Webster Economic Development Corporation

WEBSTER ECONOMIC DEVELOPMENT CORPORATION
WEBSTER, TEXAS
TUESDAY, JANUARY 13, 2015
MUNICIPAL BUILDING COUNCIL CHAMBERS
101 PENNSYLVANIA, WEBSTER, TEXAS
6:00 P.M.
A QUORUM OF CITY COUNCIL MAY BE PRESENT
1. Call to Order.
2. Invocation and Pledge of Allegiance.
3. Roll Call and Certification of a Quorum.
4. Petitions or Requests from the Public.
5. Consideration/Approval of the Agenda.
6. Business Update: Retention, Expansion and Recruitment Monthly Report.
7. Receive a report, hold a discussion, and provide direction to staff on the possible
refinancing of WEDC Sales Tax Revenue Improvement and Refunding Bonds,
Series 2006.
8. CONSIDERATION/ACTION to approve the minutes:
●Regular Meeting of September 9, 2014.
9. Excused Absences.
10. Board Member Agenda Requests.
11. Executive Director Report –
●Calendar of Events
12. Adjournment.
ALL ITEMS ON THE AGENDA ARE SUBJECT TO ACTION.
In compliance with the Americans with Disabilities Act, this building is wheelchair
accessible and accessible parking spaces are available. The Webster Economic
Webster Economic Development Corporation
Agenda
January 13, 2015
Development Corporation will provide reasonable accommodations for persons attending
Economic Development Corporation meetings. Requests should be received 48 hours
prior to the meetings. Please contact the Secretary at 281-332-1826.
The Webster Economic Development Corporation reserves the right to meet in closed
session on any of the above items should the need arise and if applicable pursuant to
authorization by Title 5, Chapter 551, of the Texas Government Code.
I certify that a copy of this notice of the meeting for January 13, 2015 was posted at City
Hall, 101 Pennsylvania, Webster, Texas on Thursday, January 8, 2015 by 5:30 p.m.
_____________________
Pauline Small, Secretary
2
Item 6
WEDC
Agenda Item
BUSINESS EXPANSION: January 2015
Karen Coglianese
Hidden Treasures – 925 East NASA Parkway – Village Real Shopping Center
Hidden Treasures, which opened for business in 2010, occupied over 10,000 square feet
at Village Real Shopping Center but due to tremendous growth has recently expanded to
15,000 square feet. Hidden Treasures is an upscale consignment store and acts a selling
agent for individuals who have furniture or home décor for sale. For just 50% of the
selling price, Hidden Treasures will display the furniture and home décor in an appealing
setting. This expansion will allow for a larger selection of furniture and more room to
browse.
NEW BUSINESS VISITATION: January 6, 2015
Karen Coglianese
LA Crawfish – 939 West Bay Area Boulevard – Baybrook Gateway
New LA Crawfish franchisee, Si Pham, will open for business on January 12, 2015, at this
2,400 square foot restaurant. According to Pham, crawfish will be served year-round,
being cooked and then flash-frozen during the off season. The menu offers a variety of
seafood dishes and some Vietnamese faire. Operating hours are: Monday through
Thursday 11:00 a.m. to 10:00 p.m.; Friday and Saturday 11:00 a.m. to 11:00 p.m.;
Sunday 11:00 a.m. to 9:00 p.m.
NEW BUSINESS VISITATION: December 23, 2014
Karen Coglianese
MattressPro – 20798 Gulf Freeway – Clear Lake Center
On December 20, 2014, the extensively renovated former Hot Wok restaurant opened as
MattressPro, a sister company of Mattress Firm. According to Manager Nicole Hall,
MattressPro utilizes the buying power of both companies to offer extremely competitive
pricing. Mattress Pro offers name brand products, such as BeautyRest, Comfor-Pedic,
iComfort, Sealy, Serta, Stearns & Foster, and Tempur-Pedic. MattressPro offers a core
line of products that provide the best selling and highest rated sleep solutions. Hours of
operation are Monday through Saturday 10:00 a.m. to 8:00 p.m. and Sunday noon until
6:00 p.m.
