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McKinney Community Development Corporation
Regular Board Meeting
June 25, 2009
The McKinney Community Development Corporation (MCDC) met in regular session in the Science Research Center building located at Heard Natural Science Museum, One Nature Place, McKinney, Texas, at 8:00 A.M. on June 25, 2009.
Board members present were Chair Ray Eckenrode, Vice-chair Bill Campbell, Dr. Carrie Alfieri, David Melton, Joe Maxey, T.J. Lane, Tracy Rath and council liaison Geralyn Kever. Staff present was Executive Director Mike Gibson and Administrative Assistant Connie Gibson. There were several guests present.
Mr. Eckenrode called the meeting to order at 8:00 A.M. He asked for discussion and action on the board minutes for May 28, 2009. There was no discussion. Carrie Alfieri made a motion to approve the minutes. Joe Maxey seconded the motion. The motion was voted on and passed unanimously (7-0).
Jason Weeks brought the financial report. The sales tax receipts for May were $792,418. This is down approximately 4% from May, 2008. The June sales tax summary shows $618,492. This is down approximately 3% from June, 2008. The sales tax projection for the year is still looking like it will be around eight million dollars. The forecast for next year is an approximate 4% increase from the eight million.
Mike Gibson gave the Executive Directors report next. He introduced Steve Brainerd, who gave an update on the Parks projects.
Changing the date of the July board meeting was discussed. The fifth Thursday (30th) was selected. Mr. Gibson asked the board if there were any concerns with MCDC donating an extra desk from the MCDC office to Chestnut Square’s new visitor center. There were no concerns. Chestnut Square will have a ribbon cutting for the visitor center on July 9th.
An application for Red, White and Boom, submitted by the City of McKinney Parks and Recreation department was the next agenda item. They were requesting $40,000. Mr. Gibson gave some background information. Lemuel Randolph, Parks and Recreation Director spoke. He stated that the sponsorships have not gone as well as hoped. To counter this they have reduced the costs involved with putting on the event. Mr. Eckenrode asked if the board had any questions for Mr. Randolph. Mr. Lane stated that MCDC has a budget they are trying to adhere to. Several groups came in January with requests that MCDC was not able to fund. The City should come back in July, and MCDC may be able to help offset whatever deficit they have for the event. Frank Ragan, City Manager, stated consideration was given to cancel the event due to budget shortfalls within the City. Bill Campbell made a motion to table the application until the July board meeting. The motion was seconded by Tracy Rath. The motion was voted on and passed unanimously (7-0).
Mike Gibson stated that Mr. Lane wanted to visit with the board regarding funding for the City of McKinney Community Center/Aquatic Facility. He stated that this board has not taken on debt in the past to fund projects. *The board is obliged to take into consideration not just the amount of MCDC’s up-front cash contribution to this project, but also the cost of financing (the cost of underwriting, issuing, and selling the bonds, plus the interest component of debt service). Borrowing money would take away money available for projects in the future. Committing a large portion of MCDC yearly revenues will severely limit future board’s discretionary funds to work with. Taking on this amount of debt will limit McKinney citizen’s ability to rededicate or abolish the ½ cent sales tax. Mr. Ragan declared that to not bond would cause a city to miss out on current needs. Currently building costs are coming down. Dr. Alfieri stated that in terms of borrowing money this is a prime market. Joe Maxey said there have been many discussions on how to utilize 4B tax money. There have been many discussions on bonding for projects such as the natatorium. He has been approached by people in the community about funding a natatorium project, and he feels that it is something that should receive consideration.
Mr. Eckenrode stated that we would now skip to the liaison reports. There was no Parks and Recreation report given. Jim Young brought the MEDC liaison report. The Data Center project has partnered with Cincinnati Bell. They have the cash to finance the whole project. Mr. Young stated they are cautiously optimistic about the project. An offer of land has been made to a new company to relocate to McKinney. The company wants to build an 85,000 square foot facility. They would bring 75 jobs, with over six million invested. MEDC has engaged the law firm of Carrington Coleman for the O & S lawsuit. There was a mediation meeting regarding the JDN condemnation suit. The meeting did not go well. The Chamber of Commerce report was brought by Bill Campbell. The Chamber had a Good Morning McKinney breakfast with the focus on wellness. The Chamber is still searching for a President. They will begin interviewing soon.
Mr. Eckenrode called the meeting into Executive Session at 9:09 A.M.
The meeting was called back into Open Session at 9:48 A.M.
Joe Maxey made a motion to engage the law firm of Carrington Coleman to represent MCDC in the litigation and to proceed forward to be a party of the fees of the firm 1/3 until MCDC is extracted from the proceedings. The point of contact will be Mike Gibson and he will report back to the board. An amendment was made by T.J. Lane to have the firm work as quickly as possible to extract MCDC from the proceedings. The motion was seconded by Carrie Alfieri. The motion was voted on and passed unanimously (7-0).
Mr. Gibson gave the 2009-2010 budget report. Some changes to the budget are a $35,000 allotment to redo the MCDC website. There was some discussion on the amount to be allocated for the website redesign. MCDC will pay for fuel and maintenance fees for the City of McKinney trolley, and some utility expense for the television studio. MCDC will be providing historic photographs to be used throughout the city. The legal fees will be increased due to the pending litigation. Promotional funding will include once monthly on-location radio spots. The 2009-2010 budget will be approved by the City Council in August. There was discussion about the funds that MCDC is funding each year to MPAC. Mr. Gibson stated that a research website with annual licensing purchase available is being considered to help non-profit groups find other available funds.
A motion was made by Carrie Alfieri to adjourn the meeting to go into the Special Board retreat. The motion was seconded by T.J. Lane. The motion passed unanimously (7-0).
The meeting was adjourned at 10:16 A.M.
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RAY ECKENRODE – Chairman
Attest:
_______________________________
Connie Gibson – Board Secretary
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