MINUTES AND CERTIFIED AGENDA

SUNNYVALE 4A DEVELOPMENT CORPORATION

REGULAR MEETING

SEPTEMBER 20, 2007

7:00 P.M.

THE SUNNYVALE 4A DEVELOPMENT CORPORATION HELD A SPECIAL MEETING ON SEPTEMBER 20, 2007, AT 7 P.M. IN THE COUNCIL CHAMBERS OF THE SUNNYVALE TOWN HALL, 127 COLLINS ROAD, SUNNYVALE, TEXAS UNDER V.T.C.A., GOVERNMENT CODE SECTION 551.041. THOSE PRESENT WERE:

PRESIDENT BILL WHITEHURST

VICE PRESIDENT JIM WADE

MEMBER PAT WILEY

MEMBER DANNY ALLEN

MEMBER LAWRENCE BOYD

· CALL MEETING TO ORDER

President Whitehurst called the meeting to order at 7:00 p.m.

· APPROVAL OF MINUTES FROM REGULAR MEETING OF AUGUST 23, 2007

Motion was made by Member to approve the regular minutes of August 23, 2007. Motion seconded by Member Motion carried 4/0.

· PUBLIC COMMENT PERIOD: PERSONS MAY ADDRESS THE SUNNYVALE 4A DEVELOPMENT CORPORATION BOARD ON ITEMS NOT ON THE AGENDA. PLEASE OBSERVE THE TIME LIMIT OF THREE (3) MINUTES. THE CORPORATION AND ITS DIRECTORS CANNOT COMMENT OR DELIBERATE ITEMS OF PUBLIC COMMENT.

David Rains, 337 New Hope Road, updated the Board on the project of Town East and Beltline Road stating installation of utilities was now complete. He further stated that CVS is going up and due to the two and a half months of rain, the project fell behind; and that the opening date for CVS is mid February. Mr. Rains stated that the challenge was getting the foundation in due to the rain, and that sheet rocking was being installed and everything was progressing well. President Whitehurst stated that he has heard nothing but positive comments and excitement about the project. Mr. Rains further stated that he has sold to a strip shopping center two acres on the other side of CVS. He stated that he had pledged an attempt to bring a bank to Sunnyvale, he was maintaining a 50,000 square foot parcel next to the CVS; and he knew there was some interest from a Super Regional and a National Bank, and he hoped to generate more interest from other banks. Mr. Rains also reported that he felt a shopping center will be started by someone else in the next 90-120 days when they get the plans together, which would leave three (3) acres on the backside to be developed.

There were no other public comments.

· PRESENTATIONS:

1. INTRODUCTION BY PROFESSIONAL BANK OF THEIR INTEREST IN

LOCATING BANK DEVELOPMENT IN SUNNYVALE WITH

REQUEST FOR ASSISTANCE AND INCENTIVES

James Miller, 3627 Glenbrook, Garland, stated that he had been aware of Sunnyvale for a long time; and he is a life long Garland resident. He stated that his father was an electrical contractor and did many jobs in Sunnyvale and he knows the area and has been looking at places for his institution to expand. Mr. Miller stated that he has earmarked several areas in Town from a coverage area and opportunity standpoint, and that the Eastern side of Dallas County has been an interest of his for sometime. The bank is three years old and it started in Lakewood by a Community in Lakewood. The bank was purchased by City Group and spent the last two years building it up to a $90,000,000 institution. Mr. Miller stated they have banks in Garland and in the Park Cities. His interest and desire is to look at small business, business independent individual entrepreneurial type people that in experience especially with the big banks it is harder for them to get the service that they need. Mr. Miller stated that he builds a platform of banks that he thinks will do well for this environment, and that these are built specifically to do these kinds of things in these kinds of communities. He explained that the biggest attraction is that the community has an identity and people seem to connect with this idea and I know Sunnyvale is an independent community. He stated that he understood from speaking and spending a little time with some of the officials, that the Town is poised for significant new growth, specifically retail, medical and commercial business; and that these are the types of business that the bank would focus. Mr. Miller further explained that he has an interest in the professional medical community and is definitely poised to serve independent entrepreneurial type business people, which he understands are prevalent in Sunnyvale. He stated that he does have a couple of lifetime customers in Sunnyvale, and the Bank would like to find a way to grow with this Community and he looked forward to the next few weeks as this things would start to develop.

