accordance with Article seven of these Bylaws. The Treasurer shall, in general, perform all the duties incident to that office, and stich other duties an from time to time may be assigned to him by the President of the Board. 5.08 Assistant secretaries and Assistant Treasurers The Assistant Secretaries and Assistant Treasurers, If any, shell in general, perform such duties as may be assigned to them by the Secretary or the Treasurer, or by the President or the Board of Directors. 5.09 Director of Economic Development The Corporation may employ a Director of Economic Development, O The Director of Economic Development shall serve as the Chief Executive Officer of the Corporation and shall oversee all administrative functions of the Corporation. The Director shell develop policies and procedures for the Corporation including financial, accounting, and purchasing policies and procedures to be approved by the Board and City Council. 11 e p e f 5.10 Other Employees The Corporation may employ such full or part-time employees as needed to carry out the programs of the Corporation, Theso employees shall perform those duties as are assigned to them by the Director of Economic Development, The Director of Econonic Development shall hire, direct, and control the work of all Corporation employees, 0.11 Contracts for service The Corporation may, with approval of the City Council, contract with any qualified and appropriate person, association, corporation or governmental entity to perform and discharge designated tasks which will aid or assist the Board in the performance of its duties. However, no suc'i contract shall ever be approved or entered into which seeks or attempts to divest the Board of Directors of its discretion and policy-making functions in discharging the duties heroin above set forth in this section. SECTION VI CONNITTEES 6.01 Qualifications For Committee Membership Members of committees shall be appointed by the President, and approved by the Board. Committee members need not be members of the Development Corporation of Abilene, Inc. unless required by thdas Bylaws or Board resolution. 6.02 Standing Committees The President shall have authority to appoint the following standinq committees of the Board and such other committees as the Board may deem appropriate in the future; 1. Budget, Finance and Audit Committeet This committee shall have the responsibility of working with the Director, or the contractual entity performing as a Director as the case may be, in the formation and promotion of the annual budget of the Board. The Committee shall present such budget to the Board and, upon approval, shall present, in accordance with these Bylaws, said budget to the City Council, In addition to the preparation of the budget for the Board, the Committee shall monitor all budget e expenditures of the Board and keep the Board advised in such matters, The Committee shall further have the responsibility to oversee and work with auditors of the City or outside auditors when audits of the Board are being performed. 12 R' if • • s 2• Committee for Business Retention and Expansion: This committee shall work with the Director of Economic Development and shall keep the Board informed of all development and activities concerning business retention and expansion. 3. Committee for New Business Formation: This committee shall work tjith the Director of Economic Development and shall keep the Board informed of all development and activities concerning new business formation. 4. Committee For New Business Attraction and Recruitment: This committee shall work with the Director of Economic Development and shall keep the Board informed of all developments and activities concerning business attraction and recruit.nent. 6.03 Special Committees The President may determine from time to time that other committees are necessary or appropriate to assist the Board of Directors, and shall designate, subject' to Board approval, the members of the respective committees. No such committee shall have independent authority to act for or in the stead of the Board of Directors with regard to the following manners; amending, altering, or repealing the Bylaws; electing, appointing, or removing any member of any such committee or any Director or Officer of the Corporation) amending the A a plan of consolidation rticles of Incorporation; adopting a plan of merger or adopting i another sale, lease, exchange, ormortgage ofallortsubstantially ialltof the property and assets of the Corporation: authorizing the voluntary dissolution of the Corporation or revoking the proceedings therefor; adopting a plan for the distribution of the assets of the Corporation; or amending altering, or repealing any resolution of the Board of Directors which by its terms provides that it shall not be amended, altered, or repealed by such committee. The designation and appointment of any such committee and delegation to that committee of authority shall not operate to relieve the Board of Directors, or any individual Director, of any responsibility imposed on it or on him/Tier by law, 6.01 Term of Office of Committee Members • Each member of a committee shall continue as such until the next annual appointment of the Board of Directors and until his or her successor am the committee is appointed, unless the committee shall be sooner terminated or unless such member has ceased to serve on the Board of directors, or unless such member be removed from such committee. e 13 ~ • 0' • 0 , • c~ • a Any committee member may be removed from committee membership by the President, with Board approval, whenever in their Judgment the best interests of the Corporation would be served by such removal. 6.05 Vacancies on Committees Vacancies in the membership of any committee may be filled in the same manner as provided with regard to the original appointments to that committee. 6.06 Ex-Officio Member The City Manager or his designee and the Mayor or his designee may attend all meetings of the Board of Directore or Committees, including executive, private or public. These representatives shall not have the power to vote in the meetings they attend. Their attendance shall be for the purpose of ensuring that information about the meetings are accurately communicated to the City Council and to satisfy the City Council obligation to control the powers of the Corporation. SECTION VII FINANCIAL ADMINISTRATION The Corporation may contract with the City for financial and accounting services. The Corporation's financing and accounting records shall be maintained according to the following guidelines. 7.01 Fiscal Year The fiscal year of Corporation shall begin on October 1 and end on September 30 of the following year. 7.02 Budoot A budget for the forthcoming fiscal year shall be submitted to, and approved by, the Board of Directors, and the City Council of the City of Abilsna. In submitting the budget to the City Council, the Board of Directors shall submit the budget on forma prescribed by the City Manager and in accordance with the annual budget preparation schedule as set forth by the City Manager. The budget shall be submitted to the City Manager for inclusion of it in the annual budget presentation to the City Council. The budget proposed for adoption shall include the projected operating expenses, and Ruch other budgetary information as shall be useful to or appropriate for the Board of Directors and the City Council of the City of Abilene. 14 ~ a • 7.03 Contracts As provided in Article V above, the PresJdent and Secretary shall execute any contracts or other instruments which the Board has approved and authorized to be executed, provided, however, that the Board may by appropriate resolution, authorize any other officer or officers or any other agent or agents, including the Director of Economic Development, to enter into contracts or execute and deliver any instrument in the name and on behalf of the Corporation. Such authority may be confined to specific instances or defined in general terms. When appropriate, the Board may grant a specific or general power of attorney to carry out some action on behalf of the Board, provided, however that no such power of attorney may be granted unless an appropriate resolution of the Board authorizes the same to be done. 7.04 Checks and Drafts All checks, drafts, or orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Corporation shall be signed or bear the facsimile of the President or the Treasurer, or such other person as designated by the Board, 7.05 Deposits All funds of the Development Corporation of Abilene, Inc. shall be deposited on a regular basis to the credit of the Corporation in a local bank which shall be federally insured and shall be selected following procedures and requirements for selecting a depository as set forth in Chapter 105 of the Local Government Code. 7,06 Oifts The Development Corporation of Abilene, Inc. may accept on behalf of the Corporation any contribution, gift, bequest, or device for the general purpose or for any special purposes of the Corporation. 7.07 Purchasin4 All purchases made and contracts executed by the Corporation shall be made in accordance with the requirements of the Texas Constitution and Statutes of the State of Taxes. • 7.08 Investments Temporary and idle funds which are not needed for immediate obligations of the Corporation may be invested in any legal manner provided in Tex, Rev. Civ. Stat. Ann. Art. 842a-2 (Public Funds :nvestment Act). 1 O 15 • • • 0 • • 7.09 Bonds Any bonds issued by the Corporation shall be in accordance with the statute governing this corporation but in any event, no bonds shall be issued without approval of the Abilene City Council after review and comment by the City's bond counsel and financial advisor. 7.10 Uncommitted Funds Any uncommitted funds of the Corporation at the and of the fiscal year shall be considered a part of the Fund Balance, The Undesignated Fund Balance may be committed for any legal purpose provided the Corporation's Board of Directors and the City Council both approve such commitment. This may include the establishment of a Permanent Reserve Fund which shall be accumulated for the purpose of using the interest earnings of such fund to finance the operation of the Corporation. SECTION VIII BOOKS A" RECORDS 8.01 Books and Records The Corporation shall keep correct and complete books and records of all actions of the Corporation, including books and records of account and the minutes of msetings of the Board of Directors and of any committee having any authority of the Board and to the City Council. All books and records of the Corporation may be inspected by Directors of the Corporation or his/her agent or attorney at any reasonable time; and any information which may be designated as public information by low shall be open to public inspection at any reasonable time. The Texas Open Records Act and Open Meetings Act shall apply to disclosure of public information. The Board of Directors shall provide for an annual financial audit to be performed by a competent independent audit first. 8.02 Monthly Reports The Corporation shall provide monthly summaries of proposed dispersal of funds for anticipated projects, and funds that are dispersed over 550,000, • If any two (2) Council members, or one (1) Council member and the Mayor, request formal Council consideration, the City Manager shall notify the Director who shall not make the dispersal unless the request for formal Council action is withdrawn. Upon request for formal Council consideration, no such payment shell be made, unless a formal public vote in open City Council session is made to approve the dispersal. e • ~ 16 r A O SECTION IX SEAL 9.01 Seal The Board of Directors shall obtain a corporate seal which shall bear the we:ds "Corporate Seal of Development Corporation of Abilene, Inc."; the Board may thereafter use the corporate seal and may later alter the seal as necessary without changing the corporate name; but these Bylaws shall not be construed to require the use of the corporate seal. SECTION X PROGRAM 10.01 Authorization The Corporation shall carry out its program subject to its Articles of Incorporation and these Bylaws, and such resolutions as the Board may from time to time authorize. 10.02 Program The program of the Development Corporation of Abilene, Inc, shall be to assist, stimulate, and enhance economic development in Abilene, Texas, subject to applicable State and Faderal law, these Bylaws, and the Articles of Incorporation. SECTION XI PARLIAMENTARY At1'PNORI7Y 11.01 Amendments to Bylawa These Bylaws may be amended or repealed and new Bylaws may be adopted by an affirmative vote of four (4) of the authorized Directors serving on the Board, at a special meeting of the Directors held for such specific purpose, and the notice requirements stated hereinebove regarding special meetings shall apply. The Directors of the corporation present at an annual meeting of the Board may, by a vote of four (4), in accord with the requirements of Article IV hereinebove, amend or repeal and institute new Bylaws, provided that at least ten (10) days prior to the annual meeting, written notice setting forth the proposed action shall have been given to the Directors, and public notice regarding such action given according the requirements of the Texas Open Meetings Act and Open Records Act. 17 • • ti Notwithstanding the foregoing, no amendment shall become t effective unless the City Council approves the amendment. SECTION %II DISSOLUTION 12,01 Dissolution On petition of ten (10) percent or more of the registered voters of tine City of Abilene requesting an election on the dissolution of the Corporation, the City Council shall order an election on the issue. The election must be conducted according to the applicable provision of the Election Code, The ballot for the election shell be printed to provide for voting for or against the proposition: "Dissolution of the Development Corporation of Abilene, Inc," If a majority of voters voting on the issue approve the dissolution, the Corporation shall continue operations only as necessary to pay the principal of and interest on its bonds and to most obligations incurred before the date of the election and, to the extent practicable, shall dispose of its assets and Apply the proceeds to satisfy those obligations. Whsn the last of the obligations is satisfied, any remaining assets of the Corporation shall be transferred to the City, and the Corporation is dissolved. SECTION %III INDEMNITY 13.01 Indasnity The Board of Directors shall authorize the Corporation to pay or reimburas any current or former Director or Officer of the Corporation for any costs, expenses, fines, settlements, judgments, and other amounts, actually and reasonable incurred by such person in any action, suit, or proceeding to which he ar she is made a party by reason of holding such position as Officer or Director: provided, however, that such Officer or Director shall not receive such indemnification if he/she be finally adjudicated in such instance to be liable for gross negligence or intentional misconduct in office, The indemnification herein provided shall also extend to good faith expenditures incurred in anticipation of, or preparation for, threatened or proposed litigation. The Board of Directors may, in proper cases, extend the indemnification to cover the good faith settlement of any such action, suit, or proceedings, whether formally instituted or not. ® 18 • • 0 0 • as 0 To the extent the Board of Directors authorize indemnification to Directors or Officers of the Corporation, City of Abilene shall also provide indemnity to said Directors and Officers, However, City of Abilene's indemnification shall only apply after Corporation's ability to indemnify has been exhausted. Nothing in this section creates personal liability on the part of Officers and Directors to any extent not otherwise provided by statute or case law. Furthermore, the Corporation agrees to indemnify and hold harmless and defend the City of Abilene, its officers, agents, and its employees, from and against liability for any and all claims, liens, suits, demands, and/or actions for damages, injuries to persons (including death), property damage (including loss of use), and expenses, including court costs and attorneys' fees and other reasonable costs arising )ut of or resulting from Corporation's activities and from any liability arising out of or resulting from the intentional acts or negligence, including all such causes of action based upon common, constitutional, or statutory law, or based in whole or in part upon the negligent or intentional acts or omissions of Corporation, including but not limited to its officers, agents, employees, licensees, invitees, and other persons. Corporation further agrees that it shall at all times exercise reasonable precautions on behalf of, and be solely responsible for, the safety of its officers, agents, employees, licensees, invitees, and other persons, as well as their property, while in the vicinity where activities are being performed. It is expressly understood and agreed that City of Abilene shall not be liable or responsible for the negligence of Corporation including but not limited to its officers, agents, employees, licensees, invitees, and other persons. It is further agreed with respect to the above indemnity, that City of Abilene and Corporation wil.l provide the other prompt and timely notice of any event covered which in any way, directly or indirectly, contingently or otherwise, affects or might affect Corporation or City of Abilene, and City of Abilene shall have the right to compromise and defend the same to the extent of its own .interests. It is further agreed this indemnity clauue shall be an additional remedy to City of Abilene and not an exclusive remedy, SECTION XIv MISCELLANEOUS • 11.01 Relation to Articles of Incorporation i These Bylaws are subject to, and governed by, the Articles of incorporation and applicable State statutes under which the Corporation is organized. • 19 • i ~........«w. -.+....I...r.r.. 1 ♦ r ♦ww r. w♦Wy. e+.v...1 e W 11.. ` s p • THE STATE OF TEXAS X COUNTY OF TAYLOR KNOW ALL MEN BY THESE PRESENTS! :his Agreement, effective the tat day of October 1991, by and between the Development Corporation of Abilene, Inc. (hereinafter referred to as "DCOA"), acting by and through its President, and the Abilene Industrial Foundation, Inc., a Texas nonprofit corporation with headquarters currently at 1234 N. 4th Street, Abilene, Texas, authorized to do business in the State of Texas (hereinafter referred to as "AIF"). WITNESSETH: That for and in consideration of the covenants, promises, and agreements cat forth herein, it is mutually agreed as followa; I. P(JR_ = The Abilene corporation Ithattriin Fpart, p ters gmanufacturing nonprofit and industrial expansion and fob creation. The DCOA and the AIF wish to enter into an agreement whereby the DCOA, acting in accordance with the Development Corporation Act of 1979 (as amended), may reimburse certain expanses incurred by the AIF for the purpose of promoting and marketing the City of Abilene and vicinity. The DCOA shall act through its agent, the Director of Economic Development or his duly authorized representative, unless otherwise stated in this Agreement. A. The DCOA shall: 1. Reimburse AIF for funds expended in operations associated with promoting and marketing the City of Abilene and vicinity, exclusive of advertising and promotional expenditures, in an amount not to exceed $30,215 per month, beginning October 1 1991 and ending on September 30, 1902. If actual ooperating anyconeincurred ale calendar exceed m nth , rthe fall overage or deficit may be carried forward into the following month, The total amount of r period eimbursement shall not exceed $362,560 for the September beginning 330, 1992. October shall be areimbursed e to the AIF no later than fourteen days after • 1 Page 32 71 • • receipt of invoices detailing eligible expenses incurred, subject to reimbursement under this contract. 2• Monitor the use of such funds to ensure appropriate be disbursed ause of the funds, eFureinnd, s sh The l AIF ftethr ethexecputoiovinsio ofnsthihs Agreement and compliance wi r may then submit a written request for disbursement, but in no event more frequently than one disbursement every thirty (30) days. 3 Assist the AIF in establishing formatting procedures by providing technical assistance in the use of a computer data bass program sufficient to facilitate the reporting required by this Agreement. B. The AIF agrees to: 1• Build a general awareness of locational opportunities in the Abilene Area through advertising and general promotional activities on a local, national and international basis. 2. Develop specific industrial prospects in targeted SIC groups, 3. Implement an approved plan to market the City of Abilene to targeted businesses and industries. 4• Furnish to the DCOA Director of Economic Development, within 30 days of the and of the invoice period and in the format specified by the DCOA, invoices detailing eligible expenses and a written report of activities in the areas of: A) Advertising b) Prospect Response c) Site Visits to Prospects d) Prospect visits to Abilene • The AIF shall keep or cause to be kept an accurate record of all actions taken and other activities In the above mentioned areas in pursuit of the objectives of the performance of this Agreement. 5, Maintain and, upon request, make dvailable for inspection, audit or reproduction by any ® authorized representative of the City of Abilene, , the c stuands eand other xpenses eotde this contract, Page 33 % • • hereinafter called the "Records", to the extent and in such detail as will properly reflect all costs, direct and indirect, of labor, material, equipment, supplies and services and other costs and expenses of whatever nature for which reimbursement is claimed under the provisions of this contract. All records shall be maintained in accordance with generally accepted accounting principles. 6. Maintain records for three (3) years after final payment on any programs under this Agreement. 7. Adhere to the budget attached hereto as Exhibit "A". No shift in funds from any one of the following budget expenditure categories to another shall occur without prior written approval of the DCOA or the DCOA's duly authori°.,l representative: a) Programs 6 Services h) Administrative Z General c) Staff e. Furnish to the DCOA Director of Economic Development, within thirty (30) days of the and of the reporting period, an annual audit conducted in accordance with standards established by the American Institute of Certified Public Accountants. 9. Exclude from any reimbursement invoice the following budget items which, by mutual consent of the DCOA and AIF, will not be funded by the DCOA: a) Pledge Drive Expense b) Legislative c) Sundry~Contingency d) Governmental Affairs 10. Carry out a work program in accordance with the goals specified in tht AIF's Business Plan dated March, 1991. 'rho goals apply and are incorporated by reference herein for all purposes. i 11. Fully cooperate with the DCOA in monitoring the effectiveness of the services and work to be performed by the AIF's compliance with the terms of this Agreement, rho DCOA shall have access at all reasonable hours to offices and records of the • AIF, its officers, directors, agents and employees i J j Page 34 0 0 0 , for the purpose cf monitoring the Eunds, expenditures, and all activities of t ch he AIF whi are the basis of this Agreement. 12. carry out all activities in complianca with tho Deval)pment Corporation Act of 1975 (as amended) (the ACT), The AIF has read and is familiar with the terms and conditions of the Act under which these funds are granted, The AIF shall fully comply with said terms and conditions, The AIF shall use said funds strictly for those purposes and goals intended under the terms and conditions of this Agreement. 13, Comply with the terms and provi►Aions of the Texas Open Records Act. III, ASF$BTSQN. TERMINATION' This contract may be terminated by the DCOA or the AIF, in whole, or from tir:e to time, in part, upon good cause and whenever such termination is in the best interest of the OCOA or the AIF. Termination will be effective sixty (60) days after delivery of Notice of Termination specifying to what extent performance or work under the contract has been terminated and specifying that the contract shall be terminated sixty (60) days after receipt by the notified party. This contract expires without notification on September 30, 1992. IV, STATUS OF AIF AS INDEMf3ENT CONTReQTO° AIF shall operate hereunder as an Independent Contractor and not as an officer, agent, servant, or employee of the DCOA. AIF shall have exclusive control of, and the exclusive right to control, the details of the ,cork and services performed hereunder, and all persons performing same so long as such services are consistent with this agreement. For the d for the as and uration of this Agreement, AIF shall be solely responsible authorized tag nt ,omservants ~fand Femployeesrin connection with this Agreement, • The DCOA shall not be responsible nor liable for the acts or omissions of AIF's officers, directors, agents, or employees nor vice versa, The doctrine of respondeat superior shall not apply between the OCOA and AIF nor between the DCOA and any subcontractors. The doctrine of rASpondeat superior shaJI not apply between the contractor and its ® subcontractors, program participants, licensees or invitees, ` • Page 35 r f; J w.~r~.-...Mr±4... , ♦ r .Vw..w._J3JY[1 n wIf • 1 • a~ • AIF shall not be responsible nor liable for the acts or omissions of the DCOAIS officers, directors, agents, or employees. The doctrine of respondeat superior shall not apply between AIF and the DCOA nor between the AIF and the subcontractors. Nothing herein shall be constn:ad as creating a partnership or joint enterprise between the DCOA and AIF. It is expressly agreed that no officer, director, member, agent, employee, subcontractor, licensee, or invites of AIF is in the paid service of the DCOA. The DCOA does not have the legal right to control the details of the tasks performed hereunder by AIF, its officers, directors, members, agents, employees, subcontractors, program participants licensees, or invitees, In no event shall any person participating in the program of AIF be an officer, agent, servant, or employee of the DCOA, V. Yz= should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or non-performance of this Agreement, venue for said action shall be in the City of Abilene, Taylor County, Texas. VI. A5SI__ CMT The AIF shall not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the DCOA. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Agreement. VII, 1U222!= AIF aqrees to indemnify and hold harmless and defend DCOA, its officers, agents, and employees from and against all liability for claims, liens, suits, demands, and/or actions for damages, injuries to person (including death), property damage, (including loss of use), and expenses including court costs and attorneys fees, and reasonable costs arising out. of or resulting from AIFls activities under this Agreement and arising out of or resulting from the intentional acts or negligence of AIF, its officers, agents, employees, or invitees, AIF further agrees that it shall at all times exercise reasonable precaution, on behalf of, and be responsible for the safety of, its officers, agents, employees, customers, • • visitors, as well as their property, while performing the tasks required under this Agreement. 9 Page 36 i i ~ O s t{ 0 w It is further agreed with respect to the above indemnity that tho OCOA and AIF will each provide the other prompt and timely notice of any event covered which in any way, directly or indirectly, contingently or otherwise, affects or might affect AIF or DCOA, and each shall have the right to reasonably compromise and defend the same to the extant of its own interest. witness our hands to this AGREEMENT this _ ist, day of _OCtober 1991. ABILENE INDUSTRIAL FOUNDATION, DEVELOPMENT CORPORATION OF INC. ABI C, S gnature `O (S gna ) William Teague H. C. Zac (Typed Name) (Type Name) Title; Chairman Title; President ABILENE CHAMBER OF COMMERCE ATTEST; (Sl nature) L Charlie Drom"oole O r l~~.s-l{.P, (Type" 'lame) APPROVED AS TO FORM; Title; President Asst. City Attorney i 6 j 6d-) Page 37 • • _x.(15 .i~i~~~ ydt F~~.I ~I~~.~T~Q~Ly ~ a 7 Y • a~ • i STATE OF TEXAS X COUNTY OF TAYLOR X This instrument was acknowledge before me on this of tkrrnhar , 1991, by William Teague, Chairman of the Abilene lane Industrial Foundation, Inc., a corporation, on behalf of sr.day agency. id _b.'-mac GNIIeTYF4iIN1WO11T}1 otery b c n an og'"r urcouwst «uw~u Taylor County .+Mwrrf a~ 1110 Christy Farnsworth otaty~s Typad or prime name My Commission expires x_28-4 STATE OF TEXAS X COUNTY OF TAYLOR X This instru ant was acknowledge befora me on this of day oeve opment Corporal in9of Abilene,CInc.a a corporation, on behalf of said agency. N a u 1c in an o NotaryTs T e or Yp printed name _ w u aAfHEAS S S p*.s I. SUU of ian S My Commission expires • ~c. fop. 0102A/; e Page 38 t, • - w • STATE OF TEXAS X X COUNTY OF TAYLOR X This instrument was acknowledge before me on this -JAZ` day of October 1951, by Charlie promgoole, President of the Abilene Chamber of Commerce, a corporation, on behalf of said agency. 1~ I t4 ' " ' cr+AfBfY~ANNilNOftrN Notary ~ln an-~---or if wreo~wo~ ur,,u Taylor County . . r t4 t~fA Christv Farnsworth Notar-' 8 Tj,pe or printe name My Commission expires jerry\dcoa\contract\aifcont2.doc s 7 Page 39 • • ~t~r Ip i r 14~,yS,,,i,J~i'r14/• y, p h 1. l lfro~'1 (tAi. ~~~~~r AGREEMENT FOR REIMBURSEMENT OF CERTAIN EXPENSES INCURRED BY P THE ABILENE INDUSTRIAL FOUNDATION, INC. • - w.•..yr..~' • s..w.rn w~Y~JrIWW~i .YJV n. ! ~F t ir.: ~V f J r V ~ r j [I i H ~jJi v F f ~ ' r ~ ~ + ~ ~1: ~a 6 t~ ~ Y ~ i! 1 ~ Y~._ a i ~F ,.Y`1';~ +k, a d~,~#y+~'ti~ STATE OF TEXAS x COUNTY OF TAYLOR X X CONTRACT AMENDMENT NO. 1 TO THE AGREEMENT FOR REIMBURSEMENT or CERTAIN EXPENSES INCURRED BY THE ABILENZ INDUSTRIAL FOUNDATION, INC. Wherean, the Development Corporation of Abilene, Inc. (DCOA) and Abilene Industrial Foundation, Inc. (AIF) entered into an agreement effective October 1, 1991, whereby the DCOA acting in accordance with the Development Corporation Act of 1979, may reimburse promoting acendrtmaain the city incurred of Abilene A and for the vicinity. of Both parties hereby agree that effective October 1, 1991, said contract is hereby amended to read as followsr II. 2UTjEq A. The DCOA shall; 1. Shrill remain unchanged. 2. Reimburse the AIF funds expended for the purpose of promoting and marketing the City of Abilene and vicinity in an amount not to exceed $12,500 per month, beginning October 1, 1991 and ending on September 30, 1992. Said cost is not to exceed $150,000 for the term of the herein described amendment. If actual expenses incurred exceed or fall short of $12,500 in any one calendar month, the overage or deficit may be carried forward into the following month. Expenses shall be reimbursed to the AIF no later than fourteen (14) days after receipt of invoices detailing eligible expenses incurred, subject to reimbursement under this contract amendment. 3. Monitor the use of such funds to ensure dapiprbuopsriedateaftuese of the ecutionuofsthis Funds Agreement land after AIF's compliance with the provisions herein. "he AIF shall then submit a written request for disbursement, but in no event shall the DCOA make more than tine disbursement every thirty (30) days, 4. Assist the AIF in establishing formatting procedures b j y providing technical assistance in toe facilitateomtheerreporting required sufficient Agreement. by this Page 40 • • B. The AIF agrees to: 1, and 2. shall remain unchanged. 3. Implement an approved marketing plan which will: a) Present Abilene as a primary location for plant construction or relocations and, b) Create an awareness of the positive reasons for locating a manufacturing plant in Abilensi and, c) correct negative preconceived ideas about Abilene. Said plan shall direct promotional efforts to targeted industries as identified in the report by Moran, Stahl i Boyer completed in October, 1990. The Abilene Industrial Foundation 1991-92 Marketing Budget Proposal does apply and is incorporated by reference herein for all purposes. 4. Furnish to the DCOA Director of Economic Development, within 30 days of the and of the invoice period and in the format specified by the DCOA, invoices detailing eligible expenses and a written report of activities in the areas ofs a) Direct Mail/Advertisinq b) Prospect Response c) site visits to Prospects d) Prospect Visits to Abilene The AIF shall keep or cause to be kept an accurate record of all actions taken and other activities in the above mentioned areas in pursuit of the objectives of the performance of this Agreement. All ocher terns and provisions of said contract effective October 1, 1991 shall remain in full force and effect. It is the intention of the parties to make the anendsents to the contract as provided for above and to sake no other changes. • 'rho DCOA hereby agrees to perform all obligations as provided in j said contract and this amendment; and AIF hereby agrees to perform all its obligations as provided in said centract and this amendment. 3 2 Page 41 • Q • Witness our hands to this AMENDMENT this 21st OcIQber , 1991. day of ABILENE INDUSTRIAL FOUNDATION, DEVELOPMENT CORPORATION OF INC. ABILENE, INC. ~~!!~!✓rr,t.~ 1 LLB/G 1 By. William Tsaque B l A'" 1C ch Chairman President ABIL.ENNEE CHAMBER OF COMMERCE ATTEST: J By. I ` Charlie Dro oc a President Od iaa s 4 I> . APPROVED AS TO FORM: i A t, i y ornay STATE OF TEXAS X COUNTY OF TAYLOR X X This inatrument was acknowledged before NO on this _21 day of October 1991, by William Toque Cha ram of the Abilene industrial Foundation, Inc. a corporation, on behalf of said agency. C' Notary c in an for Taylor Count ~•y Christy Farnsworth onnsrrrAanawoa~ • u• MOM uh lU ~ ~.M,„, ~~q Notary's typed or printed name My commission expires 1-28-93 Page 42 • 4A • STATE OF TEXAS X X COUNTY OF TAYLOR X This instrument was acknowledged before as on this /d-4;A day of ;z)'z4W (ee_ 1991, by H.C. Zachry, President of the Development Corporation of Abilene, Inc., a corporation, on behalf of said agency. a NdCa'ry c in an for " . RRv L. MATHER$ J • foli c. ~hte of TONS, ; Notary's t or pr nted nams Nrfanmlmor fr 113-02.94; My commission expires STATE OF TEXAS X X COUNTY OF TAYLOR X This instrument was acknowledged before me on this 7iar ..day of Oetnher 1991, by Charlie Dromgoole, President of the Abilene Chamber of Commerce, a corporation, on behalf of said agency, o ! Notary ftblic in and or ay or oRRtaTM ~a~rawOatH County ..L ""corwa,oxtu+Mt ' =f4 ttq Christy Farnsworth Notary's typed or printed name 1-28-93 My commission expire • 1 ~m\dcoa\contract\?ifamen3,doc i 4 Page 43 l A c~ 0 ECONOMIC DEVELOPMENT SERVICES AGREEMENT This Agreement is made and entered into by and between the City of Garland, Texas (the "City") and the Garland Chamber of Commerce (the "Chamber"). 