Business Retention and Expansion: 2015
Karen Coglianese
Shehla’s Beauty Salon and Nobí Public House
Shehla’s Beauty Salon was previously located 245 East NASA Parkway but due to the
popularity of its neighbor, Nobí Public House at 241 East NASA Parkway, Shehla’s, with its
loyal following, will be moving to 100 East NASA Parkway, Suite 55. Shehla’s Beauty
Salon is temporarily occupying space at Salon Ambience, 16848 Highway 3 until plans for
its relocation have been permitted. Nobí Public House has submitted plans for its
expansion into the vacant space next door, parking lot improvements at NASA Parkway
Shopping Center have been delayed by the weather and this results in a delay in the
expansion.
Bay Area Houston Magazine – January 2015
coverage of the Webster Business Alliance
featuring Christopher J Ferguson, Director of Crew and Mission Operations
for Boeing’s Commercial Crew Program.
Chris Thrailkill - City of Webster’s Office of
Marketing and Tourism and
Karen Coglianese - Webster’s Economic
Development Specialist
Jim and Jane Sweeney Minute Man Press
Pat Patton and speaker Christopher J. Ferguson - Director of
Crew and Mission Operations for Boeing‘s Commercial Crew
Program, retired U.S. Navy Captain and former NASA Astronaut
STS-115, STS-126 and STS-136
Webster Business Alliance Luncheon Christopher J. Ferguson
December 2, 2014
Benjamin Chisholm - Stinger
Ghaffarian Technologies and
Dr. Betsy Giusto - City of Webster’s
Economic Development Director
John Gay - Gay and Reitz
Attorneys at Law
The Webster Business Alliance Luncheon, held at the Webster Civic
Center Dec. 2, was a very special event. The speaker was Christopher J.
Ferguson—director of Crew and Mission Operations for Boeing’s Commercial Crew Program, retired U.S. Navy captain, and former NASA astronaut who flew on STS-115, STS-126, and STS-135.
Ferguson has been the director of Crew and Mission Operations for
the Boeing Commercial Crew Program since December 2011, and had
comprehensive oversight in the design of Boeing’s CST-100.
He gave a wonderful and informative speech about Boeing’s developing the commercial crew transportation system to ferry astronauts to
Barbara Cutsinger - BAHEP;
Renee Ethridge - Meador Staffing; and event and from the International Space Station by 2017, followed by a very
sponsor Gwen Wagner - Centerpoint Energy interesting question and answer session.
There was a great turn-out and everyone really enjoyed Ferguson’s
speech. The lunch was sponsored by Centerpoint Energy and the delicious food was by La Madeleine Country French Café.
Kathy Pritchard - Webster Economic
Development Corporation and
Joe Lovell - Fast Signs
The luncheon was so special for me since I attended the Shuttle
Mission Preview Events on June 16, and June 30, 2011, and I got to
question Chris Ferguson and the other STS-135 crew members—Pilot
Doug Hurley and Mission Specialists Sandra Magnus and Rex Walheim.
I wrote articles about NASA’s last mission, STS-135, for the Bay Area
Houston Magazine and for Guidry News Service.
Mike Furin and Eileen Storey My Flooring America
Libby Bourgeois - Main Event Entertainment;
Chris Maginnis - Waddell and Reed;
Brandy Mandigo - Main Event Entertainment
For more information about the Webster Business Alliance, contact
Webster Economic Development Director Dr. Betsy Giusto. Her telephone number is 281.316.4116, and her email address is bgiusto@
cityofwebster.com
John Fisher; William F. “Billy” Burge, III - President, Ayshire
Corporation; David Adickes - artist, sculptor and
painter; John Jackson
Angela Jenkins - Public Relations and
Marketing Manager, Bay Area
Regional Medical Center
Mary Proudy and
Kevin Venable Amoco Federal Credit Union
Top 12 local business stories of 2014
Houston Chronicle | December 26, 2014
Craft Brewing continued its rapid expansion across the Houston area.
The year in area business news was dominated by Houston's booming economy, from energy to real estate to health care and
everything else in between. But in the early fall, oil prices dropped to levels that started to set off alarm bells, and the slide has only
continued. Oil is undoubtedly the big story heading into 2015. Until then, here is a look back at the top 12 local business stories this
year:
1) OIL: The hydraulic fracturing revolution was in high gear with soaring production in Texas, North Dakota and elsewhere.
Significant offshore projects also started pumping out oil, and companies continued efforts to drill ever deeper. Benchmark U.S.
prices peaked at $107.26 a barrel on June 20, staying around $90 through August and September, the $80s in October and closing
at $54.73 on Friday amid a worldwide supply glut and OPEC's decision not to curb production. Companies are scrambling to cut
spending, with layoffs beginning.