President Whitehurst asked James Miller, Professional Bank if he had a timeline, James Miller responded he would like to have the bank done by the first quarter.

2. INTRODUCTION BY SCHRAMM AMMO AND WEAPONS OF ITS

INTEREST IN LOCATING IN SUNNYVALE WITH REQUEST FOR

INCENTIVES

Jeff Schramm explained the brief history of the Schramm Ammo and Weapons stating it was started in 1991 in Dallas and has been in Mesquite for the past eight years. He explained that the business had grown and he had gross revenue of four million dollars and that sales tax revenue in the last twelve months was around $300,000. He stated that he would like to open a new store in Sunnyvale to be located at Collins Corner, which was being built by Rob Parades.

President Bill Whitehurst asked Mr. Schramm if he could be more specific on what he actually sells. Mr. Schramm stated that his is a retail firearm store and has large followings with the local police department.

President Bill Whitehurst asked if the general public would be able to purchase firearms for sporting use, and Mr. Schramm stated that this was correct. Mr. Schramm further stated that his average sales receipt is approximately $465.00 and he not does deal in low-end firearms. He stated that the average income of the area he would like to locate in Sunnyvale is approximately 81,000.000 versus the average household income in Mesquite at about $33, 000.00, and Sunnyvale would be a better location for his business.

President Bill Whitehurst asked what would be the size of the facility, and Mr. Schramm stated it would be 2400 square feet, with approximately five (5) employees.

Bill Whitehurst asked Mr. Schramm if there was any specific issues the board could address. Mr. Schramm stated he had called and talked to Pam Mundo and was still waiting to hear back from the Town staff regarding zoning and any licensing issues.

Scott Campbell, Town Manager stated that he spoke with Ronnie Cox, Director of Development, and found that some industry standards suggest gun sales may be allowed under the guise of sporting goods, but it was not expressly listed as an allowed use in the Town Zoning Ordinance. Mr. Whitehurst requested that the staff convey whatever information on the zoning and any licensing issues back to Mr. Schramm.

3. INTRODUCTION BY COTTONWOOD PARTNERS IN THE

DEVELOPMENT OF A HOSPITAL AND REQUEST FOR INCENTIVES

No presentation was given.

4. DISCUSSION OF RECENT ECONOMIC DEVELOPMENT LEGISLATION

BY WALT MCCOOL

Mr. Whitehurst stated that 4A Attorney, Walt McCool was trying to make it to the meeting, and recommended tabling the item until after executive session. No presentation was given.

· DISCUSSION/ACTION ITEMS:

5. APPROVAL OF THE BUDGET FOR 2007-2008 FISCAL YEAR

Pam Mundo, Economic Development, presented the 4A Board with an overview of the

budget for the fiscal year 2007-2008. Discussion was held between the

4A Board and the Town Staff on the Fiscal Year 2006-2007 budget proposals.

Pam stated that the Board had the year to date spending report and the proposed budget for 2008, which was the same document presented to the Board in June. She stated that the finance director as in attendance. Mrs. Mundo stated that the year to date report projected revenues for the year would likely exceed the budgeted amount, and we were proposing an increase in revenue for 2008. She stated that revenues for the year would exceed expenditures, and the ending balance for the year would be approximately $2 million. She stated the capital improvements included committed expenditures regarding Marrazi tile, Hwy 80 bridge, CVS, and the Parades projects totaling 1.6 million, with an ending balance of 898,000.

Jim Wade asked for explanation on the year-end projections, stating that they indicated September expenditures in excess of $100,000. Mrs. Mundo stated that expenditures for September would not be that high. Mr. Wade stated that the year-end projections should be revised to better reflect our anticipated expenditures for September, and that our fund balance would be more accurately depicted with these revisions.

