Return
MINUTES
Thursday, March 28, 2024
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly Meeting on Thursday, March 28, 2024. at 6:00 p.m. at the Hal Baldwin Municipal Complex, Council Chambers Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This was an open meeting, subject to the open meeting laws of the State of Texas.  

In accordance with provisions of the Texas Open Meetings Act, Chapter 551, Texas Government Code notice is hereby given that a Possible Quorum of the governing body of the City of Schertz, Texas may take place at this meeting.
             
Call to Order
             
1. Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and public participation.

Board President Sammi Morrill presided over the meeting and called it to order at 6:00 p.m.
Board of Directors Present: Staff Present:
Sammi Morrill, Board President Scott Wayman, Executive Director
Bill Dixon, Board Vice President Holly Malish, Deputy Director
Henry Hayes, Board Secretary Ashley Ritchey, Business Engagement Manager
Donna Steward, Board Treasurer Tracy Miller, Administrative Assistant
Eryn McElroy, Board Member Brian James, Deputy City Manager
Reynaldo "Ray" Chavez, Board Member
Board of Directors Absent: Others Present:
Mark Moody, Board Member James Walters, Finance Director
Allison Heyward, Councilmember City Council EDC Liaison
Majid Sharifi, Axiom Group
Matthew Buslepp, Avison Young
Perry Rizzo, Axiom Group
Travis Roger, CPA of Pattillo, Brown, and Hill, LLP
             
Hearing of Residents
             
2. This time is set aside for any person who wishes to address the Board. Presentations should be limited to no more than 3 minutes.The presiding officer will call on those persons who have signed up to speak.

No residents signed up to speak. No comments were made.
             
Minutes
             
3. Approval of the minutes for the Board of Directors Regular Monthly Meeting held Thursday, February 22, 2024. (T.Miller)

Board President Sammi Morrill asked for a motion to approve the Minutes of the Board of Directors Regular Monthly Meeting held on Thursday, February 22, 2024.

Motion by Board Vice President Bill Dixon, seconded by Board Member Ray Chavez.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes,                    Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.
 
             
Presentations
             
4. Staff briefing on SEDC monthly financial statement for the month of February 2024. (J.Walters)

James Walters, Finance Director, provided a summary and overview of the SEDC Financial Statement for the month of February 2024.

February 2024 sales tax received was $589,276.32, expenses were $41,243.25, a 4.0% decrease over the year prior.  The 12-month rolling average is 6.2% still trending up.  Notable expenditures include an incentive payment to Health Texas Company, Team Texas Membership and conference registrations for Site Selectors Guild and Texas Economic Development Council (TEDC). Total Cash & Investment figure at the end of February was $35.1 million.

The bulk of our sales tax is about 30% wholesale with about 20% of it being retail.  Scott Wayman, Executive Director also stated he met with the Auditor, Finance Director and Donna Steward, Board Treasurer regarding the finances and if any of the Board has any questions during the month please feel free to reach out to the staff.
 
             
5. Presentation on Annual Certifications. (H.Malish)

Holly Malish, Deputy Director provided an update on businesses required to submit an Annual Certification as part of their incentive agreement including rebates paid for the year. The annual certifications are due by February 15th each year. 10 out of 14 are in compliance, one was not responsive, and two are requesting an extension. Staff requesting direction from the Board for Closner and Food Related requesting an extension with the following options.

Closner
  1. Recapture $40,000 based on the agreement.
  2. Extend the agreement one year.
Food Related
  1. Recapture $14,000 based on the agreement.
  2. Extend the agreement one year.
  3. Company to pay $1,100 to meet compliance.
Board President Sammi Morrill recommended an extension of one year for both companies.

After Board discussion, Board President Sammi Morrill asked for a motion to extend the agreement one year for Closner with a compliance plan.

Board Member Ray Chavez motion; seconded by Board Member Eryn McElroy.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes, Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.

After Board discussion, a motion was made by Board Secretary Henry Hayes to waive the $1,100 to bring compliant; seconded by Board Member Ray Chavez.

AYE: Board Secretary Henry Hayes, Board Member Ray Chavez
NAY: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Treasurer Donna Steward, Board Member Eryn McElroy

Motion failed.

A motion was made by Board Member Eryn McElroy for the company to pay $1,100 to meet their requirements; seconded by Board Treasurer Donna Steward.
AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Treasurer Donna Steward, Board Member Eryn McElroy
NAY: Board Secretary Henry Hayes, Board Member Ray Chavez

Motion passed.
             
6. Presentation by Perry Rizzo with Axiom Group, Inc. (S.Wayman)

Scott Wayman, Executive Director introduced Mr. Perry Rizzo with Axiom Group.

