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2019-06-25 CEDC Minutes el ._. - i _ SOUTHLAKE TEXAS SOUTHLAKE COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEETING MINUTES: June 25, 2019 LOCATION: The Marq Southlake Legends Hall — Boardroom 285 Shady Oaks Drive Southlake, Texas 76092 TIME: 6:00 p.m. COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEMBERS PRESENT:, Board President Martin Schelling, Board Secretary Suzanne Maisto, Torn DeCaro, Bob Mundlin, Craig Sturtevant, and Jeff Wang. COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEMBERS ABSENT: Board Vice-President Brandon Bledsoe. STAFF PRESENT: Assistant City Manager Alison Ortowski, Assistant City Manager Ben Thatcher, Chief Financial Officer & Board Treasurer Sharen Jackson, Director of Community Services Chris Tribble, Director of Public Works Rob Cohen, and Deputy Director of Community Services Kate Meacham. 1. Call to order Board President Martin Schelling called the meeting to order at 6:00 p.m. 2. Consider approving the minutes from the May 28, 2019 Community Enhancement and Development Corporation meeting A motion was made to approve the minutes from the May 28, 2019 meeting as presented. Motion: Sturtevant Second: DeCaro Ayes: DeCaro, Maisto, Schelling, and Sturtevant Nays: None Abstain: Mundlin, and Wang Vote: 4-0-2 Motion Carried —APPROVED 3. Executive Session Board President Schelling announced the Community Enhancement and Development Corporation (CEDC) would go into Executive Session pursuant to the June 25, 2019 CEDC Minutes Open Meetings Act, Chapter 551, Texas Government Code, Section 551.087 to deliberate regarding economic development negotiations. Executive Session began at 6:01 pm and concluded at 6:05 pm. 4. Economic Development: a. Discussion of FY 2020 economic development budget items Chief Financial Officer and Board Treasurer Sharen Jackson gave the Board an update of the projected revenue picture for the end of FY 2019. She noted the following: • Legends Hall adopted revenue was $469,800 and the amended revenue budget will be $521,061 (10.9% increase). • Champions Club adopted revenue was $2,106,471 and the amended revenue budget will be $996,237 (52.7% decrease). This is due to the six- month delay of opening Champions Club. • The total adopted revenue for the corporation was $2,576,271 and the amended revenue budget will be $1,517,298 (41.1% decrease). Assistant City Manager Alison Ortowski presented the economic development expenditures being proposed for FY2020. They are: • Target industry saturation study and daytime population analysis - $50,000 • Economic development support software - $25,000 • Website maintenance and development - $15,000 The Board didn't have any questions on these proposed items. 5. The Marq Southiake: a. Discussion of FY 2020 Marq Southlake budget items Director of Community Services Chris Tribble gave the Board a FY 2020 budget preview of the new proposed Marq expenditures. Director Tribble noted the proposed new budget items for the Marq will respond to feedback staff has received since the opening of Legends Hall. These items are: • Coffee bar- $42,000 • Christmas decorations - $14,000 • Carbon dioxide for the pool - $7,200 • Loopy Loyalty (membership loyalty program) - $600 • Equipment replacement fund - $160,000 • Increase in Champions Club party packages - $11,956 • Increase in child watch staffing - $45,229 • Guest services staffing at fitness desk - $6,690 • Fitness specialist - $51,476 The Board asked the following questions: • Which of the proposed items has a cost recovery aspect to them? 2 June 25, 2019 CEDC Minutes • What has been the membership turnover rate since Champions Club has opened? And does staff collect feedback regarding why members choose to cancel their membership? • Can staff forward the budget presentation to the board for further review? It was also noted that staff may need to look at the directional signage in Champions Club. It may be a bit confusing to find your way around especially when looking for a registered class or program. 6. Staff reports: a. Financial reports i. The Marq Southlake financial performance Chief Financial Officer and Board Treasurer Jackson earlier presented the forecasted revenue picture for year end budget. Director Tribble presented the following performance data for The Marq: • Total membership for the Senior Activity Center is 749 (71% resident, 29% non-resident) • There are 970 events booked at Legends Hall for FY2019 in comparison to 988 for FY2018; however, the dollar value associated with this year's events exceeds that of 2018 • The Marq is receiving good reviews on social media and websites • Membership for Champions Club is currently at 2,172, which exceeds the year 3 membership goal • 19% of Southlake households have a membership • 75% of all memberships fall in the family membership category ii. Sales tax report Chief Financial Officer and Board Treasurer Jackson informed the Board that the Corporation brought in $488,310 in revenue for the month of April 2019, which is 18% above what was collected for the same month last year. The total revenue for the year is over $3.3m ($3,300,870). b. Economic and development activity report Assistant City Manager Alison Ortowski provided the board the latest quarterly retails sales report. The Board didn't have any questions on these proposed items. c. Construction management report Director Cohen provided a brief update on the construction status of Champions Club. He noted that$30.9 million has been paid to the contractor thus far, and that the focus of work is on punch list corrections, developing an exit strategy for the 3 June 25, 2019 CEDC Minutes contractor, and working towards obtaining the final certificate of occupancy. He also informed the board that the contractor plans to be offsite by September 2019. Director Cohen also informed the board about the current status of issues that were noted in construction. He also shared with them City Council's recent determination related to those issues. 7. ADJOURNMENT Staff mentioned that the next board meeting is scheduled for Thursday, August 1 and that the budget will be presented for consideration. Board President Schelling adjourned the meeting at 7:23 p.m. . i ' Z M in Schelling, Board President Community Enhancement and Development Corporation Board I �..... e,;(,,, S anne Ma o, Secretary C•mmunity Enh. cement and Development Corporation Board 4