1-1XNz291 XTI For and in consideration of the mutual promises and undertakings contained in this Agreement, the parties agree as follows: section 1. provision of Egottosia Davslo ®~t Services. The Chamber agrees to provide the City with all of the services, programs and undertakings as described in the proposal attached hereto as Exhibit "All and shall take all action necessary and desirable to meet the commitments of the Chamber as contained therein including, but not limited to, the provision of suitable personnel, equipment, supplies, and office space except as such services, programs and undertakings may, from time to time, be modified by the mutual agreement of the parties. Section Z. Payment for Servic m. The city agrees to pay the Chamber, in consideration of the services to be provided by the Chamber to the City under this Agreement, an annual fee of $250,000 in equal monthly installments of $20,833.33. The Chamber shall contribute the sum of at least $100,000 to the activities to be taken by the Chamber under this Agreement. Section 3. ar9untinc4 lyditina, The Chamber shall maintain records of and account for all funds expended by the Chamber pursuant to this Agreement in accordance with generally accepted accounting practices. Such records shall be made available to the City for inspection at any reasonable time during normal office hours. The Chamber shall also obtain and produce to the City a financial audit, conducted by an independent accounting firm reasonably acceptable to the City, of (i) the activities and expenses of the Chamber for the year 1994, and (ii) the activities and expenses of the chamber under this Agreement. The Chamber shall provide the City with monthly accounting reports in a form reasonably acceptable to the City, of all expenditures made by the Chamber under this Agreement for the month of the report. Section 4. Term; Termination, The term of this Agreement shall be five (5) successive one year periods, renewable annually, provided that either party may terminate this Agreement, at will and without cause, liability or penalty, by giving written notice of termination to the other party not less than thirty (30) days prior to the beginning of the next calendar year. In the event of termination by the City, any funds paid by it to the Chamber under this Agreement and not expended by the Chamber shall be promptly A returned to the city. Provided further, that in the event no funds r + ECONOMIC DEVELOPMENT SERVICES AGREEMENT j:\re9o\cham.002.bn PAOB 1 I r 1 ca • or insufficient funds are appropriated or budgeted or are otherwise unavailable for any reason for any payment due under this Agreement, then this Agreement shall terminate, without liability or penalty, as of the last day that such funds were available or appropriated. section s. Notices. Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (1) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. section 6. No Assignsent. Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section 7. severability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. section 6. Waive . Either City or the Chamber shall have the right to waive any requirement contained in this Agreement, which is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is intended, No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 9. 9Avernina Law: Venue. This Agreement and all of the transactions contemplated herein shall be governed by and*censtrued in accurdancq with the laws of the State of Texas. The provisions 0 and obligations of this Agreement are performable in Dallas County, ECONOMIC DEVELOPMENT SERVICES AGREEMENT PAGE 2 ji\reao\cham.002.bn r 0 • • r Texas such that exclusive venue for any action arising out of this F Agreement shall be in Dallas County, Texas. Section to. paraaraph Headincei Construction. The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have participated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or lees strongly against or for either party. Section it. Binding Effect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 12. Gender, within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 13. Counterparts. Thin Agreement may be executed in multiple counterparts, each of which shall be deemed an origintxl, and all of which shall constitute but one and the same instrument. Section 14. Xxhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 1S. X tirs Agreement. It. is understood and agreed that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral unde standings, statements, promises or inducements contrary to tre terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Section 16. a v4,ship of Bartiap. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and • agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the part Les other than the relationship of indepeiLdent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. ECONOMIC DEVELOPknNT SERVICES AOREEMENT PROS 3 j,\reso\cham.002.on • cp • EXECUTED on the dates indicated below but deemed to be effective as of the 10th day of January, 1995. CITY: GARLAND CSA"ER OF COMMERCE: 1° By: By; A r Na e: _ Name: l tro•L Title, Titles v Date Date: Z-3 - J ADDREBB FOR NOTICE: CITY CRAMS ER :ity of Garland, Texas Garland Chamber of Commerce 200 N. Fifth Street 914 S. Garland Ave. P.O. Box 469002 Garland, Texas 75040 garland, Texas 75046-9002 Attn: City Manager 1 ECONOMIC DEVELOPMLMT SERVICES AOREENEMT PAGE 4 j:\reso\aham.002.bn s EXHIBIT "A" GARLAND ECONOMIC DEVELOPMENT PARTNERSHIP DECEMBER 19, 1994 • GARLAND CITY COUNCIL WORK SESSION • ACKNOWLEDGIIIZF.NI'S The following proposal reflects years of work by a great number of people that believe in the philosophy of a PARTNERSHIP between the City of Garland and the Garland Chamber of Commerce in conducting economic development. This latest version takes into account the questions and concerns that were expressed at the City Council work session on October 17, 1994. Since that work session, tbere have been numerous meetings of City and Chamber staff. The "Steering Committee" has also reviewer this proposal and submits it to the full City Council for consideration, Staring Committee members reviewing this proposal were: Mayor James Ratliff City Councilman Jim Spence City Manager Jeff Muzzy Chamber Chairman Will Uesch Chamber Chair-Elect Ed Jackson Chamber Vice Chair Bob Crosson Chamber President Paul Mayer Note: City Councilman Richard Fricks is a member of the Steering Committee but was unable to attend the meeting when the proposal was discussed. • r o • CONTENTS I. PHILOSOPHY/M SSION II. ORGANIZATION CHART M. STRATEGIC PLAN TV. OVERSIGHT/ACCOUNTABILITY V. IMPLEMENTATION SCHEDULE VI. BUDGET VII. TERMS OF PARTNERSHIP AGREEMENT • i • • r r PEnOSOPHYrn ISSION It is the fundamental philosophy of the GARLAND ECONOMIC DEVELOPMENT PARTNERSHIP {hereafter referred to as the PARTNERSE7 , that the most effective means of expanding the business base in Garland is through a close, coordinated effort between the CITY OF GARLAND and the GARLAND CHAMBER OF COMMERCE. Throughout the history of Garland, the greatest results in the growth of business were achieved when there was a close worlnng relationship between the City and the Chamber. That fact, we believe, is still true today. MISSION The mission of the PARTNERSHIP will be to attract and retain business In Garland that will: A. Expand and diversify the local economy. B. Provide Jobs for Garland residents that are stable, secure and afford upward mobility. C. Minimize temporary dislocation in the Garland economy. D. Improve the quality of life within the Garland community. i i • " This mission statement was adapted from the 1992.93 Economic Development Strategy, presented by the ;;ity of Garland Economic Development Department. •1- , • • • b . • • ORGANIZATION CHART BOARD OF DIRECTORS CITY COUNCIL, GARLAND CHAMBER OF CITY OF GARLAND COMMERCE & GEDC PARTNERSHIP STEERING CONEMTITEE a 1 r • STRA'T'EGIC PLAN It is the VISION of this strategic plan to create a realistic, measurable blueprint for developing a business base that is expanding at a rate to keep pace with the demands of "costs". The ultimate GOAT, of this plan is h keep he ratio of business to residential tax base at or exceeding 50% on the business side. It is only by this means that Garland will be able to "afford" the rising costs of necessary infrastructure. This schedule lists the main strategic area in which the PARTNERSHIP will focus its efforts. Under each strategic area are the specific activities that will be utilized to accomplish the strategic objective. In order to accomplish the fundamental economic development goals of job creation and retention as well as expansion of the commercial tax base, this plan is designed to position the available ED resources to achieve the greatest return. BUS AIg,CTTON: With the D/FW area being very attractive for corporate relocations, Garland's task is to "intercept" relocation prospects through one of the conduits that they normally travel - a commercial real estate broker, an ED ally, a real estate developer, etc. With the supply of available industrial space In Garland dwindling, it is also imperative to establish sound business relationships with capable, well-funded real estate developers who can bring build-to-suit and speculative industrial development to Garland. • Develop business relocation prospects that meet the Mission Statement for the type of jobs and tax base expansion for Garland utilizing the network of commercial brokers, ED allies, developers, chamber members and other sources. • Develop and maintain relationships with the entire brokerage community by means of; a) "How to Sell Garland" briefings which explain Garland's attributes and resources. b) Providing accurate, timely information, upon request, on available Garland buildings and land. C) Hosting tours of Garland which emphasize key commercial tracts and buildings. d) Circulating a quarterly newsletter to the brokerage community which contains business activity updates and property listings. • • Assist ED allies, such as the Greater Dallas Chamber, Lone Star Gas, TU Electric and the Texas Department of Commerce by disseminating information about available Garland properties. e -3- ~ e • e 0 , i • Responding in a timely manner with accurate information to all RFP requests from ED allies, Inform and honor ED Allies with an annual "Garland Allies Day". • Conduct individual tours and informational briefings of Garland for Key ED ally site selection specialists. • Establish contacts and working relationships with selected, capable real estate developers operating in the D/FW area, • Identify development opportunities that involve Garland land and relocating/expanding businesses, • Provide "Opportunity Briefings" to selected developer on speculative and build-to-suit development opportunities in Garland, • Assist developers in understanding the regulatory and other local practices affecting development, • Encourage garland Chamber members to refer business relocation leads to the PARTNERS>HIIP and publicly acknowledge the assistance of such members in the Chamber's newsletter, • Maintain data bases containing current information about available Garland buildings and commercial land sites, • Collect information, in part by means of a 1994-95 Leadersh,p Garland Economic Development project, regarding Gati-md's competitive status within the D/FW Metroplex in competing for business locations, • Collect and maintain other economic development information that would be useful to relocating companies, • Perform economic impact analyses and make recommendations to the city regarding appropriate incentive proposals to relocation prospects, • Conduct a targeted marketing campaign, In conjunction with Lone Star Gas Company and Interceramic USA and others, to encourage other ceramic-related companies to locate in • Garland. • Develop and update marketing materials for presentations to relocation prospects, • p • • Since existing businesses typically account for 80% of all new job growth, business retention is a crucial facet of an economic development program. By the same token, annually 10% of all existing businesses nationally "disappear" through insolvency, merger or other events over which an ED effort has no control, so some attrition is normal. In order to proactively attempt to retain a company that is considering a relocation lm Garland, it is essential to have advanced knowledge of the pending move, • Identify approximately 20 "Key Garland industries* whose loss would have a significant negative impact on Garland's economy, • Initiate a systematic calling program, involving PARTNERSHIP staff and members, on the "Key Industries" with the objective of determining any relmdon/expansion possibilities within the upcoming two years, • Establish and update a Corporate Profile Data Hale on "Key Industries" that will contain information about the companies' future plans, lease expiration dates and other information that would be useful in keeping the key industries in Garland, • For any Garland companies considering a relocation, work actively with them to Identify sites, resources, incentives and other considerations that will influence their decision to remain/expand in Garland. • Conduct "exit interviews" with companies that have left Garland to determine their reason for leaving. • Conduct an annual survey of a representative cross section of Garland businesses to solicit their recommendations for improving Garland's business climate. • Maintain and publish 1,000 copies of a directory of Garland's "Manufacturing & Service Companies". IMRNATIONAL4 BUSD&SSs All businesses, large and small, are thirtking globally as trade barriers come down and the domestic market becomes increasingly competitive. Garland, with its large manufacturing base, should encourage its companies to pursue foreign markets, • Serve as a referral source for all the export assistance services in the D/FW area, including the U.S. Department of Commerce, the International Trade Resource Center, as well as for individual export counselors, consultants and service providers by maintaining and updating a comprehensive "Export Referral Guide", 0 5 0 0 taa • • Establish and provide the administrative framework for an International Committee within the Garland Chamber comprised of Garland Companies who are engag:d in international business or interested in being involved in International business, and the Committee would: a) Meet on a regular (monthly) basis to allow participants to share information and contacts about international markets. b) Invite topical speakers to address international business topics and hold workshops to educate local businesses on various aspects of international business. c) Engage in self-help activities whereby more experienced companies can assist those with less international experience. d) Along with elected officials, be the official group to receive foreign trade delegatinn.a visiting Garland and/or the D/FW Metroplex, e) Explcre the establishment of "sister city" relationships with foreign cities to foster business contacts and trade opportunities. • Pursue the establishment of a "Foreign Trade Zone" or sub-zone designation for an appropriate site in Garland. RETAIL BUSINESS: The PeRTNERS1HIP can facilitate retail development in Garland by working both with the individual retailer who is seeking the most appropriate location for his/her business and also by working with the retail developer to encourage the construction of new multi-tenant retail facilities in G~vland • Establish and maintain a current data base of available retail buildings and centers in Garland along with square footages for lease, lease rates, amenities, traffic counts, etc. • Establish and maintain a data base of available retail land sites, containing owners, names, asking prices, zoning information, etc. • Maintain and update retail marketing materials, including an aerial photograph of rettr.l sites originally developed by the city. Facilitate the development of a retail complex in the Highway 190 corridor through contacts with major anchor retailers and developers. • Establish relationships with capable retail developers operating in the D/FW area, • Identify Garland retail development opportunities and present them to capable. developers, b 6- ' • • J1 1 d 0 j 0 SMA L MINORM BUSINE-_ m There are many services available to small minority businesses within the Metroplex, and rather than trying to "reinvent the wheel" our strategy will be to piggyback onto existing services while mptiing those services more accessible and useful to Garland businesses. • Establish a satellite location in Garland for the small business one-on-one counselling services offered by the Bill J. Priest Small Business Development Center and by the SBA's S.C.O.R.E. The PARTNERSHIP will provide marketing and appointment scheduling for the SBDC counsellors. • Establish a linkage with the U.S. Department of Commerce's Minority Business Development Center, located fit Dallas, and attempt to establish a satellite location for its services in Garland. • Establish and maintain a data base on Garland minority -owned businesses to facilitate the identification of local minority-owned businesses by purchasing agents and veadees. GOVERNMM PROGRAMS., There are a number of local, state and federal governmental programs that are related to the economic development effort in Garland. While it is not the role of the PARTNERSHIP to act in any official rapacity for the respective governmental unit, the PARTNERSHIP will serve as a liaison and advisor for Garland to the respective governmental entity; • Enterprise Zone is a state-sponsored business attraction incentive that has been highly beneficial for Garland. The PARTNERSHIP will assist in maintaining the Zone, advising prospective businesses on the Zone's benefits, acting as Garland's liaison for the Zone with the state, completing the "qualified project" applications and submitting them to the state, presenting applications to the city for approval and any other related duties connected with the Zone. • Smart Jobs is a state job training program that Garland companies should take full advantage of. The PARTNERSHIP will assist by publicizing the program, disseminating information on the program to Garland businesses, and assisting Garland businesses in completing Smart Job funding applications. The PARTNERSHIP will work in concert with Richland College to provide qualified instructors for Smart Jobs Training. • Tax Abatements and other incentives, including electric rate discounts, fee waivers, infrastructure improvements and other assistance, offered by the city of Garland are important tools, (Prior to discussing incentives with "any" prospect, the PARTNERSHIP will agree on the "model" for calculating incentives.) The PARTNERSHIP will explain the programs to relocation prospects, perform cost/benefit and economic impact analyses on a project-by-project basis and make recommendations to the city regarding appropriate incentives on a project-project basis. • a~ . s • In the area of industrial revenue bonds (IRBs), the PARTNERSHIP will work with the city and its Finance Department to be prepared to offer industrial revenue bond financing on relocation projects for which the magnitude of the project, the quality of the company and the positive economic impact for Garland justify the city's sponsorship of the bond financing. • SBA loan financing assistance will be available to Garland business; the PARTNERSHIP in conjunction with its banking members, will design a process to facilitate the usage of SBA guaranteed financing by Garland businesses. In view of its lack of activity and since other certified development corporations can be utilized for 503/504 SBA loans, maintenance of the Garland Local Development Corporation as a Cer+ified Development Corporation will aW be necessary, • Jobs TraWng Partnership Act (JTPA) and Targeted Jobs Tax Credit (TJTC'j are two federal programs that reward employers for hiring certain categories of workers. Since MA and TJTC can be viewed as incentives, the PARTNERSHIP will serve as a local contact point for each program, disseminate Wormation about the program to local and relocating comprnies and maintain contacts with officials at the Dallas Private Industry Council and at the Texas Employment Commission which administer the programs. 3 i t# -8- 0 • qa • OVERSIGM ACCOUNTABILM The key to the ongoing success of the PARTNERSHIP will be close communication and coordination between the City and the Chamber. This coordination will be a-.cuntphshed through a "Steering Committee" comprised of a total of eight members. (Four from the City and four from the Chamber.) The City's members will be comprised of three Council Members and the City Manager. The Chamber's members will be comprised of three Board Members (who are also members of GFDC) and the O amber President. All members of the steering committee will be voting members. The re:ommendations of the steeling committee will be ratified by the City Council and the ChamIxT Board of Directors. The role of the steering coctmlttee will, W.daliy, be to agree on an ope, o ping plan and make a recommendation to the Council and the Chamber Board. After the adoption of the "Plan", the steering committee will review, monthly, the progress and the expenditures of the i'&4rJFRSHIP. This review will include financial statements, activities, and progress toward established goals. Annually, the steering committee will recommend addition or deletions to the program for tpproval by the Council and the Chamber Board. i • 1s °9' • • IMPLEMENTATION SCHEDULE This schedule of implementing the strategic plan contemplates a starting date for the PARTNERSHIP of January 1995. Also, it is anticipated that the schedule will provide an initial blueprint that will be continually evaluated and updated, ACTIONS COMPLMON DATE 1. A_prove the operating plan 1/95 2. Meet with state of Texas officials that impact Economic Development in Oarland 1/95 3. Hire staff 1195 4. Report to steering committee status of all 2/95 current prospects 5. Review all existing programs 2/95 6. Bring recommendations for program changes to 2/95 Council and Board 7. Update list of all "Allies" and Ally notification 2/95 S. Integrate City and Chamber data bases 3/95 9. Draft of marketing materials and plan for 3/95 their use 10. Begin retention calling program meeting with "Top 20" employers in Garland 3195 1 I Establish a Corporate Profile Data Base • for retention program 3/95 12. Produce first quarterly newsletter to brokerage 4/95 j community -10- ~ ~ I • 13, Develop tracking system for Manufacturing & Service directory 5195 14, Hold Initial meeting of the International Committee 5195 15, Bring report and recommendations on "Foreign Trade Zone" to steerng committee 5195 16, Update data base of available retail sites in Garland 6195 17. Produce retail marketing materials and update aerial 6195 18. Bring to the steering committee a report and recommendation on the establishment of a small business counseling center 6195 19, Present to the steering committee and to the City Council and Chamber Board a report on the first six months of PARTNERSHIP operations and an implementation schedule for the next six months 7/95 • •11_ ~ • • 0 u! 1 0 w • BUDGET SalariesoRtnem *Auto $173,762 Salaries: FttcWdw $37,109 'Auto $ 2,005.00 'Buud.ag Interest 2,042.00 'Building principal 1,858.00 'Building Maintenance 3,500.00 'Equipment Maintenance 2,552.00 'L surance Liability 729.00 'Laurance Building 778.00 'Laurance Employee 1,276.00 'Iasuraace Workmate camp 691.00 'Office supplies 4,157.00 'Postage/Freight 4,266.00 'Taxes (FICA) 3,537.00 'Taxes SOT/FOT 638.00 'Taxes Property 2,370.00 'Telephone 3,063.00 'Utilities 3,647.00 fvlarkeUng4 Communkadons $40,000 Marketing Materials $ 10,000.00 Newsletter 10,000,00 Public Relations/Advertising 20,000.00 • Prospect DeveiopmenoABles Relations s 15 ,000 j Travel to Regional Meetings $ 5,000.00 Prospect Development 5,000,00 Allies Recognition 5,000,00 • -12- ' ~ ~ • - 4St • Outtsastrce CamnBaots $ 20,000 Trades $ 5,000.00 Smell Busima 5,000.00 Eastprlie Zone 5,000.00 Relocation 5,000.00 Compute"Egniptnent $25,000 Hardware $ 10,000.00 Software 5,000.00 Lids Mth City 2,500.00 On- Lim Services 5,000.00 Furniture 2,500.00 10,000 Profeasinnai Derebposent Prof"Aomi Organisation Not $ 4,000.00 Subscriptions 2,000.00 Publications 2,000.00 Semi- sCoaferences Audk Accounting $ :0,000 Monthly Finaaciai f 61000.00 Tex Return 2,000.00 Audit 12,000.00 Contingency $ 4,129 TOTAL 3350,000 i i • All of these costs are calculated at 36.74% of actual Chamber Budget, This percentage is figured ea the amount of squats footage that will be occupied by the Economic Development Partnership. A - A TERMS OF PARTNERSHM AGREEMENT The following represents a listing of the mnfor items that the "Steering Committee" has identified as being important to the final agrearrw While this list is intended to be as complete as possible, this document does not reelect the final contract document, no provisions of the PARTNERSHIP agreement are as follows: 1. The effective date of this agreement is January 1, 1995, or some other mutually agreeable starting date, 2. The initial term of the agreement will be five years from its inception but shall be subject to renewal annually, 3. The revenue into the PARTNERSHIP will be shared on the following basis: A. The Garland Chamber will contribute $100,000 annually directly into the PARTNERSHIP. (It is important to understand that in addition to this direct commitment, the Chamber is also committed to over $140,000 In indirect support bringing the Chamber's commitment to $240,000 annually.) B. The City of Garland's commitment is $250,000 annually, 4. Monthly accounting reports on PARTNERSHIP expenditures and comparisons to the budget will be prepared by an outside accounting firm, These reports will be reviewed monthly at the steering committee and quarterly by the full City Council and the Chamber Board, 5. An annual financial audit of the PARTNERSHIP will be conducted by an independent auditing firm. A .14- r..~.w..r..."`°'w-Yw'. / i i~q A ~ 1~~ } ~ ~+.'~`~~i 1 f.~4fi~ ~!{i, ~,!f'fn,, ~i^!•'nf~S;Fl0.kvvv~'i'~k • sa e I BYLAWS OF ALLEN ECONOMIC DEVELOPMENT CORPORATION c ARTICLE I PURPOSE AND POWERS Section I. PUf~, The Corporation is incorporated for the purposes set forth in Article Four of its Articles of Incorporation, the same to be accomplished on behalf of the City of Allen, Texas (the 'City") as its duly constituted authority and Instrumentality in accordance with the Development Corporation Act of 1979, as amended, Tox.Rev.Civ.Stat.Ann, art. 6190,6 (the "Act"), as amended, and other applicable laws. Section 2. Power .g. In the fulfillment of its corporate purpose, the Corporation shall be governed by Sections 4A and 21 through 23 of the Act, and shall have all of the powers set forth and conferred in its Articles of Incorporation, In the Act, and in other applicable law, subject to the limitations prescribed herein. ARTICLE II OFFICES Section 1. Erin i al Qlfco. The principal office of the Corporation in the State of Texas shall be located in the City of Allen, Collin County, Texas. e Section 2. Reaisle red Qfii nd Re ter d A . The Corporation shall have and continuously maintain in the State of Texas a registered office, and a registered agent whose office is identical with such registered office, as required by the Texas e Non,Profit Corporation Act. The registered office may be, but need not be, identical • • i with the principal office of the Corporatior. in the Stale of Texas, and the address of the 1 t registered office may be changed 'ram t:,me to : me by the Board. • • r l ~ s ARTICLE III The Corporation shall have no members or stockholders. ARTICLE 1V BOARD OF DIRECTORS Section 1. powers Number and Term of Office (a) The property and affairs of the Corpuration shall be managed and controlled by a Board of Directors (the "Board") and, subject to the restriction imposed by law, by the Articles of incorporation, and by these Bylaws, the Board shall exercise all of the powers of the Corporation. (b) The Board shall consist of five (5) directors, each of whom shall be appoints i by the City Council (the "Council") of the City. The City Council shall consider an individual's experience, accomplishments arid educational background in approaching members to the Board to ensure that the Interests and concerns of all segments of the City are considered. (c) The directors constituting the initial Board shall be those directors named in the Articles of incorporation. In order to establish staggered terms, the Initial two (2) boaro members appointed at large shall serve three (3) year terms, the members appoin!ed from the City Council and school board shall serve t.ro (2) year terms and the member appointed from the Allen Chamber of Commerce shall serve a one (1) year term Thereafter, each successor member of the Board shall be appointed and shall • serve for three (3) years or until Ks or her successor is appointed as hereinafter provided (d) Any director may be removed from office by the Council at will. Section 2. fvleetirig of Directo-s. The directors may hold their meetings at such j place or ulaces in the C'ty as the Bard may from time to time determine; provided, r\~\ecc:?r 2 i ~ i. • a~ • however, in the absence of any such determination by the Board, the meetings shall be held at the principal office of the Corporation as specified in Article II of these Bylaws. Section 3. _Qggn Meeting Act. All meeting and deliberations of the Board shall be called, convened, held, and conducted, and notice, shall be given to the public, In accordance with the Texas Open Meeting Act, Article 6252-17, Tex. Rev, Civ. Stall, Ann„ as amended. Section 4. -Notice of Mft_U=. To the extent that the Open Meeting Act conflicts with the provisions of this section, the Open Meeting Act shall govern. (a) Regular meetings of the Board shall be held without the necessity of written notice to the Directors at such times and places as shall be designated from time to time by the Board. Special Meetings of the Board shall be held whenever called by the president, by the secretary, by a majority of th., directors, by the Mayor of the City, or by a majority of the City Council. (b) The secretary shall give notice to each director for any emergency Meeting in person or by mail, telephone or telecopier, at least two (2) hours before ttie meeting, Unless otherwise indicated in the notice thereof, any and all matters pertaining to the ! purposes of the Corporation may be considered and acted upon at a Special Meeting, At any meeting at which every director shall be present, even though without any notice, any matter pertaining to the purpose of the Corporation may be considered and • acted upon consistent with applicable law. (c) Whenever any notice is reouired to be given to the Board, said notice shalt be deemed to be sufficient if oven by depositing the same in a post office box in a sealed postpaid wrapper addresseC to the person entitled thereto at his or her post EVLAVI; AE`JC - ?are 3 r-'a\ecMnv 2 • b W office address as it appears on the books of the Corporation, and such notice shall be deemed to have been,given on the day of such mailing, Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objection to the transaction of any business on the grounds that the meeting is not lawfully called or convened. Neither the business to be transacted nor the purpose of any Regular or Special meeting of the Board need be specified in the notice or waiver of notice of such moating, unless required by the Board. A waiver of notice in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Section 5. Ou___ortum, A majority of the directors shall constitute a quorum for the conduct of the official business of the Corporation. The act of a majority of the directors present at a greeting at which a quorum is In attendance shall constitute the i art of the Board and of the Corporation unless the act of a greater number Is required by law, Section 6. -Conduc t of_ Busing, (a) At the meetings of the Board, matters pertaining to the business of the Corporation shall be considered in accordance with rules of procedure G:; om time 'o time prescribed by the Board or the law. (b) At all meetings of the Board, the president shall preside, and in the absence { of the president, the vice president shall exercise the powers of the president. (c) The secretary of the Corporation shall act as secretary of all meetings of the Board, but in the absence of the secretary, the presiding officer may appoint any per<_en to act as secretary of the meeting „ avt:;,v5 S'-DC ~1~\ecauer 2 0 • ca • Section 7, Compensation of Directors, Directors shall not receive a salary or any other compensation for their service as directors. However, directors may be reimbursed for their actual expenses incurred in the performance of their duties. ARTICLE V OFFICERS Section 1. Titles and 'Term of Office. (a) The officers of the Corporation shall be a president, a vice president, a secretary and a treasurer, and such other officers as the Board may from time to time elect or appoint, One person may hold more than one office, except that the president shall not hold the office of secretary. Terms o' office shall be one (1) year with the right of an officer to be reelected. (b) All officers shall be subject to removal from office at any time by a vote of a majority of the entire Board. (c) A vacancy int the office of any officer shall be filled by a vote of a majority of the directors. Section 2. presiders, The President shall be the presiding officer of the Board with the following authority; (a) Shall preside over all meetings of the Board. (b) Shall have the right to vote on all matters coming before the Board. (c) Shall nave the authority, upon notice to the members of the Board, to ca', • a special meeting of the Board when in his judgment such meeting is required (d) Shall have the authority to appoint standing committees to aid and assist the Board in its business undertakings or other matters incidental to the operrtion and func, ons of the Soard BYLAV6 AEDC F'a ;e a~otoae.1 • d • w 0 (e) Shall have the authority to appoint ad hoc committees which may address issues of a temporary nature of concern or which have a temporary affect on th., business of the Board. In addition to the above mentioned duties, the President shall sign with the Secretary of the Board any deed, mortgage, bonds, contracts, cr other instruments which the Board has approved and unless the execution of said document has been expressly delegated to some other officer or agent of the Corporation by appropriate Board resolution, by a spe,:ific provision of these Bylaws, or by statute. In general, the President shelf perform all duties incident to the ofCce, and such other duties as shall be prescribed from time to time by the Board. Section 3, vice President. The vice president shall have such powers and duties as may be prescribed by the Board and shall exercise the powers of the president during that officer's absence or inatility to act. Any action taken by the vice president in the performance of the duties of the president shall be conclusive evidence of the president's absence or inability to act at the time such action was taken. Section 4. Treasurer. The treasurer shall have the fasponsibility to oversee the handling, custody, and security of all funds and securities of the Corporation in accordance with these Bylaws. The treasurer shall see to the entry in the books of the Corporation full and accurate accounts of afl monies received