Larry Boyd asked questions about the marketing line items and the projected year-end figures shown. Mr. Wade stated that our fund balance will be closer to $1,000,000 rather than 898,000. Mr. Boyd stated that we need to be sure not to overstate revenue with our end of year projections.

Finance Administrator, Dave Cranford, stated that he did have some outstanding invoices, but did not anticipate they would be at all at the $100,000 amount, stating that he had been very conservative and believes that there is probably outstanding expenditures of $10,000. Larry Boyd asked for an explanation of these expenditures. Mr. Cranford explained that this included two months of Ms. Mundo’s salary and some miscellaneous invoices.

Mr. Wade stated that the administrative services charge was higher than he had hoped. Mr. Whitehurst asked how much time there was to revisit this budget. Town Manager, Scott Campbell stated that the budget would be considered the following Monday and recommended the board resolve the questions at the current meeting, or call a special meeting. Pam Mundo stated that she felt the year end projections seemed to be the real question, and she felt we could get it resolved tonight. Mr. Wade stated that the $12,000 administrative services line item, $15,000 engineering line item, $30,000 legal services line items, and $50,000 in professional and it was not clear where these funds were allocated. Mrs. Mundo stated that she could review each line item in the budget if the board would like. Mr. Wade suggested more time was needed to look at these items.

President asked if the board wanted to call a special meeting or go through each item one by one tonight. Mrs. Mundo suggested that the items were not very complex and she felt we could address any questions on specific line items at the current meeting. She stated that these were the same figures presented at the June meeting and no suggestions or comments had been received and the line items were not altered since that meeting. Mr. Wade asked for explanation on the capital expenditures and Mrs. Mundo stated that were listed as a footnote on the last page of the budget. Town Manager. Scott Campbell, stated that the administrative services line item was discussed at the June meeting, and it was a common line item in other municipality’s 4A budgets ranging from $10,000 to $50,000. He further stated that the $12,000 charge was only the staff’s recommendation and it could be taken out if the Board wanted to do so.

Mrs. Mundo explained that these line items were not authorization for expenditures, but only a general plan. She stated that the actual expenditure of funds would have to be approved by the Board. Mr. Boyd stated that we should not be including certain numbers just to make the number add up. Mrs. Mundo stated that was not the intention, and the strategic plan also needed consideration at the current meeting as it corresponds to the proposed budget. Mr. Boyd stated that it appeared the line item for web site maintenance increased $1500.00, and asked if we were anticipating a large bill as we had only spent $540 to date. Mr. Wade suggested that we were actually at the same operating budget as the prior year when excluding the capital project funds already committed.

Mr. Boyd stated that he would like to see the reports currently before the board on one sheet, rather than two separate sheets that do not correspond. Mr. Boyd asked if the staff could provide the board a monthly report for the board. Scott Campbell stated that this was already being prepared and he had incorrectly assumed that the 4A board was receiving this, and it would be provided. Jim Wade suggested that the Town Council be provided a budget with category totals, rather than the category breakdown by line item, and that the figures were not as far off as they appeared. He asked Mr. Campbell if that was possible. He stated that staff could present it to the Council any way the Board would like but would be obligated to show the breakdown if it were requested by the Council. Mr. Campbell stated he felt the Board could amend any numbers in the proposed budget at the current meeting and make those changes before presenting the budget to the Council. Pam Mundo suggested the budgeted be amended to reflect year-end budget expenditures at no more than $273,000. Mr. Wade suggested the staff revise the year-end projections to better support the proposed expenditures.

Mr. Wade made a motion to make a recommendation to the Council for the adoption of the fiscal year 2008 budget as presented by the staff in a total amount of revenues of $520,000 and expenditures of $1,650,000 and that the budget be shown by major category rather than line item. The motion was seconded by Mr. Wiley and passed unanimously.

6. UPDATE AND APPROVAL OF THE STRATEGIC PLAN

Pam stated that the Board had a copy of the update plan representing various strategic goals, and reviewed the plan for the Board. Mr. Whitehurst stated that this was the plan that was agreed to at the June meeting, and that the report did not included anything not discussed previously. Mr. Wade asked if there was a specific location for a billboard, and if the $7,000 spent this year was for a billboard or other advertising. Mrs. Mundo stated that it was for advertising, but not a billboard. Mr. Wade asked for the cost of a billboard. Mrs. Mundo stated that a billboard may be much more than $7,000, however she thought it was important to at least have a line item for such an expenditure, and the location would dictate the cost.