Mr. Rizzo gave an overview of the company and the services they provide. The company was founded in 1987 and Texas will present the 4th location and the 2nd in the United States. Axiom Group is an automotive plastic-injection molding manufacturer currently servicing Rivian, Stellantis and Hyundai/Kia. They are looking to bring 200 job opportunities within a five-year time frame and projecting investment of $8,500,000 by the fourth year.
             
Public Hearing
             
7. Resolution 2024-2 - Authorizing an Economic Development Performance Agreement between the City of Schertz Economic Development Corporation and Axiom Group, Inc. (S.Wayman)

Board President Sammi Morrill opened the public hearing at 6:59 p.m.

No public comment was made.

Board President Sammil Morrill closed the public hearing at 6:59 p.m.
             
Discussion Items
             
8. Resolution 2024-3 - Approval of the Independent Auditor's Report for the SEDC Annual Financial Report for the Year Ending September 30, 2023. (Travis Roger, CPA, Audit Supervisor of Pattillo, Brown and Hill, LLP/J.Walters)

Scott Wayman, Executive Director introduced Travis Roger, CPA with Pattillo, Brown and Hill, LLP who gave a brief introduction and presented the firm's audit findings to the Board.  Mr. Roger stated the SEDC is in very good financial shape and there are no issues or concerns with internal control compliance.

Board President Sammi Morrill asked for a motion to approve SEDC Resolution 2024-3, a Resolution by the City of Schertz Economic Development Corporation ("SEDC") Board of Directors ("The Board") authorizing the approval  of the Independent Auditor's Report for the SEDC Annual Financial Report for the year ending September 30, 2023.

Motion by Board Treasurer Donna Steward, seconded by Board Secretary Henry Hayes.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes,                    Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.
 
             
9. Resolution 2024-1 - Approval of Amended SEDC Mission Statement and Goals. (S.Wayman/H.Malish/A.Ritchey)

Holly Malish, Deputy Director gave a brief overview of the strategies and actions that will be used to accomplish the goals.

Ashley Ritchey, Business Engagement Management Manager gave a brief overview of the new Mission Statement.

Board President Sammi Morrill asked for a motion to approve SEDC Resolution 2024-1, a Resolution by the City of Schertz Economic Development Corporation, Texas, approving the amended Mission Statement and Goals.

Motion by Board Member Eryn McElroy, seconded by Board Member Ray Chavez.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes,                    Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.
 
Board President Sammi Morrill recessed to Open Session to Closed Session at 7:20 p.m.
 
             
Closed Session
             
10. Called in accordance with Section 551.087 of the Texas Government Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) the deliberate the offer of a financial or other incentive to a business prospect.
  • Project E-86
Start time: 7:20 p.m.
End time: 7:30 p.m.

Board President Sammi Morrill reconvened to Open Session at 7:30 p.m.

Board President Sammi Morrill recessed to Closed Session at 7:32 p.m.
  • Project E-94
Start time: 7:33 p.m
End time: 8:34 p.m.

Board President Sammi Morrill reconvened to Open Session at 8:35 p.m.
             
Reconvene to Regular Session
             
11. Take any actions based on discussion held in closed session under Agenda Item No. 10.

No action was taken based on discussion in Closed Session.
             
12. Resolution 2024-2 - Authorizing an Economic Development Performance Agreement between the City of Schertz Economic Development Corporation and Axiom Group, Inc. (S.Wayman)

Board President Sammi Morrill asked for a motion to approve SEDC Resolution 2024-2, a Resolution by the City of Schertz Economic Development Corporation, Texas authorizing an Economic Development Performance Agreement between the City of Schertz Economic Development Corporation and Axiom Group Inc.

Motion by Board Member Eryn McElroy, seconded by Board Member Ray Chavez.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes, Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.
             
Requests and Announcements
  • Announcements by staff:
    • Next Regular Board Meeting - April 25, 2024
  • Requests by Board Members to place items on a future SEDC Board Meeting agenda.
    • Board Member Ray Chavez requested information on demographic and industry data and what type of industry we want.
    • Board President Sammi Morrill requested information on the inventory and type of buildings available.
             
Adjournment
Board President Sammi Morrill asked for a motion to adjourn the meeting.
Motion by Board Member Ray Chavez, seconded by Board Treasurer Donna Steward.

AYE: Board President Sammi Morrill, Board Vice President Bill Dixon, Board Secretary Henry Hayes, Board Treasurer Donna Steward, Board Member Eryn McElroy, Board Member Ray Chavez.

Unanimous affirmative vote - Motion carries.

Board President Sammil Morrill adjourned the meeting at 8:37 p.m.
MINUTES PASSED AND APPROVED THIS ____ DAY ___________ 2024.

 

____________________
Sammi Morrill
Board President
___________________
Henry Hayes
Board Secretary

AgendaQuick©2005 - 2024 Destiny Software Inc., All Rights Reserved