2) RESIDENTIAL REAL ESTATE: Where to start? Month after month, sales of existing homes and median prices jumped over the
previous year. High-end homes, close-in properties and those in The Woodlands sold like crazy. And developers continued rolling
out plans for new residences, including those in master-planned communities, luxury apartment towers, and mixed-use projects with
spaces to live, shop, eat and work. Developers revealed projects that will push the region's residential footprint farther south, west
and north. Just one example: Newland Communities, developer of Cinco Ranch, Telfair and other communities, said it acquired more
than 3,600 acres about 6 miles north of Interstate 10 for a project called Elyson that could eventually be home to more than 20,000
residents. There was so much residential real estate action that we also split two topics, the Exxon Mobil effect and downtown living,
into separate listings.
3) JOBS: The Houston economy was a job machine, in part thanks to energy industry hiring. This month, state job statistics for
November revealed that Houston-area employers added a record-setting 125,300 jobs over the previous 12 months. Headlines on
stories for previous months tell the story: "Local hiring still hale, hearty/Construction, oil field sectors lead jobs surge in September";
"Houston hiring goes into overdrive/Construction, oil industry get credit for surge"; and "Hot job market puts squeeze on Houstonarea employers/Demand for workers at 6-year high while local job creation up 3 percent."
4) HOSPITAL EXPANSIONS: Some $2 billion worth of projects were announced or broke ground this year, as medical providers
look to better serve patients in the Texas Medical Center and stake out claims in growing suburban areas. Memorial Hermann is
expanding and renovating in the medical center and will build a medical campus in Cypress; Houston Methodist plans a hospital in
The Woodlands and a hospital tower in the Medical Center. CHI St. Luke’s Health broke ground on a medical facility near the Exxon
Mobil campus, and announced with Baylor College of Medicine that the two would build and operate a hospital in the Medical Center
to replace the existing St. Luke’s in the Medical Center. Texas Children’s also plans to add a heart center and expand other services
in the Medical Center.
5) EXXON EFFECT: Construction of Exxon Mobil’s corporate campus north of Houston revved up the real estate market in
the area, helping spur residential and commercial real estate projects as well as
sales of existing homes. At September’s end, some 2,200 Exxon Mobil workers
were already at the new facility, which is on 385 acres west of Interstate 45 and
south of The Woodlands. Construction is to finish next year, and, ultimately, 10,000
workers will occupy the 20 buildings that make up the campus. “There’s no better
place than close to Exxon these days,” Hines managing director Adil Noorani, said
in September when the development firm said it bought 130 acres west of the
campus for an upscale housing project. All the development, though, comes with
tough questions, including whether the region’s roads and schools can absorb all the
people and businesses arriving.
6) HALLIBURTON-BAKER HUGHES: With so many big corporations in Houston,
any year is bound to have big mergers or acquisitions. 2014 was no different with
Houston oil services giant Halliburton reaching a $35 billion deal to buy local rival
Baker Hughes. There was some drama along the way when Halliburton threatened
to launch a hostile takeover of Baker Hughes’ board. Together, the two companies
employ 15,000 in Houston, though layoffs are expected as the companies solidify
integration plans.
7) KINDER MORGAN: In August, Houston billionaire Richard Kinder said he
would fuse all the pieces of his pipeline and energy storage empire into one company,
Kinder Morgan Inc., in a $44 billion transaction. The company said it wanted to
streamline its corporate structure as well as eliminate intercompany payments
so it could pour more dollars into operations or acquisitions. “If we put all these
together, we can reduce that cost of capital, and we can grow faster and provide a
simpler story to our investors. We’ve got a lot of fertile ground to plow,” Richard
Kinder said then. The deal closed last month.
8) WORLD TRAVEL: International was the word when it came to air travel. The
Houston Airport System, this year, expects to break its previous record of nearly
9 million international passengers traveling through Bush Intercontinental. The
system plans to rebuild the airport’s international Terminal D. Just a few examples of
expanded international services out of Bush: Korean Air launched nonstop service
to the Seoul area, Interjet began service to Monterrey, Mexico, and Viva Aerobus
added nonstop service to Cancun. United added a second daily flight to Toyko and
launched new flights to, among other destinations, Munich and Santiago, Chile. SAS
started a nonstop to Stavanger, Norway. And Spirit Airlines said this year it will
add flights in May from Bush to destinations in Latin and Central America. Hobby
is also getting into the world travel game. When Southwest Airlines’ $156 million
international terminal opens late next year, the airline expects to fly to destinations
in Mexico, Costa Rica and Belize.