Mr. Wiley made a motion to approve the strategic plan as read, and was seconded by Mr. Allen. The motion passed unanimously.

7. CONSIDER AUTHORIZING PAYMENT OF THE INCENTIVE GRANT

TO AMERICAN MARAZZI TILE FROM RESERVES OR FINANCING

OF THIS AND OTHER ECONOMIC DEVELOPMENT AGREEMENT

COMMITMENTS

Pam Mundo explained that the board had a copy of a spreadsheet indicating 4A commitments that had been executed and paid, and what agreements are outstanding. She explained that the 4A attorney was in the process of presenting the agreement to Marazzi Tile and she anticipated a payment in October. She stated that 4A had a balance of $2 million and commitments of approximately $1.3 million, and remaining funds of approximately $700,000. Mrs. Mundo further stated that the board had established a strategic goal of maintaining $500,000 in the bank. She explained that the commitments included the pledge to Marazzi Tile and the Hwy 80- bridge, and if cash payments were made on each of these it would leave remaining funds of $692,000.

Mr. Wade made a motion to authorize the payment of the incentive grant to American Marazzi Tile out of reserves when it is due. The motion was seconded by Danny Allen and passed unanimously. Mr. Wade explained to the audience that he was opposed to borrowing money until there was a true need to borrow money, and with over $2 million in reserves he did not think we needed to borrow money.

8. PLANS FOR BUSINESS BREAKFAST ON THURSDAY OCTOBER 25.

Pam Mundo recommended the date for the business breakfast as Thursday October 25, and there was consensus to do this. Mrs. Mundo stated that State Representative, Thomas Latham, and State Senator Bob Deuell were planning on attending and speaking at the event. Jim Wade suggested recommended that Dallas County Commissioner Mike Cantrell be invited to the breakfast as well.

Danny Allen made a motion to finalize plans for the business breakfast for October 25^th to include our State representative and Senator, and Commissioner Cantrell. The motion was seconded by Jim Wade and passed unanimously.

President Whitehurst announced adjournment into executive session pursuant to section 551.087, 551.071, and 551.074 of the Government Code.

· EXECUTIVE SESSION

9. PURSUANT TO SECTION 551.087 OF THE TEXAS GOVERNMENT

CODE TO DISCUSS AND DELIBERATE COMMERCIAL OR

FINANCIAL INFORMATION FROM A POTENTIAL BUSINESS

PROSPECT THAT THE BOARD IS SEEKING TO LOCATE OR EXPAND

IN THE TOWN; TO DELIBERATE THE OFFER OF FINANCIAL OR

OTHER INCENTIVE TO A BUSINESS PROSPECT

10. PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT

CODE TO CONSULT WITH THE ATTORNEY FOR THE SUNNYVALE

4A DEVELOPMENT CORPORATION ON MATTERS FOR WHICH THE

ATTORNEY'S DUTIES CONFLICT WITH THE TEXAS OPEN

MEETINGS ACT.

11. PURSUANT TO SECTION 551.074 OF THE TEXAS GOVERNMENT

CODE TO DISCUSS PERSONNEL (CONTRACT FOR ECONOMIC

DEVELOPMENT CONSULTING SERVICES WITH MUNDO AND

ASSOCIATES)

· CONSIDER ANY ACTION AS A RESULT OF THE EXECUTIVE SESSION

No action was taken as a result of executive session.

· ADJOURN

President Bill Whitehurst adjourned the meeting at 9:35 p.m.

The undersigned presiding office certifies that this is a true and correct record of the proceedings.

____________________________

President, Bill Whitehurst

ATTEST:

__________________________

Kathryn Dewey, Town Secretary

A TAPE RECORDING OF THIS MEETING IS ON FILE AT TOWN HALL. THESE MINUTES ARE CONDENSED THEREFROM