2020-07-28 CEDC Minutes CITY OF
SOUTHLAKE
TEXAS
SOUTHLAKE COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION
BOARD MEETING MINUTES: July 28, 2020
LOCATION: The Marq Southlake
Legends Hall — Boardroom
285 Shady Oaks Drive
Southlake, Texas 76092
And through VIRTUAL ACCESS
TIME: 6:00 p.m.
COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD
MEMBERS PRESENT: Board President Martin Schelling, Board Vice President Tom
DeCaro, Board Secretary Craig Sturtevant, Robert Mundlin and Jeff Wang.
COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD
MEMBERS ABSENT: None
STAFF PRESENT: Assistant City Manager Alison Ortowski, Chief Financial Officer &
Board Treasurer Sharen Jackson, Director of Community Services Chris Tribble and
Director of Economic Development & Tourism Daniel Cortez.
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 June 23, 2020 Community
Enhancement and Development Corporation meeting
A motion was made to approve the minutes from the June 23, 2020 meeting.
Motion: Wang
Second: DeCaro
Ayes: Schelling, DeCaro, Sturtevant, Mundlin, Wang
Nays: None
Abstain: None
Vote: 5-0
Motion Carried —APPROVED
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July 28, 2020 CEDC Minutes
3. Consider approval of amended FY 2020 Southlake Community Enhancement
and Development Corporation Operating Budget and adoption of Fiscal Year
FY 2021 Southlake Community Enhancement and Development Corporation
Operating Budget
Chief Financial Officer and Board Treasurer Sharen Jackson gave the Board an
update of the amended FY 2020 budget as well as the projected revenue and
expenditures for FY 2021. She noted amendments to FY 2020 include:
• Legends Hall — Due to the ongoing pandemic during the fiscal year, staff
conservatively amended the budget revenue to $236,505 from the original
$478,392 to reflect the cancelled events in March through May.
• Champions Club — The amended budget reduction to $1,741,360 for FY
2020 considers the period Champions Club was closed with zero revenue
and projection of estimated memberships and programing for the
remainder of the fiscal year. This represents a reduction of 14.9% from the
originally budgeted amount of$2,045,713.
• Sales tax revenue (reduction of $280,268) and interest revenue (reduction
of $65,000) were both amended to reflect the current year trend for
collections.
CFO Jackson also noted that the proposed FY 2021 budget includes total revenue
estimated at $7,683,285 with the breakdown as follows:
• Sales Tax: $5,254,816
• Legends Hall: $249,213
• Champions Club: $2,111,256
• Interest: $68,000
Director of Economic Development & Tourism Daniel Cortez presented the
economic development expenditures being proposed for FY 2021, which did not
include any new items from the previous year and include:
• Economic development support software - $12,900
• Website maintenance and development - $15,000
• Marketing & Promotion - $20,000
Director of Community Services Chris Tribble presented the proposed Marq
expenditures for FY 2021. He informed the Board that there were no new budget
requests, a proposed staffing plan adjustment is being implemented based on
customer feedback and analysis of year one operations, and several permanent
budget reductions identified that offset the staffing plan adjustment being made.
The Marq budget reductions included the following:
• Marq Admin - $1,878
• Champions Club Admin - $19,069
• Champions Club Guest Services - $113,784
• Champions Club Aquatics - $3,550
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July 28, 2020 CEDC Minutes
• Champions Club Fitness & Performance - $27,300
• Legends Hall Hospitality & Sales - $1,500
The Board asked a few questions and noted that the budget represents a
conservative approach to the uncertain impacts of the pandemic.
A motion was made to approve amending the Fiscal Year 2020 Southlake
Community Enhancement and Development Corporation Operating Budget and
adopting the Fiscal Year 2021 Southlake Community Enhancement and
Development Corporation Operating Budget as presented.
Motion: DeCaro
Second: Sturtevant
Ayes: Schelling, DeCaro, Sturtevant, Mundlin, Wang
Nays: None
Abstain: None
Vote: 5-0
Motion Carried —APPROVED
4. Economic Development
a. Review and provide feedback on the COVID-19 Businesses Sentiment
Survey
Director of Economic Development & Tourism Daniel Cortez presented this item
and provided the Board with an overview of this modified business survey. He
noted that the survey has two purposes; first is to address the postponement of
the business climate survey earlier in the year due to the onset of COVID-19,
and, second, to obtain critical feedback from the business community due to the
ongoing pandemic. Director Cortez noted that his office will be ready to
implement the survey in late August or early September unless the Board has
any additional feedback for the program. No formal action was sought other than
Board feedback on the modified survey program.
5. Staff Reports
a. Financial reports
i. The Marq Southlake financial highlights and membership sales report
Chief Financial Officer Sharen Jackson provided information about
Champions Club membership trends and revenue. She indicated that while
memberships are performing better than events being booked, the total
number of memberships has continued to drop to about 2,071 total
memberships from the peak in March of 2,605 memberships. She also
informed the Board that Champions Club retention has begun to bounce back
from the drop in memberships experienced in April in May of this year due to
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July 28, 2020 CEDC Minutes
the pandemic. The current retention rate is approximately 90% going into
July.
ii. Sales Tax Report
Chief Financial Officer Sharen Jackson presented the Board with the sales
tax report for the month of June. She noted that the City had a better month in
May than in the previous two months with a 10.9% decrease in revenue from
the previous year with a revenue of $435,194. She also indicated that based
on current estimates for June and July, it appears there is a good chance the
City will exceed the revised numbers for the remainder of the year and may
exceed some of the previous year's revenue for June and July.
b. Economic and development activity report
i. Local Economic Update - Q3 / Midyear Economic Activity Report
Director of Economic Development & Tourism Daniel Cortez provided the
Board with a handout of the most recent economic indicator activity. He noted
that the unemployment rate stands at 5.8% in Southlake, a decrease from
8.3% the month prior. He also pointed out that the Hotel Occupancy Tax
revenue is marginal in the third quarter due to the Hilton being closed for two
months and the impacts of the pandemic on consumer travel.
6. ADJOURNMENT
Director of Economic Development & Tourism Daniel Cortez noted the next Board
meeting will be held on August 25, 2020 and that he'll inform the Board if the ability
to have the meeting virtually is still an option. He also noted that communication will
be sent regarding Board applications for reappointments to the Board from the City
Secretary's Office.
Board President Schelling adjourned the meeting at 7:09 p.m.
�rtin Schelling, Board President
Community Enhancement and Development Corporation Board
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Craig St rt: a Board Secretary
Communi Enhancement and Development Corporation Board
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