and paid cut on account of the Corporation. The treasurer shall, at the expense of the Corporation, give such bond for the faithful discharge of his duties in such form and amount as the 1 D )ard or the Courcil may require. i `'action 5. Secrets The secretary shall keep the minutes of all meetings of • • )jj 1r e Board in books provided for that purpose, shall give and serve all notices, may sign l B'rtAWS AFDC. Papa 6 iteccce 2 f • w • with the president in the name of the Corpcration, and/or attest the sign:sture thereto, all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments of the Corporation, shall have charge of the corporate books, records, documents and instruments, except the papers as the Board may direct, all of which shall at all reasonable times be open to public inspection upon application at the office of the Corporation during business hours, and shall in general perform all duties incident to the of ice of secretary subject to the control of the Hoard. Section 6. Thu president, each vice president, and the secretary shall be named from afnung the members of the Board. Section 7. ComRensatlon. Officers who are members of the hoard shall not receive any sAlary or compensation for their services, except that they may be reimbursed for their actual expenses incurred In the performance of their duties hereunder. Other officgrs may be compensated as directed by the Board. Section 8. Director of Economic Develooment. The Corporation may employ ,i Director of Economic Development to serve as the Chief Executive Officer of the I Corporation, oversee the administrative functions of the Corporation, and duvelop policies and procedures for the Corporation including financial, accounting, and purchasing policies and procedures to be approved by the Board and City Council. The Corporation may employ full or part-time employees as needed to carry out the • procrams of the Corporation. Section 9. ~ntracts for Service. The Corporation may contract with any qualified and appropriate person, associsicn, corporation or governmental entity to • perform and discharge designated tasks which will aid or assist the Board in the performance of its duties. However, no such contract shall ever be approved or `;Y'-4'VS AEDC - f arle 7 a,ecode~2 • b ~d V r ~ • S entered into which seeks or attempts to divest the Board of its discretion and policy- making functions in discharging the duties herein above set forth in this section. ARTICLE VI FUNCTIONAL CORPORATE DUTIES AND REQUIREMENTS Section 1. General Development Pfan. The Board shall research, develop, prepare, and submit to the Council for its appoval, an economic development plan for the C;ty, which shall include proposed methods and the expected costs of imnlpr.antation. The plan shall include both short-term and long-term goals for the economic development of the City. Section 2. nn f Corporate Budaet. On or before July 31st of each year, the Board shall adopt a proposed budget of expected revenues and proposed expenditures of the next ensuing scat year. The budget shall not be effective until the same has been approved by the Councif. Section 3. Bgj2k Records Audits. (a) The Corporation shall keep and properly maintain, in accordance with generally accepted accounting principles, complete books, records, accounts, and financial statements pertaining to its corporate funds, activities, and affairs. (b) The Corporation shall cause its books, records, accounts, and financial statements to be audited at least once each fiscal year by an outside, independent w auditing and accounnting firm approved by the City. Such audit shall be at the expense of the Corporation. Section a. U posit and Investment of Corperate Funds. (a) All proceeds from Me issuance of bonds, notes, or other debt instrum ants ("Obligations') issued by the • UYtAWS AFDC Page 3 o,a',acoaev 2 0 r-. • Corporation shalt be deposited and invested as provided in the resolutions, orders, indentures, or other documents authorizing or relating to the issuance. (b) All other monies of the Corporation shall be deposited, secured, and/or invested in the manner provided for the deposit, security, and/or investment of the public funds of the City, The Hoard shall designate the accounts and depositories to be created for such purposes, and the methods of withdrawal of funds therefrom for use by and for the purposes of the Corporation. Section 5. Expenditures Of .nrnnratc tirr e, (a) The nlOnleS Of the Corporation, including sales and use taxes collected pursuant to Section 4A of the Act, monies derived from the repayment of loans, rents received from the lease or use of property, the proceeds from the investment of funds of the Corporation, the proceeds from the sale of property, and the proceeds derived from the sale of Obligations, may be expenr!eo by the Corporation for any of the purposes authorized by the Act, subject to the following limitation: (i) Expenditures for the proceeds of Obligations shall be identified and described in the orders, resolutions, indentures or other agreements submitted to and approved by the City Council prior to the sale and delivery of the Obligations to the purchasers thereof required by Section 6 of this Article; and (ii) All other proposed expenditures shall be made in accordance with and shall be set forth in the annual budget required by Section 2 of this Article. Section 6, Isss,ance of OblLWjion. No Obligations, including refunding Obligations, shall be sold and delivered by the Corporation unless the Council shall approve such Obligations by action taken no more than sixty (60) days prior to the date s of sale of the Obligations. F3'i`_',Y✓S • AEOC - Page 9 ~'.J`l000ly 2 • • Section 7, Conflicts of Interest, A Board member, officer of the Corporation, or member of the City Council may not lend money to and otherwise transact business with the Corporation except as provided in the Bylaws, Articles of Incorporation, and all applicable laws. The Corporation shall not borrow money from or otherwise transact business with a Board member, officer, committee member of the Corporation, or a member of the City Council unless the transaction is described fully in a legally binding instrument and is In the best interest of the Corporation. The Corporation shall not borrow money from or otherwise transact business with a Board member, officer, or member of the City Council without full disclosure of all relevant facts and without the approval of the Board, not including the vote of any person having a personal Interest in the transaction in accordance with the conflict of interest statutes of the State of Texas. Section 8. ihs The Board may accept on behalf of the Corporation any contribution, gift, bequest, or devise for the general purposes or for any special purpose of the Corporation. ARTICLE VII MISCELLANEOUS PROVISIONS Section 1, Fiscal Year. The fiscal year of the Corporation shall be the same as the fiscal year of the City, Section 2. Seal. The seal of the Corporation shall be as determined by the Board. Section 3. R sr nation. Any director or officer may resign at any time. Such res~gnatron shall be made in writing and shall take effect at the time specified therein, I or, if no time is specified, at the time of its receipt by the president or secretary. The G [ANS AFDC - Page 10 ray ecodev 7 • • acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation. Section 4. _ACOrovat or Advice and onsen Icy the nit. To the extent that these Bylaws refer to any approval by the City or the Council or refer to advice and consent by the Council, such approval, or advice and consent shall be evidenced by a certified copy of a resolution, order, or motion duly adopted by the Council. Section 5. @Okes of ON Staff and Off Subject to approval from the City Manager, the Corporation shall have the right to utilize the services of the City personnel, provided (i) that the Corporation shall pay reasonable compensation to the City for such services, and (ii) the performance of such services does not materially interfere with the other duties of such personnel of the City. Section 6. In mnifcation of Directors, Officers nd E aes. (a) As provided in the Act, the Corporation is, for the pu;poses of the Texas Tort Clalms Act (Subchapter A, Chapter 101, Texas Civil Practices and Remedies Code), a governmental unit and its actions are governmental functions. (h) The Corporation shall indemnify a person who was, is or has been threatened to be made a named defendant or respondent in a proceeding because the person is or was a Board member, officer, or agent, but only if the determination to indemnify is made in accordance with the provision of Article 1396.2.22A of the Texas Civil Statutes, as amended. • (c) The Corporation may purchase and maintain insurance on behalf of any Board member, officer, employee, or agent of the Corporation, or on behalf of any person serving at the request of the Corporatron as a Board member, officer, employee, i • • or agent of another corporation, partnership, joint venture, trust, or other enterprise, BYLAWS - AEOC Page 1 I '.a\ecoaer.2 t against any liability asserted against that person and incurred by that person in any such capacity or arising out of any such status with regard to the Corporation, whether or not the Corporation has the power to inderrinify that person against liability for any of those acts. ARTICLE VIII EFFECTIVE DATE, AMENDMENTS Section 1. Effective Date. These Bylaws shall become e8ect!ve upon the occurrence of the following events: (1) the adoption of these Bylaws by the Board; and (2) the approval of these Bylaws by the City Courdi. Section 2. iii gndm nts to Articles of IncgrnoratIgD qOj_Qy~►,,v . These Bylaws may be amended or repealed and new bylaws may be adopted by a majority of the Board members present at any regular meeting or at any special steeling, if at !3ast five (5) days written notice is glven of an intention to amend or repeal ther,a bylaws or to adopt new bylaws at such meeting. Any amendment of these bylaws will be effective upon approval by the City Council. Adopted this the 11'~ day of _MAv 1992 ~ i e President of the Board of birectore- Attest: Corp, prate ec"retary Z BYLAWS AFDC Page 12 aro~~ov2 ~ w • FILED in :hu 11fI r ni th; U1 Stilt: qi T e%.1- AR'iCL ES OF iNCORMUTION 'UL 1 q OF ?nR;S O`'G`tiC 7E'iE C?`iE~T COR?CR.A::O\ C.r-orahunsStc;ton We, Ceor3e Fisher, Michael E. Malone, and T. K. Haynes, the undersigned natural persons over the age of eighteen (18) years and a qualified electors of the City of Paris, Paris, Texas, acting as incorporators of a Corporation under the Development Corporation Ac: of 1979, Vernon's Ann. C:v. St., Art. 5190.6 as amended by adding Section LA do hereby adopt the following Articles of Incorporation of the ?arts Economic Development Corporation. ARTICLE: I NAME The name of the Corporation is Paris Economic Development Corporation. ARTICLE 2 NON-PROFIT CORPORATION The Corporation is a non-profit corporation specifically governed by Section 4,; of the Development Corporation Act of 1979, Vernon's Ann. Civ, Sc. Upon dissolution by election as provided in Section 4A(k) of Arc, 5I90.6, Vernon's Ann. Civ. St., the Corporation shall continue operations only as necessary to pay the principal of and interest on its bonds e ~9C::Oq d.^-- a':, 30 p-actic3ble, sh, d's Jpse or its assets and apply Z cie proceeds :o sa:is:y those obligations. When the last of Cie obligations is satisfied, any remaining assets of Cie Co:porac'or, s;,a'_-' be t:a fe:r.ed to the Cicy of Pa; is, ?atis, Texas, and t-e C~-:c:a:ic is dissolved. The tax imposed --.C er 3a.~ 14 ^ •te `4e 9 ,'aC satisfy said obligations uncil the last obligation is satisfied and may not be collpcned after the las: day of t o • fist quarter beg'aning after notification to the compc:oller oy the Cor-.o:at'on that the last of ics obligations is satisfied. j ARTICLE 3 DUR.AT11 ON 1 T:, e Cc-:c:a:icn s~a 11 continue in ?e::ettt:ty, • 1 • • w ARTICLT Pl'Z'OSC.5 The Cotro:acion is organised exclusively for cie purposes of beneficing and accomplishing public purposes of the Cicy of Paris, by promoting, assisting, and enhancing economic develoomenc activities for the City as provided by the Develcomenc'Cornoracion Act of 1979 as amended, The dorporation shall have and exercise all of the rights, powers, r:ivileges, authority, and functions given by the general laws of texas co non-proiit corporations by the Texas Nonprofit Corporation Ac:, Vernon's Ann, Civ. St., Art. 1396-1,01 et. seq., and the a0 itional powers as provided in Arc. 5190.6, Seccion 23, including the issuance of bonds. If any conflict should arise between these statues regarding the Corporation's powers, Arc. 5190.6 shall control and govern the Corporation. ARTICLE 5 KEEMBERSHIP AND STOCK The Corporation shall have no members and is a non-stock corporation, ARTICLE 6 INTERNAL AFFAIRS The Cor?oration's internal affairs shall be regulated by a sec of Bylaws not inconsistent with the laws of the State of Texas, which have bean approved by the City Council of the f City of Paris, Paris, Texas under whose auspices the ARTICLE 7 ?,ES c S'c3'J OFFICE AND AGENT The street add:ess of c`.e i.n.i:ia'_ registered o:.ice c- Z`e Co:~:o:atica is 1iz St:eec S._. Paris, Texas 75660, 9037,-Paris, Texas y7546i• The name of the initial regisce:ed ,.a.cne, ~ agent at such oi" ce and address is uiciael E. " • ARTICLE 3 BOARD OF DIRECTORS The rumba: o: directors constituting the i;i,'::a1 Board o- Directors of r'-e Co:-Ioracion is five and tie races and' addresses of the persons who are ro serve as the initial • di:ecto:s dre: • • 7 0 • Name of Di:ectoc Address P. R Czc3120 Clark Lane, Paris, TX 754,60 Cur::; •:nd'ey 554 S. Chu:c. St „ ?3:is, T:( 75460 Leon 'ailiiams 643 3rd Sc. N.E., ?aria, T-'( 15460 Eric Ciicford 810 Lamar Ave., Paris, T% 75460 Barney Btay, III 3230 Mahaffey, Paris, TX 75460 ARTICLE 9 L-%4T-AT*CN ON LIABILITY 07 DIRECTORS A director is not liable to the Corporation or members for monetary dadages for an act or omission in the director's capacity as director except to the extent otherwise provided by a statute of the State of Texas. ARTICLE 10 INDEMNIFICATION The Corporation may indemnify a person who was, is, or is threater.•d '.o be made a named defendant or respondent in litigation or other proceedings because the person is or was a director or other person related to the Corporation as provided by the provisions in the Act governing indemnification. As provided in the bylaws, the Board of Directors shall have the power to define the requirements and limitations for the Corporation to indemnify directors, officers, members, or others related to the Corporation. ARTICLE 11 The Cite Council_ c: the City of Paris has specifically auc'-critea by :esol'_tion the establishment of the corporation as a non-pro:it corporation tc promote, assist and enhance economic aevelept:ent as petmicted by the Texas Development Cc:?oration Act o: 1979. ARTICLE 12 AMENN-iNTS • The Articles of Incorporation may at any time and f:oa tame co time be amended by the Board of Directors or by the Governing body, subject to such restrictions and in 1 accordance witi such procedures as may be provided in the bylaws of the Corporation, so long as the Articles of :ncorporacion as amended contain only such provisions as are • lawful under t1!,, Act. • { Q • ARTICLE 13 CONSTRUCTION All references in t e s e Articles o; icc3r?o:aC`an statutes, teguiacions, or oc:ler sources o: 1eg31 auchoric% shall refer to the authorities cited, or their successors, as they may be amended from time to time. ARTICLE 14 INCORPORATORS The name and street address of each incorporator is: Nacre of Incoroorator Street Address George Fisher 1037 Fitzhugh-Ave., Paris, T% Michael E. Malone 547 S. Main St., Paris, TX T. K. Haynes 650 31st St. S.E., Paris, TX IN WITNESS WFEREOF, we have hereunto set our hands this /4/14 day of July, 1993. Ga tge `iisner Mic ae Malone ,~i r~.iGa._1J1 Wis. a%~ 2S 5-,A:7- OF TEXAS 5 COUNT': OF r aA?. S a VC t3-;! ?%iblic, d0 hereby certi-'/ neat c:. ta:, /c_~a;: before me: George Fisher who declared that he is the person ::ho signed t;le foregoing articles as ar. incor-cr3tor, and that the statements chereia contained are t:ve. IN ;4:7VT_55 ',;'d_REOF, I have hereunto set my hand and seal the day and year above -•+ritten. G/ AI.C: M. 01NA „'e" NOW ( P tl[c Notary State Cr leXas- S • • a~ • BY i.. 41+S Or -N C cF:T COaPORA-',. PARIS, T_SAs SECTION I OFFICES !.01 Rears-e-e4 0--ice and Registered AQenc The Paris Econooic Development Corporation, he:ti^a':a: teie;red to as COR?ORATION, shall have and continuously maintain in the Scace of Texas a registered office, and a regiscered agent whose office is identical with such regiscered office, as required by the Texas Non-Prof i Corporation Acc. The Board of Directors, hereinafter referred to as BOARD may, from time to time, with the approval of tie Cicy of Paris, Paris, Texas, hereinafter referred to as CITY change t:,e registered agent, or the address of cie registered offica, provided that such is r appropriately reflected in these Bylaws and in the Articles of incornor~cion. The. regiscered of:ice of the CORPORATION is located at 135 1st Screec 5._., Paris, Texas, 75460, and at such address is the CORFORATION, whose mailing address is ?.0. Box 9037, ?axis, Texas, ;561. T;.e -.-,c.~al I: e o: c n e CGr _ :::e Cac: e Cit, 0f 7a:is. CcL--, Taxes. x.01 n„-poses • T'^,a COR?CL.-:0`r is a nor.-prod: corporac:on gcve:ne~ -IF t,a Tawas Cevelopa.enc Corporation Ac: o: 1979, as ..C_GC era. 71-1 e pu::ose of tie C0R?7KATION is c0 proCOte, eS5i3t, a^.C enpa:Ca ecOCoC;lc deva10pmenc as per Witted by t^e -o•<as Cave _oo=enr CG pc: at ion S.C - 0: 1:7~ a"GO ::1 aC2o::aa t^ese 3v13ws. s • • i 0 0 • w • S The CC.'.?ORATiC.N Shat- have no :eMDa.-S. SECTION IV 3CARD OF DIRSCTORS 4.01 30ARD The business and affairs of the CCRPORATION and all corporate powers shall be exercised by or under authority of Cho BOARD, appointed by and sereing at the pleasure of the governing body of the CITY and subject to the applicable imitations imposed by the Texas Non-Profir Corporation Act, the Texas Business Corpo-ation Act, the Texas Development Act of 1979, the Articles of incorporation, and these Bylaws. The BOARD Bay, by contract authorized by BOARD resolution, give general, limited or special power and auchorit! to Directors of the CORPORATION to transact the general business of the CO?-°ORATION or transact any special business or 0e CORPORATION, and may give powers of attorney co Directors of the COR-°ORATION au:horized by BOMM resolution to transact any special business requiring sucn authorization, 4.02 ember and Oualifications rile ::-ec:o:5 0: the CJRMkA7:06 -e a ^e :esidL and Jhal" raside W'n tha C0C:a Ce-..C:. z5 0: t.n'- Ci v Or ~3ri5The CI F.- al: consider an individual's experience, _.sc-er any A oa--k 0,.ne No _`crwe: or sitting =e=ber of the CITY'S Council shall be eligible for appoinaen: to ^he BOARD until they have • ceased co Serve on C:idt's Counc_! for a period oe at least one (1) ya3:, 4,03 General Out-.es o_° the BOARD ,he is he:e"'? g d s to pet-oz= the follow:., a::e • ! . The 30.kR'~ s'nall vot'. on all Wade-s Coming be:.re the 3CARD :c: attic • 73^ - ~1 • CA • . ceve:op ar ove:a. eccnom .O C?'lelC:C?^: -'.an•fo: the City shall tnc de and sec forth be:h a nc s'".. _ :e:= loa_s C:ne 3C:.P.D netessa - y a sh cc: ;ca it3 c':e;_ econo= de,,eltc .en: elan. Such Dian shall be a;;:3veC by tie CITY. 3. The 3GARD shall review and update its overall economic development plan by June 30 df each year to ensure tha: said ]tan is up to date with the cu: tent ec.orcm cli_ate and is c30able 0: mee:in2 P3: is' c7::e^.: econcc-,:c oeveloomer.t needs. V 4. The BOARD shall develop an annual plan of work outlining .-e activities, tasks, projects aid prog,acs to be undertaker, by the BOARD du.icg the upcoming fiscal yea:. Tie annual plan of work shall be submitted with the annual budget as outlined in Seccion 8.03 of chesa Bylaws. S. The BOARD shall expend, in accordance with State law, tie tax funds received by is on direct economic development where such exnendicu;es will have a di:ec: oenefir co the citizens of Paris. As used in this section, "direct economic development" shall mean the expendi:'_:e 0: suc:- cax :Cnds :o: tog-ams chat di:2c"l'1 ac:ae:):_S'r 0: a: in the acCoWplishment of c:aat:'3 Ic encif lab Is np1.4 jobs o: ree:a i..^.i^g ider.:iffable elf st1n; jobs, incLuc: ,ng job c:3ining or planning and Cesaa - cn a C:ieS ^.e:essa:v to p:oclcC Said new fob c:eatien. C. =O:=ac:Or cf new 'o us roes a e s . 3CAn7 s:'1R_ dev e' Cu3l :icat an nd:3z.et e:3 C?; ^,e n C:°C :S acce^ r"1 ?O L'eS tS. ' CCR°1_"-RA'_0` Si al_ maSe an 3..n'.;al repo: _ Ca C1e C... ' ,71 0-, :e:..c° Vie]: a:J 1, i~~J, and ea: '!°a: :ne:ea::e: © 3CA712 e5:^.°_ W3V desl..;1a'Ce One 0: ^.C:? _t:'.:'ee> S S , • • 0t -1;ed DU i s Ie 30.4. RD .s a__...,:.ted :D do taa: ~e 3CASN :ea~a -es-:2C:e :a 3C:. in Inv C: tCS?5 C: a_ .C?d n 5_c^ 3 Cf :1 es2 • .3w,3 and n accordance w:c, State 13w. 4.05 Tanu-e The initial -?-.s of of:.ce for the Di:ecto-s shall be three (3) years f0- two Directors, two (2) yea-s c wo Direccors, and one (1) pea- for one Director, as appointed by the CITY. No -.e=be- o: the Directors shall sa:ve no-e the two (2) consecutive cams. The CITY shall appoint the Directors of the CORM ATION. The number of the Diracco-s shall be five (5). Afcer the initial term of office the Directors shall serve for three (3) years. Directors shall be appointed by the CITY in June co begin their re:= on July 20. 4.06 Vacancies Any vacancy occurring shall be filled by aeooinc=enc by the CITY to the unexpi-ed certl of the vacated position. 4,07 Quorum A :.ac-icy c: tae BOARD shall constitute a quo The act c_. VC:_ 0. ~ meeting at which a quorum is present shall be the act or v)te nQ Cc e.^.sa:ion 'l-e aD ~O....e _es o: tae 3CA a".a s a r while on •officia: business - of ti.e BOARD in ac to.dan c.. •.icn JC?te law. • Vc:e _,ch Di:ectOr shall have one (1) 'Doter °-Xerc_S30.e ir. De-30i, Cnl?SS O:ne-wiSe pr0y4ced in t`.', 3".!J S. in Che J 1?s O: cra t.Cn, c: aS :?^ui-ec •J, La.,: • _ -_S O: I to • C°_ IOe:a:aC a- b v0 a or t,^,2 'd:ll 7a ex:JS?^ D -ec:or shalt '3 the sd,3 to cne ac:e.n.ci0n Of C,:e'.22_.,7& a-d s-a'_. :ac,cve ...:sal- :o. c:~e 'ccard 7,c--) (Ci:v Ccur.c L'.._ess 3CAR:~ :e: es: e.,.., . Direc:o: s,a;Jb: .g to :he^aen ' t_ cne me et: n~ a.^.y a.?a: a,^,C C0nt1.:t ince est 0: 70Ctn:ial conilic: or interest of any other Director, in which case the BOARD shall determine whether a true conflict of Interest exists before any vote shall be taken regarding caac 0a-zicu1a: mae:. The Di:ec:or as :o whom a cuesticn 0. interest has been raised shall refrain i:am voting wi:h regard co the de:e:mination as to wheche: a t: e con-"- x 4,11 Removal from BOARD The 30ARD may request that the CITY remove a Director :rot: the BOARD with the adoption of a resolution by th:ee- fourths (3/4) voce of the entire membership of the BOARD or the CITY may remove a Director from office by three-fourths (3/4) vote of CITY's Council, when, in the judgment of the BOARD or of the CITY, the best interests of the CORPOR.AT:01' would be se:ved by said removal. The Di:ec:ors and the ce--ber to be reroved shall be notified at least seven (7) days prior to the meeting in which the vote is taken. The removal of a Director shall be effective immediately upon passage 04 t^e :esolucion, 3oa:a's Rela -ior,shio r. a000 anCa ::.1 Giese 3ylaws) .;,a; :..aka c_.en :a ex-and nds .m :he ur,desi_naced fund balance as d3S -ed hereina::er in ?a:aE:ath 5.11 (in tor,?11a^.C: wits s:at: _aw ^ov: - -,al.5 obtan C:YY a a~ 0va1 ^ eynendi_'_1 as nowe'1e:, the BOARD shall .^,oC maka co=i:mencs Ir act lda^ce with state law, e C:-, s hal _er :-dl tie CuRP0RA :C ,N be respc r.sib:_ :cr t'-e DrcDer d4 ' .SC^3e O: :CS Cassigned in r;i5 sec:lOn Ali pclicies program adminisc:acion shall be SubGi:Ced f : C:'Y approval, ar,,C the BOASall determine its D014cies a.-,d d re i e : i o r. s 0 f CliOC. w`.:h i❑ L. i the du. CieS i-- Dosed by aDo11Cab~e laws, C- e : s 0f 1,-.(: c :Oral ion, these 3yla:+s, co; ::aC:s 1 1' .2 5 e^te:ed intc 'w^i.., L^e C:tv. aooioved budge:, a:0 .1d J c a- P - C: - - - F: - r • • Boa:~'s ne:ationshi: 1Ji:h .cc.:n sac:.s a:=.e nZ3 or cIe ~iCv a'_ se - ces be :O..~e :n a ti-.ely manne: :a the 3CA?.'a '0v t'ne CITY -I: ser=vices a r a not available within the ci.m. f=ame required chrough the CITY forces at the time of request, C?T'; w:11 provide the sate in a timely m,aara through consultants or contractors. Any recces: for services made co _ie administ:arive daoa::=ent of t=e CI". saal- be wade by .-e ?QARD or desi3 ee in writing to the City managar. The Cicy manager may a;:.::aye such request for assistance crom the BOARD when he finds such requested services are available in a cioely manner within the administrative departments of t'le CITY a,:d taac the 30A?.] will reimburse the administrative depart=encrs budget for c:- le-costs of such se:v:ces so provided, B. The City Attorney will serve as counsel for the BOARD as provided for in tha City Charter, Any request for legal assistance idencicied by the BOARD will be addressed with "a advice and cornsulcatfcn of the City Attotney The City A::orney ? arrvide assistance as requested by the BOARD, and CITY will be reimbursed for cost of providing tie requested legal services. S-c-:ON v . i\GS AND NOTiC-7$ ;.t :.r "e?: .,Z .:ara _e _ ..,..a. ~Or;< ty.3C :0;;a ec~ 3G.. a0_ and sc busine5s as sna 00De::'J come 'Defo:e tae mee:.Gg R-3 ar :Meet` • 3C :.?J i^.a fee' 0^ve 2aC^ SC^t.l 2t ~itY ~aI I r ?3:.s. T?xas. ?:es4deaCC o: c--- BOARD s'-311 se: regl..a. cases 3nc t=as a: the beginni^g o: 11119 S: e":31 uent< r. f • 0 • I- r.. • Azenda ...^.3 ..:ear-on and :CGC'.-Z 0Z, zee" '-)3 a39^.dd5 aC i,: y "3. An er C: :;;e BC:.A~ ::dv ^ecUe3C that an i:e.^ be pla:ec 0.1 t1; Agenda by G211Vering the same in writing to the Sacre.3-y-. Treasurer of the BOARD no later than iive (5) days prior to the dace of the BOARD meeting, The posting of agendas sha?1 conform CO tie requirements of the Texas Open Meetings Ac: and Section 5.05 of these Bylaws. 5.05 Notice Notice and conduct of all meetings shall conform to the Texas Open Meetings Act, No cica shall be provided In accordance with Vernon 's Annotated Civil Statutes Ar-icle 6252-17, et Seq., and shall contain information regarding- the particular time, date, and location of the meeting and the Agenda co be considered. 5.06 Action Withouc Meecin any act-en required by law to be :aken at a =aecing o the BOARD, or any action which may be taken at a me ecink of the BOARD, may be taken without a meeting if a consent in writing sec:in;, forth the action so taken shall be signed by all Directors. 5.01 t:aiver of Notice 'e::". O: CC?3'=.AT GN un de: .^-a .i'J2 ..':5 Cr a'? std :'.:e s', :n3 cs 0ra ddlv3 ..`.e:_C. S:zn-2d by ",e 7e:Jc7 or persons entitled to suchnocice, was::her before or after is zine 3--.-s C: C 5.05 A:.andance as Waive: • At:e^.Cance or Director at a meecin3 Sha_'. COnS:iCUta a waive: o: no:ice of suci meeting. 5.09 At endance • 'R9gular at:_ndanca of t"e MAU ueecings is :9^'ired o; a- -eCrC r ..fee cCnsec :.Je a.Sences or c:-e- s',. ♦ • •-_'e'__a- y3~:.n7~ art°,nd3nC: ::aV :.e C:asid3:'~': aS 2:"C' ]C.,.. ..Ca f ))r 7 I? A W • i SEC-LiON V: CF"IC-c?S 5.0E C -era or rJ :a:ion The elected o " cers of the C0FF0P.;T:ON sha11 6e a President, Vice Presidenc, and Sac:ecary-Treasurer. The BOARD stay resolve to elect one or more Assistant Sacre:a:ies- Treasurers as is may consider desirable, Such officers shall have -he authority and perform the du-'as of the office as the BC*:- may r:c :e to time dele,ate. An:; two (2) a- more orfices may be held by the same oersoa, except the office or President and Secretary may not oe held by th'a sane person. 6.02 Selection of Officers The initial President, Vice President and Sec:eca:y- Treasurer shall be elected by the BOARD and shall serve through July, 1994. On the expiration of the term of office of the original Presidenc, Vice President and Sec: ecary- Treasurer, tine 30A?D shall select f:om among its Memcers individuals to hole such orrice, The to:m of office of c..-- President , Vice President and Secretary-Treasurer shall always be for a period of one year from the date of selection by the BOARD, provfced hcwever, that the ?resident, Vice ?:esidenc and Secreca-v-T:easurar centime to serve un:+ e e1eC:iCC CC t.nei. sUcc°ss0:s. 03 Vacarc'es removal-. or :.--eC t.1e cne unaxp::e: ^_v:...... O: -n cn3: c._.Ce. .i _r.a safe .ae; ^9_ .i. 35 CC-: C:.._ elected. • A. T^e P-es.Ce^.: s.^.all be the -.es._.^, p~ O:..Cer C: ^,9 3037 'a. _r.e r011oc .-.z au_:na,.cI (1) Shall preside over all aee:. gs o: the 30An7. Sha_1 vote cn all yacca:a '0ercre t^a 3CA2.., . aCt1CL. • :fia:i ia'i°_ t.^.e 3L':,~.... 7CC ^f, _.:-2 ~ ~ ~i WNW • • O 5hal'_ Hare tae auchoricy co a? eEn: s:3ndia3 c0C'_.i:Lees cc aid the BOARD in its ousiness uade:- i .9s o: 0: e: at:e:s inc.'den,:31 co t=e 00e:3- :i0n a,-,d :.nc:ions o-' the 30AZD. (S) Shall have the auchoricy cc appoin: ad hoc cot iccees which may address issues of a temoora:y nac:::e or concern which have a temporary af:ect on the business of the BOARD. (5) Shall sign when authorized by resolution duly passed and adopted, any deed, morc3age, bonds, contracts, cc other insccumencs which the 30ARD has approved unless the execution of said documents has been expressly delegated cc soue ocher officer o- agent of the CORPORATION by appropriate Board resolution, by a specific provision of these Bylaws, or by statute, (7) Shall perform all duties L cidenc to the office, and such other duties as shall be prescribed from rime to time by the BOARD. B. The Vice President, in the.absence of the President or in the event of his inability cc act, shall assume the authority and duties o; the ?resident. The Vice President shall also perform oc'ne: duties as f:om time to tiae mat be assigned cc h;-- by the ?:esidenc• C. The Sec:e*.ary-Treasurer shall have the following JIn e2e - _17se k°-tr 3t the -eg:sce-e0 c: to a of a'._ meetings oc :2e 30AR0 ant an' ec_...:aes o: BOARD, r'uL:ae:, Sec:eta y - I e ase:e: will Waka said minutes ava:lab:e gar.:e T?Xas C -2- uaa-. 2s A-- e Tex35 Ac: • (3) Shall be custodian of the COR?ORATION records and seal 0: tae CORPORATION, and shall keep a -egister 0: t'-e =aadd:.ss and s:reec address, if different, o; each D: ector. S'nall insure chat a copy of all BOARD pnd co -si::e= :aut?s are i:let with the C:ty Clsrk o: Lhe C:tr 0: Paris. r s • • Shall ve-i o-' 0, i • as • (5) ha:' nave ,-a:ge and r'astcd'~ o° arc 'oe :asncns'a :o: a11 :'..nc3 and sacurities o: the COR?ORATION. Ce :cndeC for t:,e CaI:a1 disc'narge o: his dUCl- s S uCn SC:eCv 0: su:a"ies and in suc} S,= a3 the 30A?':) snare dece:aine by resolution, out in no event shall the amount o: such bond be less than an amount equal to tie sums whit;b the Secretary-Treasurer has access to and the ability to convert during a twelve (12) con:h period o: ti.1e, The Secretary -TtsascrAr shall nave charge and custody of and be responsible for all funds and securities of the CGR?ORATION. (i) Shall receive and give receipts for money due and payable to the COR?ORATION from any source whatsoever, and shall deposit all such moneys in the name of t't,e CORPORATION in the CITY's Depository Bank. (8) Shall, in general, perform all duties incident to that office, and such other duties as from time to time may be assigned to him by the President or the BOARD. D. The Assistant Sec:ecaries-Treasurers, if any, shall in general, perform such duties as may be assigned to them by the Secretary-Treasure:, or by the President or the BOAR. OS :Removal ":om Office , Any of:_ce- a:ected by the 3OA'0 may be remcve_ tv t!l;ee-fourths (3/4) vote or the entire membership o: the The ud'JC:, Z-a C:ty ?gar a,':, Che a: a: CJun t'J rL, d ge. n-3 7--+c~a-_ 71':3 2.^.: a~ ~abC: CJ,. L1 •io ?:°_S-.e.^._ Chamber o: Cc wmarce,y or c'nei - designees may aczard a!- =aetings or tie 30AR~ as ax-o::icic "members". T'nese • e?:=ser,tatives snarl soc have the Dower to vote ^e meetings the`! attend. Their attendance shall be .o: tie CL'r lose c: in su-iC1g that in:ormacion about the meetL'zs i5 ce'_y ca C-26 to the organisations they represent. 5.0; Oc'ne: "Members" e he CC~'^?4T ON may have no Wemcers. neve:th°_Less. ne ~ • • CCRPOR;T:CN mev use the word "members"'o: "3a:.iC::an:3' tC • M • r~ • BOARD S:.a._ d_C-3 mI net 'est ":r, -a 2: pant-s shall ;,ave no voting c- ache: legal or equitable .ignts in SECTION Vi" DIRECTOR Or ECONOMIC DEVELOPMENT (P.ESERVED) SECTION VIII FINANCIAL ADMINISTRATION 6.01 Financial and Accouncinz Services The CGRPORATION shall cohtract with the CITY for financial, accounting and auditing services. The CORPOKATION's financial and accounting records shall be Maintained in accordance with these Bylaws, State and Fedecal laws and the accounting practices of the CITY. 8,02 Fiscal Year The fiscal year of the CORPORATION shall begin on October 1, and end on September 30, of the following year. 8.03 Budxet A budiet for t o fart com")z :iscal yea: sha11 be s e? Co, ar.d aPp:pved by the BOARD in June and deliver-,.A : es_'.JeC ~y t'na Cit X a59" a. ~ .7. ac' :~anca wi:h ~e 3, rdze: -~pa:a" schedule as sat Cafe C:_v ,`!?,,^,2z 3'udzec shat l1 be subt: ad to City Manage- 0 : inc:usion in "his a^,nual budget to be presented to c'na cp-3 racia3 expenses, and such o-,~e: 6udget3:y information as • s'na1_ be userul to or appropria e :o: the BOARD and the CITY. ,?.04 Cont:acts AS provided in Section Vi above, t.^.e ?:esident, 'arose s45'iatV:e s''911 be attested by t:-le Sec:etary-T:,ssu:er, shall exe^_l:te any coat:ac: c: othe: insc: meats w'nic^ the BOARD by :esolucion aas ap :pved and authct:ze6 to be exec'.:ted, • ^v: e :,cueve: c'aIC C"e BOARD mav, by apprc?:late esclut:on authc:4:_ any ot',er o:.:ca- or o::icers to ente: S~ ~r~....~p,,.. ~ • .r.r rr.w: W➢4liutc^: ra '.y'.ti^^ MEOW • w • authority -ay be ccniinad to specific 0 stances or ceiinecrin general c°.:a5. '1e. appr00ria:e, clle BOARD may 3:a n: tJ Ji:ac:o: o. .,e CG3?ORA71ON a s?ec, gs - e:a: ]c're: c= a-,torney to ca:- out ac:ion or. 0.2 a1o: he 3CARD, provided, however, chat no such power of at -orney .av be granted unless an appropriate resolution of tie 3OARD authorizes the save. B. The CORPORATION may, with approval of the CITY, conc:ac: '.rich any qualified and appropriate person, association, CORPORATION or gove:nmencal entity co ^erforn and discharge designated casks which will aid or assist the BOARD is the performance of its ducies; however, no such contract shall ever be a^orcved or entered into which seeks or attempts co divest the BOARD of its decision-making and policy-making functions in discharging its duties in accordance with these Bylaws. 8.05 Checks and Drafts All checks, drafts, or orders for the payment o money, notes, or other evidences of indebtedness issued in the nama of the COR?ORATION shall be signed or bear the facsimile of the ?resident and the Secretary-Treasure: and shall be issued by the Director of Finance of the Cicy of Paris. 8.06 Deocsits All funds of the CORPORATION shall be deposited cn a in r. $ 9.07 Gi:tS T:ne CCR?^R.