McKinney Community Development Corporation

Regular Board Meeting

February 26, 2009

     The McKinney Community Development Corporation (MCDC) met in regular session in the Dowdy conference room located at 321 N. Central Expressway, Suite 200, McKinney, Texas, at 8:00 A.M. on February 26, 2009.

     Board members present were Chair Ray Eckenrode, Vice-chair Bill Campbell, Dr. Carrie Alfieri, David Melton, Tracy Rath, James Lane, 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.  Mr. Eckenrode asked for discussion and action on the board minutes for October 7, 2008 and January 22, 2009.  Tracy Rath asked for a wording change on page 3 of the January minutes.  With the change made, Bill Campbell made a motion to approve the minutes.  Tracy Rath seconded the motion.  The motion was voted on and passed unanimously (6-0).

     Jason Weeks gave a financial report for January, 2009.  Sales tax receipts for January were a little over $600,000.  That represents a 6% decrease from January, 2008.  The sales tax summary is up approximately 4% from January, 2008.  This includes the amount received for December, 2008.  The projections are that MCDC will not reach the budgeted amount of $9,000,000.  It will more likely be $8,000,000 up to $8,400,000.

     Mr. Eckenrode skipped to the discussion of a grant agreement for the Dr Pepper StarCenter McKinney at Craig Ranch between City of McKinney and MCDC.  Mr. Gibson went over some different items in the agreement.  The agreement states that all the MCDC money will be used up front before the City sells bonds.  There will be something added to the agreement that states that if default should happen the MCDC money will be reimbursed.  A sentence needs to be changed on page 6 of 9, paragraph (k).  Mr. Gibson has asked that the Ice Rink invoices come through the MCDC office.  The deadline for the construction of the Ice Rink to be completed is October 1, 2009.  Mr. Lane asked if the MCDC cap on the project were $5.5 million.  City Manager Frank Ragan stated that was correct.  The City will not come back for more money.  Mr. Eckenrode asked for a motion to approve the grant agreement with the changes made on page 6, and clarification on a date should default occur.  Bill Campbell made a motion to approve the agreement with the two provisions that get changed.  The first one being on page 6 regarding undocumented workers, and the second change being clarification between the Executive Director and the City Manager about repayment in case of default.  A second was made by Carrie Alfieri.  The motion was voted on and passed unanimously (6-0).

Mr. Eckenrode advised the next item on the agenda would be to discuss and take possible action on the MCDC allocation percentages.  Mr. Gibson began the discussion.  The City manager stated that it was his understanding that the City Council did not set the percentage allocations for the board.  David Melton made a motion that the letter written in 2004 setting the percentage limits on the board be withdrawn.  There was no second.  Geralyn Kever made the suggestion to have the City Manager write a letter to supersede the previous letter supporting the direction MCDC is going.  Mr. Ragan agreed to write the letter for the board.  Mr. Eckenrode went over the percentage changes that were discussed at the board retreat in November.  The discussion was to allocate 15% Economic Development, 35% Community Capital Projects, 30% Parks and Recreation, 15% MCDC, and 5% Contingency.  Changing the guidelines will allow more community development type projects to be funded.  Mr. Lane stated he did not want to see the board anticipating incurring debt.  He stated he would like to see some of the money that is being redirected away from economic development tapped to establish a fund to provide additional funding for open space acquisition along Wilson Creek and Trinity River corridor to connect the hike and bike trails.  Right now conditions in the real estate market favor the buyer.  We don’t know how long this window of opportunity will remain open.  At the same time diminished revenues and budget cuts are hampering the City’s ability to purchase the needed land.  MCDC is in a unique position to help accelerate the completion of our trail system.  This ought to be one of our top priorities for the next few years.  David Melton suggested that Parks and Recreation set their budget and include MPAC in their budget.  Currently the $500,000 that MCDC allocates to MPAC is taken off the top of the MCDC budget.  Parks and Recreation percentage could then be increased to 35%.  Bill Campbell made the motion to accept the percentage guidelines at 15% Economic, 30% Community Capital Projects, 35% Parks and Recreation, 15% MCDC, and 5% Contingency.  The motion was seconded by Carrie Alfieri.  The motion was voted on and passed unanimously (6-0).  Clarification was made that these will be internal guidelines.

     The item discussed next on the agenda was the MCDC process of the allocation of promotional funding.  Mr. Eckenrode led the discussion on the process that occurred in January.  David Melton made the recommendation that groups that are requesting promotional funding make their presentation to the committee and the committee then make a recommendation to the board.  Tracy Rath suggested the groups present to the entire board, and then the committee will meet.  At the next months board meeting the committee makes their recommendations.  Diann Bayes went over some of the advertising that is done through MCVB.  She stated that many groups that apply for funding with MCDC receive promotion through the MCVB advertising.  The agreement was made that at the July board meeting the groups will make five minute presentations to the board.  The committee will then meet before the next scheduled board meeting.  During the August board meeting the committee will make their recommendations and funds will be approved.  An informational meeting will be held prior to the July meeting.  A group can come to the board multiple times for different events.

     Mr. Gibson showed the board the proofs of the annual report that will be mailed out.  There will be approximately 50,000 mailed out.

     Jim Young gave the MEDC liaison report.  He stated that the Comptrollers report shows the Texas economy is the twelfth largest in the world.  There were one in every 971 mortgage foreclosure in Texas, Nevada is one in every 71 mortgages, and California is one in 147.  Texas is doing well.  The biggest problem is getting commercial funding.  MEDC is working on a commercial project that will be announced soon.  Raytheon has brought a $173 million military contract to McKinney.

     James Lane gave the Parks and Recreation report.  He stated that he had recently taken a Parks tour.  The Parks board is developing a new master plan.

     Bill Campbell gave the Chamber of Commerce report.  He reported that the Chamber awards banquet was well attended.  Collin County Day in Austin had good representation.

     The next agenda item was the Executive Directors report.  Mr. Gibson stated there was no update on the Bridge Street project.  Mr. Lane stated that according to public land records, liens totaling more than seven million dollars have been filed against the hotel property. Geralyn Kever stated that there is work going on, but nothing to be reported.  The City Manager is in discussions with the contractor and developer, and hopefully the project will go forward soon.  Mr. Gibson reported that the Pecan Grove maintenance building is approximately 85% complete.  The Chestnut Square project is close to being completed.  The Heard Museum project is approximately 85% complete.  They will hold an Open House in April. 

     Mr. Eckenrode called for a short break at 9:47 A.M.

     The meeting was called back into session at 9:52 A.M.

     Chair Eckenrode called the meeting into Executive Session at 9:52 A.M.

     Bill Campbell left the meeting at 10:24 A.M.

     The meeting was called back into Open Session at 10:35 A.M.

     David Melton made a motion to adjourn the meeting.  T.J. Lane seconded the motion.  The motion passed unanimously.  The meeting was adjourned at 10:36 A.M.

                                                          _____________________________________________

                                                         RAY ECKENRODE – Chairman

Attest:

______________________________

Connie Gibson – Board Secretary