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2023-10-24 CEDC MinutesCITY OF SOUTHLAKE TEXAS SOUTHLAKE COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEETING MINUTES: October 24, 2023 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 .Craig Sturtevant, Bob Mundlin, Eric Wang, and Jeff Wang Y ENHANCEMENT AND DEVELOPMENT CORPORATION BOA MEMBERS ABSENT: Board Vice President Mike Pazera and Jennifer Kolb STAFF PRESENT: Chief Financial Officer''& Board Treasurer 'Sharen Jackson, Director _ of Economic Development & Tourism Daniel Cortez, Director of Community .Services David Miller, Deputy Director of Community Services Ryan McGrail, Tourism Marketing Manager Hillary Cromer, and Economic Development Specialist Stephanie Bernard " 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 September 26, 2023 Community Enhancement and Development Corporation. meeting A motion was made to approve the minutes from the September 26, 2023 meeting. Motion: J. Wang Second: Mundlin Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED 3. Executive Session 1 October 24, 2023 CEDC Minutes Board President Schelling announced the Community Enhancement and Development Corporation (CEDC) would go into Executive Session pursuant to the Open Meetings Act, Chapter 551, Texas Government Code, Section 551.087 to deliberate;regarding economic development negotiations for Project No. 2023-02. Executive Session began, at 6:01 pm and concluded at 6:07 pm. 4. Economic Development a. Review results of the 2023 Business'Climate Survey . Economic Development Specialist Stephanie Bernard provided the Board an overview of the 2023 Business Climate Survey results. The key findings from the survey include: • The majority of responding businesses feel the city provides excellent/good services • Businesses have a positive outlook for the future, expecting growth . • Lease rates are the greatest expressed concern for businesses No formal action was sought other than feedback and questions on the survey results., b. Quarterly Economic and Hospitality Reports Economic Development Specialist Stephanie, Bernard and Tourism Marketing Manager Hillary Cromer provided the Board a brief overview of the Quarterly Economic and Hospitality Reports. 5. The Marq a. Consider approval of funding for an annual agreement with Regent Services (Southlake Leasing) for janitorial services at The Marq Southlake in an amount not to exceed $170,500 The Board considered and a'motion was made to approve an annual agreement with Regent Services (Southlake Leasing) for janitorial services at The Marq Southlake in an amount not to exceed $170,500. Motion: Mundlin Second: J. Wang Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED b. Consider approval of funding annual paint expenses with Davidson Reconstruction Inc. in an amount not to exceed $100,000 K October 24, 2023 CEDC Minutes The Board considered and a motion was made to approve annual.paint expenses with Davidson Reconstruction Inc. in an amount not to exceed $100,000. Motion: J. Wang Second: E. Wang Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED c. Consider approval of funding with Texas Air Systems for pool heater replacements in 'an amount' not to exceed $135,000 The Board considered and a motion was made to approve funding for pool heater replacements with Texas Air Systems in an amount not to exceed $135,000. Motion: J. Wang Second: Sturtevant Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED d. Consider approval of funding for the purchase of capital equipment and maintenance services from Sunbelt Pools in an amount not to exceed $212,®00 The Board considered and a motion was made to approve the purchase of capital equipment and maintenance services from Sunbelt Pools in an amount not to exceed $212,000. Motion: Mundlin Second: J. Wang Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED e. Consider approval of funding for the purchase of capital equipment from Marathon Fitness in an amount not to exceed $112,000 1 3 October 24, 2023 CEDC Minutes The Board considered and a motion was made to approve the purchase of capital equipment from Marathon Fitness in an amount not to exceed $112,000. Motion: J. Wang Second: Sturtevant Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion` Carried —APPROVED f. Consider approval of funding for the purchase of capital equipment from Advanced Fitness in an amount not to exceed $62,000 The Board considered and a motion was made to approve funding for the purchase of capital equipment from Advanced Fitness in an amount not to exceed $62,000. Motion: E. Wang Second: J. Wang Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED g. Consider approval of funding for the purchase of capital equipment from Ford Audio -Video Systems LLC, in an amount not to exceed $890,684 The Board considered and a motion was made to approve the purchase of capital equipment from Ford Audio -Video Systems LLC in an amount not to exceed $890,684. Motion: J. Wang Second: E. Wang Ayes: Schelling, Mundlin, Sturtevant, J. Wang, E. Wang Nays: None Abstain: None Vote: 5-0-0 Motion Carried —APPROVED 4 October 24, 2023 CEDC Minutes 6. Staff reports: a. Financial Reports i. The Marq Southlake financial highlights and membership sales report Board Treasurer Sharen Jackson provided an update regarding Champions Club sand Legends Hall membership trends and revenue. Mrs. Jackson informed the Board that for FY2023 the Marq overall is exceeding target cost recovery at just over 74% with a target of just under 60% for the year. She anticipates that total final cost recovery for FY23 will be near 72%. Legends Hall is exceeding 'the target cost recovery of 33% at just under 52%. Mrs. Jackson ,also informed the Board that Champions Club is doing very well, exceeding target cost recovery of 67% at 80%. She noted Champions Club experienced a reduction in memberships and that this was anticipated based on past data, likely attributed to students returning to school. U. Sales tax report Board Treasurer Sharen Jackson presented the Board with the most recent sales tax data. She stated that the most recent sales tax collections for the month of August 2023 are flat following a one-time audit adjustment representing 37% of collections. Once adjusted, sales tax collections reflect a 1.6% increase from the previous year. b. Economic and development activity report 1 Director of Economic Development and Tourism Daniel Cortez provided the Board with an update regarding the Home for Holidays Christmas Tree Lighting and reception. . i 7. Adjourn Board President Martin Schelling adjourned the meeting at 7:10 p.m. Martin Schelling, Board President Community Enhancement and Development Corporation Board Craig Stu evant, Board Secretary Community Enhancement and Development Corporation Board 5