-.:IC'+ =ay deep- a, be a: c. -e CJR?C? ..I aa;+ con ;tbuticn bs^ es:. o: de's:ce fo^ the genera: 7 '•35 inz • All pu:easing Wada acd conc:aCts eaacuced Oy c.'a CDR?DRAT:ON shall be mace in accordance Nita ra recui:e=en-_s U: the Texas C0n5tiStd :'d CeS C: tae State or Texas, a- ,d these 3ylaws. g.09 "vss:~e^t5 • Te^oo:a:'i and :c.e .nd3 w'n: a:a n 0 z -'e-3 a e .3 • w • 8,;0 'orris Any bonds issued by the CORPGRATION sia11 be in acno a: ce 'with Cne Stat'Jte 90ve:ningg C~1:S G~~~7 ~..y~:G:V, bC: in any event, no bonds shall be issued without approval o: c e CITY after review and comment by .he CiT':'s bond counsel and -financial advisor. 8.11 Uncommitted Funds, Any unco=,*cced funds of the CORPOR:710N at the and o: the ciscal year shall be considered a pat: of the Fund Balance. The Fund Balance shall be made u? of two parts! Undesignaced Fund Balance and Permanent Reserve Fund. The Undesignated Fund Balance may be cocmicted for any legal purpose provided the corporation's BOARD approves such commitment. The Permanent Reserve Fund shall be accumulated for the purpose of using the interest earnings of such fund to finance the operation of the CORPORATION. 8.12 Fund Raising The CORPORATION shall be authorized to raise funds by subsctiocions, solicitation, promotions and other legitimate mechods' which are not in violation of statutes governing exempt organizations under Section 501 (c) (3) of the internal Revenue Code of 1986. Funds shall be expended on-'.., in fu7therance of the Corporation's purposes. S=C`:G\ :X 30G S A1'D R:COROS 9.01 books and Records ':-e JdL: etdty- :eaSU-a- C: C .e v:.G r ~.n :f ;-a _ •:3 correct and complate books and records in accordance wiz. 5ection 4.13 and Section 6.04C of these Bylaws. • 9.02 inspections A.l boo's and records of the CORPORATION may be inspected by Directors of the CCRPOPLaTION or 'pis agent c- attorney at any ceasonable tilde, and any infornacion whic may be designated as public information by law shall be open • co public ispe.tion at an-, reascna'ole c`=e, The Texas Coe- r. Records Act and Open xe-er-ings Act sna__' a-.71J to disclosure OC in Z-=ati..n al . 0 • Q • 9.03 AUdit 7C.q ~D 7C :da iOr an dL.". l:d': i::1dS:Cld1 alicl: t0 be 7°.r'Or"ed nJ -d en :2:?nt in.d°pende.n,. o-l:Q! i.._. ec by :.ne C. -J ro- cr.s u::'c s audit. 9.01. Ouarterly Raoorts The C0R?ORAT10t\' shall provide quarterly :in.+.aGial retorts, surmaries of activities, anticipated pco;accs, and ococosad dispe:sal o: funds over 550,000. Quarterly ceptc-s will be due on the 10cn day of the =0nch of Jaluary, April, Jvly and Occober. SECTION X COR?ORATE AUTHORITY 10,01 Seal Tne seal o: c'ne CORPORATION shall be a scar ci.c.Lad it. the azme of cbe C03?ORATION and Paris, Texas. 10.02 Authorization T'ae CCR?OR.AT_OV s;,all carry out its prog.an subject co its Articles of rotor?oration, these Bylaws, and suc'n resclutior.s as t'^a SCAR? may Eros time co time Authorize. TYa prozrau o= he C0R?GRAT.0F s.I-a'__ 0e to assist, sc' '_]-e and aa:,a-ce econoai<: deva'.oument in ?a: is, Texas, sv9 ect- to apo' ica'tie S c a c e and :er.a:ai law, c'nasa Bylaws, 3II3~~-C Ar=CC'as O: .-pO:pOr3CiCn. a BN'laws may at any tilde and tame to care 7e • aaance provide= that t^a BOAR:) f:1ss wit:, t:.)e CI Ta appiicatton approved by c'nree-fcurths (3/4) vote o: the ancire members;,:. of the BOAR) requesting c'na. the CiT'i ' C.11 approve s'lc- ace-d=ent co these Bylaws, speciryiag in sli appiicsc.o- the amen.dmenc or amendments prooosed to be made. l= t~,e CIT'f b', -esc'_ucion aoproved by a thee-four-'ns (3/4) vote rocs and determines that it is advisable -that he • propcsad Bylaws amerd.;.enc be made, put:c:lzes the same to be made. and approves "'-e corm of the p:c?osed a_e-.d=ent, c-a • prat°_°_t co d=°.nd these Byl.aw3 ar s0 . rov9•' . v:atas o: CC ?.?0: m+v a:_. ,a a:erve? is s l • a , c::^e COR?ORATION by resolution apDroved by a t'n:ee-Lou:ths (3/=) vc:e c: the CITY'S Council and by d l'',isy of said c^.e.^..re. ch-_$2 By Laws c0 :he ~2C:?rd L'J °_3$Ur~: of r a COP.?GR.,T:O:l. 10.05 Raberc's Rules of Ocde: The conduct o: the BOARD shall be governed by Robert's Rules of Order. 10.06 Oach The Directors of the CORPORATION shall cake the follow- ing oach: "I do solemnly swear (or affirm), that I will faithu~y execute the duties of the office of Director of the Paris Economic DeveloDment Coroora- ticn. Paris, Texas, an will to the best of my ability preserve, protect, and defend the Conscicucion and laws of tie United Scares and of this State and of this City; and I furthermore solemnly swear (or affirm), that I have not directly nor indirectly paid, oiiered, or promised cc pay, contributed, nor promised cc contribute any money, cc valuable thing or promised an/ public office or employment, as a reward for the giving or aliclding of a voce at the election ac which I was elected, or if the office is one of appointment, to sac-.re my appointment, 5o help me God." SC..T 1ON X: INDEXII1T'( 11,01 indemni:'+ A. T.': e- CC:.?I_F_, T:CN shat- indeW, :S officers cc the fullest extent per=icted 'Dy :-,a Texas Von- ?:Cfi Cor7c:3c;o^, Acc and the Texas Develo-=enc Cor?or3cioil Acr of 1779, and may, if and cc the extent aut',o:iced by the BOARD, so its officers and any oc'ne: persons who= has :he pewe: cc indemnify against lia'Di_.t/, reasonable ext ease, o: ocher matters whatsoever. if :he Texas Non-?:ofic Corooracion Act or the Tax as Develoc=en: Corporation Act or I;'19 is hereafse: amended to authorize corporate action further eliminating or limiti::g e to pe:scr.al liability o: Directors or officers, sucn personal liability shall be el:=inacad or I;n4zed to c'ne -test ex a c oermizted by the T ix as No AC: 0'. t:.e C0:70c.7 t1C f. Act 0: • m+ • d, The COR?GR.ATiON furchec agrees to indemnify and hold ha-.=less and defend the CITY, its officers, agents, and its employees, ;rota and against all cia-=s and suits for da=ages; injuries co persons, incIud+.ng death; pcopercy damages, including loss of use; and expenses, including court costs and attorney's fees, arising out of or resulting from the corporation's work; from any liability arising our of or in connection with the CITY'a or its agents', officers', or employees' entry upon property; common, constitutional, or statutory law, or based in whole or in pare upon tha negligent or intentional acts or omissions a: the CORPORATION, ics officers, employees, agents, subcontractors, licensees, invitees, or trespassers, or based in whole or in part upon the negligent acts or omissions of the CITY, its officers, employees, agents, licensees or invitees. The CORPORATION shall waive any and all claims it may have against the CITY, connected with, resulting from, or arising out of, claims and suits covered by this indemnification provision, and agrees that any insurance carrier involved shall nor be entitled to subrogation under any circumstances against the CITY, its officers, agents, and employees. SECTION X1I MISCELLANEOUS 12.01 Relation to Amities of Incorooracion These Bylaws are subject to, and governed by, the Ar._Cles C: .000'.Cr3t..... DATED: INCOR?ORATORS: • i • , { M jN , , [ t', 1 n~~~' .ti x~( A C r ,;'S' °RP ,a t.'o+fr~.1~1,,ik,td (I L Ly.v • a • B. Contributions to the Corporation shall be received only in a manner to quaUv under Section 170(c)(2) of the Tax Code. i • Y A r LONGVIEW ECONOMIC DEVELOPMENT CORPORATION i CORPORATE BYLAWS These Bylaws (referred to as the 'Bylaws") govern the affairs of the Longview Economic Development Corporatioi., a public instrumentality and a non-profit corporation (herein- after referred to as the "Corporation") created under section 4A of the Development Corporation Act of 1979, Article 5190.6 of the Revised Civil Statutes of Texas (hereinafter referred s to as the "Act"). Article I. Purpose 1.01 The Corporation is organized exclusively for the purpose of benefiting and accomplishing public purposes of the city of Longview, Texas, by promoting, assisting and enhancing economic development activities for the City as provided by the Development Corporation Act of 1979, Texas Revised Civil a Statutes Annotated Article 5190.6, as amended. The Corpora- tion has no members and is a non-stock corporation. Article II. Registered Office and Agent 2.01 The registered office of the Corporation shall be maintaingd in the City of Longview, Gregg County, Texas, where the Corporation shall maintain a registered office and the registered agent as provided in the Act. The Board of Directors shall be authorized to establish additional offices as well, and to change the location of any office of the Corporation. Article III. Board of Directors Management of the Corporation and General Powers 3.01 The affairs of the Corporation shall be managed by a Board of Directors appointed by the Mayor and City Council of Longview. All voting rights shall be vested solely in the Board, whose members shall serve without compensation. In addition to the powers and authorities expressly conferred upon them by these Bylaws, the Board of Directors may exercise all such powers of the Corporation and do all lawful acts and things as are not prohibited by statute or by the Charter or by these Bylawu. Without prejudice to such general powers and other powers conferred by statute, by the Charter and by these Bylaws, it is expressly declared that the Board of Directors , ® shall have the following powers, to-wit: Y • 1. To purchase, or otherwise acquire for the Corporation., any property, rights, or privileges which the Corporation is authorized to acquire, at such price or consideration Y b • • 1 and generally on s•ch terms and conditions as they think fit; and at their discretion to pay therefore either wholly or partly in money, stock, bonds, debentures, or other securities of the Corporation as may be lawful. 2. To create, make and issue notes, mortgages, bonds, deeds of trust, trust agreements and negotiable or transferra- ble instruments and securities, secured by mortgage or deed of trust on any real property of the corporation or otherwise, and to do every other act or thing necessary to effect the same. 3. To see or lease the real or personal property of the Corporation on such terms as the Board may see fit and to execute all deeds, leases and other conveyances or contracts that may be necessary for carrying out the purposes of this Corporation. 3.02 The Board shall be composed of five (5) Directors who shall serve at the pleasure of the City Council, Directors will be selected based on interest in the work of the Corpora- tion, special expertise and civic service. Terms of Office ' 3.03 The term of office shall be three (3) years or until successors are appointed, The terms are to be staggered. The initial terms of Directors shall be three (3) Directors with three (3) year terms, and two (2) Directors with two (2) year terms. The initial terms will be drawn by lot and shall be considered to begin October 1, 1991 for the purpose of staggering such terms, regardless of when appointments are actually made. No member of the Board can serve more than two (2) consecutive terms. , Vacancies 3.04 Any vacancy occurring in the doard of Directors will be filled by appointment of the City Council of Longview. Board Attendance 3.05 Unless special consideration is granted by the Board to accommodate directors who are temporarily inactive for good J cause, any director who is absent from three (3) consecutive { regular or special meetings of the Board may be asked to resign. } Duties of Directors I • 3.06. Directors shall exercise ordinary business ud • • managing the affairs of the Corporation, Directors shall tact as fiduciaries with respect to the interests of the citizens of Longview. In acting in their official capacity as direc- • 0 • • tors of this Corporation, directors shall act :n good faith and take actions they reasonably believe to be in the bect interests of the Corporation and that are not unlawful. In all other instances, the Board of Directors shall not take any action that they should reasonably believe would be opposed to the Corporation's best interests or would be unlawful. A director shall not be liable if, in the exercise of ordinary care, the director acts in good faith relying on written financial and legal statements provided by an accountant or attorney retained by the Corporation. Article IV. Officers Officer Positions 4.01. The officers of the Corporation shall be a President. of the Board, two Vice-Presidents, a Secretary, and a Treasuror, all of whom shall be members of the Board. Any two or more offices may be held by the same person except the offices of President and Secretary. The officers shall have all powers specified in the Bylaws, as amended from time to time, and all powers authorized under the Act and the Texas Non-Profit Corporation Act of the State of Texas, or its successor. • Election and Terms of office 4.02. The officers of the Corporation shall be elected annually by the Board of Directors at the last meeting of the fiscal year and assume their duties at the first regular meeting of the new fiscal year. If the election is not held at the last meeting of the year, it shall be held as soon thereafter as rconveniently possible. Each officer shall hold office until a successor is duly elected and qualified. An officer may be elected to succeed himself or herself in the same office one (1) time, vacancies in officer positions may be filled by the Board of Directors for their unexpired position of the officer's term. President 4.03 The President shall be the chief executive officer of the corporation. He or she shall generally supervise and • control all of the business and affairs of the Corporation and shall preside at all meetings of the Board of Directors. 'the President shall perform all duties incident to the office and other duties prebc.tibed from time to time by the Board of Directors. He or she may execute deeds, mortgages, bonds, contracts or other instruments that the Board of Directors has authorized to be executed. However, he or she may not execute s instruments on behalf of the Corporation if this power is • • expressly delegated to another officer or agent of the Corporation by the Board of Directors, the Bylaws, or statute. 3 • O r • ~ ca • The President shall appoint the members of all standing and other committees, unless composition is otherwise provided for in the Bylaws, and shall appoint all committee chairs. Vice-Presidents 4.04. Two Vice-Presidents shall be elected or appointed by the Board of Directors. The Vice-Presidents shall perform such duties as assigned to them by the Board of Directors; provided, however, that one Vice-President shall be responsible for matters involving marketing and the other Vice-President shall be responsible for matters regarding financial incentives. in the absence of the President, or if the President is unable or refuses to act, the Vice-President most senior in tenure or vice-President otherwise designated by a majority of the Board of Directors shall perform the duties of President and have all the powers and be subject to all the restrictions of that office. Secretary 4.05. The Secretary shall be the custodian of the Corporate records. The Secretary shall record and keep or cause to be recorded and kept all votes and minutes of the meetings of the Board. The Secretary shall further give or cause to be given notice of all meetings of the Board of Directors and its committees, and shall perform such other duties as may be prescribed by the Board of Directors or President. The Secretary may designate one or more Assistant Secretaries who may be employees of the Corporation to assist in the adminis- tration of the Corporate records. Treasurer 4.06. The Treasurer shall perform such duties as are usually incumbent upon such office. He or she shall see that proper and accurate accounts are kept of the financial condition of the Corporation and that proper books are maintained for their orderly entry. He or she shall insure that the finanoial policies adopted by the Board are duly followed and that an independent audit is made of the accounts of the Corporation at the end of each fiscal year. He or she shall report the financial condition of the Corporation at each regular meeting of the hoard and City council from time to time for approval, and shall perform any other duties the President assigns from time to time. Disbursements of the funds of the Corporation shalt, he by check, and all checks shall be signed in a manner consist-(,it with the guidelines recommended by the Treasurer and ahp.r,ved by the Board of Directors. All persons autho- rized to disburse or manage the funds of the Corporation shall e be bonded in such sum as the Board of Directors may require, • r 4 i i • a • p • r F Executive Director 4.07. The Executive Director shall be the general manager and chief administrative officer of the Corporation, and subject to the supervision of the Board, shall perform such duties as may be incioant to his or her office or specifically delegated to him or her by the Board. The Executive Director shall serve at the pleasure of the Board and receive su(h compensa- tion as the Board may determine from time to time. The Executive Director, as general manager and chief administra- tive officer, shall be responsible for policy and program impleme:tation and for all operations of the agency, including hiring, supervising and dismissing employees as well as defining and assig;ling their work. The Executive Director shall be a non-voting, ex-officio member of the Board of Directors and any other committees created by the Board of Directors. The Executive Director shall compile and submit to the Board regular reports and recommendations regarding the programs, policies and business affairs of the Corporation. Article V. Ex-Officio Directors 5.01. The Mayor and members of the City Council shall be ex- ' officio directors of the Corporation. 5.02. The Mayor and the City Council of Longview may appoint individuals with special qualifications as ex-officio direc- tors of the Corporation. Ex-officio directors shall be given notice of all meetings of the Board, may participate in discussions at Board meetings, but shall not be e,:titled to vote on matters considered by the Board. The Board may recommend individuals to the Mayor and City council for service an ex-officio directors. Article Vi. Board Committees Committees Authorized 6.01. The Board of Directors may establish and delegate specified authority to additional standing and ad hoc commit- tees from time to time. A committee may include persons who are not directors of the Corporation. The Board of Directors may establish qualifications for membership on a committee. • i In addition, the Board of Directors may authorize { subcommittees from time to time and charge them with clear and specific duties, Subcommittees will operate under the general rules governing the Board committees and the general oversight of the Executive Director and Vice-President or Board Commit- tee Chair. ' • • i 5 • y • p • The establishment of a committee shall not relieve the Board of Directors, or any individual director of any respon- sibility imposed by the Bylaws or otherwise imposed by law. No committee shall have the authority of the Board of Direc- tors to: (a) Amend the articles of incorporation, (b) Adopt a plan of merger or a plan of consolidation with another corporation. (c) Authorize the sale, lease, exchange or mortgage of any of the property and assets of the Corporation. (d) Authorize the voluntary dissolution of the Corporation. (e) Revoke proceedings for the voluntary dissolution of the corporation. (f) Adopt a plan for the distribution of the assets of the corporation. (g) Amend, alter, or repeal the Bylaws, (h) Elect, appoint or remove a member of a committee or • director or officer of the Corporation. (i) Approve any transaction to which the Corporation is a party or undertake any action that involves a potential conflict of interest as defined in paragraph 8.04 below. (j) Take any action outside the scope of authority delegated to it by the Board of Directors, (k) Take final action on a matter that requires the approval of the Board of Directors. (1) commit Corporation funds without the prior approval of the Board of Directors. (m) Undertake any other matters appropriate to the authority of the Board of Directors. • Committee Terms 6.02. The members of each standing committee shall serve until the next annual meeting of the Board and/or until successors are appointed by an incoming President, unless the Committee is terminated or a member is removed, resigns or ceases to qualify as a member, vacancies on committees may be • filled in the same manner as the original appointment, • • 6 i i s i Rules 6.03, Each committee or subcommittee may adopt rules for its own operation not inconsistent with the Bylaws or with rules adopted by the Board of Directors, Article VII. Meetings Regular Meetings 7.01. The Board of Directors shall provide for at least four (4) regular meetings annually by resolution stating the time and place of such meetings. All regular meetings will be held in the corporate city limits of the City of Longview, Annual Meeting 7.02. The last meeting of the Corporation's fiscal year shall be designated as the Annual Meeting. It shall be held at a time and place designated by the Board and may be held in conjunction with a special calle3 or regular meeting of the Longview City Council. Special Meetings 7.03. Special meetings of the Board of Directors may be called by the Mayor or at the request of the President or upon written request of at least three (3) directors. Any notice of a special meeting shall contain a summer; of the business or proposals to be brought before the special meeting. Should a director's request for a special meeting be submitted to the President and filed in the Executive Director's office by three (3) directors, the President shall determine and notify all directors in writing of the date, time, and place of the special meeting within three (3) days of the receipt of the directors' request, and the meeting shall be held within ten (10) days of the receipt of the directors{ request. Notice 7.04. written or printed notice of each regular meeting of the Board of Directors shall be delivered to each director by mail, fax or other means not less than seven (7) days before • the date of the meeting. If mniled, a notice shall be deemed to be delivered when deposited in the U. S. mail addressed to the perr;on at his or her address as it appears in the records of the. Corporation, with postage paid. The notice shall state the place, day and time of the meeting. In the case of special meetings, notice may be issued to directors by mail, ® telephone, ax or in person at least three (3) days before the Q, date of the meeting, and in addition to place, date and time, shall include who called the meeting and the purpose for which 7 d 0 • • 4 the special meeting is called. Attendance of a Director at a } meeting shall constitute a waiver of notice of that meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business on the ground 'chat the meeting is not lawfully called or convened. Quorum 7.05. Three (9) directors currently serving shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. The directors present at a duly called or held meeting at which a quorum is present may continue to transact business even if enough directors leave the meeting so that less than a quorum remains. However, no action may be approved without the vote of at least a majority of the number of directors required to constitute a quorum. Action of Board of'Directors 7.06. The vote of a majority of the directors present and voting at a meeting at which a quorum is present shall be sufficient to constitute the act of the Board of Directors. • Proxies 7.07. A director may not vote by proxy. Open Meetings 7.08. All meetings and deliberations of the Board shall be called, convened, held and conducted in accordance with the Texas Open Meeting Act, Article 6252-17, Vernon's Texas Civil Statutes, as amended. Article VIII. Corporate Duties, Transactions, and Responsibilities Annual Work Plan and Performance Evaluation 8.01. The Board of Directors shall research, develop, prepare, and submit to the City Council for its approval an annual work plan which shall set out goals and objectives of the Corporation, including but not limited to short-term and lung-term goals for the economic development of the Ci'cy, proposed methods for the elimination of unemployment end underemployment, goals and objectives for the utilization of funds to promote the expansion and development of a sound industrial and manufacturing base for and within the City, and m any other similar goals and objectives deemed appropriate by the Board and the City Council. The Board shall review and • A' update the plan each year prior to submission of the annual 8 • O A 0 budget required by other provisions of these Bylaws, In addition, the Board shall accompany each subsequent work plan following the initial work plan with a performance evaluation detailing the Board's achievements of its prior goals and objectives during the course of the previous fiscal year. Annual Corporate Budget 8.02. At least sixty (60) days prior to the commencement of each fiscal year of the Corporation, the Board :"hall adopt a proposed budget of expected revenues and proposed expenditures for the next ensuing fiscal year. The budget shall contain such classifications and shall be in such form as may be prescribed from time to time by the City Council, The budget shall not be effective until the same has been approved by the City Council. Limitations on Expenditures 8.03. The Corporation shall r•pend no more than ten percent (10%) of the Corporate revenues for promotional purposes and may contract with other existing private corporations to carry out industrial development programs consistent with the purposes and duties as set out in these Bylaws and as set out in the Act. Deposit and Investment of Corporate Funds 8.04. All proceeds from the issuance of bonds, notes, or other debt instruments issued by the Corporation shall be deposited and invested as provided in the resolution, order, indenture, or other documents authorizing or relating to their issuance. All other monies of the corporation shall be deposited, secured, and/or invested in the manner provided for the deposit, security, and/or investmenc of the public funds of the City of Longview. The Board shall designate the accounts anca depositories to t~ created and designated for such purposes, and the methods of withirawal of funds there. from for use by and for the purposes cf the Corporation upori the signature of its treasurer and such other members as the Board shall designate. The Board shall also provide for the reconciliation and investment of such funds and accounts. If agreed to by separate contract between the CJty and the Corporation, the accounts, reconciliation, and investment of such funds and accounts may be performed by the finance department of the City of Longview, The Corporation shall pay reasonable compensation for such services to the City. Contracts 8.05. The Board of Directors may by official action as specified herein, authorize any officer or agent of the 9 • O • CAN • Corporation to enter into a contract or execute and deliver any instrument in the name of and on behalf of the Corpora- tion. This authority may be limited to a specific contract or instrument or it rtay extend to any number and type of possible contracts and instruments. Gifts 8.06. The Board of Directors may accept on behalf of the corporation any gift or bequest provided for the general purposes of or for any special purpose of the Corporation. Special funds shall include all funds from government con- tracts and gifts designated by a donor for special purposes. All other funds shall be general funds. Potential Conflicts of interest 8.07. The Corporation shall not make a loan to a director or officer of the Corporation. A director, officer or committee member of the Corporation may lend money to and otherwise transact business with the Corporation except as otherwise provided by the Bylaws, Articies of Incorporation and all applicable laws. Such a person transacting business with the Corporation has the same rights and obligations relating to those matters as other persons transacting business with the Corporation. The Corporaticn shall not borrow money from or otherwise transact business with a director, officer or committee member of the Corporation unless the transaction is described fully in a legally binding instrument and is in the best interests of the Corporation. The Corporation shall not borrow money from or otherwise transact business with a director, officer or committee member of the Corporation without full disclosure of all relevant facts and without the approval of the Board of Directors, not including the vote of any person having personal interest in the transaction. i Prohibited Acts 8.08. As long as the Corporation is in existence, no direc- tor, officer or committee member of the Corporation shall: (a) Do any act in violation of the Bylaws or a binding • obligation of the Corporation. (b) Do any act with the intention of harming the Corporation or any of its operations. (c) Do any act that would make it impossible or unnecessarily difficult to carry on the intended or ordinary business of the Corporation. • O I to • 0 r . . (d) Receive an improper personal or business benefit from the operation of the Corporation. (e) Use the assets of the Corporation, directly or indirect- ly, for any purpose other than carrying on the business of the corporation. (f) Wrongfully transfer or dispose of Corporation property, including intangible property such as good will. (g) Use the name of the Corporation (or any substantially similar name) or any trademark or trade name adopted by the Corporation, except on behalf of the Corporation in the ordinary course of the Corporation's business. (h) Disclose any of the Corporation business practices, trade secrets or any other information not generally known to the business community to any person not authorized to receive it. (i) Commit Corporation funds without the prior approval of the Hoard of Directors. Provided further, however, that the Corporation shall not have the power to own or operate any project as a business other than as lessor, seller, or lender or pursuant to the require- ments of any trust agreement securing the credit transaction. In addition, the user pursuant to any lease, sale, or loan agreement relating to a project shall be considered to be the owner of the project for the purposes of the application of any ad valorem, sales, and use taxes or any other taxes levied or imposed by the State of Texas or any political subdivision of the State of Texas. The purchase and holding of mortgages, deeds of trust, or other security interests and contracting for any servicing thereof shall not be deemed the operation of a project. Article IX. Books, Records, Audits Maintenance of Records 9.01. The Corporation shall keep and properly maintain, in accordance with generally accepted accounting prin•:iples, complete books, records, accounts, and financial sti.tements pertaining to its corporate funds, activities, and affairs. In addition to proper financial records, the corporation shall keep correct and complete minutes of all board and committee meetings and all records required by 'che City of Longview, by contracting agents, or by funding gources. 11 • rca • Compliance with State Law 9.02. All records shall he kept and administered in accor- danr,e with the Texas Open Records Act, Article 6252-17a, Verno n's Texas Civil Statutes, and Subtitle C to Title 6 of the Texas Local Government Code. Inspection 9.03. Any member of the City Council of Longview, director or officer of the Corporation may inspect and receive copies of all books and records of the Corporation required to be kept by the Bylaws. Any person entitled to inspect and copy the corporation's books and records may do so through his or her attorney or other fully authorized representative. The Board of Directors may establish rea-unable fees for copying the Corporation's books and records by members. Consistent with the obligations and limitations of the Texas Open Records Act, the Corporation shall provide requested copies of books or records no later than ten (10) working days after the Corpora- tion's receipt of proper written notice. Audits • 9.04. The Corporation shall cause its books, records, accounts, and financial statements, and all other aet,vities for the previous fiscal year to be audited at least oree each fiscal year by an outside independent certified public accounting firm selected by the Corporation and approved by the City Council. Any such audit shall be performed in accordance with generally accepted auditing procedures (GAAP) and shall include a written management letter which details suggested managerent controls and operating efficiencies. The management letter shall include, but not be limited to, recommendations for improving cost reductions, recommendations for increasing revenues, and recommendations for increasing productivity and safeguarding assets. Each audit shall be prepared and submitted annually to the City Council of the City of Longview, Texas, for approval within one hundred twenty (120) days after the and of the Corporation's fiscal year. Any such audit shall be performed at the expanse of the Corporation. • Article X. Fiscal Year 10.01. The fiscal year of the Corporation shall run concur- rently with the City of Longview beginning on the first day of October and ending on the last day in September in each year. 12 I' _ 0 • ca • Article XI. Amendments to Bylaws 11.01. The Board of Directors, by the affirmative vote of a majority of the Board, may alter, amend, or repeal thc: Bylaws or adopt new Bylaws at any regular meeting, or any special meeting pruviding that notice be given not less than three (3) days prior to such meeting and that such notice contain a copy of the proposed amendment or amendments, said amendments shall be effective only upon approval by the City Council of the City of Longview, Texas. Legal construction 11.02, rf any Bylaw provision is held to be invalid, illegal or unenforceable in any respect, the invalidity, illegality or unenforeeability shall not effect any other provision and the Bylaws shall be construed as if the invalid, illegal or unenforceable provision had not been included in the Bylaws. Article XII. Indemnification and insurance Corporation to indemnify 12.01. The Corporation shall indemnify any director or • officer or former director or officer of the Corporation for expenses and costs (including attorneys fees) actually and necessarily incurred by said officer or director in connection with any claim asserted against said officer or director by action in court or otherwise by reason of such person being or having been a director or officer, except in relation to matters as to which said person shall have been guilty of negligence or misconduct in respect of the matter in which indemnity is sought. Corporation May Provide insurance 12.02. The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the Corporation to insure such person against any liability asserted against said person by reason of such person being or having been a director, officer, employee. or agent of the Corporation. The premiums for such • insurance shall be paid for by the corporation. Article XIII. Parliamentary Authority 13.01. Robert's Rules of Order, Newly Revised, shall be the parliamentary authority for all matters of procedure not specifically covered by the Bylaws or any specific rules of ® procedure adopted by this Board. p • 13 • • Article X1V, Dissolution of the Corporation 15.01. The Corporation is a non-profit corporation. Ut . dissolution, all of the Corporation's assets shall be distrib- uted to the City of Longview. LWS:cp/l-118-7 • • I 0 J 0 14 n4 Ai4t lAd~~ifY4 ~F~11~„~f. i • • 7 PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS ECONOMIC DEVELOPMENT STRUCTURE RECOMMENDATION #2; PI-11-1 Fantus Consulting recommends that Denton consider adopting the economic development sales tax and raising the local sales tax one-half cent, as is allowed under law, and to earmark the revenue generated strictly for economic development activity such as attracting new business, assisting expanding enterprises, and creating ncwjob opportunities, ECONOMIC DEVELOPMENT STRUCTURE Economic City Chamber Recommendation #2 Development of of _teros Ac don. Corporation Denton Commerce Comments f a. `I-av groundwork for adoption of the economtC ' City Council must determine whether to development sales tax. fund the economic development effort with a new 1/2¢ sales tax or by other i Determine whether to fund program with methods. If an election is called, the 1120 sales tax n 3 r.