Category Archives: Economic Improvement Corporation

EIC takes action on two new funding applications

At Monday’s regular meeting of Kerrville’s Economic Improvement Corporation (EIC), the board took action to move forward with two new applications for economic development funding, and approved the multi-year funding agreement with Kerr Economic Development Corporation (KEDC). The EIC voted unanimously to move forward with an agreement that would fund two projects at the KERV Municipal Airport, and also voted unanimously to proceed with a “terms sheet” for an affordable housing development.

KEDC Funding Agreement

Last month, the EIC directed staff to amend the proposed funding agreement before them to add a multiyear component to the KEDC contract. EIC provides about 2/3 of KEDC’s $213,500 budget. The KEDC operates as a nonprofit and their mission is to support and expand business entities in Kerr County — new and existing. On Monday, the EIC voted unanimously to approve the revised funding agreement, which changed the terms from one year to three years, but giving the EIC the option of appropriating (or not appropriating) monies in the second and third years of the contract. The board believes that adding a multiyear component signals to the KEDC that the EIC is committed to the long-term success of this organization and their economic development efforts.

The KEDC also presented some of their efforts over the previous month, including some specifics about a business that is considering relocating to Kerrville. This Tier 1 supplier (meaning they supply parts and services to a large manufacturer) is considering relocating to Texas from the midwest, and Kerrville is the only community in the state that they are considering. Gil Salinas of KEDC informed the EIC that this company would soon make a “site visit” to Kerrville to see what our community has to offer by way of employees, infrastructure, and building space for their operations. This particular company would add approximately 60 well-paid jobs that also include good employee benefits.

Another lead is in the pipeline, according to Walt Koenig of the Chamber of Commerce and on behalf of KEDC. This lead, code-named “Oasis,” would also add about 50 or 60 primary jobs in the manufacturing sector and would provide an economic benefit to the entire hill country. This lead is still in the works and KEDC hopes to land both of these exciting opportunities in the coming months.

Airport Projects

Members of the Airport Board presented statistics about the economic impact of the airport on the community as a whole, stating that the airport and the related jobs there have an impact of almost $40 million on the Kerrville and Kerr County area. They requested funding for two separate projects: 1.) Site work for future box hangars; and 2.) Renovation of an existing building to make ready for future tenants.

The EIC voted unanimously to proceed with a funding agreement in the amount of $375,000 for these improvements.

Funding request from KERV Airport.

Workforce Housing Development

The EIC heard a presentation from investors and developers involved in the “Meeker Project,” a potential development which includes up to 35 moderately priced homes near Meeker and Poplar Streets in the eastern half of Kerrville. These homes would be built by local builder Travis Page and would be priced at approximately $159,500 to $203,000 per home, categorized as “workforce housing.”

Contemplated floorplans and elevations for the homes in the Meeker project.

The developers, 2J-PAGE Development, LLC, has requested approximately $701,000 to offset the public infrastructure costs such as roads and utilities. According to the developers and the City of Kerrville staff:

This development could serve as a catalyst and model in providing additional attainable and affordable housing in the community to retain and attract employees for Kerrville’s local employers (both primary and non-primary) to sustain, as well as expand, their local operations. In addition, this development could help in recruitment efforts to attract new employers to the area. Supporting the need for more attainable and affordable housing is identified in specific Action Items in the Kerrville 2050 Comprehensive Plan…

Quote from agenda bill for Item 4C, EIC Agenda for September 16

The EIC heard the presentation and convened discussions in executive session (a closed, non-public portion of the meeting where members discuss ongoing negotiations). Following executive session, the EIC voted unanimously to direct staff to create a “terms sheet,” meaning a list of terms and requirements that must be agreed to before a funding agreement can be contemplated and approved.

References

DISCLOSURE: Your author, Aaron Yates, is a board member of the Kerrville Economic Improvement Corporation. The opinions and statements herein represent the views of Aaron Yates and not necessarily the views or positions of the EIC as a whole, or the City of Kerrville.

Council approves Arcadia Theater funds

Kerrville City Council approved two funding agreements for the renovation of the Arcadia Theater on Tuesday night, moving the ball forward on a $2.3 million effort led by the nonprofit Kerrville’s 4th on the River (KFOR). The group applied for and received a $600,000 grant from the EIC (Economic Improvement Corporation 4B salex tax monies) along with $400,000 of HOT funds (Hotel Occupancy Tax). The group will raise approximately $1.3 million in private contributions to fully fund the project.

The $600k in 4b funds were approved by EIC last week, but council had to give its blessing for the grant to become “official.”

The KFOR nonprofit group plans to open the theater by July 3, 2020.

A short presentation was made to council and some of those slides are presented below.

EIC grants $600k to Arcadia Theater project

Photo of the Arcadia Theater in 2013.

The Economic Improvement Corporation (EIC) on Tuesday convened its first regular meeting since being reconstituted with three new members: Greg Richards, Danny Almond, and Aaron Yates. The main order of business on Tuesday was to hold a public hearing for a potential funding agreement between Kerrville’s Fourth on the River (the non-profit that owns the Arcadia Theater) and the EIC.

Following the public hearing and executive session, the EIC approved the funding agreement unanimously. The contract must now be approved by City Council in order for the funding to move forward.

In the proposed agreement, the EIC will provide $600,000 to the nonprofit to go towards the $2.3 million renovation budget. Kerrville’s 4th on the River intends to use the property for live music and other performances and events. As part of the agreement, the nonprofit must meet specific performance measures, such as a specific number of public shows during the first three years. The entire agreement is being finalized and will be made public in the City Council agenda packet for their June 25 meeting.

The $600,000 provided by the EIC does not cover the entire renovation budget. As mentioned, the entire renovation budget is approximately $2.3 million. In addition to the $600,000 EIC contribution, the nonprofit will also request $400,000 in HOT funds (Hotel Occupancy Tax funds) which must be approved by City Council. The remaining $1.3 million will be raised through private philanthropy and donations.

Funding Sources

  • $600,000 from EIC (4b Sales Tax)
  • $400,000 from HOT funds (Hotel Occupancy Tax)
  • $1.3 million from private philanthropy and donations

Takeaways

  • EIC will contribute $600,000 in grants to the Arcadia project
  • The nonprofit that owns the Arcadia must meet certain milestones and performance requirements to “earn” the funding
  • Kerrville’s 4th on the River will seek an additional $400,000 in HOT funds
  • The entire renovation budget is $2.3 million, the remainder of which will be funded by private donations

Full Meeting Video