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2024-10-22 CEDC MinutesCITY O' SOUTHLAI(E TEXAS SOUTHLAKE COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEETING MINUTES: Tuesday, October 22, 2024 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 Vice President, Mike Pazera Board Secretary, Craig Sturtevant Member, Eric Wang COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEMBERS ABSENT: Member, Jeff Wang Member, Bob Mundlin STAFF PRESENT: Director of Economic Development & Tourism, Daniel Cortez Deputy Director of Economic Development & Tourism, Robert Briggs Deputy Director of Community Services, Ryan McGrail 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 July 23, 2024, Community Enhancement and Development Corporation meeting: A motion was made to approve the minutes from the July 23, 2024, CEDC meeting. Motion: E. Wang Second: C. Sturtevant Ayes: M. Schelling, M. Pazera Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED October 22, 2024 CEDC Minutes 3. Review the Implementation of the CEDC Strategic Priorities for FY 2025. Director Cortez reviewed the work outlined for the CEDC in FY2025 and FY2024 accomplishments. FY2025 priorities include: i. Reviewing and providing feedback on the Business Recruitment Program ii. 2025 Business Climate Survey iii. Review 2017 Tourism Master Plan iv. Commercial Center Site Assessments v. Vacant Land Site Assessments vi. Quarterly Economic and Hospitality Reports vii. Business Engagement Opportunities 4. Economic Development: a. Review and Provide Feedback on the Business Recruitment Program i. Director Cortez provided an update to the board regarding the Economic Development and Tourism Department's progress with the Business Recruitment Program. FY24 work focused on budget and initial planning. The project officially kicked off on October 1, 2024, and the vendor, Medium Giant immediately began with the research and analysis phase of the project. City staff also met with the vendor on October 22, 2024, to assist with the development of the project's strategy. Additional updates will be provided to the board at future meetings. The board will also be engaged in the future for developing a lead vetting and prioritization process. b. Quarterly Economic Development and Hospitality Reports Deputy Director Briggs briefed the board on the City's FY24, Q4 Economic Development and Hospitality landscape advising the local economy remains strong overall. Deputy Director Briggs also highlighted: i. Economic Development The occupancy rates for both commercial and retail both remain high. At the request of the board, staff began reporting on industrial occupancy rates as well explaining the 30% dip in industrial occupancy rates was due to the nearly 900,000 square feet of new space that came online in the past year. Staff fully expect this rate to steadily recover as the new spaces are leased to new businesses. ii. Hospitality The Southlake hospitality landscape continues to perform well, and hotels are beginning to lean into hosting events and gathering tailored to the local community. 2 October 22, 2024 CEDC Minutes 5. Consider approval of the annual CEDC expenditure with Tactical Systems Network LLC for security guards at the Marq Southlake in an amount not to exceed $214,594. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Tactical Systems Network LLC for security guards at the Marq Southlake in an amount not to exceed $214,594. A motion was made to approve the annual CEDC expenditure with Tactical Systems Network LLC for security guards at the Marq Southlake in an amount not to exceed $214,594. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 6. Consider approval of the annual CEDC expenditure with Southlake Leasing and Management, dba Regent Services, for janitorial services at The Marq Southlake in an amount not to exceed $162,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Southlake Leasing and Management, dba Regent Services, for janitorial services at The Marq Southlake in an amount not to exceed $162,000. A motion was made to approve the annual CEDC expenditure with Southlake Leasing and Management, dba Regent Services, for janitorial services at The Marq Southlake in an amount not to exceed $162,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 3 October 22, 2024 CEDC Minutes 7. Consider approval of the annual CEDC expenditure with Davidson Reconstruction Inc., dba ORI Construction, for facility construction, remodel, and repair services at The Marq Southlake in an amount not to exceed $120,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Davidson Reconstruction Inc., dba ORI Construction, for facility construction, remodel, and repair services at The Marq Southlake in an amount not to exceed $120,000. A motion was made to approve the annual CEDC expenditure with Davidson Reconstruction Inc., dba ORI Construction, for facility construction, remodel, and repair services at The Marq Southlake in an amount not to exceed $120,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 8. Consider approval of the annual CEDC expenditure with Sunbelt Pools Inc. for aquatic equipment maintenance and replacement at The Marq Southlake in an amount not to exceed$125,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Sunbelt Pools Inc. for aquatic equipment maintenance and replacement at The Marq Southlake in an amount