` Chamber would then take a leadership y i role in marketing the campaign, City Voter marketing cam sl f. 4 ' r; XX support would be critical. fib. If raising the sales tax is not considered feasible, 1, XX X City Council must determine the level of economic development corporation could still be f fundin needed to support the economic created as an independent structure utilizing x,. development effort and investigate i wctntributions from various sources. fff , alternate funding sources. f In thinking 3lfdttiPtlft'7tttt~tU7i'; t{ffdntton must also be paid to the necessary budget for EDC, Surveys indicate a community of Denton's size should have e economic development expenditures of ~ .~.approximately $200,000). i „ i XX = Leadership role X=Participation February 1, 1995 2 F O 0 • ca • PHki Fantus Recommendations Staff Response ECONOMIC DEVELOPMENT STRUCTURE RECOMMEND: a. Lay groundwork for adoption of the economic development sales tax. Determine whether to fund program with 1/20 sales tax b. If raising the sales tax is not considered feasible, an econom c development corporation could still be created as an independent structure utilizing a atributions from various sources. Background: The 111111 Fantus report recommended the current operational bucipel of the economic development partnership be increased to at least $200,000 annually. Additionally, Fantus ` recommended additional funding for infrastructure extension, industrial park development and a t major new marketing thrust Currently, the budget for the Chamber of Commerce Economic Development Program is funded through a contribution in the amount of approximately $65,000 from the City Utility Fund as well as about $65,000 in private sector finding. In order to meet Fantus' immediate goal of increasing the operations budget to $200,000 and significantly increasing funding for other major aspects of the economic development program, a discussion follows of funding options. In order to best discuss issues (a) and (b) above, it is helpful to look at the economic development program from two primary aspects. • L Operations An operational budget may include the following, o Staffing • o Rent o Utilities • o 'T'raining I 3 • W • PHH Fantus Recommendations Staff' Response o Travel o Office Supplies o Telephone o General Marketing o Industrial prospect packages o Funding for Small Business Development Center If ProeramNroiect This broad category can include virtually any major expenditure intended to further the growth of industrial development, such as: n Incentives o Land purchase o 'T'arget marketing o Relocation Allowances o Bmplgyee Training Assistance o Loans o Infrastructure extension o Construction of buildings FUNDING OPTIONS The funding options presented below can be used separately or in combination to address all of the above cost areas. I, Utility Fund: Currently, the Utilities Department allocates a total of $80,000 to the economic development program's operations budget. The Chamber of Commerce Economic Development Office receives approximately $65,000 for operation expenses, and the • Chamber solicits private sector funding to complete their budget. Chamber operations $ 65,0110 North 'Tex's Commission Membership 5,000 Special Economic Development Projects 10.000 B (Enterprise /.one boundary amendment $ 80,000 ~ • • Georgia-Pacific application, etc,) 4 ~ .:..ter.- • 1y 0 I PHH F'anius Recommendations Staff Response The public Utility Board and the City Council may wish to look al increasing the City's contribution as part oflhe budget process. 2. Utility Fund Alternative (Non-Profit Economic Development Corporation): The Utility Hoard has given consideration to allocating up to $5 million dollars from the Electric Department's 1994 earnings. (These earnings resulted from lower than expected fuel costs and aggressive marketing of excess power to other cities in Texas.) It is suggested the $5 million would be a 10-15 year loan, since the Electric Department will ' need the return of these funds for rate relief and rate stabilization in approximately 2010. A non-profit corporation with a board appointed by the City Council could be created, This corporation lid become the new economic development program structure discussed earlier. S. all of the funds would be C ty dollars, it would be appropriate that the board is entirely appointed by the City Council, The Council could choose to either appoint the members of the newly formed Economic Development Advisory Board to this corporation's board or appoint all new members. 3. General Fund: Approximately $37,000 of the Municipal Services/Economie Development budget is allocated for economic development. This amount covers 213 of the Economic Dcveloprnent Coordinator's salary and benefits, office supplies, books/magazines, special services activities (business retention, Mayor's Breakfast, Town Gown, Fact Book, site maps, prospect proposals, etc.), and economic development related professional development firr the E/D Coordinator and Executive Director. Some cities fund their entire economic development operation with general fund dollars. The City of Plano's annual economic development budget is approximately $225,000 and is allocated from their general fund. They have been operating out of general fund dollars for six or seven years. They do, however, have a pot of dollars (about $600,000) in a savings • account that represents private sector economic development contributions. The City of Pla-o plans to use approximately $25,000 of the private sector funds this year. The City of Plar. 1 did not use these funds, however, for an industrial park as they already had legacy park ,n place. 'I o utilize the City's General Fund as a financing tool requires an appropriation by the City ® Council during the annual budget process. The associated resource s/reven nos to offset the 0 0 appropriation would have to be identified and committed for that purpose. 5 i O 0 • ca • P1111 Fantus Recommen0ations Stay[ Response 4. Municipal Bonds; If General Obligation Bonds are used to fiord udl or a portion of the infrastructure and/or the creation of an industrial park, an election would be required to obtain voter approval before bonds could be issued, General rcvcnULS (property lax, sales tax, etc,) must be pledged to repay the debt. P,very $I ntiflion in bonds issued requires approximately $100,000 per year in debt service payments for twenty (20) years. 13ased on current property tax values, 0 1 $100,000 per year of debt smn ce equates to approximately one-half cent on the properly tax rate. S. Community Development Block Grant (CDBG)t CDBG funds may be used for economic development. The primary focus for CDBG funds is to createjobs for low to moderate income individuals. Use of CDBG funds requires that we track and prove benefits and jobs to low/moderate income individuals. The attached tact sheet (Attachment F) outlines regulations and guidelines for use of funds through the CDIIG Section 108 Loan Guarantee Program. 6. 'l'ax Increment Financing (TIF): Many cities use lax increment financing to accomplish economic development activities. Essentially, property value is frozen while improvements such as streets, utility lines, and other amenities are developed. As development is generated en the property, the increased value of property and the resulting increment of lax revenue is used to pay back the debt for improvements. Attachment G provides additional infortnalion on TIPS. 7. Private Sector Funds: Economic development programs are financed entirely through private sector funds in very ! few communities. The Fantus representatives were asked to give examples of "successful" programs funded strictly through private sector funds. 'T'here were no examples. In many cases (like our current program here in Denton) economic development is a public/private partnership. l: is possible that a private sector fund-raising campaign could be launched to increase the amount ol'private sector contributions, The Chambcr of Commerce continues to solicit funds, and it is questionable that a sufficient amount could be collected to provide ! the operating budget that Fantus recommends. Typically, economic development programs , • • have been structured as public/private partnerships, as our current program is structured. 6 ! O • w • r PH11 Fantus Recommendations Staff Response 8. Economic Development Sales Tax: As of January 30, 1995, 189 cities have passed the economic development sales tax. This is becoming one of the more popular ways to finance economic development in Texas. Some cities that have adopted the tax have had a dramatic increase in economic development growth due to the availability of resources to make prospect deals. The City of McKinney is a good example. In their first 18 months after passage of the economic development tax, they have sanded 22 new industries. The economic devclopmanl sales tax is often referred to as the "half-cent" sales tax. However, the tax may be imposed in increments of 118. Like all other sales tax options, (his special dedicated tax must be approved by city vote s. Cities may call for this election in two ways: The City Council may call an election on its own; or, if ten percent of the registered voters petition the city, the Council must call for the election. ( Cities may submit the tax to the voters with a proposition that limits the length of time ;tie tax would remain in effect. If the}, choose to impose a limit, the tax may not be extended beyond that limit or reimposed after the expiration date. An extension would require another voler referendum. It is estimated u 1 /2 cent lax would generate approximately $3,5 million annually in Denton. Operational functions can be fully funded through economic development tax revenues. However, marketing dollars are limited to ten percent of the funds. Revenues from the sales tax may be used for industrial development related activities such as: o Purchasing land, buildin3s, and equipment; o Paying principal and interest on debt; • o Improving airports (hat are an integral part of an industrial park; and o Making improvements to support waterborne commerce; o Making loans to businesses; ~ • • • 7 , • Y ;4 14a Iii L6, 11 0 j • • PHH Fantus Recommendations Staff Response o Athletic, entertainment, tourist, convention and public park facilities, including stadiums, ballparks, auditoriums, amphitheaters, concert hails, learning centers, etc.; o Municipal buildings, museum exhibition facilities and related stores, restaurants, concessions, parking and transportation facilities; o Furnish wator, sewer and solid w& 'e disposal to facilities; and o Maintenance and operating costs associated with projects. Attachment C: Provides more detail on the economic development sales tax and eligible uses of the revenues. Attachment D: List of cities in Texas that have adopted 0, ; economic development sales tax and the amount of revenue each city an+;cipates the tax will create. Attachment E: Information on the 'texas Leverage Fund. This program allows cities to leverage their economic development funds through loans guaranteed by the ea,nomic development sales tax revenues. i I 8 i1~ ~'~7 ~ Skr l rLhy,~}+~!aA41`t'll,+~~l~~, Y~ • • r Attachment. C r How Texas -Cifies are Using Sales Tax Revenue for • • Develop - An Update rh" nut R srrn'mn that pa~uJ ihr cledlun nnl r Io Malay 1995 ed for 'Incen[ves/Subsidies for Business.' it'imcire nowe . 'Ihr six dues that p.uscd dm cWhin In May Because of several ronsImcllon prolrco to 711, 61"' .vurrereivp Inge runt irad swlldeut 111110 ko demlop pro hulld facilllles for [ethnical training, the grunts to iliey acre mil Indudrd. Fffn'lluee `Training%fducation' category uas third In res)Hm<es 1(8 percent) urre reedv(tl the amount of expenditures III rc)xmed uses 1vs tax fur rto noel lc of the saes t.ax reiemies are !fisted In than I. deir.opment has raised over Only dues that hate hell elecllnns endrr the Sinn million since being provisions of paragraph diA of she T14' 11 auhhnNZrd by the Texas IkvJupn,cot CurTMnnlnn Act of 1979 were How Texas Cities Are Using legislature a 1984.I:IgirtvFour InsioJelIn Oils surrey. (Ides pare Paso'd die IrK:d upuun ekedon to The Safes Tax Revenues for cudCd up hat a half rend salts tnx and ded cl e Cvaluatlnn of die elfecovencss of the expem Economic Development he rctenucs to cconomk detelopiocnL dilores %as nnl amudcred because nmsi p11r (Alt mriked In order ojrkd7ara granns do cot hose die operating histnn' ner e.tjremted or brutsefaf) In 1941, a sunny uas rnmhloed to drier essan to In* Initial Judgement as to their rhiue hou (Ides nefe uwig the inclines to labile or wocess. Ile question ❑f effuti%e Iln.mre buatnc,wi; llie results of the survey nets could he the hxQs for hnure studles and BUSINESS A'rrRACT1ON nerr puNiishnl In the Dccerrlirr 1991 Iswe a tuna duNled arilcels. oil 7"tris Anrn e- Clll CBow Texas Cides AdreN Ur i'sing Sales Tat Resenues her Economic Adscrus ng lrm, image, Marke[ngMalrnats Drrrlupntent,' re.ros 7onrr G City, Colonel uidiMnsberofCormnerreor lrrcmhcr 19112, Texas Honl(lp:d Leagnr, LegaIISSE)e5 Industrial rrmridatlon For 5larkedng Senkm rd jr) I fill) n)andlireal jfKor, :mggogroofms dris and unev did [I dI,j nrwrt as dIdnet:rtdl E 7bC uses of the saes lax ret0oucs in this sur. Target MvIedng tiwr us:K lie ref"reed as I' rrMntied by die rteprn' Marketing Studies n- a) ' dens. ,911 aurnlpt was made In Judge drew Travel and Rrlated Expc'nsrs Gi rc leaders h:ne Mtn inucuhigh, illere<c erpcnd'unes as to their outhorlzed uses Trade Sinus Ed lick olth in tilt businec, 61,111n.d awn of rhhrr ny Iegolatlon. cegvianon or opinions IlighwitySlgus/Bihhuards he retrnm,. I~ut 11511 in the k rnadrr apydtcr front the Attorney General, Before any Direct Mall Wont of he funds in rrcun '111'l espnnd cull exrerdhure of tax reserves Is r .do. it is rec. Newsletter ; ,'`wuu'ts 11111 to nsr hat nrn husirrsses omren ded that legal ceunsel he ohtabied to 1'ideo Bruchures The on'loAt law (s fi. 9711 Ihat euthorizcd huure how die funds ran be legally expend the 6M rim 1111nidttl linii IM timtireII es and CJ • llrahrbid ms for the uws of die rescnucs- MICENTTM/SUSSioIES FOR BUSINESS Charate isties of Revolving loran funds Scope of Study Expenc Itures Loan G°arar lm Loan o r I n lent s I forgtseness or R'ri tedouIn Bonded Indebtedness Pie purlslrse of this study rem up sunev de An attempt was made to mtnlyze die dui!+r Incubator Program ours that 111 c r:re.CO the salts Eat rat de-r. ClKlIdillues by cakrgory hnt II was lrprxsl' Bnterpriw Mile Enalrhshment • nhwe how thy, are using or hodgedng the ble Ixcause of lucnmplete or luck of hdor ua' ClIFIN Grants • 0 afn1110 odgd gad pt cunrpile there uses into tioir, From th0 responses, 11 sgrpenrs I421 Relocullon and SlmingEghenses onegories. 111. inforrnadon presented in Ihts [sere is nuoc ackislty In the cilegury of Rent Subsidies 1 .hrlic!e is a prrnluo of he prevvow study as 'I,ans!~Bullding purchase, Icase, 1'pgrade; Saks TatRflimes cell as it grrsdurmife In Well to the '8 dhrs nut. adore revenue Is 104'spent sir budget poendvrs for Privet or Corrcrdomal rxilit% Taxes Town & City - f4 ~`~T r Innd Purchased and Given to Wine% TRAIL wiEDucAroN IhKRASTRmmitE UPGRADE (Grant) AND PLACEMENT *rating Grano Job Training for Spedftc Company Fqulvnient Purchase Budding Texas Slue Tefticad CoPege Rail Spur for Industry Lo.m Guara Im m Sarre Programs NnhAR Computer Folulpinent for 14xallonal Winter and Sewer tore Extension to Suhordlnaw tanon Ur Finaikial Irwlmtions Training I'mrun IndustrUl Park JITA SupplenicaW Fuudlag Draisnsge Project Small Business Development Censer Odor Control Project LAND/BLMLDING PURCHASE, Rork Force Devebpnsent Engineering and Constnictkxt of Brfdge LEASE, UPGRADE hsdustrlul Park Development Wd Purchase for tndtrstKid Park PROORAMS AND ACSNfTIES Building that (louses IncuMla an N OTHER Day Care Censer Devckrpnent Finance Program Lvwl for Correctional FackUtes Business "Mane pftwann AdminWraunn and Operuloru InfrasWtture Upgrade or Placement Retention and Expansion of loxul tusioe-wws Corw(ints Amm Upgrade or Plrement Chrisom Ught Progra i D&Sai and Asmundng Expenses Land to Expand Ajgm InciOwor Olouratbnu SuplsHes Ex Wg Building Expuulon and Uppide Unit Gmrse Project insurance Cons4natioii of bi lkung Middling Grants in (kWVU Indusuk5 Contingency Found and Reserves Land Nrclsam for Resale or Leine Developmem of Dam Hale [A-." of ORke Space Castunsctlal OrSpemlatlW BuWg operatlaa of Loral IfospdW Conswnfon of ORbe Spam Sub&unhoisse Construc" "isue cud Equlpmem PAVOM Construction Central for AWWtISOytlwe Servim Professional Dues and Meetings Subscripolons Taxes ; TEAMWORK. One More Reason First Southwest Company is FIRST in the Southwest. First Southwest Company provides a full range of investment banking services, from financial advisory and underwriting services to arbitrage compliance, asset management, grant management, i and investment execution services, Since many financial decisions have far-reaching and long-lasting impacts, we know out clients require financial advice that is comprehensive and consistent. Our bankers are team players. As a team, we work closely with out clients to understand and solve thru problems, Each c f our bankers is supported by highlyskitled administrative and highly-specialized technical staffs to ensure the relationship between the client and First Southwest Company • is a relationship between institutions, as well as individuals. Our clients can rely on our teamwork to provide them with the most capable and credible financial advice available anywhere. FIRST SO f HWEST COMPANY 1 • FINANCING THE TEARS o,a TomouoIrl,..TODAY. r • • Abilene • Austin • Dallas • Houston • Longview • San Antonio 1700 Pacific Ave,, Suite 500 • Dallas, Texas 73201 + (800) 678.3792 _ r y Is r July 1993 • o • • Texas Economic Development or Council Special Sales Tax Edition Inc. i The Economic Development Overview 4A and 4t, uuidelines Sales Tax Cities trial have passed the economic rnpimtedIron Sores Taxes Dedicatedio br Gums Cieverand ED t9;7J iJ95 IFDt7 development sales tax range in Site loom a Ecc RON nmrec issued by Devero (he spmonlfaro and Comptroller s Tar office I' JJ,I,nl 261 pOplllalren 01 170 to , 721. with the avor age population being 10.219 The dollar 4A Sales Tax (as outlined in Texas' arliowltseach city seconomic developnionl Vernon 's Civil Stalules 5190.6, Soclion 4A): corporation receive each year varies from a Cities may use the money raised by this towof$2.000per year to high ol$14.400.006, sales fax for purposes related to industrial with an average annual collection of devolopmem. these include [thy following. $561,4101 • Purchasing land, buildings, and equip One of the most frequently asked cups men(: lions is `What are :hey doing with all that Paying principal and interest on debt money?` According loan article in the Texas improving airports that are an integral Municipal Leagues July 1994 magazine by part of an industrial park; and TEOC member Bill Shelton, the money is Making improvements to support spent on a variety of projects anu promo• walerborne commerce. lions, Cities may also use this sales lax to fund Under the 'Business Alhacuon" heading other purposes found In the Act that are in the article mentioned: advarlising, target the best inlero;ds of the city, markefmg travel, trade shows, billboards, 1993 changes in line law added recycling video brochures and contracting with the facilities, but removed municipal water sup- The Texas Economic Development Coum chamber of commerce or industrial lounr'a ply and sewer projects from the llstofeligible cil is pleased to present this special edition lion to handle marketing. projects. Recent legislation also added that of trio 'f EDC Newsletter, focusing on the The category of "Programs andActivilies" a corporation created under 4A cannot as- economic development sales lax, The City lists the development of finance programs, s, me, or pay principal or Interest on, debts eT Abilene was The lirst to pass the tax in business assistance programs, Ilia roten- that existed before the city created the cot 1969, and since then, rsore than 189 have lion and expansion of local businesses, collation, lodowedsuit , ncubaluroperations. thedevelopment ofa 4BSatesTax:Cities mayusemoney raised To dale, these cities have amassed more data base and other items, by thissales tax fora wide variety of projects than $200,000,000 to lurid economic devel Under Ito category of 'Infrastructure lip. including land, buildings, equipment, facilt- opmenl activities. Clearly, Ilia funding of gradeandBoplacemenl"Iheaniclemo?-. ,ns ties and related improvements to any of economicdeveloprnerd is draslically chang- rail spurs for industry, wafer and sewer line these items as defined in Section 2 of the frig in Texas, This special edition aims to ox1ensi.,:-15 to Industrial Parks, drainage Act: hiii? h[ some of hie successes [hat have projects, industries park developmenl, elc. • Professional and amateur sports oc: urrod by using the tax and to describe The final category' Other' covered items facil'iTos (these include chi Iron's some of the changes in the law that havo such as administration and operations, con- sport,; I [,Ikon place. The Texas Economic Develop. sullarts, legal and accounting expenses. • Athletic, onler[ainment, loulisl, conven. merit Council hopes [his document serves supplies, insurance, contingency fund and tion and public park lacilkios, including as a useful toot to (earn more about the fax, reserves, lease of office space, furniture stadiums, bslfparks, auditoriums, For more information on the [ax and how the and equipment, contracting for administra. amphitheaters, concert halls, learning j Tera; Economic Development Council is tive services professional duos and centers, parks and open space improve- e meetings, subscriptions and faxes. merits: • corumu- serving the coeds of those. unique Asona small town leader focenllysi id,'It Municipal buildings, museums, exhlbi~ Exees, please color ct Joe Newman, , TEDC TEDC nas certainty leveled the playing 'laid for lion facilities and related stores, Executive Direr ,r. at (512) 4806432 some cities', giving smaller cifios an oppor• restaurants, concessions, and parking [unity to compete with much larger ones. and transportation facilities; I 1 ra • A9R"O*U*NOD To H9E Success Stories local employment by more Than 1.700 jobs. marketed by a company in San Antonio. Abilene TheA E QC s efforts to recruit new industry The company was awarded a $360.000 from Caiilmnta paid off in 1994, when two contract to manufacture thin machines. Subm+ued by x,m raisin Economic Deverop Wort Coast companies chose to relocate to creating 13 jobs, men? Spec,alist. Coq- o1 Ablene Amarillo. Other uses of the funds are to guild a The mission of the Dovelopmont Corpora- Nomura Enterprise Inc., moved its Stock 20.000 square fool spec/shall building. pur tion of Abilene, Inc., is to use sales tax Ion-based metal products manufacturing chase land and instatl the Inlrastru,,ture to revenue to stimulate elfeclively Abitene's operations into two vacant laciblies at Ama. develop a new industrial park. economic gro Ylh by assessing if a rillo International Airport. That company Fri commundy'seconomicdevefopmenineeds, supplies military weapons contractors and davel0PinB a Oran to meet those needs, expects to employ up Frisco Ec to 200 within five Frisco Ecbyonomic Thomas Ueveto Palmer, ex,o Amem Colpor.rNOn coordinating community economic devotop years. moot efforts and sup; or. ng targeted Another metal parts manufacturer relo- Frisco adopted the focal option 112 cent activities which enhance the ccmmumty's cared ,,)Amarillo from Signal Hill, California, sales lax in May 1991 and hired its first staff quality of fife and maximize the public's in late 1994. NC Systems makes products person in 1993. Since that time, Frisco has relarn on invested lax dollars. for the aerospace Industry and plans to seen significant growth ina number of areas Some elAbilenes success include S.A.C. employ up to 50 people, that would not have been possible without WesL a tetamarkeling firm (250.356 robs), Amarillo's economic devolopmenl sates file sales tax option, ABCO Industries, Inc., a boiler manufac- tax generates approx matety SB million per The Frisco Economic Development Cor- furer which is undergoing a $750.000 year to fund the AEDC's aggressive, jobs- poration(FEDC),in partrershipwilhlheCity expansion (25 new)obs);ACCO Foods, inc., based incentives program. of Frisco, Collin County and the Texas Turn- manufacturer of livestock lead products El Campo pike Authority (TTA), has accelerated the s a jobs retained and $3A million in capital expansion north of the Da is North Tollway improvements); and Boats, Inc., a c anu- submued by lJawd Parflcw, City Dovefopmoml by financing the design and cnnslruetion of Caporanon of Et Campo facturer of ski boats (40 new jobs); Lauren service roads leading to Frisco's industrial Engineers and Constructors (49 new jobs) Over 150 jobs have been created during district, By utilizing the sales t I- proceeds, and Eagle Avialion Sorviros. Inc.. which the past year with the special 1r4 cent safes the FEDC issued over $2,400,00In bonds in provides maintenance support services to tax dedicated to economic devalopment and the summer of 1994 to match a contribution the regional aircraft section of AMR (100 Operated by the City Development Corpora- by CollinCo,, rtyforthe conslruuuonof north new jobs). lion of F.I Campo, Inc. (CDC)r bound service roads from State Highway Trio. DCOA is eager to use those hall-cent The bulk of those jobs were created after 121 to Main Street (FM 720). earnings lot new and existing businesses the CDC spent $35,000 on cleaning up The service roads Ile directly Into Frisco's through the Development Finance Program, an existing 50.000 squarefool building in an industrially zoned areas and are less than The program is designed to facililale the industrial park. Alter bringing the building one quarter of a mile from the Frisco Busi• deveropmentol newandexisuril businesses, back to its original condition, Cardel) Cabl- mess Park and The North Dallas Jetport; two diversification of the total economy and the nols moved into and now employs 105 projects that are key to the future Industrial :entalizaoonofdowntownbyproviding"gap' people. The company has punhased$2.5 base of The community. The County and the t,nzncrg. The Bon ' has approred parlici- million in new oquipmanl, spent an adds- FEDC will be repaid by the TTA when the canon, guaranties and Jiroct loans for tional $200.000 on improvements Io the main lanes of the Tollway are constructed. businesses. Local linancislinnulkitionshave building and is making plans lot expanding an agreement that represents a win-win used itoc Program to structure business ti. the facility witiiin 'he next two years. scenario for all parties and that was only nanang with loan terms beneficial to both The Corporations Interest Rebate Pro- possible through the local option sales tax. borrower and lender Over 50 jobs have gram for exist" nduslries has created 45 This project, when complelod In mid. IE06, been retained and more than 130 crealnd lobs. The CDC offered l-C Manufacturing of will be the singlo most significant project ~n due to (tie OCOA`, partro,oatron in financing El Campo, a cut and sew operation, a 20,16 Frisco's ellorts to attract and develop and apuortunnies for 0ese companies, interest rebate to, 5 years that encouraged industrial base. the company to build a 15000 square foot Already impacting the economic health of Arriarlllo expansion onto their existing facility. The the community before construction starts. 9:0111e61 by Gr;g 61a,irer. Amarrlro Economic CDC will rebale the company $4,332[tie first the Tollway was a major factor to the deci- De,enomenr Cmooranon year and decrease that amount by approxb sions of Frisco Wholesale Lumber toexpand ® Amarillo voters Yore among the I fist in the mately $500 a year for the next four years. its distribution operations and Hor^a Inlen. • s ale 10 adopf the Economic Dev tlepmenl Wenglar Construction is the newest ors & Gifts to expand its state-ol-lhe- ,it Segos Tay. in November, 1989, Si ice then reciplent of the Interest Rebate Program, distribution center. Additfonalty. the Frisco J ure•lrnanlloEconomic Developmen'Corpo The Irrsresl Rebele allowed Wenglar Business Park, a 100 acre inclusinatpark is ral or, nos provided grants and inlere_T-Iree ConlaucHOn to be mi re competitive with its being developed to provide industrial sites j ioa~ to over thirty companies. boosting I uid to build aluminum recycling machines within close proximity of the Tollway. fa ~ • W r S Te E The FEDC has also ulilizcd the local lions and or expansions. KEDC was repro. Longview option lax to COnslrucl the infrastructure sonted at four ind Ushat trade shows, subrnrrledby Paull. Walker. Longi,aw necessary for the expansion of Home Industrial silos have been identified. and Econonne Dnv7,opmo/Ir Coe or,?rren Inleriors B Gills and Iho mfrasfruciure to four Sites have been purchased. In May the serve Ire Collin CounlyCommunily Cngego Texas Department of Commerce grarged In Longview, it was never a question of . fl was alwaysayuestiongffinancing, Preston Ridge Campus, which will be Official Enterprise Zeno designation to the vision the Colleges eenler for business and City of Kilgore. Business leaders had plenty of ideas for engineering studies. Businesses [hat originate in Kilgore will economic growth but lacked the money to ch make That chandreams carne true The local option economic development more than likely slay in Kilgore: therefore. That their sale, tax has been critical in the develop- small business development and drversih. ged about two years ago when ment o' a long term industrial base in Frisco. cation have boon an important part of the sates Long tax view to be residents dedic•aled app to roved a s do cent Through the provision of infrastructure and r. EDC's activities over the past year. KEDC economic veb pm lopm c t Co Longview the long term benefits which those infra- responded to 339 calls from small value.Econopment omic through Devaelonewly slruclure improvements will generate. Frisco added businesses. assisting 3 of those with Development Corporation ' is well suited to toad in the field of economic silo locations. in addition. [be ollica has good wa. Since then, here are some of the development in future years. worked with the Kilgore Small Business good ways we have used our sales fax Already having seen live local industry Development Center to see [hat assistance money: expansions in 1994, the focation of a major was provided to 12 businesses needing Along-held dream of bolding an indus- retail project and the extension of infrastruc- financial services, technical assistance or a million trial/business park has become reality. With lure to allow future industrial growth and businesscounspl'ng. Duringneyear 2small now attracting million price lag, this noon re park is II expansion. Frisco is proud to have been an busir~ss projects were completed, first now tenant In notional attention LEDCO's If early sunponer of the local option economic tenant In the business par' . no leis i developmentsaie9taxandisproudlorepon L& Marque than Neiman Marcus. This ca„pony will ill that the community's Industrial and com- submitted by Fred Welch, La Marque Industrial build a state-of-the art 400,000 square fool Developmont Corporation national distribution center in the ark. mercial successes have been largely based p on the achvtties made possible bylhal fund. La Marque is J community of 14,000 per. Planning thepark wasputortlhe faslireck ngsource. sonswhichadopledits4Astalusin1990.Its to accommodate the ambitious building Kilgore five-member Boardol Directors has taken a schedule of Neiman:s: Consoquenlly, we positive role in the development of the Clty new have a park and Neiman Marcus. Nei• mern bm0ed b are the Kill Econemrc Develn and has enjoyed a busy 1994. ther would exist in Longview without the su in early May, $21 million in linancing was sales lax funds available to lure Neiman'sor Value added industries are the primary arranged for constructing a 71 acre busi- 10 dedicate to bond sales. Iocus of he Kilgore Economic Development ness park. Ground breaking for Phase I of With the addition of Neiman's work force Corporanon (KEDC). The office works with the MARK 45 Business Park occurred on of 200 next fall. LEDCO will have created tneso companies on a continuous basis to November 2, 1994. The IDC is bringing more than 726 jobs and an additional 922 support their local activilies, implement in. infrastructure improvements (water, sewer indirect jobs, for a total of more that 1,600. cnnuves and encourage expansion and the and drainage) 314 of a mile along a main These jobs, too, could not have been cre- reiention and creation of now joUS, road in West La Marque into the develop. atedwithoulthefinancialincentivesavailable In 1994 KEDC has answered 483 calls, merit, This activity wi also open up several through is also LEDCG :onducled personal consultalions with 13 hundred acres of prof arty for future dovbf- LEDCO is also providing Soros scholar. exrsling induslnes. facilgated two targeled opment by other property owners in the area ship funds to area colleges with technical industry studies and provided $114,764 in at no cost to the taxpayers. II is estimated programs. The money Is awarded to needy matching lunds lot infrastructure improve- Thal invesimenl in MARK 45 land and build. students studying high-tech speciahies • merits. among other acuities. ings will total between $15 and $20 million, There is also a revolving loan fund being Allractionof new value-addedbusrnasses and will create approximately 900newjobs. discussed. Ill anticipates making a s an u*rportant part of KEUC's efforts to While the fulure growth of the City of La commitment to !his fund. These fundswillbe expand the existing local tax and employ- Marque is lotheWest More isagreatdealol used to make loans to small.andmedium- menl base. The targeled markeling plan is activity going on in the East side of our city. sized businesses located in Longview's two directed toward those companies for which In an effort to control and prioritize neces- Enlerptise Zones, thu area offers panccuiar benefits plaslres sary improvements on the Citys East side a the benalits of the sales lax dedicated to manulacr,inng, secondary food processing comptehensivo land use study was com• economic development made 1. angview a , e. and metal labricalron and machining. n issioned in August to oullme the possible playeronthe economicdevetopmentscene. Since OcfoL Ir t, 1993. KEDC has re. development of an indu,trial park on the We now offer a class A business par.