9) DOWNTOWN LIVING: As of October, more than 1,700 apartment units were
under construction or recently finished in downtown Houston and another 2,500
were planned, according to the Houston Downtown Management District, which
administers a city program that offers developers tax rebates for such projects. Just
one example: A tower that will rise 40 stories and house 463 apartments is under
construction just off Market Square Park. Market Square Tower will have monthly
rents from around $1,800 to $5,800. The first new condominium project in years
has also been proposed for downtown.
The Webster Connection –
A recent synopsis of the Top 12
Houston Business Stories of 2014 by the
Houston Chronicle (December 28, 2014)
reveals that Webster’s tiny footprint is
impacted by its behemoth neighbor.
While oil, residential real estate,
and jobs top the list for Houston,
hospital expansions account for $2
billion worth of projects. In Webster,
Bay Area Regional Medical Center and
the Webster Rehabilitation Hospital
support this rapidly growing industry
sector. Too, according to the recently
published Book of Lists by the Houston
Business Journal, Clear Lake Regional
Medical Center is ranked the second
highest for inpatient admissions in 2013,
outperforming all Houston-area hospitals
with one exception—Houston Methodist.
Clear Lake Regional Medical Center
accommodated nearly 29,000 in-patient
admissions.
World travel, which is listed as
number 8, has significant ramifications
for Webster’s tourism market, as
Hobby’s Southwest Airline’s $156 million
international terminal opens in 2015.
The final headline for the top 12
stories is craft brewing, and even Webster
is part of that popular movement. Nobi
House expanded its footprint on East
NASA Parkway to accommodate more
clients. And, craft beer can be found at
many Webster restaurants, like BJ’s, Twin
Peaks, Bombshell’s, and Bone Daddy’s.
10) PETROCHEMICAL EXPANSION: One thing that hasn’t changed about the U.S. shale boom: cheap natural gas. It continued to
drive petrochemical plant construction and hiring on the southeast side of Houston and elsewhere in Texas. This year, Exxon Mobil,
Dow Chemical Co., Chevron Phillips Chemical Co. and others have pushed ahead on local projects to bring the building blocks of
plastics, paints, and other consumer and industrial products to buyers in China, developing nations and the United States.
11) BP DECISION: In September, a federal judge ruled, more than four years after the catastrophic oil spill off Louisiana, that
BP was reckless and grossly negligent in the days and months before the disaster, which killed 11 workers. U.S. District Judge Carl
Barbier in New Orleans placed two-thirds of the blame for the spill on BP, while Transocean was found 30 percent responsible, and
Halliburton was 3 percent at fault. That means BP may have to pay up to $18 billion in environmental fines, depending on what else
the judge finds in the massive civil trial, including how many barrels of oil spilled into the Gulf of Mexico.
12) CRAFT BREWERS: Craft brewing continued its rapid expansion across the Houston area, driven by consumer demand and
favorable changes in state law. New breweries opened, and ambitious new projects from Karbach and Southern Star are underway.
Whole Foods Market got in on the boom, opening the chain’s first in-store brewpub in Houston.
Item 7
WEDC
Agenda Item
DATE: JANUARY 13, 2015
AGENDA ITEM:
Receive a report, hold a discussion, and provide direction to staff on the possible
refinancing of WEDC Sales Tax Revenue Improvement and Refunding Bonds, Series 2006.
PURPOSE:
WEDC has the opportunity to refinance the Series 2006 bonds for considerable savings.
SUMMARY/BACKGROUND (WHY):
The Webster Economic Development Corporation issued Sales Tax Revenue Improvement and Refunding Bonds
on September 15, 2006. The Board can now refinance the bonds at a lower interest rate. A presentation will be
made explaining the various options available.
STAFF RECOMMENDATIONS: Staff seeks direction on how to proceed.