not to exceed$125,000. A motion was made to approve the annual CEDC expenditure with Sunbelt Pools Inc. for aquatic equipment maintenance and replacement at The Marq Southlake in an amount not to exceed$125,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 4 October 22, 2024 CEDC Minutes 9. Consider approval of the annual CEDC expenditure with Advanced Healthstyles Fitness Equipment, dba Advanced Exercise for the purchase and maintenance of fitness equipment at The Marq Southlake in an amount not to exceed $165,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Advanced Healthstyles Fitness Equipment, dba Advanced Exercise for the purchase and maintenance of fitness equipment at The Marq Southlake in an amount not to exceed $165,000. A motion was made to approve the annual CEDC expenditure with Advanced Healthstyles Fitness Equipment, dba Advanced Exercise for the purchase and maintenance of fitness equipment at The Marq Southlake in an amount not to exceed $165,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 10.Consider approval of the annual CEDC expenditure with Nick Barrows, dba Bowmen Sports for youth programming services at The Marq Southlake in an amount not to exceed $100,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Nick Barrows, dba Bowmen Sports for youth programming services at The Marq Southlake in an amount not to exceed $100,000. A motion was made to approve the annual CEDC expenditure with Nick Barrows, dba Bowmen Sports for youth programming services at The Marq Southlake in an amount not to exceed $100,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED k, October 22, 2024 CEDC Minutes 11.Consider approval of the annual CEDC expenditure with ML Trust Management LLC, dba AM Linen for linen pick up, laundering, and delivery services at The Marq Southlake in an amount not to exceed $60,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with ML Trust Management LLC, dba AM Linen for linen pick up, laundering, and delivery services at The Marq Southlake in an amount not to exceed $60,000. A motion was made to approve the annual CEDC expenditure with ML Trust Management LLC, dba AM Linen for linen pick up, laundering, and delivery services at The Marq Southlake in an amount not to exceed $60,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 12.Consider approval of the annual CEDC expenditure with Yvonne Slider dba Gemini Fitness for personal training services at The Marq Southlake in an amount not to exceed $70,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Yvonne Slider dba Gemini Fitness for personal training services at The Marq Southlake in an amount not to exceed $70,000. A motion was made to approve the annual CEDC expenditure with Yvonne Slider dba Gemini Fitness for personal training services at The Marq Southlake in an amount not to exceed $70,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 0 October 22, 2024 CEDC Minutes 13.Consider approval of the annual CEDC expenditure with Leslie Jones for personal training services at The Marq Southlake in an amount not to exceed $90,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Leslie Jones for personal training services at The Marq Southlake in an amount not to exceed $90,000. A motion was made to approve the annual CEDC expenditure with Leslie Jones for personal training services at The Marq Southlake in an amount not to exceed $90,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED 14.Consider approval of the annual CEDC expenditure with Heather Bittinger for personal training services at The Marq Southlake in an amount not to exceed $60,000. Deputy Director McGrail presented this item to the board, seeking approval of the annual CEDC expenditure with Heather Bittinger for personal training services at The Marq Southlake in an amount not to exceed $60,000. A motion was made to approve the annual CEDC expenditure with Heather Bittinger for personal training services at The Marq Southlake in an amount not to exceed $60,000. Motion: M. Pazera Second: E. Wang Ayes: M. Schelling, C. Sturtevant Nays: None Abstain: None Vote: 4-0-0 Motion Carried — APPROVED VA October 22, 2024 CEDC Minutes 15. Staff reports: a. Financial Reports The Marq Southlake financial highlights and membership sales report Deputy Director McGrail reported that the Marq Southlake is performing well and now that there is several years of data that can be interpreted, post COVID, staff expects to be able to develop very accurate cost recovery goals for the operation. Most specifically, they are now able to identify seasonal membership trends with the consecutive years of data in which they have to evaluate now. Sales tax report Deputy Director McGrail reported year to date, considering the audit adjustment required earlier in FY24 of about $350,000, the sales tax rate is holding steady. b. Economic and development activity report Director Cortez provided an update to the board regarding the Dakota Steakhouse project noting that the previous location on Kimball Avenue had been withdrawn from the permitting process. Another site in Southlake is being considered. 16.Adjourn a. Board President, Martin Schelling, adjourned the meeting at 6:50 p.m. Martin Sche g, Board President Community Enhancement and Development Corporation Board Craig S rtevant, Board Secretary Community Enhancement and Development Corporation Board