( and sponoed to 436 requests lot information city seasiside.Partial fundtnglorlhisproject economic development incentives, both of lrom businesses located outside of Kilgore came from a Southwestern Bell Telephone which are essential to remain competitive. To cultivate additional prospects for reloca- grant for economic excellence to the IDC. t j i D • • McKinney Con"" The Franklin County facility will em. range direction fora frail system that will submrrypd by fhanssp Canrrprd Vice President ploy 150200 people within Iwo years and Serve Rio needs of pedeslnans bicyelisls - r farherog dlcKonrey Econorlec Deve+opmenr over 400 Individuals within three years, This and equeslnans. Negotiations are complete Corp massive projecl was t,rought to fruition largely for a landmark cooperative agreement bee With funds collected through the half i by the efforts and abilities of participating [wean North Richland Hills and the Birdviilo sales lax, the McKinney Economic Develop enhlies to leverage funds against the 1r2% Independent School District for the develop- ment Corpor con v,as able to recruit seven sales tax, Much of the funds leveraged for meet of athletic and recreation facilities at companies in 1994 ,Theindusinesandmani Lowe's will go into building production, but Richland High SchooL'1he project includas laclurers recnnred hlclude: Leon's Texas funds have also hear) made available for construction of a $1,9 million :-nnis center Cuisine, food processor of corny dogs and legal fifes and site preparal+on. and additional baseball and soccer fields. slulfed jalapenns; Foxworth•Gaibraiih. The opening of an Economic Develop- Consiructlonon°AdventureWorld ".alargo manufacturer of roof Irusses Brandon in. men[ Office with a full lime coordinator has playground designed (of The physlcellychat. dusliii manufacturer of classic outdoor also been made possible by the funds from lenged, has been completed 3s well. Plans fighting ancifixlures: Della Dailylood(Texas), the sales lax. The objoctivo of this office is to are currently being developed for construe proressor of airline meals; Grand Air Ex promote industnel growth through regular tion of a haSeballlaelfball complex, nazi press. an air cargo company; Kenneth O. and consistent contact will) existing busi• outdoor learning carnet, large city park, and I.esler Company, food service dislobuloc nesses and to solicit new industry, It m also hike and bike trails, andSouthweslern Nameplate, manufacturer the goal of this office to develop arid main. North Richland Hills is prouJ Io serve its of machmeryroquipment nameplates. tain an i lo-dare brochure with pertinent citizens with the special sales taxthatmakas These new industries represent $24,4 economic development data and to search North Richland Hills a better place to work, rmibon in capital Investment 545 new em• out the most productive method of distribut- live and play. ployees and an eshroated $9.2M in ing this data. adJilional annual payroll North R/chldnd Hills Pittsburg submillod by Susan O. Moore, Conrmunily Mount Vernon subrnifled by 4YrNiam Thornton, Asst, Director. Oavetprem pnrenr. City of PiBsbvrg s„bmdtcri by Te testa PanreN Fcenomic Dever Parlis and Recrriarren Depanmenl. City of op Tent OnrVemOn RichiandHrlls Pittsburg pa.,,sedIhe46plan inJanuaryof In the summer of 1992, the voters of the .1594' While the =cone through a stratcg c In an effort to `jump-start' economic de- city approved a Sic sales lax Increase to 'telling will es going through a months of velapnreni and promote industrygiowlhand help finance the development of the parks 1995,1 It process in the first few months of loll n, Mount Vernon passed the Eco• 19_5, fl has already committed funding for nomic Devetopmem Sales Tax in November and recreation system. Collection of ft lax one project 1997. The effort passed easily b 2 tot began in 1993, and since then there have Piltsburq rae:eived a Texas Capital Fund y by a margin and plans sayer) immediately to of. bean dramatic improvements Main Street Improvements grant for infra echvety mplement these funds. The most signillcanl accomplishment of structure improvements to the Central Already there were opportuos in place the past Iwo years was the acquisition and Business District. Deteriorated sidewalks of ~onsideralo proportions. The Economic preservation of 300 acres, including import will he removed and replaced with safe, Development Corporation, along with the lantnatural areas inlhecifyThesizeofpark ahraclive and accessible sidewalks. The e gvel pmenirankhn ti l long with he and open spaces have more than tripled in Pittsburg Economic Development Corpora- fee Fankn plans to Foul attract sae, from 135 to 435 acres, tion voted to provide the local cash match ,Iljc n. mime ialoly In bc.,egaby providing assist A vanery of mirrovemenls and renovation needed for this project. The EDO saw 1h-s ,once in expanding c. by providing prefects have also been completed In the g sile. This Ili Iwo years of our capital improvements project as an oppo unify significantly assistance was provided chiefly by the Eco impacl our retail trado e and tourism icdown. nom c down. Corporabon in the fern) Program Included in these improvements is Not ll businesses d Ihneu we • el funds which were leveraged against the the design and construction the City s nB t area relainod econopamicd dad, blw 1 2'~ sales lax. Honhnglon-Pacillc is now million Family Water Park, FI995Agrand believe ve this his ul t economic impact will ocaled at the site and renovalions are cur. in g is scheduled for May ay 1 1995 provid• extend throughout the city. rertlly underway. They plan to be fully ing much needed swimming opponunilieS coeianonal by March 7995. for our citizens Qu8nah Theobi filarch995mpaniesbuild Renovation to existingparks included now submihedbyf. atiR~ggs,011liManager. ^ig a p di5i sspubon center s Franklin County paiking tats and restrooms. a concession Ouanah Econoa❑c Deve:opmenr Corpoaabon :so began to unfold at a ran this time. building, a playground, and an irrigation The QuanaliEconomicDoveiepmentCor• ' • • O T! ou a cite caonli at efforts of many system, Bids are being solicited for the corn potation was chartered in August 1993, kcal entices. Leope ivo l f end struct on of a community park and soccer began receiving funds in December 1993. of December owe ainlerc at building comnfexprovidingthecilyshistsoccerflelds. and was stahud in March 1994, From this r 760.00 ec sq It. Regional Utsrnbution Cem A Citywide Trui System Master Plan was humble and jumoled beginning the OEDC a a 0liq It. Regional sally Dillon Chan completed and approvedby Vio CityCouncil has taken to heart the responsibilities em in Ncvomber 1993. The plan provides forig Irusredinit todevelopastraiegyforecononuc • d r - - - - - - ~ r development and economic recovery million expansion. The extension is needod M{(y/ths, Misunderstandings & Tlie firs lill of attack was rospoaktoour lo accommodateincreasedtralhcas aresult M sconceptions About The citizens and recruit their ideas regarding the or the expansion and substantial employee problems we lace and the solutions they relocation to e Sugar Land facility, Cash Economic Development prefer After These planning sessions we funding from p thre SLDC enabled the City to Sales Tax were challenged toformulate a VISION stale- meet Iha terms 01 the agroemenl without idea lm anrve submitted Dp TEDG member l meal for the next 10 years. issuing general obligalion debt that woufd Shelton Six now retail businesses have been ac. havtt had to be repaid through property lax Myth One: Only the big Crites benefit from coved because or marketing elicits, a revenuas. the economic development sales lax. correctional facilily is in rho process of occu- in November of last year the SLDC agreed Of the cities that have passed the lax, pying an unfilled industrial building by to fund 50% of the impact lees and 66% of nearly 900. have less than 25.000 popula February 1995 and employing 32 placers, the consbuctlon on, a storm sower ex• lion. In fact, many major metropolitan cities and private grant oNorts are underway to tension to serve h re Shoneys Inn and are prohibilqd from passing the tax. In the modernize the airport facility. Plans ere Restaurant in Sugar Land. These incenlives original legislation, cities located in counties underway to ullize Farmers' Home Admin lolaied $ 51,000 ano were an integral part of with more than 500.000 population were rsiraUnn and HUD funds for a self-help rho decision to locate in Sugar Land, prohibiled from holding an election. Many of housingprulecl building r; new homes in our For the 1994.95 fiscal year the SLDC will Ihose restrictions have been repealed. (Sao Giy, along with grants for rental properly fund construction projeclslotalingS750,000. Myth Six.) rer ovation and home owners rehabilitalion. Each project will directly benefit erthor the Myth Tura; Administrative and promotion -here is a private foundation that has residents of our Business Parkorpatronsof expanditurescannotexceed10%offhesales expressed inures; in a cooperative historic the Sugar Municipal Airport. tax revenues for Section 4A cities. recto alion project 01 a downtown building The Corporation has also entered into an The legislation authorizing the economic for ful.ire. use by the City of Ouanah. The agreemont with the developer of the First development sales lax states..."A corpora- Ouzna+ Economic Development Corpora- Colony Mall and adjacent Market at Town lion created under this section may spend no Iron is also helping an agricultural based Canter In Sugar Land. The proje.l recently more than 10%of the corporate revenues for firm to realize the porential in an Idea that broke ground and is scheduled for comple• promotional purposes...' Most cities have has been stalled and needing funding for lion in March 1996. The agreement Is for taken promotional purposes to mean solver- research reimbursement of specific infrasUUclure rising in the Wall Street Journal, Site Tree Corporation is interested in funding costs assocfaled with the project. Rolm' Selection.AreaDevelopment Magazlne,etc.. opponumlies that will bring diversity to the bursementcommences when thoMalfcpens billboards (not tourism), trade shows, etc. area s agrrcul Ural base. The OEDC feels and will be paid using 100% of the SLOC Administrative expenses are not mentioned b,al because or the opporlunities allorded 1~4 cents revenues generated from the Myth Three: Economic development sales by the sales tax, the first few steps have project site only. Payments ceases when $5 tax revenue cannot be spont on pro/ects been taken toward realizing the destiny that million has been repaid or December 31, outside the city limits can be created. not simply, accepting the 2006, whichever comes first. Annual 1/4 There Is no legislative prohibition on the 7esiiny so seemingly dealt. cent revenues generated from the 90,000 geographic limits of expenditures The doci• Sugar Land square fool Mall and 405,000 square fool sion to spend or not to spend sales tax ,sno r La me sugar t,,rrd Dereroprno.u Market at Town Center are currently pro revenues outside the city Is a local one, ;noorunon, c,lv or Sager Ltrrro jecteel at $630.000 Myth Four: Elected officials must solve on 11 In January of 1993 lrie volers of Sugar Tomball theF.DCBoard. t ind appr^,r,nd it 'A Economic Devejop subm,8edbyWarrenK.Driver. CrryManagerarrd The cony ltlonofihecorporation'sboard sent Sales fax a1 the rate of 1 ~4 cow. The ExeculweDrreclor, Tombarrlnduslrrar0ev Corp of directors and the length of the members' -ugar Land Development Corporation ThevorersofTomhallapproved a112cent Inrmsdifferbelwesn4Aand46.Under4A, , Li_ ,vas subsequently rnccrporaled in fez for economic development under d in a city's governing body must appoint a five. is ;,lay of Thal year and the first Board of January 1994. The $710,000 expected in of cpleasure member the governing g body and enin b dy and esurmust rho onduct its Uvector5 lock ohicrt in June Currently, the revenues for 19941995 will be spent on a of the g conduct 1 a cent lax generates annual revenues of vanoty of programs. including incenlives. moabng within the city's bourdaries. Under around $1 trillion, overhead costs, grants and loans. debt ser~ 4B. the city'sgoverning body must appefnl a ir, i scar year 1993 9.1 the Corporal on vice for special projecls..I sewer plant site, seven-member board, Thre- of the seven anoec' funding up to S 500.000 for the and improvements to a Lillie League field. directors cannot be employees. officers, or c.orslruclior of slrec; extensions directly The Tomball Induslriat Developrnenl Corpo. members of the city's governing body. The serving Sugar Lands Business Park. 'rho ration works in conjunction with the TornbaA other tour members may be. but are no e,lvnsions were condinons of a tax abate City Council to prioritize projects. The City longer required to be. members of the city rnent the Cny e ecuted wnh an existing CtlenCll submits a funding request which coum''l. Section 48 members are appointed Buu,nss Park resident as part of prnir $16 the TiDC Board reviews. for Iwo year terms and must be residents of the city. Section 4A cities do not have rhis resfrrcrion. • 0 • - T4, E _D_ _C Myth Flve; Acity thaladopts a <A seies tax business loans Rte program has ccmmil• Pharr ' °Jily will allow us to increase our may pass along an exrsf+nq city project led almost $14 million in loans, leveraging curron• rorklorce of 190 persons 10 300 including ifs debt to the 4A corporation as over $25 million in additional capital, and persons by 1996. said Robert Fiollar The soon as the corporation is farmed. creating 1.400 now jobs. The Fund is a firm's president. A city may net assume-a debt or pay good example of how stale and local gov. The Fund can be used with bank ins pnncpai or inleresr on a debt I file debt ernments can work with private industry 10 ing. Since it relies on the e;c ?mic existed before the date the cry created the encourage development development sales tax as its collala,tl.other corporation. The McKinney Economic Development collateral such as land and building can be Myth Six: All cities are eligrble for some Corporation accessed almost $4 million to pledged to feverar3 additional debt. "Our to rat or ecoIomicdo ve!oprnonts,4lestax as finance the location Brandon Industries. participation will- the Longview Economic long as their total tax rare has not reached Iric , a manufacturer of outdoor lighting fix- Development Corporation throughtheTexas 8-1,40. lures and Loons Fine Foods. a lood Leverage fund allowed Alumatech, Inc., to Cities in Tarrant and Hanis Counties are processor, to its industrial park. 'The Texas vertically Integrate its manufacturing of alu• eligible for only 46 tax and only if their sales Leverage Fund provided short term linanc• minum dump trailers. Without the TLF's lax rate does not exceed 7.11406 at the time ing to allow the MEDIC ID allraci Leon's Fine contribution, the Bank would not have been of the election. Cities in Travis and Ef Paso Foods to McKinney as well as long term able to be a part of this transacilon which Counties are not currently eligible for either funding for Brandon Industries. The TLF preserved 70 jobs for the community." said 4A or 4B econorrlic development sales tax. allowed us 10 respond quickly to the financ• David L. Wilson, Senior Vice President of Cilies in Dallas and Boxar Counties with ing needs of these two companies. Tho Longview Bank and Trust Company. populations of less Ilia[ 50,000 are eligible program'.5flexibilily was invaluable In bring- "in sum, The Texas Leverage Fund pro• lot both 4A 8 48. Cities over 50,000 popu- ing these businesses and over 300 jobs to vides low-cost capliai, quick approvaf and ation in Dallas 8 Boxar Counties are not our city,' said Save Vassallo, President of keeps control at the focal level,' said Sonia eligible for 4A and are eligible for 46 ONLY the MEDC. Perez, Board Member, Texas Department if their current sales tax rate is not exceed- The Texas Leverage Fund offers of Commerce. For more information of the ing 7.114%. Texas Leverage Fund call Lynn Brooks o Myth Seven: If a city is not ofigibfe for the many benelltp to 101091 Afine Puente x15121938.0262 or 512/936 special dad+ce!ed economic devetopme 11 Leverage: The iDC can borrow 4.5 times 0264. sales tax, it wirlnolbeabtelotundecononsc its annual sales tax receipts development. Flexibiflty, The Fund provides interim Texas Leverage Fund Successes Cities can fund economic development and long term financing ALoant CJobs with any amounl they choose according to Cost Effective: No cost to access Interest Rate: Wall Street Journal Prime Allen EDC $2,851.843 140 380the L.1001 oca Iln Government 1.89. H89. Hous se C Bill ode 31S92 Section n rate Iloaling Longview EDC 735000 70 passed Thal gave cities the broadest davel- Quick To Access: Rasoonse within ten McKinney EDC 3.720.400 220 opmenr powers yet, days of receipt of complete application McKinney EDC 240.000 65 The city may make loans and grants of Term: Maluolies from several months to Pharr EDC 950.000 300 uubirc money and provide personnel and 15 years -.c? vices to enhance economic development. Eligible Uses; Specifies by the Develop- Weslaco EDC 2,560.886 150 o, aumnvsler the programs or projects, munl Coipcral on Act Hillsboro DC of 275.000 305 city council may Collateral, Sales lax proceeds to cover Totals $11,3x3,131 1,250 1 use city personnel, the debt service • ? accept gdl:- and contnbutions, and The Texas Doparlmenl of Commerce au. Texas Leverage Fund 3 cunbacl wifli the iede,al govunmenl, :he Slate of Texas, a political subdiv sion of Ihorized a $950.000 loan 10 the Pharr Workshops ""C' state, a con probi organizalior: or any Economic Development Corporation, ;ne. R,er entity,, IPEDCI. to build a 31, 000 square loot facil• The Texas !.overage Fund will be holding ty. ' Fhi: building prolecl continues our workshops it) the coming months as listed elicits to bring jobs into the city. and it Is an below. Call Alma Puente at the Texas De- Texas Leverage Fund Gains investment in our future' said Ricardo partment of Commerce for more Information Momentum Modena presdenioflhePEDC ThaPEDC (5121936.0264), A ooks rv r ter er;lnc Fund *e+as will own the budding and land, ar•,l leaso the March 31, 1995: Austin (in conjunction + o c nrm .c„ facility al an at:racllve rental rate as an with the TEDC Mid-Year Conference) Texas Levrutge fund is bung used incenlive lo, Brand Name Apparel, Inc. to April 28, 1995: Weslaco to altrara new business and ID finance in. expand mlo oe+cornmunrty"The company May 19, 1985: Athens I parks, rrianulaclurmq laciiilies, and manu'laciwes leather packets . vests. caps and pants for Harley Davidson, Inc. "The • • Sometimes the Fourth Time TEDC is the Chi rm Membership Application by Joe Ne,nmar rEDC Erecubve Orrecror TEDC is often asked by cities to supply a The Texas Economic Development Council is a stalex 'do professional association list of the communives that have passed the dedicated to the development of economic and employment opportunities in Texas. economic development sales lax, We (along TEDC provides inlormation educational and legislative services to It's members in order wilh the Slate Complrollet s office and the Texas Department of Commerce) send this to foster the expansion of existing it lry. location of new firms and devolopmenl of list to anyone requesting d. strategies that promote a positive business climate in Texas In tact, a manufacturer in California re- cently requested the list of citles as the Newsletters are sent to TEDC members to inform Ine membership of legislative issues. company was planning to move to Texas meeting announcements. activities of various stale agencies, job openings, personnel and was irferesled in what 'deals' these changes, and general items of interest. sales lax cities might offer. (The company was looking for incentives such as moving A membership directory is published annually andcontains: a listing of members: TEDC expenses for equipment and employees). officers hoard members, and commJdee chairpersons: and the TEDC constllution and Cities that are Thinking aboul asking their bylaws. This Is a valuable reference tool used Irequanlly throughout the year. citizens to consider the lax are also request- ing thelist. Many cities arewarding the4stof TEDC is structured es anon-profit corporation, cities that have not been able to pass the tax. They want to see what the communities Members have numerous oppurtunities to participate in TEDC activities. Various may have done differently or seasons they commitlee.5 address trends Influencing economic development, and the adminislratiou believolb -ilizens(ailed to seethe benefits of TEDC. Members are encouraged to lake an active role in these commit. fes: Audit. of the sales lax. Awards, Budget, Conference, Community TiaininglEducation, Constitution & Bylaws, While researching apaperrecently,itwas Economic Development Sales Tax Cilie3 Alliance, Forward Planning, International discovered that the four main reasons for Business Development, Legislative, Membership, Newsletter, Nominating, Past not passing the tax were: 1) Lack of the President, Texas Marketing Team and TEDCrTDOC Joint Advisory Committee. entire city council's endorsement; 2) News media against the tax: 3) A strong antl.tax Any individual whose work or Interests are concerned with Industrial or economic group that was organized to defeat Ire tax; development in Texas may hold membership in TEDC. Application for membership must and 4)Apathy Many times cilizon, ..cover be approved by ril Fily of the TEDC Board of Directors. confident and fait actually to the polls to vote for the tax. There are two membership classifications Active and Associate. Active members Some cues refuse to' give up' and have generally are full-time economic development professions. Associate members have an passed the lax on the FOURTH try!The city interest In economic development but are not employed full-time In the profession, of Haskell was finaily successful and now Active mornbership is $95 per year: Associate membership is $65.00 pe; year. must prove Io their citizens that ilwas in their best interest. Sv,- ,r l!,ave not passed the tax, or are no longer eligible, because a hospital Membership Application • district or county government has passed a special sates tax that caused the city to Name,__ reach its maximum allowable local rate of Iwo uercenl of 250,e is the maximum com- Position:__._----___---.--_--__---_---------------- bined rale currenlly). Cities that have tried but have not suc• Or anizafiorr. ceeded ii, passing the tax mclude: Aransas Address Pass. Bedford. Bowie. Brenham, Cleburne. - - " Celleyville,Cappell Corpus Christi, Crowley. city Stale- _-Zip • • ' Denison. Dumas. Ennis. Friendswood, Georgetown. Greenville. Gun Barrell City, Phone:.-__-____-__._.-- FAX.__________ Holland. K,ngsvil e, Lockhart McAllen, Mid. Relerred by: land f~lineota. Monahans, Nacogdoches. Amount Enclosed New Braunlels, Pasadena. San Angelo. I Signalure:__ Seagoville .Sinlon,TheCity ofColony. Troup. Tyler, Victoria and Wichita Falls 1 • o , • • Attachment D (/30196 ECONOMIC DEVELOPMENT SALES TAX totes a list of cities 'jar held successtuf elections on rho sales tax and the approximate amount they oxpeof r0 rotsd per or. - - ' Clues that also! Shaded" or "Outlined passed the ED tax under 51006 Section 4A r1lniled axya" sain}f cIBOe IMt.eard 6eoUen 4t+ BbOJDaY .9eN~•7`alt~tyll4 - Outlined area Indicates the cl passed both Section 4A 8 48 ED Safes Taxes -Populallon_, Also Held Clly Expeda ED (aaordnp o _ Clly Notion for Tax to tales each year. - - - - Tx_Mun.-Ua~Prop. Tox Rills} 1081664 _ Abilene' ~snood Au 00) _ as, 1/2% S4 00,000 - Abilene* --9- 18,309 - Allen Paeeed Jan. 02 $893,000 15,616 _ Amarillo Dosed Nov. '89 yes, 112% 8 600 000 2,644 _ Anson (passed May '91J 130.130 _ $38_000 _ 17,,2 14 Aspenionl (passed Jan 95 179 to 38( - $32,600 281 721 ~+11frGa> z JE#ltJA $11,400,000 10,967 Athens•essed M AI+y '00)- yea, $646,000 R 6,118 b8 AflbBaitla rd (pas se ey 1 1093) 813-440 $260 000 fd M (passed May 93) 821151313f - - $19,000 4 044", ~aYggp~(pfaitMd JMM tI)aY'losllli} y 3: ~s E _ _ $300,000 18,170 ga Y1 C( % - Y` (i+~ 1~,4 112 $7001000 8,336 Be!lmead (passed Msy '92) _ $430,000 _ 12 47} Ballon (passed Aup 00) - 3420,000 3,564 - Battbtod)c SWt1Md♦'Y• $400,000 1268 9391( 3*W6wa6*d k K 1. Al" , - - A67 0co -_-23 Ofl3 _ Bir 9Prinp' jpaaaed May 'o0Z- yes 1/2% $860 .000 - - !e236 - Rooker (passed 4A MayU) _ - - ---$17`000 5,676 _ , +Soryer' (passed May 19) _ .yes 1/2% _ _$565,000 6,946 stOL(tnNed Aug. 'M d passed Jan 9J $80,000 5 665 Breckenridge (posed MaY_'90.).-.-.-._. _$220.000_ 3,581 Bridpaporl (passed 112% 4A, May '94)_153 to 77 $176,000 9 560 Btownffsid (posed Jan. 90) $226,000 98 902 Browrraville' (passed AuR. 91 - des, W11. 331550,000 18.387 Brownwood' (passed May '90) ea I!2% $746,000 --._f 8 392 t 80rlosm (pawed 48 .$700 000 " ® 342- _ Burnell (peosd Jan 119, 1993 yes,.J/ $140,000 5,580 Cameron _(passed Au '90 $126,000 6,496 Carthage' awed May '92 yes, fl4% $160,000 19,97 Ceder Yrdl esed both 4A A 48 Jan. '04 112% ee 3950,000 733 l:WksW (Psaed 40, 112% - WY 14) $$6,000 4,950Csnlsr• paoad 114%_Jan. '94 - 4A-by 10 volssl, _ _-_I yes. 114% 5170,000 L_ A055, Childress (paced May '91), 264.189 5791000 31,1813 Cfeoo . paced 48 112% • Aug. '94 _ 175 000 5,410 Coleman' (passed May '90 - yes, 112% $ 000 6,82-51 Commerce • paoad 4A • Jan 91 - $226 000 28,000 C:oams (lolled Aup. W) passed 48 Aft X74 $2,260,000 24,079 Copperas Cove (passed May '00) $450,000 Texas Economic Dovelcpmem Council, Inc.. 400 W. 15th Si., Suite 910 Austin, TX 78701 5121480.8432 • c~ • 1!30196 ± _ 3 694_ , T .::COtulhl (pll>1Md 'ill% • 4B~ 3° - -360000 ~p - 1083, Crop NO* (000, Jan, Vile, 481tip to 48 , v , f 5261000 230 _ ---Crowell~assad Mey '8~ - - 170 - - Juney'spused 4A,-114%j 1/49'. 320,000 tl 6 246 Ualhsri (pasted Avg '94) - - - - 320&,000 11758 iklwortifii+pton Q4tdHU1 "(Jan.''9¢~5100.a 4tg, Es9,o0o 4,25t7eaatur sad Au __'A2 Dekalb (oasaed Aug. '930*9640' 310% 4A 8 118% 40 • Au , '94 _ yes, 1I2Y. $843,000 - 36 008 n t , qunaanyE~'►t;(Faa~ed,Jan,','id, 4B) i,~e~YYi~,,c.'P~~i vte, 1/2He 2 380 ----__-Est! (puaW May'9G~----- --tae, 1)2% _ 5146,000 3,880 Eastland For1W AU 0. WO A Passed 1183 - - 3180,000 287 Edcouch JBoth~B - )9a, 1l2°/.- - 5900,000 } 28 986 _ 10 6f 1 - El Camdlp o• used 104% In Jan 92 -yes, 1149° 5236,000 418 4 6 eaad ajji j~'~'W G „i~i 1mc\ i ,5120,000 6 24 Else ssed Both 4A A 48 Nov. 93 - 0 3 y{ F i~,R h s^ & $146,000 62 55,0001 38,14 1$1,360,000 --3,234] Fa/rRa/d• -Falfod May W A Passed Nov 0 1 yea, 112°x° - 64 _ z ex a F 9, (M><. r t tip' r? - . 009_ 1f 482 330&,000 - 41070 i, aiv`St2±~ `Q. 0112%-_ $82,000 e 6241 Fort Stockton' (waled 1M% • 4A) M,y a4_______ 6 141 Frisco •pused 4A MaY 91• Bused 40 May WI 112% as yes, 114% $130,000 $870,000 14 256 „ WhkIH1V11(r iaalf aB r~" - - *F~45v i:wa°___ 09 112°k- - $700,000 _ 59,070 ' JYi18fO,n• /,.ppH Ab1' 'Yf, . j:PlB,fad, f(<~( tt'ASj7t r i~t~. - yes, 1/2% E1 076,000 i - 4,8 1 2 Qllmer (passed Jsn. 91) - $235,000 _ _ r 0 1 , Qlaslawafar "tPwMd 'f~ 4Q, 8713 ro wf " a S116,000 8 9881 Olrshom' 114% passed Nov. '93 ~ y s, 114% $170,000 99,616 Qrralld!'Pn#rli ~4A d7~' Par►W Ja►: 'aa U21c 41 1 $4,200,000 's _ 2,630 :QIYfW 8a1kN4 (passel! Jan. '0$, ,4p) i s -yes,- 1l2% $63,000 - 2 791 M!mIB, assed Jan 91 3641000 e 735 - HaHingen', (pseud May 9~ - ea,. 112°/. •C,700,000 1 3,200 Haskoll___(Paseed 4A Mey 'p4~ 575,000 i 3,561 Hempaleed`_(passed_May '91)-217146.-__- yes, 1/2% 5199,000_ 39 Hondarson' (Filled May '90) Passed Jan, '92 _ yw,_ 112°/. 5519,000 2,096 l1HlrION Maid Auy. '17O • Massed 4~1 V. Al _ $_45,,000_ - - -14,715] _ Heralordt_passed_4A AuQ, 04 $336,000 li A x,292 Hidalgo' (passed Nov. '89) __yes, 1/2% $09,000 1,038 HNI.CQ4f1aY NVN 4• Passed 4& 1/M May •fµ _ 5103,000 7,07?. Hillaboro'__,Pused May 92!_118% ._--yea 3/8% _$135000 l - 00 5,869 Hitchcock' (posed 48, Jan 'OS) ___yes 112%- $77,000_ a 2,684 Hooka (passed 44 • Nov, 93) 33,574 Hurat (BpF. Legg •38378 540.000 Jan. -0 _ $2,600,000 © 1 2, 765 Nt"Itsonvipe (passed Jan. 16, 40, 804 to 3941 3811 000 6,.9591 Jasper (passed Aug. '92) - - _ • • S450,000 2,199 - Jefferaan , Pased SB • Nov, 03 !+00,000 2,654 Jul"O&W passed 40, May 14 • 112% - Elf 000 5,238' Kaufman ' - 11 r passed 4A May 104 1124 $ t92,00_O l~-- 73,663 Kellar • Passed den, 'YR (5180,8 4B hw~ $290 000 II 70Kas Emnomic bevelopinmi Council, Inc. • 400 W. 151h $1., Suite 010 Austin, TX 78701 - 51204808432 { • c, • 1r3o1s5 1094 Kemah' (p_aaed_Jon. '91)____ yes 112% $128,000 11,066 Kligors asstd. M%y 3880,000_ i 2 055 KounIs eased Jan. 196 ._$55,000. 4,360 Le Faris (passed Me W 8 112% 4B, Jan '06 $126,000 ' -----2 604. JoYSt`,• IM«eid.~46 ! 1kWt•^ ..a ~...>'a., :!_-Yes 1/zY° $2.000 14 1201 La M_jrqus jpsssad MAY '80}._------ _$476,000 ,F m809 Lamaea b!!ad May '9o by i vote. Passed Jan, '04, 678-370 $290,000 22.1 1 Lancaster' (passed Jan. Y6, 114% 4A 8x112% 48) yes 114% - $2,9110,000 30,159 ~ tutY" "!I tpO.O."i 4075W ~;,MIMy,'04) ~ n _,Yes 1l2N_ $409,000 ' 13,986 -_Levsplend'(Frilsd 6/.10)(Pasaad/0?J/6%-__,__- ynp,-_118`M_,- $375,000 Llrr ales pissed Jan. '91 $60,999 2,376 Linden • passed 4A, IM~4 $49,000- 1266 _Little Elm $25,000 i 6,48P Littlefield passed tart.04 458 to 208 $126,000 _ 2,962 - - Llano • paased 41 Jan'04 - $110.000 70,311; L011gylow' Nov91®114% Pissed 4272-3836 _ jes_ 114%- 12,400,000 3.000 .f IM:pFrMllio► ~l i 6au,.I♦11 M 1 $69,000 + Mag"ollo (passed Jon. '96. Ib1% 48 8 failed 4A $133,000 . { 15,60 ,,,,.'.'.GM 1♦14aMI/4M..PIRiM1' 4'~ vlrl•;x <.;.i 4 $590,000 a - 4,007 Marble Falls' (6 9o Posed 11 91780.49 _I yes U2`y°_ $42U,000 23,682 Marshall' eased Jan '91 yes 112% $w,000 1,069 Maud ps!_e Aug. T11 _ $13,000 23,990 Mel.lnnoy lolled V91 8 pee ad %in. IS, '93 _5',300000 4,606 Meadows' (pasasd_112% May'003)__,____. !2% $320,000 551 ___..MNEasa_ sssed Ma L9 99) .1r2% $37,600 Y 266 e'~lelled Aug. _'91) paasad May yes,_112%_ $65,000 4? 1,606 Menard (pasasd $22,000 yes 1!2°/0 12,604 Mercedes' (passed May 00) $146,000 2,469 f SlefkN' (Pa. aMd 48, Jan. Yes,_1/2% _ $40,000 26,653 W040n' (passed San. 'pQ), (hell IN+gWd *;P"I"d 46 =4194 •_yj 112%. $880 000 ' 11.,291.1 bit, Pleasant', (passed 3r8% • May '03) (~~___-__yee 118% _ $560,000 2.219 M ) $115,000 M 000 ueshoe / (Min to Jon. '91) $-2 L ) 61296. Navasota.. (pa4Ved 4 11so. 'W?.,. _ $200,000_ 16,192 N.dedow..• Sla tad 46,' 1100 000, 9 1 5,057 New Boston (passed Jan. '91) $185 00U $ 'I 88 Newton • passed 4A 8 4B 112% a Ch, May '94 $134,000 250 Northlake (passed Nov. 89) $6 000 45,895 North Mohland. Hills (,A4p. 12) 6160.6 40 SL 500 OUO t 2.4 - 54 Oak Bid6e N9nh pastoil 46, AUg. '94 $95 J00 y. 3,519 _ Olney (passed May '90) $19,000_ 7p 2,105 _ Overton (pgssedMAY 10) $46,000 'I 4,416 Pstacios' • passed_4A Nov. '93 $64,000 t5 1 8181 Palmy low (psssod May 00) 545 000 - 19 95911 Pampa (Fa71ad May '90)-passed Jan. 92 yes. 112°7° $632 000 2,3531 Panhandle (passed Jan. '92) $30.00P 2,371 Purtlago (passed Jan, 16, '03) 6100A 46 $380,000 assed May 'D3 /4% yes 114°i° 5 000 24,699 Paris' (Failed Jan V9) p $62 - - led Pssaeu 8199 N 077 Psnltaa jn_w!y_L__ pora L Texas Economic Development Cow,_il, Inc, 400 W. 151h St., S,1lle 910 Auslln, TX 78701 51214190-d432 ® 0 a c• a 1vY 6JI 1 130195 _ n 23,016 (?MNMfId (p41f11ed JNI. ;`99, "4 1 201 is Y 51,000000 'S __7 679 Perrlr i' passed 4A Jan '94, 640 l0 $28U,000 _32 921J Pharr' (passed Nov. 09) yes, 112°/ $970,000 a 067 iMtIIy . par.~tl 48 112tG,~ J ri. "04 $163,000 467 NO ~Pj A1f MekIM a P 4~, , >N - - 11100.0 ~0 _ 12_224 7 ! z , paetlsr14~, 'W _ ,JUO 000 NsV. i 061I_ - Prro~neso~paaaed Jon '03) $0.700_ ~ - _ 1 - - - - - 3,4I Ouanah (felled May 92 8 peaud In May '93) §85 000 i 1.748 - - ' ~f►xC17" PaaM+! 48 + A@Q:''04 ~ $36,000 000 2 1 860 - (paso"d Md J po '92)_ 112%, 355,000 3 4 Red Oak (passed Jan 16, 93), $100,000, - 3, 16 RsituOb',(passeM 48,1171r 1n fWy `041 t0 042 RlchmondL(Qassed 4A,_112%_ • fAay -yea 1I?We $118,000 Rlo pr~nds City' r,ewl~ lnc~ awe-sad ED lax 1/94 yBB, 1121Y - _ 8,060 Roms• -passed 4A Aup 64 T/ _41 50.000_ r - ~ 91, _ . _Aw._ Mrberp RJ cl.n' eJaesw ed Me~4r&9, 00~-26 --b 139),'20 193• 4,36p , _ yee,_- 1/2K 41 §18786,000090 , Rusk (failed May 91 A passed May 92) $90,000 a b 800 r B4aI1aM ~'~1lteier! 40 Ja1 z u - §42A00 - 20,' 26 Van 8en(fo". bad s` : ,!b'M`':P y , lad' c 411•0104 yes 1/296 _ $444,000 6,68 Seabrook Paseed BOTH 112% ED taxes .'92 5694 000 18 863 S_Vuln' sae A~Aj_ MiL'94 t/M 5860 000 723 Seven Pointe' (passed May 101)1_62.8 1 1120% 1166 000 2,266,r 3h~mrook..