EXPENDITURE:
FUNDING SOURCE:
AMT. BUDGETED:
TREASURER APPROVAL: Wm. Michael Rodgers, CPA
PRIORITY/CAPITAL IMPROVEMENT PROGRAM:
YES
PREPARED BY: Wm. Michael Rodgers, CPA
APPROVAL BY DEPT. DIRECTOR: Wm. Michael Rodgers, CPA
APPROVAL BY EXECUTIVE DIRECTOR:
ATTACHMENTS:
Presentation
NO √
1
BOND REFINANCING
OPTIONS
Presented to the WEDC Board of Directors
January 13, 2015
2
Sales Tax Revenue Improvement
and Refunding Bonds, Series 2006
• WEDC issued $13,415,000 on September 15, 2006
• Source of funds:
• Par amount (principal)
$13,415,000
• Debt service reserve (from the 2000 issue)
1,400,140
• Accrued interest less discount
5,791
• Total source of funds
$14,820,931
3
Sales Tax Revenue Improvement
and Refunding Bonds, Series 2006
• Use of funds:
• Refinance series 2000 bonds (old money)
• Water Street (new money)
• Rice Creek Lane (new money)
• Accrued interest and issuance costs
• Total use of funds
$ 9,989,020
1,400,140
2,926,000
505,771
$14,820,931
4
Sales Tax Revenue Improvement
and Refunding Bonds, Series 2006
• Bonds mature in September 2021
• No debt payments after this date
• Coupon yields range from 3.79% - 4.55%
• Net interest rates paid to investors
• Call date is September 15, 2014, or any date
thereafter
• Bonds can be refinanced any time after 9/15/2014
5
Status of Series 2006 Bonds
at September 30, 2014
• Principal balance outstanding is $9,140,000
• Interest payments remaining to maturity total
$1,584,198
• Unspent proceeds total $4,624,707
• Proceeds for Water Street reimbursement are not necessary
after amendments to Edgewater development agreement
• Rice Creek Lane construction has been delayed due to the lack
of development in southern sector
6
Cash Balances for WEDC Funds at
September 30, 2014
Fund Name
WEDC Fund
Operating Projects Fund
2006 Sales Tax Revenue Bond
Debt Service Fund
Total Available Cash
Cash
Balances
$4,852,626
64,629
4,624,707
143,029
$9,684,991
7
Bond Refunding Options Available
• Option #1) Do nothing
• Option #2) Refinance the entire principal balance
• Option #3) Use unspent proceeds to pay down a
portion of debt and refinance remaining balance
• Option #4) Use unspent proceeds and available cash
to pay off entire debt
8
Option #1) Do Nothing
• All cash balances are available for future economic
development incentives
• Debt service remains unchanged
9
Option #1) Do Nothing
Fiscal Year
Beginning
Principal
Principal
Interest
Ending
Principal
2014-15
$9,140,000
$1,200,000
$192,633
$7,940,000
2015-16
7,940,000
1,325,000
337,265
6,615,000
2016-17
6,615,000
1,330,000
284,265
5,285,000
2017-18
5,285,000
1,325,000
229,403
3,960,000
2018-19
3,960,000
1,320,000
173,090
2,640,000
2019-20
2,640,000
1,320,000
116,330
1,320,000
2020-21
1,320,000
1,320,000
58,580
-
$9,140,000
$1,391,566
Total Paid
10
Option #1) Do Nothing
Cash Balances per Fiscal Year
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2014
2015
2016
2017
Option 1
2018
2019
2020
2021
11
Option #2) Refinance Entire Principal
Balance
• All cash balances are available for future economic
development incentives
• Future debt service is reduced by $532,698
• Net present value savings of $501,532
• Annual net income increases by an average of
$76,208 over Option #1
12
Option #2) Refinance Entire Principal
Balance
Fiscal Year
Beginning
Principal
Principal
Interest
Ending
Principal
2014-15
$9,290,000
$1,275,000
$82,667
$8,015,000
2015-16
8,015,000
1,405,000
172,900
6,610,000
2016-17
6,610,000
1,385,000
144,800
5,225,000
2017-18
5,225,000
1,355,000
117,100
3,870,000
2018-19
3,870,000
1,320,000
90,000
2,550,000
2019-20
2,550,000
1,290,000
63,600
1,260,000
2020-21
1,260,000
1,260,000
37,800
-
$9,290,000
$708,867
Total Paid
13
Option #2) Refinance Entire Principal
Balance
Improved Cash Position
Cash Balances per Fiscal Year
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2014
2015
2016
Option 1
2017
2018
Option 2
2019
2020
2021
14
Option #3) Pay Down Principal and
