Tag 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.

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

Council appoints new members to EIC

At the end of the regular meeting of the Kerrville City Council on Tuesday, May 28, the council adjourned into executive session, which is a closed portion of the meeting that is allowed for certain types of deliberations. Upon returning to regular session, the council appointed members to the Economic Improvement Corporation, or EIC, the city board responsible for overseeing the 4B sales tax revenues that are collected on all taxable purchases made within the city limits.

Kent McKinney was appointed to serve a second two-year term on EIC, and new members Danny Almond, Greg Richards, and Aaron Yates were appointed to their first two-year term on the board. Notably, the council chose not to appoint a council member to the EIC, although there has been a council member as part of this board for the past several years.

These new members will take their place on the EIC at the next regular meeting on Monday, June 17. The EIC meets every third Monday at 4:00 PM in City Council chambers.

The EIC has supported several notable projects in recent years, including the River Trail, the Sports Complex, the HEB Tennis Center, and numerous others. The board considers projects that support economic development for the City of Kerrville.

Author’s Note

Your author, Aaron Yates, is one of the members appointed to the EIC on Tuesday evening. I am truly humbled and honored to have the opportunity to serve our city by sitting on this very important board. I look forward to working with board president Kenneth Early, the other board members, and city staff to consider projects that will improve the lives of our neighbors and friends in Kerrville.

When I was interviewed for this position, I told council members that one thing that I pledge to do as an EIC board member is work to improve “public relations” between the board and the residents of Kerrville. Using Kerrville United as my platform, I plan to post regular updates about the projects that the EIC considers, and take your questions as those projects make their way through the process that includes city staff, EIC members, and city council.

I look forward to sharing my experiences with you in future postings.

Authored by Aaron Yates, founder of Kerrville United

Council Agenda for May 28, 2019

The Kerrville City Council will convene after Memorial Day on Tuesday, May 28, 2019, at 6 PM in council chambers at City Hall. A busy agenda will be waiting for council as the newest members participate in their second full meeting following the May 4 election. Here’s a look at some of the items on the agenda for Tuesday night.

HEB Conditional Use Permits

The new grocery store that is planned next to the existing HEB grocery on Highway 27 will need a couple of Conditional Use Permits (or CUPs) to facilitate their overall plan. The first is a CUP near the west end of the property so that a gas station, car wash, and convenience store can be constructed. The second is a CUP for a parking lot on the northeast corner of Jefferson and Hayes Streets.

CUPs to be considered at Tuesday’s meeting.
Site plan for proposed HEB grocery store and gas station.

Public hearings for each of these CUPs will be held on Tuesday night.

Amending Alcoholic Beverage Code

Council will vote on the first reading of an ordinance to amend and clarify the rules regarding the regulation of sales of alcoholic beverages. Under this proposed ordinance, sales of alcohol would be prohibited in all residential zones, prohibit sales within 300 feet of a church, school, or hospital, and would provide for a variance request process. This ordinance also establishes the city’s fees for opening an alcohol sales location at 1/2 of the TABC license fee.

Depth of Field Photo of Two Pilsner Glasses

These rules are already in place, for the most part, but this ordinance will clarify and extend the rules to cover these additional stipulations regarding churches, schools, hospitals, and residential neighborhoods. The City of Kerrville has regulated alcohol sales since 1933.

Annexation for KISD’s new Peterson Middle School campus

The second and final reading of an ordinance to annex approximately 35 acres along Loop 534 will be held. Assuming it passes successfully, this will officially annex the property that is planned to be used for the new Peterson Middle School campus across from Tivy High School, and along the proposed extension of Olympic Drive.

35 acres to be considered for annexation for KISD’s Peterson Middle School.

At the first reading of this annexation ordinance on May 14, Mayor Bill Blackburn cast the lone “no” vote, but the first reading passed 4-1. Mayor Blackburn noted that he was voting against the annexation because the city had not received a traffic study or impact study to show how the traffic will be affected. Drew Paxton noted that the traffic study was still being completed, and Deputy City Manager EA Hoppe said the study would be complete in June.

As part of the packet of information for this second reading of the ordinance, a letter from KISD Superintendent Dr. Mark Foust is attached, and he shares excerpts of a traffic report that the district commissioned. The excerpt notes that approximately 50% of the students at the new Peterson Middle School will be bused, and 50% will be dropped off by a parent or relative. Approximately 1/3 (~300 students) would use the new Olympic Drive extension.

Appointments to EIC

Council will appoint or re-appoint members to the Economic Improvement Corporation (or EIC). The EIC is responsible for the 4B Sales Tax revenue that is collected for economic development. A total of approximately $3 million per year is collected and distributed for various projects supporting economic development, including quality of life projects such as the River Trail and Sports Complex, among others.

Four members’ terms expire on June 1, including Gary Cooper, Kent McKinney, Robert Naman, and Delayne Sigerman (City Councilperson Place 4). All are eligible for reappointment, as the board members serve two-year terms with a maximum of two consecutive terms.

This item is eligible for executive session, meaning council could adjourn to private quarters to discuss the applications and appointments.

Where to Watch

The city council meeting can be watched live at the City of Kerrville’s live streaming page below.

http://player.frontlayer.com/live/fl518492

References

Full Agenda Packet

Olympic Drive developments dominate Tuesday night’s city council agenda

The Kerrville City Council will convene on Tuesday night for the last regular meeting before Election Day 2019. Several items on the agenda pertain to the planned development along Loop 534 and the extension of Olympic Drive to facilitate the construction of the new Peterson Middle School campus planned by Kerrville Independent School District.

A portion of 35 acres will be considered for annexation into the city limits. The property’s proposed zoning is “PI” or Public & Institutional District.

The council will also consider a funding agreement with the EIC. Under the proposed agreement, KISD would pay for approximately 50% of the costs of extending Olympic Drive to Loop 534, and the district would also pay for approximately 75-80% of the costs of the utility extensions. The EIC portion would be approximately $1.05 million. The EIC approved this agreement on April 15. The funds would come from 4B sales tax revenue, which is mandated by state law to be used for economic development projects such as this.

An interlocal agreement between KISD and the City will also be considered to help facilitate the project. In November, KISD voters approved a bond issue of roughly $89 million for the construction of Peterson Middle School as well as for improvements to other campuses within the district. That bond election passed with a 65%-35% margin.

Engineers estimate the total cost of the Olympic Drive extension to be $2 million and the sanitary sewer extension to be $234,000.

The full agenda and packet for Tuesday night’s meeting can be downloaded here:
http://kerrvilletx.granicus.com/DocumentViewer.php?file=kerrvilletx_ecc479cb6769675dbf1c8e46d23df238.pdf&view=1

Economic Improvement: What has EIC funded in the past five years?

Recently the Economic Improvement Corporation (EIC) had an opportunity to review all of the projects it helped fund in the previous five years. The EIC approves and recommends projects to the city council, who then approve them again and provide funding. The money comes from 4B sales tax revenue — in Kerrville it’s a 1/2 cent tax approved in 1995 that generates around $3 million per year.

In the last five years, here’s the breakdown on the types of projects:

  • Economic Development – $2,312,924 – 26%
  • Quality of Life – $3,740,170 – 42%
  • Infrastructure – $2,869,683 – 32%

TOTAL: $8,922,777

Here’s full list of projects from 2010 to 2015.
Continue reading