([isesed. M~y._91]L 207.117 - - 460,000 6.3661r _ Silsbee pessed 4A~Au0 '94 _$243,000_ ( i ' 2,196! Snyder (Fallen A~ _90Jpaaaad Jan.'92 318% _yes, 1f8%._ $350,000 { 1,647, Sour Lake' passed 4A • 1/.,/* In May '04 yea _ 1!2%_ 461 ,000 7,800 goYU,la 11sN i Peased '.48 NOV. %3 - f $346,000 1,6771 South Padre Island' Passed May. 02 $300000 i 3,217 Stamford' (passed May '90)_ f 112% $1 0,DOO 709 Suva . ied 48 ''Ma 94 112% 36,32 ; 1 er Land' ssod 114% Jan, '93 8 1N% Jan. 95 Yes "d% ♦1/4% $2,000,000 14, 062 1 Sulphur sprlny._l■lled_tvs9 A passed f/91 4830000 i 11,967 Sweetwater', (passed May 90) yes. _ 112%e - - __-$386,000 1 t,472~ Taylor .passed 4A • Nov. '93 112% 4335,000_ j 3,268 Tea"40aseed 4A May 'oo', repealed 4A 4; posited 48, May 04) yes, 1/2% $64,000 1 12,490 Terrell'. (pawd_ May 90)__- Yes 1/295 $605,000 l; - {I _ ..I- 41,606 eras City' (pawed Jrn 93) ! yes 1/2016 $3,000,000 x 523 Tolar • Passed(Aup, 10, 1991) §5000 6.3,10 Tomball - patted 40 Jam 'U $750,000 ; 1.037 Vortua • pu>ted 48 0 112% • MaY b4 _$12.000 12,001 Vernon (passed May 1, 1993) 687.564 $320,000 21,000 Watsuas - passed 40 a 112%, May 'w $322 2,090 © 2,456 Wallington' _(poised Jsn '92). yes, 11290 $40,000 0 21,877 Weslsca_ (passed May '90) .,yes 112% 4000000 932 West Towokoni (fvasad 4A, 139 to 33, Jan '96) $36,000 185 Westlake (frrrsnuDenlon County) Passed 4131, ,fen. '95 $75,000 15,472 While 9N11krn4nt. 48 lolled Nov. '01,Pasasd 1194 $876,000 Wills Point' (posood J! Texns Economic Development Council, Inc. 400 W. 15th St., Suite 910 Austin, TX 78701 6121480.8432 • 1- a • r IJ30/96 ' F2,904 4_000 6,7t Wv#o M • Nov, V • 48 JuL '94 X1 0 _ $1 01000 AVERAGE Populatlan. Yeatly AMOUNT PAnEp 80 PAR,........,,, 13290 :108,108,400 •A1so hold e4clon hx sales tax to laver oroeerty tua at "me ft# NOTE: !B8 Utles haw P•saad da Eaapmk Tax, 39 dtla 8fed but Mw nor •uce•eo4r1 One Lubbock ropohow nx, Bev tat nfMr aMfeo tNM Inv We s4sxed•nr knot NO vow. Outlined w" indtaats• tM o •eW letlt 8•atlon 44A A 48 p 8•ta Tune A • Rwood per Ofty. $64306 9 • e ~ e e. Texas Eoonomlo OevNopm•n1 Coundl, [no, 400 W. 15th SL, Sulf$ 910 • AueNn, TX 76701 51214904432 • • Attachment E r f 1`v , MJVS t the Texas Department of Commerce January 8, 1992 Contact Carla L)Ana ,Smith 5121310.9418 or S!epkanie Bearden + 5121320.9508 COMMERCE PRESENTS FIRST LEVERAGE FUND LOAN The Texas Department of Commerer presented its fast Texas Leverage Fund loan January 7 to the Copperas Cove Economic Development Corporation, Deborah Kastrin, Commerce's Business Development Division Director, presemed a check in the amount of $1 million to Mr. Bud Owsley, Chairman of the Copperas Cove Economic Development Corporation. Senator Bill Sims from San Angelo also attended the Copperas Cove event. The funds will provide a 10 year loan to finance machinery and equipment, and leasehold improvements for N,T„ Inc. The compaoy will establish a new turnkey manufacturing facility capable of producing 5,000 agricultural decanting systems per month with a single shift work force. Production will be high volume fabrication and assembly of plastic and metal parts, The company anticipates creating 129 jobs within the First year of operation, N.T. will be located in a former retail facility currently vacant at the Town Square Shopping Center in Copperas Cove, Commerce will loan the funds to the Copperas Cove Economic Development Corporation under the recently established Texas Leverage Fund. The CCEDC will then loan the money to N.T., Inc. The Texas Leverage Fund leverages the money raised by communities through a local sales trot option for economic development projects. The Fund is capitalized from $25 million in State of Texas taxable commercial paper issued by Commerce principally to institutional investors. Bank 0 One, Texas has provided a letter of credit guarantee to investors, resulting in no risk to the state. By using the TLF, communities can not only help local businesses grow, they can do so without the upfront costs usually associated with a bond issue. Businesses interested in applying for TLF loans should apply through their local Industrial Development Corporation, set up to administer the city's sales tax for economic development purposes. To introduce the program, Commerce will host workshops in the Harlingen-Brownsville area, Abilene. Longview and Dallas. For more information, contact Tom Larkin at 512/320.9653. •END- I mmad m Ricyad Pat" _~,.._.,......._......Y... tea. _ ...w • • TEXAS LEVERAGE FUND COMMONLY ASKED QUES'T'IONS The TEXAS LEVERAGE FUND (the ' TLF") Is a $25 million fluid intended to provide easy to access, inexpensive capital for eligible Texas cities to enhance their local economic development efforts. The 'Pexas Department of Commerce ('TDOC") has underwritten development and bond issuw" costa to provide an alternative source of capital with no upfront or closing costa. TDOC bonds are backed by a letter of credit from Bank One, Texas resulting In no credit Hair to the state. This program Is governed by the Development Corporation Act of 1979 as amended (the "Act") and the Program Guidelines. Following is a list of commonly asked questions which are not specifically addressed in these documents. How does the application process work? ,iAer passing the tax, a city will form an Industrial Development Corporation (an "IDC") to administer the tax proceeds, and the IDC may then apply to TDOC to fond a specific project. TDOC will provide a commitment letter on projects meeting the Program Guidelines within 10 business days. Once approved by the IDC, TDOC provided standardised documents to close the loan. The loan will be funded within 10 business days of the receipt of executed documents. The total time from start to finish is estimated at about one calendar month. What types of project can an IDC fund? The Ant defines eligible costs and projects. This statute has few restrictions and allows for most manufacturing, industrial; commercial and certarn infrastructure projects, Certain projects inelvding hospitals (see Attorney General Opinion DM-80), multifamily housing and prisons regwre further analysis, Hospltala and multifamily housing have discrete legislation providing for their financing. Prisons built for economic development purposes (to house state rather than local prisoners) are el4,ible. Section 2(10) of the Act states that commercial projects are only allowed in development areas, blighted or economically depressed areas, or federally assisted new communities. As sn example, a city council may designate a development area with a resolution. TDOC will bake the final determination as to project eligibility under the Act. Is working capital an eltgtble use? Section 2(4) of the Act states that costs such as inventory, financing charges and administrative expenses are allowable as are the costs of placing a pro*.' in operation. TDOC will make the final determination as to the eligibility of working capital under the Act. What if the project data not fall within the Program Guidelines? TDOC has negotiated these financing parameters with Hank One, Texas to provide automatic approval criteria for all eligible cities which meet the minimum program requirements. Exceptions may be addressed on a case by case basis. hk u does the Program leverage the Incal option sales tax? • The TLF allows cities to wess a lump sum of capita) today based on projected future receipts of sales tax, For example, under the 18 year "Asset" loan scenario, the IDC can loan funds directly to a business of about four times its annual Was tax receipts. If a local bank funds 60% of the same loan, this leverage factor is effectively doubled to eight times. The idea Is to maximise the capital investment into the community for economic development purposes. i How is the interest calculates? O The interest on the TLF loan is based on a floating rate of Prime plus 1%. This is the minimum rate which must be charged to the User. TDOC will provide a revised amortisation schedule to the IDC in the month following any interest rate change. The maximum interest rate is 15% due to the State ceiling. Can the IDC subsidize the interest rat to the borrower? The loan between the IDC and the User must carry a minimum floating interest rate of prime plus 1%. ♦ O • ca • TExAS LiEvER.AGE FUND COMMONLY ASKED QUESTIONS l The TEXAS LEVERAGE FUND (the'TLF') is a $25 million fund intended to provide easy to access, inexpensive capital for eligible Texas cities to enhance their local economic development efforts. The Texas Department of Commerce ('TDOC") has underwritten development and bond issuance costs to provide an alternative source of capital with no upfront or closing costs. TDOC bonds are backed by a letter of credit from Bank One, Texas resulting in no credit risk to the state. This program is governed by the Development Corporation Act of 1879 as amended (the "Act") and the Program Guidelines. Following is a list of commonly asked questions which are not specifically addressed in these documents. Now does the application process work? After passing the tax, a city will form an Industrial Development Corporation (an "IDC") to administer the tax proceeds, and the IDC may then apply to TDOC to fund a specific project. TDOC will provide a commitment letter on projects meeting the Program GuidelWt within 10 business days, Once approved by the IDC. TDOC provides standardised documents to close the loan. The loan will be funded within 10 business days of the receipt of executed documents. The total time from start to finish is estimated at about one calendar month. What types of projects can an IDC fund? The Act defines eligible costa and projects. This statute has few restrictions and allows for most manufacturing, industrial, commercial and certain infrastructure projects, Certain projects including hospitals (see Attorney General Opinion DM-80), multidamlly housing and prisons require further analysis. Hospitals and multifamily housing have discrete legislation providing for their financing, Prisnns built for economic development purposes (to house state rather than local prisoners) are eligible, Section 2(10) of the Act states that commercial projects are only allowed in development areas, blighted or economically depressed areas, or federally assisted new communities. As an example, a city council may designate a development area with a resolution. TDOC will make the final determination as to project eligibility under the Act Is working capital an eligible use? Section 2(4) of the Act states that costs such as inventory, financing charges and administrative expenses are allowable as are the costa of placing a project In operation, TDOC will make the final determination as to the eligibility of working capital under the Act. What if the project does not fall within the Program Guidelines? TDOC has negotiated these financing parameters with Bank One, Texas to provide automatic approval criteria for all eligible cities which meet the minimum program requirements. Exceptions may be addressed on it case by case basis. `I flow does the Program leverage the local option sales tax? • The TLF allows cities to recess a lump sum of capital today based on projected future receipts of sales tax. For example, under the Id yerr "Asset" loan scenario, the IDC can loan funds directly to a business of about four times its annual sales tax receipts. If a local bank funds 60% of the same loan, this leverage factor is effectively doubled to eight times, The Idea is to maximise the capital investment into the community for economic development purposes. o, How is the interest calculated? The interest on the TLF loan is based on a floating rate of Prime plus 1%. This is the minimum rate which must be charged to the User. TDOC will provide a revised amortisation schedule to the • p IDC in the month following any interest rate change. The maximum interest rate is 15% due to the State ceiling. Can the IDC subsidize the interest rate to the borrower? The loan between the IDC and the User must carry a minimum floating Interest rate of prime plus 1%. • O • • How is the TLF loan repaid? The monthly payment is made to TDOC from sales tax proceeds, Excess sales tax funds as well ea any funds received from the User are available to the IDC for its own use, The IDC experiences no out-of-pocket expenses as long as the underlying loan repays as agreed, There is no need to escrow funds to provide for loan repayment. Can funds other than the sales tax be used to calculate the Debt Service Coverage Rata (the "DSCR")? No. The purpose of the DSCR is to provide a "cushion" in the event of a rise in interest rates or a decrease in sales tax proceeds. Is the IDC required to maintain the level of the DSCR throughout the term of the loan? No. The DSCR is calculated at the time of the application and is used to determine the maximum level of Arnding available. The IDC must report on the statue of the DSCR on a quarterly basis, but there is no penalty for a change in the ratio, If the IDC wants to access additional funds, either through the TL,F or through another source, it must meet the DSCR requirements again. Does the DSCR decrease as the loan is amortized? No, The loan payments are fixed (unless the Prime rate changes) so the DSCR does not necessarily decrease over the life of the loan. The IDC may want to consider a balloon feature or some other exit strategy in order to free up this income stream after a certain period, Does TDOC provide underwriting services for the TLF? No. The underwriting Is left up to the IDC and the local lender. We can provide technical assistance in the form of a Financial Review and SBA loan packaging upon the written request of the IDC. However, the funding decision Is the responsibility of the IDC. TDOC charges a coat recovery fse for these services. Why should an IDC "etas the TLF if it can issue bonds on its own? The program can be accessed quickly while typically a bond issue takes two or more snonths. There are no fees with the TLF, whereas a bond issue will typically cost $50,000 or morn. There are no minimum loan amounts. An IDC may want to consider funding several small projects through the TLF and when the portfolio is large enough, issue bonds to refinance the entire portfolio. What happens if the borrower defaults on the loan or goes bankrupt? Our agreement is with the IDC, therefore, the IDC can continue paying on the loan for the remaining term of the loan. There is no acceleration of the loan payment. However, any prepayments or foreclosure proceeds must be applied to the principal balance of the TLF loan, What are the equity requirements for the borrower? Equity requirements are negotiated between the IDC and the User, Can the IDC access the TLF to refinance an existing loan? Yes, as long as the loan meets the requirements of the Program. • What are the benefits of bank participation in a TLF loan? This program Is designed to work. cooperatively with local financial institutions. The TLF provides Incentives to a bank such as limited exposure, favorable collateral position, increased loan yields and an expanded customer base, while the bank provides underwriting and maximizes the IDC'a leverage. O Ilow might the TLF work in conjunction with state loan or federal programs? O O The TLF could provide an excellent source of funding to meet matching requirements under the Texas Capital Fund Programs. The TLF cotild also be used to purchase a participation under the Texas Rural Economic Development Program or the SBA 7(a) or 604 programs. Under our Financial Review, Business Finance Services staff can provide structures utilizing the appropriate state and federal programs In conjunction with the TLV. Revised I/M3 • O • c. • Texas Department of Commerce Texas Leverage Fund Purpoft The Texas Leverage Fund is designed to allow eligible cities to leverage their economic development sales tax collections by providing an alternative source of easy to access capital with favorable terms. CO»eM8Roles Commerce will loan funds directly to the local Industrial Development Corporation (IDC). Sales tax revenues committed need only be sufficient to cover projected annual debt service at the required ratio. This allows cities to Ievers.ge their economic development sales tax and to pursue additional projects. Commerce staff' will provide eligible cities with technical assistance to enhance their efforts to address the sales tax option and implement an effective program, EHOAty. ■ All Texas cities which have passed the local sales tax to fund economic development. Most citiee may vote on the tax unless they are in a Mass Transir Authority or have reached the 2 cent local maximum. Use Of Pzu*edc ■ Proceeds must be used to pay eligible "costs" of projects" as Act of 979, assamendedt the Act"p Laand builditnge, equipment, facilities and improvements, and the costs of placing these assets in operation, for manufacturing, industrial, commercial and certain infrastructure projects are eligible. The IDC may provide financial assistance to a local business by either purchasing a participation in a bank loan, lending directly to the business, or purchasing and j leasing an asset. required by the business. • Terms: ■ Loans up to $4,000,000. ■ Maturities up to 15 years. i Monthly principal and interest payments at a floating rate of prime + 1%. ■ Terms of tha financing provided by the IDC will be negotiated between the IDC, the business and the local bank, and must comply with Commerce's "Program Guidelines." • 0 • p • Coiiater h 2 Commerce will look primarily to the sales tax revenues. These must be between 2.26 and 2.6 times the projected annual debt service depending on the City's general obligation bond rating and the term of the loan. Pledged tax collections not needed for actual debt service are available for other purposez. Pt+neesse ■ An eligible city will vote on the economic development sales tax option. Once approved, tha city will form an IDC. A business will approach the IDC for financial assistance either through a local bank (Option 1) or directly (Option 2). The IDC will decide if the financing is appropriate and beneficial to the local economy, agree to commit the required sales tax collections for the loan term, and request funding from Commerce. Option 1; A business will approach the IDC through a local bank. The IDC will agree to purchase up to 90% of the bank loan. The loan can be for are purpose eligible under the Act. The bank will perform the credit underwriting, originate and service the loan for a negotiated fee, Option 2; A business will approach the IDC for financial assistance. The IDC will either lend directly to the business for the purchase of real property, machinery, equipment or other "hard" assets required by the business, or purchase and lease these assets to the business. The IDC will be responsible for the credit underwriting, origination and servicing of the financing. • For ftuther information, contact Texas Department of Commerce Finance Division PA, Box 12047 • Austin, Texas 78711 • • (612) 320.M _`y Revised 1112193 • w • Attachment F CDBC. ~)~(.~QAI l0a I (1AN [:11ARAN 1 FF CDBG Section 108 Loan Guarantee Funds are finds made available through the Department of Housing and Urban Development (HUD). These funds, Under 24 CFR 570.703, may be used for 1) "the acquisition of improved or unimproved real property in fee or by long tern lease, including acquisition for economic development purposes; 2) Rehabilitation of real property owned or acquired by the public entity...; And 3) payment of interest on obligations guaranteed under this subpart." Entitlement public entities, under 570.705, may be grented an amount equal to five (5) times the amount of the most recent CDBG funding. Not less than 70% of funds can be used for activities which benefit low and moderate income people. Requirtmtnto I SF 424 - Application for Federal Assistance 2. Project Description 3 Section 108 Proposal 4 Project Sources and Uses of Funds 5. CommuMy Development Objective 6. Eligibility under 24 CFR 570.203 7. How proposal meets Nall. Objective Criteria under 24 CFR 570.208 8. Description of Pledge of CDBG Guarantee 9. Loan Repayment Schedule and Security 10. Certification of efforts to obtain other financing 11. Stabilized year Operating Statement (Est, Revenue from project) 12. Goals and Objectives 13. Bank Commitment Letters I'~x.P~tntu It is important that the project target and benefit low and moderate income people. • 70% of Section 108 funding must benefit low and moderate income people within the first three years of funding Community involvement and endorsement is recessary to acquire flrnding. • CDBG Office must monitor the administration of firnds and also monitor the project for r • federal compliance, i I • co • Attachment -G im TAX INCREMENT FINANCING ,What is it? Tax increment financing involves the pledging of future real property taxes generated by accelerated new development to fund the public infrastructure improvements which make the development and the resulting taxes possible. Procedurally, tax increment financing requires: I) qualifying the area as an eligible reinvestment area (will discuss later; 2) defining the boundaries of the tax increment district; 3) "freezing" [tie assessed value of land and improvements within the district as of the last assessment date; 4) diverting real property taxes generated by increases in the assessed value above the "frozen" base to a tax increment fund; and 5) using the tax increment funds to pay for improvements as needed or a repayment source for tax increment bonds. Texas law allows for diversion of real property taxes from each of the taxing jurisdictions, but does not require participation by these jurisdictions. *History - Originated in California during the early I950's - Was a response to a need by local governments to generate local matching funds for federally funded redevelopment projects Majority of TIF's were established during the 1980's Established in 'T'exas in 1981 (Currently 59 TIF Districts) • - In 1989, International City Managers Association conducted a survey on I'll-'s in 300 cities with 189 responding. Of those responding, r 128 used TIP" s Of the 128 cities which have used TIF's 48% had 1, 16% had 2 with • the remaining 36% having from 3 - 15 TIF's ~ • • J • • s i Advantages associated with TIF include: It provides sirmificant capital to economically feasible development projects Property owners pay no more than the normal tax burden Tax increment bonds are not counted against the municipality's bonded indebtedness The full tax base and revenues become available to all taxing bodies upon project completion and bond retirement Disadvantages associated with TIF include: - Tax increment financing generally represents a more complex process than does grant administration - The chance for delays in implementation is relatively high; - Local control of TIF brings additional accountability to the municipality. In other words, project failures cannot be blamed on compromises required by adherence to federal regulations. *Most likely users of TIF - Municipalities with primarily commercial economic bases - Cities with interest in expanding economics I Municipalities with populations of 10,000 and over • a e t •Reasons given by respondents for not using TIF Application and potential of TIF are not fully understood by local officials Information about TIF is not available Limited staff time precludes its use Overly complicated by state regulation Lack of opportunity for use, tax burden too large if project fails, no need, properly lax rates too low to generate significant revenues, and location of projects not acceptable for TIF. *Goals of TIF Districts Attract new businesses Promote downtown development or redevelopment Retain or expand existing businesses *Revenue generation in 'rIF Districts (128 users) . Exceeded project costs by more than 20% 16% Exceeded project costs 5 - 2010 25% - Covered project costs 5% 34% - Fell short of project costs 5 - 20% 5% - Fell short of project costs more than 20/0 5% e ~ • • 1 Not sure 15% • • r •Recommeudations on the use of TIF - Explain to the public and elected officials the purpose, process, and restrictions applying to the use of TIF . Use an aggressive staff to target developers and their needs by pursuing infrastructure improvements - Establish clear guidelines and policies for the use of TIF to insure accurate expectations - Be careful - conservative - in financial projections of'r[F district economic growth potential and resulting income i Keep revenue stream ahead of development costs - Communicate with other taxing entities at the beginning concerning the long term benefits of the 'CIF district Do no use TIF programs to unJerwrite business costs - Use a knowledgeable, professional consultant - Analyze thoroughly the need for public assistance, the dollar amount involved, and the best time to participate with private sector developers or businesses • • a~' ; i :N~ f tit 4~ • • F valuate the impact of assisted development on existing development and, most importantly, ensure that the development assistance provided guarantees that property taxes will be generated on along- term basis to amortize public debt or note obligation - Recognize that TIF works best when it can be me of several financing techniques-not the sole project incentive Ensure that all members of the TIF advisory board are professionals and have competence to operate the TIF - Look at 'riF from the perspective of a private developer and operate it as such i Have developers front the eligible TIF expenditures; reimburse the , developers as increment i,; generated. Be judicious; require demonstration of need. Make sure the city benefits from the project Emphasize long-term benefits to the community over short-term revenue gains • • i.S•'~ ~ftMh t~{~'~ ?tit ~hPrvlw^'~t~'}~'`t of 3`tt;~~.i V"1~~'y Jr k • • r i. TAX INCREMENT FINANCIN ACS •Procedure for Creating Reinvestment Zone municipality by ordinance may designate a contiguous geographic area to be a reinvestment zone municipality must prepare a preliminary reinvestment zone financing plan - send to each taxing unit in zone municipality must hold a public hearing on creation of the zone - must provide opportunity for land owner to protest inclusion - not later than 60 days before public hearing, municipality must notify in writing each taxing unit . municipality must make formal presentation to county and school district i not later than 15 days after notice, each taxing unit must designate a representative to meet with municipality - designation of an area as an enterprise zone constitutes designation as a reinvestment zone with out further hearing. -•-~....--r-,...n...~r... ' • .wr«rrww~4M~iGY T',. Y-rr-... 1 r • • r 4 J W 4 k fi I~rl t1' 00 . • • *Criteria for Reinvestment Zone An area must impair growth, retard provision of housing, constitute economic or social liability and be a menace to public health because of: substantial number of substandard structures * predominance of inadequate sidewAks or street layout * faulty lot layout-size, accessibility, etc, * unsanitary or unsafe conditions * deterioration of site or other improvements * defective or unusual conditions of title * conditions that endanger life or property be predominantly open be in a federally assisted new community petition submitted by owners of 50% of appraised value in area *Restrictions on Composition of Reinvestment Zone may not create a zone if: * more than 10% of property (excluding publicly owned) j used for residential * appraised value exceeds 15% of total appraised value in the municipality - may not change boundaries of'existing zone if area to be added does not meet the two criteria above • - may not create or change zone if boundaries would contain more than 15/0 of appraised value of county or school district residential means property occupied by house having fewer than five living units • • 'Powers of Municipality cause project plans to be prepared, approve and implement plans acquire real property by purchase, condemnation or other means to implement plans or sell property enter into agreements necessary to implement project plans may include conditions, restrictions or covenants that run with the land consistent with project plan * acquire blighted, deteriorated, undeveloped or inappropriately developed property for preservation or restoration of historic site, beautification or conservation, provision of public works; or * acquire, construct, reconstruct or install public works, including utilities, streets, street lights, water and sewer, pedestrian malls and walkways, parks, flood and drainage facilities, educational facilities, or parking facilities. 'Composition of Board of Directors consists of at least 5 and not more than 15 members; each taxing unit in the zone may appoint I member, municipality may appoint not more than 10 a if zone designated by petition of owners with at least 50% of property value, then board consists of 9 members; each school district or county appoints 1, state senator and state representative • representing zone are members, remainder are from municipality - appointed for 2 year terms - to be eligible for board a member must: • * be a qualified voter of municipality * be at least 18 and own real property in zone t • • Wroject and Financing Plans - board of directors shall prepare and adopt a project plan and financing plao, submit to municipality - project plan must include: * map showing existing uses and conditions of property and a map showing proposed improvements to and uses of that property * proposed changes of zoning, master plan, building codes, etc. * list of estimated non-project costs * method of relocating persons displaced by implementation of plan financing plan must include: * list describing estimated project costs, including administrative expenses * list of kind, number and location of proposed public works or improvements * an economic feasibility study * amount of bonded indebtedness to be incurred * time when costs are to be incurred * description of methods of financing all estimated project costs, expected sources of revenue * current total appraised value of zone * estimated captured appraised value of zone during each • year of existence • * duration of zone J • CA • municipality mu wt approve project plan and financing plan by ordinance board may amend plan, but must be approved by ordinance after public hearing if area, costs, bonded indebtedness, etc. are increased ,Tax Increments, Bonds and Notes - municipality may issue bonds or notes to pay project costs - payable solely from tax increment fund - issued by ordinance without further approval except attorney general - exempt from all taxes - may be issued in one or more series - fully negotiable - not a general obligation of the municipality - may not be included in computation of debt of the municipality may not issue in an amount exceeding total cost of implementing project play - must mature within 20 years *Termination of Reinvestment 'hone terminates the earlier of: • * date designated in the ordinance * date when all project costs, tax increment bonds and interest on those bonds have been paid in full • • _ . a tfk~ hi~~~~i X15'°~. • G> • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS EDUCATIONAL ASSETS The presence of two major universities, the North Texas Research Institute (NTRI), and North Central Texas College, is a unique attribute of Denton's that can be used to create economic development opportunities, serve as a lure to potential industrial prospects, and help solidify the City's brand image, RECOMMENDATION #3: Better leverage the assets that most distinguish Denton from competitor locations-- its institutions of higher education and its university city setting and i environment. EDUCATIONAL ASSETS Economic city Chamber j Recommendaiion 43 Development of of Action Itetmtst- Corporation on Commerce Comments i a. Ongoing activities involving members of th)beth X XX X City will contact Chamber, universities university communities and the EDC must band college to arrange initial meeting. imtituted. Underlying these activities shoulThe " City/Business/University Forum" principle that the City and universities can b!! should consist of Mayor and/or one or each other., more City Council members, one or two a business community representatives, and Note: 19i1s'Ac'titltt! i1CIi:'cift4'iftgiN prior to at least one representative from a higher `Z establishing EDC. education institution. Each organization would determine its own representative. • b. The existing Town/Gown Consortium program XX X The EDC will assume coordination and should be publicized more and perhaps expanded, facilitation of this group. The EDC will A convened panel of EDC and university look at expanding the activities of the representatives should define an approach with Consortium and prorote its activities. schedules, committees, etc. XX = Leadership role X-Participetion February 1, 1995 3 • t! • • PHH Fantus Recommendations Staff Response EDUCATIONAL ASSETS RecommeodatitinAl: Better leverage the assets that most distinguish Denton from competitor locations-- its institutions of higher education and Its university city setting and environment. a. Ongoing activities Involving members of the university communities and the FDC must be instituted. Underlying these activities should be the principle that the City and universities can benefit each other. Response; The City's Office of Economic Development currently coordinates quarterly Town/Gown meetings. Town/Gown membership consists of representatives from the City, County, Chamber, University of North 'T'exas, Texas Woman's University and North Central Texas College, I The April 1995 Town/Gown meeting included dis:ussion regarding the Fantus recommendations, A new consortium was proposed that would include key university research representatives. 'fhe consortium would meet jointly with the FIJC to promote ways in which the universities could integrate their areas of expertise in the target marketing program as well as piovide more direct linkage to existing industry, An ultimate goal would be the development of a research industrial park. It was decided that upon receipt of Fantus' cluster analysis report, the group would meet again to look at the industries that Fantus considers best suited for Denton and identify those that would especially benefit from our educational expertise. Once the Economic Development Corporation is in place, activities and communication with the forum could be coordinated under its management, • 9 e 1 c> 0 r PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS i EDUCATIONAL ASSETS Economic City Chamber Recommendation 03 Development of of Action Items Corporation Denton Commerce Comments i c. Highlight the universities and their strengths, XX X The EDC will highli& the universities through events like a national music festival at and associated, bettt;lltg 1n its marketing UNT. program,. 