Refinance the Remaining Balance
• Cash balances available for future economic
development incentives are reduced by $4,624,707
• Future debt service is reduced by $5,556,427
• Net present value savings of $579,056
• Annual net income increases by an average of
$793,883 over Option #1 and $717,675 over Option #2
15
Option #3) Pay Down Principal and
Refinance the Remaining Balance
Fiscal Year
Beginning
Principal
Principal
Interest
Ending
Principal
2014-15
$4,660,000
$955,000
$40,938
$3,705,000
2015-16
3,705,000
720,000
79,150
2,985,000
2016-17
2,985,000
690,000
64,750
2,295,000
2017-18
2,295,000
645,000
50,950
1,650,000
2018-19
1,650,000
595,000
38,050
1,055,000
2019-20
1,055,000
550,000
26,150
505,000
2020-21
505,000
505,000
15,150
-
$4,660,000
$315,138
Total Paid
16
Option #3) Pay Down Principal and
Refinance the Remaining Balance
Cash Balances per Fiscal Year
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
Points where cash position under Option #3
surpass Options #1 and #2
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2014
2015
2016
Option 1
2017
Option 2
2018
2019
Option 3
2020
2021
17
Option #4) Pay Off the Entire Debt
• Cash balances available for future economic
development incentives are reduced by $9,173,176
• Future debt service is reduced by $10,531,565
• Net present value savings of $738,502
• Annual net income increases by an average of
$1,504,617 over Option #1, $1,428,409 over Option
#2, and $710,734 over Option #3
18
Option #4) Pay Off the Entire Debt
Fiscal Year
Beginning
Principal
Principal
Ending
Principal
Interest
2014-15
$-
$-
$-
$-
2015-16
-
-
-
-
2016-17
-
-
-
-
2017-18
-
-
-
-
2018-19
-
-
-
-
2019-20
-
-
-
-
2020-21
-
-
-
-
$-
$-
Total Paid
19
Option #4) Pay Off the Entire Debt
Cash Balances per Fiscal Year
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
Points where cash position under
Option #4 surpass Options # 1,
#2, and #3
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2014
2015
Option 1
2016
Option 2
2017
2018
Option 3
2019
2020
Option 4
2021
20
Option #4) Pay Off the Entire Debt
Cash Balances per Fiscal Year
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
This area represents the risk period when
funds may not be available if needed under
Options #3 and #4
$6,000,000
$4,000,000
$2,000,000
2014
2015
Option 1
2016
Option 2
2017
2018
Option 3
2019
2020
Option 4
2021
21
Things to Consider
• The bond proceeds are restricted to Rice Creek Lane
• When will Rice Creek Lane be constructed?
• These funds are not available for cash incentives
• These bonds could be repurposed if necessary
• If bond proceeds are used for debt service, (restricted)
cash position declines but (unrestricted) cash
replenishes more rapidly with lower debt payments
• We can always go back into the market if Rice Creek
Lane or another project is needed
• There will be only one chance to refinance this debt
22
Which Option to Choose?
Maximize Cash Holding
Maximize Savings
• Option #1 should not be
• Option #1 should not
considered
• Option #2 maintains all
available cash
• Option #3 uses bond
proceeds but takes six
years to replenish cash
• Option #4 draws down the
most cash but replenishes
at a more rapid pace
considered
• Option #2 NPV is
$501,532 and maintains
all cash
• Option #3 NPV is only
$77,524 more than #2
• Option #4 saves the most,
eliminates all debt, and
provides the most cash by
September 30, 2021
23
Staff Recommendations
• To maximize cash holdings, choose Option #2
• To maximize savings, choose Option #4
• If construction of Rice Creek Lane is anticipated,
choose Option #2
• If construction of Rice Creek Lane is not anticipated
but substantial funds may be needed within five years
for other economic development purposes, choose
Option #3
Item 8
WEDC
Agenda Item
MINUTES
WEBSTER ECONOMIC DEVELOPMENT CORPORATION
WEBSTER, TEXAS
TUESDAY, SEPTEMBER 9, 2014
MUNICIPAL BUILDING COUNCIL CHAMBERS
101 PENNSYLVANIA, WEBSTER, TEXAS
6:15 P.M.
A QUORUM OF CITY COUNCIL MAY BE PRESENT
1. Call to Order.
President Donna Rogers called the meeting to order at 6:15 p.m.
2. Invocation and Pledge of Allegiance.
President Rogers gave the Invocation and led the Pledge of Allegiance.
3. Roll Call and Certification of a Quorum.
City Secretary Pauline Small called the roll and certified a quorum. Present were
President Donna Rogers; Vice President Carlos Villagomez; Board Members
Diana Newland, Beverly Gaines, Kathy Pritchard, and Natalie Dolan. Edward
Lapeyre was absent. Others present were Treasurer Mike Rodgers, Director of
Economic Development Betsy Giusto and City Manager Wayne Sabo was present
as Executive Director.
4. Petitions or Requests from the Public.
There were none.
5. Consideration/Approval of the Agenda.
President Rogers read the caption.
Board Member Gaines moved to approve the agenda as presented.
Member Pritchard seconded the motion.
Board
AYES: Rogers, Villagomez, Newland, Gaines, Pritchard, Dolan.
NOES: None.
The motion carried.
Edward Lapeyre arrived at 6:25 p.m.
6. Business Update: Retention, Expansion and Recruitment Monthly Report.
President Rogers read the caption.
Director of Economic Development Betsy Giusto gave an update.
7. CONSIDERATION/ACTION to appoint a President of the Webster Economic
Development Corporation Board, term October 1, 2014 to September 30, 2015.
Webster Economic Development Corporation
Minutes
September 9, 2014
President Rogers read the caption.
Board Member Gaines moved to appoint Donna Rogers, by acclamation,
President of the Webster Economic Development Corporation Board, term
October 1, 2014 to September 30, 2015. Board Member Dolan seconded the
motion.
AYES: Rogers, Villagomez, Newland, Gaines, Lapeyre, Pritchard, Dolan.
NOES: None.
The motion carried.
8. CONSIDERATION/ACTION to appoint a Vice President of the Webster
Economic Development Corporation Board, term October 1, 2014 to September
30, 2015.
President Rogers read the caption.
Board Member Dolan moved to appoint Carlos Villagomez, by acclamation, Vice
President of the Webster Economic Development Corporation Board, term
October 1, 2014 to September 30, 2015. Board Member Pritchard seconded the
motion.
AYES: Rogers, Villagomez, Newland, Gaines, Lapeyre, Pritchard, Dolan.
NOES: None.
The motion carried.
9. EXECUTIVE SESSION: The Board will now hold a closed executive meeting
pursuant to the provisions of Chapter 551 of the Texas Government Code, in
accordance with the authority contained in:
A. Section 551.087, Deliberation for Economic Development Negotiations
regarding a Destination Development Project at the Southeast Quadrant of
Interstate 45 near Clear Creek.
President Rogers read the caption.
Board Member Gaines moved to go into Executive Session at 6:34 p.m. Board
Member Dolan seconded the motion.
AYES: Rogers, Villagomez, Newland, Gaines, Lapeyre, Pritchard, Dolan.
NOES: None.
The motion carried.
Vice President Villagomez moved to close the Executive Session at 6:50 p.m.
Councilmember Dolan seconded the motion.
AYES: Rogers, Villagomez, Newland, Gaines, Lapeyre, Pritchard, Dolan.
NOES: None.
The motion carried.
2
Webster Economic Development Corporation
Minutes
September 9, 2014
10. RECONVENE into Regular Session and Consider Action, IF Any, on items
discussed in Executive Session.
There was no action.
11. CONSIDERATION/ACTION to approve the minutes:
●Regular Meeting of July 8, 2014.
President Rogers read the caption.
Board Member Gaines moved to approve this item as captioned. Board Member
Dolan seconded the motion.
AYES: Rogers, Villagomez, Newland, Gaines, Lapeyre, Pritchard, Dolan.
NOES: None.
The motion carried.
12. Excused Absences.
There were none.
13. Board Member Agenda Requests.
There were none.
14. Executive Director Report –
●Calendar of Events
There was no report.
15. Adjournment.
There being no further business, President Rogers adjourned the meeting at 6:51
p.m.
Passed, Approved, and Adopted this 13th day of January 2015.
________________________________
Donna Rogers, President
ATTEST:
________________________________
Pauline Small, Secretary
3