71 ii Chamber will aggressively promote and support university activities, d. Institute a joint economic development effort with XX X The EDC would identify and coordinate one or more of the institutions. the implementation of appropriate joint - NTRI could serve as a linchpin for such an effort efforts with UNI', given its stated mission of enhancing the University's interactions with [he business community. c. C't vene a forum for discussion between university XX X X The EDC would coordinate a [ask force officials, public officials, and business leaders to consisting of representatives from the identify one or two potential growth sectors that universities, public officials and business play off of existing university strengths or areas in leaders to identify potential growth which the university would like to move, sectors. e One example could be leveraging UNT's excellent recounting program to lure back. offices of major accounting firma. Consideration could be given to establishment of a university-related reptirch park. e ~ f XX = Leadership role X-Partlelpation February I, 1995 4 - 1- a • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS EDUCATIONAL ASSETS Economic City Chamber Recommendation #3 Development of of a° Action Items Corporation Denton Commerce ''tommerts f Create ajoint task force to pursue any such targeted XX X X Iwo..would chair the "growth growth sector(s). This effort could include, among sectors" task force, and each organization other things: would appoint their own members. Working with state officials and local banks to make seed money available Establishing a center at the university that could serve as the focal point for development of the sector and attraction of experts/labor. Consideration of the Tl facility or other' available land as a possible center for this effort. r'r do,y XX = Leadership role X-Partielpation Febmary I, 1995 5 • 0 • • • f PHH FANTUS COMPETITIVE ANALYSIS i RECOMMENDATIONS EDUCATIONAL ASSETS )Economic City Chamber Recommendation M3 Development of of Action Items Corporation Denton Commerce '`Comments g. Design a public relations program that x XX " The universities would become a major simultaneously enhances the universities' respeclive component of the public relations and images and Denton's brand image. marketing programs to be developed once the "cluster analysis" is completed, - Include major references to the universities in XX new economic development materials created by the EID Corp, especially regarding the top. class programs such as UNT's accounting and I'Wi1's nursing and physical/occupational therapy programs. Leverage UNT's intercollegiate sports XX X participation in the NCAA through an infomercial that could be produced and sh6vn during NCAA broadcasts and target advertising in communities in which UNT tewill perform, etc. Jointly sponsor events Iloh as conferences or XX Y j symposia, intended Wofiring decision-makers from targeted sc~A Into Denton, r r XX = Leadership role X-Participation February 1, 1995 6 A 0 • p • 0 PHH FANTUS COMPETITIVE ANALYSIS r RECOMMENDATIONS , lRECOMMENDATION #4; y Ensure that Denton's high quality, ample workforce remains a critical asset to existing businesses and a lure to new investment by providing training 7! opportunities and linking businesses with programs provided by the educational institutions. { F,DUCATIONAI. ASSETS Economic City Chamber Recommendation #4 Development of of Action Items Corporation Denton Commerce Comments I a. Denton should work with the inslilutioas of higher XX X X The EDC would coordinate a task force to education, including NCTC, to identify existing identify training needs. The task force j training programs and to project skills needs of would include representation from LINT, business for the foreseeable future, end structure TWU, NCTC, and DISD, j new programs that will produce future workers for € those skills. J !I I b. Make arrangements with these institutions to XX IJNT, TWU, and NCTC already provide , 1 develop customized training packages for newly- customized training. The EDC would arrived businesses and existing employeryt ' work closely with these institutions to put • in place those training programs that have been identified c. Given foreseeable cutbacks' 'govemment funding XX The task force would include public and programs, Denton rrwant to target the sector workers when identifying and workforce employed a public sector to ensure developing training programs. ® their continuing ability, XX =Leadership role X=Participation February 1, 1995 7 A t9 • • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS f _ r EDUCATIONAL ASSETS Economic City Chamber Recommendation M4 Development of of Action Items Corporation Denton Commerce Cements d. The Denton ISD has leadership that seems attuned X XX I be Chamber of Commerce existing to the need to establish an effective relationship Workforce Training'Task Force will meet with area employers, although potential clearly with the 'Workforce Tr training needs exists for vocational education programs that go of with Denton's the I to future identify workforce. beyond the current adopt-a-school approach. r The City and Chamber should devote more ; energy to working with the Denton ISD on programs that train high school sbidems for positions that local businesses will need to 611. Models exist in a number of other jurisdictions, a • dY ' w • XX = Leade: ship role X-Participiltion February I, 1995 g • r ~prr~. - . J.fY r f . PHH I+'ANTIJS COMPETITIVE ANALYSIS , RECOMMENDATIONS j REGULATORY PROCESS Any community of Denton's size will suffer from some friction between municipal officials and regulatory agents on the one hand and the business community on the other, To the extent that they are unavoidable, they should nevertheless be minimized and addressed through appropriate mechanisms. Based on our research, we believe that the problems that do exist are relatively minor and within reach of solution. The perceptions of the magnitude ofthe probtem far exceed the actual severity. So long as there are problems and tensions in this arena, or the perception of such, Denton's economic development initiatives will be negatively affected. RECOMMENDATION N5t Establish an effective mechanism for continuing dialogue between city officials and business leaders regarding the regulatory process. REGULATORY PROCESS Economic City Chamber I Recommendatlon N5 Development of of Action Items Corporation Denton Commerce Comments a. Utilize the existing Chamber Local Relations X XX Chamber Local Relations committee will committee as a conduit for discussions or establish initiate discussions with top city and a new forum that includes top city and business business officials. i officials. It is essential that the group meet at least once per month to ensure immedia!e response to i ''hot button" issues. 4w ' b. Municipal officials must be more effective in XX ` ' - City Manager and Executive Director of publicizing sonic of the reforms that have occurred planning will meet to discuss possible and that will occur. Examples; Ongoing efforts to customer service training opportunities i establish a stronger customer service orientation and look at initiating creative and have already been initiated and the platting process development procedures 6 4t has been streamlined. 3f,R • XX = Leadership role X-Participation February 1, 1995 9 s 0 • • PHH Fantus Recommendations Staff Eesponse REGULATORY PROCESS RcommrtulatlmAl: Establish au effective mechanism for continuing dialogue between city officials and business leaders regarding the regulitory process, b. Municipal officials roust be more effective in publicizing some of the reforms that have occurred and that will occur. Examples: Ongoing efforts to establish a stronger customer service orientation have already been Initiated and the platting process has been streamlined. Public Awareness: The City is continually revamping and looking at ways to streamline the development process, 'The Deputy City Manager may consider coordinating presentations at Chamber task force meetings, breakfasts, and other appropriate meetings to ensure the community is aware of changes in our development process. The meetings could provide an opportunity to better inform the community and at the same time provide input and suggestions to City staff: The City's Public Information Office will also work with the local media to educate the public when policies are amendedlimproved or new procedures implemented. Press releases have been published outlining the City's major reorganization, aimed at improving communications between City Hall and private developers, • 10 11 i • o, • ea rp P PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS REGULATORY PROCESS Economic City Chamber' Recommendation N5 Development of of Action Items Corporation De",,, Commerce Comments c„ Ensure that regulations/ordinanccs and the XX X The Planning Department will solicit processes associated with their promulgation and input from area developers and begin' implementation are calculated to bring the kind of reviewing existing regulations and development favored by the public. { ordinances to identify those regulations Keep in place regulations/ordinances that serve that could be made more "user friendly." the long-term interests of the community, such "zri~c utification measures. d. Support development of a one-stop permitting This individual would be introduced to process and/or creation of an ombudsman position existing business owners through to ensure cooperation with business. An newspaper stories, public appearances, f ti ombudsman can help businesses avoid interaction etc. with city departments with which it has been difficult for some businesspersons to work. This ; will help keep Denton competitive with other j Texas communities. City Manager should appoint a temporary }{X The City Managerwill appoint a Ombudsman who will help business prospeotsr' temporary ombudsman. obtain necessary permits and approvals ' ks~ Position would be replaced when E/D XX The new EDC ombudsman will promote Corporation established. open dialogue with City staff to achieve the ombudsman goals. ® 0 XX = Leadership role X-Participation February I, 1995 10 • a • a PHH Nantus Recommendations Staff Response C. Ensure that regulations/ordinances and the processes associated with their promulgation and implementation are calculated to bring the kind of development favored by the public. - Keep in place regulations/ordinances that serve the long-term interests of the community, such as beautification measures, i Response: ']'lie zoning ordinance is currently being re-written. The City will be able to use this opportunity to implement recommendations of the Fautus study. In addition, on-going surveys of all developers who attend the Development Review Committee meetings will continue to be reviewed and staff will closely consider and weigh suggestions regarding improving the process. Many suggestions from previous survey responses have already been implemented. r I he Work Action Team of the Vision rroject is reviewing the City's current development process. The learn will present recommendations for changes to our current process to the Vision Cabinet in July 1995 and to the public in September 1995. d. Support development of a one-stop permitting process and/or creation of an development coordinator position to ensure cooperation with business. An coordinator would help businesses avoid interaction with city departments with which it has been difficult for some businesspersons to work. This will help keep Denton competitive with other Texas communities. City Manager should appoint a temporary development coordinator who will help business prospects obtain necessary permits ar:d approvals. Position would be replaced when B/D Corporation established. Response: This is one Fantus recommendation that we were able to immediately implement. The City has recently gone through an organizational restructuring involving the development operations aimed at ensuring clearer communications with customers involved in the development process. The Deputy City Manager is now it, charge of ail of the development-driven fwictions and this • rcorganization should help implement the concept of a one-stop shop. Rick Svehla now heads the Development Review Committee and is meeting with key developers, lie has already made changes in the development process, and as Rick becomes more involved, he will reevaluate the entire system and propose appropriate chei ges to our process. • It is anticipated thr,i the relocation of all the development/engineering departments to City Hail ' West will further improve the development process by making it more customer service oriented. It is staffs recommendation that we work with this newly structured system for awhile to see if ii will work effectively before we make a decision to hire a development coordinator as Fantus has recommended. i II ~ • 0 • ~ ar • • PHH L'ANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS REGULATORY PROCESS Economic City Chamber Recommendation N5 Development of of Action Items Corporation Commerce Comments Initiate discussion between City Manager and 7{'Y 'Me City Manager and }executive Director Planning/Zoning Director to clearly define goals of of Planning will determine specific Goals all city regulatory/development operations to improve the development pro.dss. effecting the business community and ensure Among those goals will be customer ndoctrination of the customer orientation in all city service training for staff. latory agency staff.' • XX = Leadership role X=Participation February 1, 1995 11 • r,► A /s PHH Fantus Recommendations ` Staff Response e. Initiate discussion between City Manager and Planning/Zoning Director to dearly define goals of all city regulatory/development operations effecting the business community and ensure indoctrination of the customer orientation in all city regulatory agency staff. Response: Again, the reorganization of the development departments and review of our current process has addressed and redefined our goals in this area. The shifting of responsibilities will allow Frank Robbins to devote more of his time and expertise to our organizational goal of strong neighborhoods within the community. He will report directly to Rick Svehla, the second ranking person in the City management staff. Rick Svehla, Frank Robbins, and Jerry Clark attended an Innovation Group training workshop in Kansas City, Missouri, on customer service which focused on examining the service system and structure to constantly improve how the customer service process is practiced. Six additional staff members recently received customer service training at a one-day seminar, Rick Svehla is committed to continually reinforcing customer service training in all of the development departments. i i i • 12 v f t ~'u~yu~ • w • • ff PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDA'I IONS :l BUSINESS RETENTION Greater emphasis should be placed on meeting the needs of existing businesses and creating conditions conducive to their expansion, r }t RECOMMENDATION q6: Adopt an account management process, geared towards retention, that focuses on anticipating customer needs, addressing them as quickly as possible, and encouraging expansion activities of existing businesses. BUSINESS RETENTION Economic City Chamber L Recommendation H6 Development of of Action Items Corporation Denton Commerce Comments a. The EDC should assign "account managers" (one XX 'T'he Account Manager would be a staff or two individuals should be adequate) for the sole position in the new FIX, focusing his/her j purpose of mecting with the management of time on business retention and expansion. existing businesses to understand their needs and The Account Manager would become the concerns. The account managers must: "local expert" on existing business needs Be able to identify potential problems before and would work closely with City and { they become real or magnified. university officials to promote I cooperation with D"nton businesses. Lobby to build cooperation and customer focus • among government agencies and other institutions (i.e„ universities) with a stake its helping business succeed in Denton. b. The internal system of resources shoUktbe XX After establishing the Account Manager continuously adapted and imp oved'to ensure that program, the EDC will continually review j each resource is designed torigos( fully support the resources to improve the program's ability d account management effgtfr' to meet business needs. 1 • i XX = Leadership role X=Participation February 1, 1995 12 i' W waa -rawwW . • r ice' j • O • • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS ~o. Y: X~9q1 "CLUSTER" ANALYSIS Position Denton in a way that is most meaningful to the businesses likely to consider locating in the city, RECOMMENDATION Ill; Perform thorough analysis of manufacturing activity in Dallas, Tarrant, Collin and Denton counties to identify customers/suppliers of existing businesses A "cluster analysis." A "CLUSTER" ANALYSIS Economic City Chamber Recommendation /l7 Development of of Action Items Corporation Denton Commerce Comments 1 a. Perform thorough analysis of manufacturing XX An outside firm such as Fantus, UN'Ps activity in Dallas, Tarrant, Collin and Denton Center for Economic Development (Bud counties to identify customers/suppliers of existing Weinstein) or Insight Research could businesses "cluster analysis." perform this cluster analysis. b. Target media advertising once the economic XX A public relations firm may be enlisted to development program has segmented the markets' develop a media campaign once cluster and determined the kinds of businesses that,ahkd analysis has been completed. beaecruited, • c, Target white-collar businesses fofAtilocation to XX White-collar businesses will be included , Denton. a} Y in target market. ' gyp.; XX =Leadership role X-Participation February I, 1995 13 • a • ca • • PHH FANTUS COMPETITIVE. ANALYSIS RECOMMENDATIONS INDUSTRIAL SITESIINFRASTRUCTURE Denton must have developed sites available to meet the needs of businesses. Currently the city not only lacks spec, buildings and fully-served lots but is not even in a position to discuss the price of land with customers. Development of a business park, likely in the western portion of Denton, would be one measure that would enjoy near universal support in the community and would serve as an important cornerstone for future economic development. If done correctly, it would address the need for fully served sites. Now Even if Denton makes the above infrastructure enhancements, rapid development will not necessarily follow. The kinds of development Denton seeks may still be several years away. a RECOMMENDATION N8, 4 Inhancc the Denton product by, among other things, improving infrastructure (especially available sites and buildings) that will assist with the attraction of new business. INDUSTRIAL SITES Economic City Chamber Recommendation #8 Development of of Action Items Corporation Commerce Comments a. Conceptualize a business park, perE.aps based on X XX X City would initiate site selfttion and r the STARTEC vision, and identify an appropriatE infrastructure improvements discussions, finaugiipgmechanism. Y"o as well as possible funding. b. Develop spec distribution center either as ascend- X XX X Discussions regarding a distribution 1 alone facility or as part of a business park. center will be included in initial discussions, i XX = Leadership role X=Participation February 1, 1995 A • 0 • • S PHH Fantus Recommendations Staff Response INDUSTRIAL SITEWINFRASTRUCTURE , AWhitilln 4 : Enhance the Denton product by, amon; other things, Improving infrastructure (especially available sites and buildings) that will assi: t with the attraction of new business, a. Conceptualize a business park, perhaps based on the STARTEC vision, and identify an appropriate ffnaocHg mechanism, Response: The Vision Work Action 'team is currently in the process of determining the best three or four industrial sites for a business park. The team is addressing factors such as types and usage of parks, sive, scope of amenities, location, cost to extend infrastructure, and financing options of land, buildings and infrastructure. The team is enlisting the advice and services of commercial { real estate experts and outside economic development and consulting professionals. A final j report will be completed by September 1995 and can he presented to the Council at that time. Basic land plans are being developed. b. Develop spec distribution center either as a stand-alone facility or as part of a business park. Response The Vision Work Action Team has also included the possibility of building spec buildings within a distribution center in their mission. A final report will be completed by S aptember 1995 and can be presented to the Council at that time. • 13 -w,+.wrslr-r..~-wr.r.Ja....,... w Vr~w-W..W~{3Yi,ie. 'i'WiVr~ _ i r 1 l f ~ • ,=r ~ `~,';'r~ ~~.4v~lti~bf'~y4'ii"y~~u~vr~~~l~+"< , • e.~ • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS 4'. r INDUSTRIAL SITES Economic City Chamber, Recommendation N8 Development of of „t Action Items Corporation Denton Commerce Comments ~C C. Obtain market prices for the available parcels of XX X X land so as to be E,, tter able to market them. Accomplish through, Personal contacts with landowners by The F,DC would establish on-going prominent Dentonians, as part of a coordinated working relationships with industrial site campaign, to make clear to them t he value (to property owners, them and the City) of establishing a market for their land. a 1 t Periodic social/business events that could be EDC staff would invite property owners sponsored by the Chamber and City to which to major socialfbusiness events. the landowners could be invited. d. Increase efforts to find a purchaser/occupant for the XX X X The FDC would work closely with Texas Instruments facility. Trammell Crow and Bingswanger to determine additional marking possibilities. EDC would include the TI • I building in appropriate marketing campaigns. XX = Leadership role X-Partlelpaflon February 1, 1995 IS 0 0 • • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS 'i RECOMMENDATION fl9: Other infrastructure improvements are necessary to better position Denton for growth, i.e„ the roads near Denton Municipal Airport must be increased in number and/or improved. INFRASTRUCTURE, Economic City Chamber Recommendation k9 Development of of Action Items Corporation Denton Commerce Comments ' it, A new effort should be made with the Texas X `t X "rhe Deputy City Manager and Highway Dept to add a new entrance/exit ramp on'i Engineering Department will coordinate a i 1-35 near the Municipal Airport. new campaign to improve access to the airport which will include involvement of Denton businesses. b. I o alleviate road congestion that may occur from X j XX City will develop inventory of streets establishment of new businesses or expansion of needing improvement along the I-35E existing ones along the 1.3511 corridor, Denton corridor and look at possible Funding planners should begin considering road sources. improvements and additions that may be necessary, j such as repair of Teasley Lane. • c. To support financing for infrastructure X X XX The Chamber will begin discussions with improvements, Dentan should actively consider a the various not-for-profit organizations. plan that would require the City's large not-for- legislative changes may be required. profit entities to make payments in lieu of taxes specifically dedicated to economic development. d. Strong consideration should be given to the X XX X The City will lead discussions and further • reuonunendations of the Visioning Transportation research alternate transportation modes, Glee, such as development of alternate i.e., mass transit. transportation modes. i XX = Lcader: hip role X-Participation February 1, 199$ 16 t • O 1 • t~ f PHH Fantus Recommendations Staff Response $S>iommendation N9: Other infrastructure improvements are necessary to better position Denton for growth, i.e., the roads nea Denton Municipal Airport must be increased in number and/or improved, a. A new effort should be made with the Texas Highway Department (TxDOT) to add a new entrance/exit ramp on 1-35 near the Municipal Airport. Response: Because the intersection of 1-3511 and I-35W meet al Airport Road, creating addifio i..l access near this area would be quite expensive. 'I'he Engineering staff has visited with TxDOT officials to explore options. TXDOT indicated the only feasible option they might consider would be an entrance ramp to 1-35W south from the existing frontage road south of Ai,port Road. However, they have also indicated that with this entrance a new study of the two-way frontage road would be initiated. In the past, most of these studies have resulted in the two-way frontage roads becoming one-way. This would cause significant problems for industries on the frontage road south of Airport Road. Other exits to the Airport industrial area can be evaluated; however, the overpass structures that would have to be built across frontage roads and/or the railroad would costal lease $2 to $3 million. 'I'xDOT has indicated that there are no funds available and that such an exit would not rank highly in their ranking systems. They indicated that such undertakings could be initiated by local governments, They would also look to the local government to fund these improvements. Given this information, the Engineering staff would suggest concentrating on the new access provided by Jim Christal Road. "['his facility can be improved and enlarged in the future to provide more access and capacity to the Airport and the industrial area to the west. b. To alleviate oad congestion that may occur from establishment of new businesses or expansion of existing ones along the 1.35E corridor, Denton planners should begin considering road improvements and additions that may be necessary, such as repair of Teasley Lane. Response A ' to I raditionally, the City has had a good relationship with the Texas flighwar pariment and has received a good share of highway Department funds. The Rlayor, Council Mcmber Jack Miller, and Rick Svehla meet regularly with the Highway Department to j discuss current and future projects. In addition, Council Member Jack Miller serves on the Regional Transpoil ation Committee at the North Central Texas Council of'Oovemments and is able to lobby the City's interests there. 14 • PHH Fantus Recommendations Staff Response The following streets along 1-35 are already scheduled f'or improvement (map attached): Teasley Lane Expand to four lanes. Includes new overpass at I-35 as well as new signals at several intersections. To be completed in 1995. Fort Worth Drive Improve/expand to six lanes. Scheduled to begin in 1996/97. U5 77 (From f-35 to Near the Texas Instruments building) Expand to four lanes. Public meetings are being held in 90 to 120 days. The right-ol=way will he secured by 1997. Avenue D T;ie City will work closely with the University of North Texas and the Texas Department of Transportation in providing access to the proposed Performing Arts Center, FM 2499 This project is currently in the feasibility study process. Other sections are either in right-of-way, or planned development stages. Loop 288 (From Highway 380 to the Golden Triangle Mall) The City is currently have discussions with TxDOT regarding possible improvements to this section of the Loop, d. Strong consideration should he given to the recommendations of the Visioning Transportation City, such as development of alternate transportation modes, The Vision Transportation City recommended the City look at o Expansion at our Airport that might include an intermodcl facility. o Enlarging the current SPAN operations. o Rail transportation along the FM2499 right-of-way. The Vision Work Action Team has been charged with considering these recommendations. They will present their recommendations to the Cabinet in.fuly 1995 and to the community by September 1995. { 15 • • CITY ~JF DF;NrT~N Y • i i . i • r I { 0 F 4, • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS i AIR QUALITY RECOMMENDATION 010: Because Denton is part of the four-county non attainment area for air quality, municipal officials, in concert with the business community and other cities in the non-attainment area, should work to limit the capacity for that designatlon to harm economic development efforts. AIR QUALITY Economic City Chamber Recommendation #10 Development of of Action Items Corporation Denton Commerce Comments a. A strong education program should be launched in XX X The EDC would coordinate the campaign, coordination with North Texas Air Coalition to along with the Chamber's Denton Clean make Denton area residents aware of the adverse Air Coalition. economic impacts and health hazards resulting from continuing status as a Moderate Non- Attainment Area or becoming a Severe area, .a r b, Expanded mass transit offerings can be considered, XX `i x The City will lead discussions and further The STARTEC vision included construction of a research alternate transportation modes, monorail and, whether or not the business park i.e., mass transit. • becomes a reality, such a transportation asset could ; be developed--for example as a substitute for more access roads to the Municipal Airport. e r, XX = Leadership rote X-Partleipotion February I, 1995 17 e o , • a • PHH Fantus Recommendations Staff Response AIR QUALITY Bsst zMCU 7tW=AU: Because Denton is part of the four-count;- non-attainment area for air quality, municipal officials, in concert with the business commuaily and other cities In the oon-attainment area, should work to limit the capacity for that designation to harm ecoa. mic development efforts. b. F,xpanded mass transit offerings can be considered. The STARTEC vision included construction of a monorail and, whether or not the business park becomes it reality. such a transportation asset could be developed-for example as a substitwe for more access roads to the Municipal Alrport. Response: As the research into other transportation modes is performed, consideration as to the impact on air quality will be stressed. Again, the Work Action Team of the Vision project will present their recommendations in July 1995 and to the community in September 1995. • 16 r, 3<R'cii a rr,,?.;+.t r.1Ri~.D,Cn2fyl~~njvtff~f 1 i ~ (;M1 l • t:J O • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS METROPLEX RELATIONSHIP ' '.arts to lure businesses from Dallas to Denton are not in the long-term best interests of the City. The fact is [hat the decline of the major city in any region u: aidly precedes a difficult-to-reverse loss of attractiveness of the region as a whole; Detroit is a classic study of [his phenomenon. RECOMMENDATION #11: Increase Denton's visibility within the Metropiex and cement ties with the Dallas Chamber of Commerce. METROPLEX RELATIONSHIP Economic City Chamber Recommendation #1 1 Development of of Action Items Corporation Denton Commerce Comments a. Advise the Dallas Chamber when Dallas area XX X EDC will develop cooperative husinesses contact Denton regarding relocation. relationship with Dallas Chamber and apprise them, whenever possible, of potential relocations. b. Work with Dallas Chamber to identify businesses XX EDC will meet with the Dallas Chamber planning to leave Dallas that might be persuaded to on an on-going basis to determine remain in the Metroplex by moving to Denton. potential Denton relocations. c. Become involved in Dallas and national real estate XX EDC would expand on current • organizations involved in commercial leasing. involvement with Dallas area real estate organizations, d. Encourage local public officials/citizens/business XX X X EDC will enlist individuals from all leaders to actively seek appointment to appropriate sectors and encourage mctroplex policy-making or representative bodies in the involvement, i,e. North Texas a Dallas/Fort Worth area. Commission and chamber memberships. i • e t if i XX = Leadership role X=Participation February I, 1995 lg • b • w • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS METROPLEX RELATIONSHIP Economic City Chamber Recommendation #11 Development of of Action Items Corpotition Denton Commerce Comments e. Make effective presentations, in-person and XX X X EDC will coordinate a speakers' forum through written materials, to the Dallas Chamber involving the EDC board and staff, as that highlight Denton's brand image and distinguish well as other interested community the City ;rom other Metroplex commiutities. members. • a i I i XX = Leadership role X-Participation February I, 1995 19 • Q ~ • w • a tl PHH FANTUS COMPETITIVE ANALYSIS 4 RECOMMENDATIONS BRAND MANAGEMENT Brand management is the process of refining product features to meet market demand, communicating the right product benefits to prospects acquire the product, and then giving these customers a reason to continue to purchase it. Powerful brand names (Coca-Coin, McDonald'are associated with products that provide strong benefits to customers, help to generate interest (attraction) and if properly managed, sustain loyalty (retention). Brand image is a measure of customers' perception of a product Area image is one of the first factors considered in the location decision-making process. An area with a negative or neutral image is less likely to be included in an initial search than a competitor location with a positive linage. k RECOMMENDATION 412: Establish a brand image for Denton, at least within Texas, as being a stand-alone university community with a hometown atmosphere that is close enough to Dallas to offer businesses the critical advantages inherent in being in the Metroplex Region. l Note: The mere presence of the institutions of higher education is critical to any effort to establish the kind of brand image proposed; However, Denton should not place undue reliance on this unique feature. Potential investors will most often he just as interested in local wage rates, for example, as university resources, BRAND MANAGEMENT Economic Cl Recommendation 412 city Chamber Development of of Action Items Corporation Denton Commerce Comments a. To compete successfully against other cities inside XX • and outside of Texas, Denton must define, among X X The EDC uni would coordinate meeting with other Ihings: community leaders (possibly Vision s ~ - What it wants to be members) to clearly define what Denton's Who its primary customers are image or brand should be. a - What will motivate these customers Meetings would focus on some of the o positive image-enhancing ideas conceived • by several of the Visioning task forces, such as the environmental Model City, establishment of a River TraiUUreenbelt project., etc. XX =Leadership role X-Prrtlelpatlon February 1, 1995 20 • A • y PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS BRAND MANAGEMENT Economic City Chamber Recommendation #12 Development of of Action Items Corporation commerce Comments Begin developing a revised incentives package tailk XX X DISD The City Economic Development Office is consistent with the "brand" image of the City an d and Finance Department would develop be meaningful to the kinds of businesses Denton X DENTON and propose new incentive programs and decides to target. It will be critical to include COUNTY amendments to existing incentive policies raining programs and perhaps one or two items to be consistent with the new "brand" que to Denton. image. The City will call a meeting of `~^w the Tax Abatement Joint Committee to determine whether changes to the existing policy will be necessary, c. Begin positioning Denton to benefit from NAFTA XX EDC would contract with PR firm to related trade Ihrough a selective advertising develop marketing campaign targeting campaign. NAFTA•related industry in Mexico and Canada, i I • • XX = Leadership role X-Participation February I, 1995 21 0 0 • ca PHH Fantus Recommendations Staff Response BRAND MANAGEMENT Brand management Is the process of refining product features to meet mssrket demand, communicating the right product benefits to prospects most likely to acquire the product, and then giving these customers a reason to continue to purchase it. Powerful brand names (Coca-Cola, MCDonsid's) are associated with products that provide strong benefits to customers, help to generate interest (attraction) and if properly managed, sustain loyalty (retention), 1 matuiendautin MI : Establish a brand image for Denton, at least within Texas, as being a stand-alone university community with a hometown atmosphere that Is close enough to Dallas to offer businesses the critical advantages Inherent In being in the INetroplex Region, b. Begin developing a revised Incentives package that is consistent with the "brand" image of the City and he meaningful to the kinds of businesses Denton decides to target. It will he critical to include training programs and perhaps one or two items unique to Denton. Response: The Chamber of Commerce has entered into an agreement with PHh3 Fantus to perform the recommended cluster analysis, The analysis will provide us with a clear understanding of specific industries for which Denton is best suited. Staff recommends that upon receipt of the Fanius cluster analysis report, that ajoint meeting of the City, County and Denton Independent School District be called to discuss how the taxing jurisdictions might better customize the tax abatement policy to be consistent with our brand image and attract targeted industries. In addition, the City Manager, Office of Economic Development, Finance Department and Utility Department will review the cluster analysis and examine our existing internal incentive policies tutility rate incentives, infrastructure assistance policy, and enterprise zones) to determine how they might also be amended to be consistent with the brand image. d r . 17 7 • a> • I i I j 1 f•. l )f~ i S't I' I / :C}Ss I~ j n l3: J q LIE r i i J/1 i 1 1