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Agenda Packet 02/09/2022 Jt Mtg EDC 4BTown of Trophy Club Special Joint Meeting Agenda Town Council & Economic Development Corporation­4B Board (EDC) 1 Trophy Wood Drive Trophy Club, Texas 76262 February 09, 2022 6:00 PM Council Chambers CALL TO ORDER BY MAYOR FLEURY AND EDC­4B DIRECTOR CLARKE PUBLIC COMMENTS This is an opportunity for citizens to address the Boards on any matter.  The Boards are not permitted to discuss or take action on any presentations made.  Presentations are limited to matters over which the Boards have authority.  Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer.  Each speaker must complete the Speaker’s Form to include the topic(s) to be presented or you may also email mayorandcouncil@trophyclub.org EDC­4B BOARD ONLY 1.Take appropriate action to Elect Officers  (President and Vice­President) to the EDC­4B Board. (W. Carroll) 2.Take appropriate action to approve the EDC­4B Board Meeting Minutes of November 29, 2021. (L. Vacek) JOINT MEETING WITH TROPHY CLUB TOWN COUNCIL AND EDC­4B BOARD: RECESS INTO EXECUTIVE SESSION 3. Pursuant to following designated section of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council and the Trophy Club Economic Development Corporation­4B will convene into Executive Session to discuss the following: Section 551.087 – Deliberate the Economic Development Negotiations regarding a commercial prospect within the Trophy Wood District for Potential Projects and Incentives. (W. Carroll)  RECONVENE INTO OPEN SESSION ­ ACTION TO BE TAKEN 4.  Take appropriate action to commission a Market Study Review and Assessment of Commercial Use Potential by Community Development Strategies not to exceed $32,000 for 5.4 acres EDC­owned property west and adjacent to HG SPLY.  (W. Carroll)  EDC­4B Board – Take appropriate action regarding Executive Session as necessary. Town Council  – Take appropriate action regarding Executive Session as necessary. ADJOURN Town Council Meeting to be adjourned. (Mayor Fleury)  EDC­4B Meeting to be adjourned. (Board President) One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code.  *THE BOARDS MAY CONVENE INTO EXECUTIVE SESSION TO DISCUSS POSTED ITEMS AS ALLOWED BY THE TEXAS OPEN MEETINGS ACT, LGC.551.071. CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on Tuesday, February 1, 2022 by 5:00 PM in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, Town Governance Officer/ Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance and reasonable accommodations will be made to assist you. 1 Town of Trophy ClubSpecial Joint Meeting AgendaTown Council & EconomicDevelopment Corporation­4BBoard (EDC)1 Trophy Wood DriveTrophy Club, Texas 76262February 09, 2022 6:00 PM Council ChambersCALL TO ORDER BY MAYOR FLEURY AND EDC­4B DIRECTOR CLARKEPUBLIC COMMENTSThis is an opportunity for citizens to address the Boards on any matter.  The Boardsare not permitted to discuss or take action on any presentations made.  Presentationsare limited to matters over which the Boards have authority.  Speakers have up to four(4) minutes or the time limit determined by the Presiding Officer.  Each speaker mustcomplete the Speaker’s Form to include the topic(s) to be presented or you may alsoemail mayorandcouncil@trophyclub.orgEDC­4B BOARD ONLY1.Take appropriate action to Elect Officers  (President and Vice­President) to the EDC­4BBoard. (W. Carroll)2.Take appropriate action to approve the EDC­4B Board Meeting Minutes of November 29,2021. (L. Vacek)JOINT MEETING WITH TROPHY CLUB TOWN COUNCIL AND EDC­4B BOARD:RECESS INTO EXECUTIVE SESSION 3. Pursuant to following designated section of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council and the Trophy Club Economic Development Corporation­4B will convene into Executive Session to discuss the following: Section 551.087 – Deliberate the Economic Development Negotiations regarding a commercial prospect within the Trophy Wood District for Potential Projects and Incentives. (W. Carroll)  RECONVENE INTO OPEN SESSION ­ ACTION TO BE TAKEN 4.  Take appropriate action to commission a Market Study Review and Assessment of Commercial Use Potential by Community Development Strategies not to exceed $32,000 for 5.4 acres EDC­owned property west and adjacent to HG SPLY.  (W. Carroll)  EDC­4B Board – Take appropriate action regarding Executive Session as necessary. Town Council  – Take appropriate action regarding Executive Session as necessary. ADJOURN Town Council Meeting to be adjourned. (Mayor Fleury)  EDC­4B Meeting to be adjourned. (Board President) One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code.  *THE BOARDS MAY CONVENE INTO EXECUTIVE SESSION TO DISCUSS POSTED ITEMS AS ALLOWED BY THE TEXAS OPEN MEETINGS ACT, LGC.551.071. CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on Tuesday, February 1, 2022 by 5:00 PM in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, Town Governance Officer/ Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance and reasonable accommodations will be made to assist you. 2 November 29, 2021 Page 1 of 2 TOWN OF TROPHY CLUB ECONOMIC DEVELOPMENT CORPORATION-4B (EDC-4B) November 29, 2021 Minutes The Trophy Club EDC-4B met on Monday, November 29, 2021. The meeting was held at Town Hall, 1 Trophy Wood Drive at 6 pm with the following present: MEMBERS: Michael Clarke Director Scott Haro Director Teri Addington Director Joseph Longo Director Michael Thomas Director MEMBERS ABSENT: Travis Inge Director John Mann Director STAFF PRESENT: Wade Carroll Town Manager David Dodd Town Attorney Mike Erwin Finance Manager PUBLIC COMMENTS No one attended to speak under Public Comments. CALL TO ORDER Director Clarke called the meeting to order at 6:15 pm and noted a quorum was present. EXECUTIVE SESSION The EDC 4B recessed into Executive Session at 6:15 pm. 2. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the ED 4B will convene into executive session to discuss the following: Section 551.087 – Deliberate the Economic Development Negotiations regarding a commercial prospect within the Trophy Wood District - Potential Projects and Incentives RECONVENE INTO REGULAR SESSION The EDC 4B reconvened into Regular Session at 8:55 pm from Executive Session. Director Clarke moved to instruct Town Staff to negotiate a Memorandum of Understanding with conditions as discussed in Executive Session, and to start the process for a Feasibility Study, and to schedule a Joint Meeting with the Town Council. Director Addington seconded the motion. The motion carried as follows: AYE: Clarke, Addington, Longo, and Thomas NAY: Haro ABSENT:Inge, Mann 1.Take appropriate action to approve the minutes dated July 7, 2021. (L. Vacek) Director Longo moved to approve the minutes as submitted for July 7, 2021. Director Addington seconded the motion. The motion carried as follows: November 29, 2021 Page 2 of 2 AYE: Clarke, Haro, Addington, Longo, and Thomas NAY: None ABSENT: Inge, Mann ADJOURNMENT The meeting was adjourned by Director Clarke at 8:56 pm. _____________________________________ ___________________________________ Wade Carroll, Town Manager Michael Clarke, Director Town of Trophy Club EDC-4B Page 1 of 2 To: Mayor and Town Council From: Wade Carroll, Town Manager CC: Leticia Vacek, Town Governance Officer/Town Secretary Re: Approve the proposed Market Study from CDS Special Joint Meeting Town Council and EDC 4-B January 19, 2022 Agenda Item: Consider and take appropriate action to commission the completion of a feasibility study by Community Development Strategies (CDS) not to exceed $32,000. Strategic Link: Infrastructure and Development: Foster a business friendly environment Administrative and Financial Services: Exercise fiscal discipline in all Town operations Background and Explanation: Staff is seeking the approval from both the Economic Development Corporation 4-B and the Town Council for the commissioning of a feasibility study for the 5.4 acres EDC owned property west and adjacent to HG SPLY. During the EDC meeting on December 29, 2021 the EDC gave direction to the Town Manager to seek out a feasibility study to review and verify the analyses and findings in a market study provided by the Elborai Group for a proposed project on the land described above. The study will also include a limited use study for the property and can be used for the EDC owned 3+ acre tract of land south of Town Hall and north of Trophy Table. Community Development Strategies was established in 1971 and is a leading national consulting firm headquartered in Houston, Texas, providing economic analysis, public planning, and market research services to clients in a wide variety of industries. They have worked with EDCs from around the country and the State of Texas including Austin, Amarillo, Arlington, College Station, Galveston, Garland and Sugar Land. The study will include an in depth look at the feasibility and economic longevity of the proposed development but will also give the Town a limited use study of the land owned by the EDC to ensure that this development meets that use. Council had previously stated that they would prefer to see a destination quality entertainment, restaurant or retail in those locations so a full highest and best use was not contracted which lowered the cost of the project. Page 2 of 2 The project fee is quoted at $28,500.00 plus reimbursable travel expenses not to exceed $2000.00 without client authorization. The report finding will be provided to both Council and EDC-4B in written form however if either would prefer a virtual meeting with CDS that would be arranged without additional charge. Financial Considerations: Funding is available in the EDC Budget. The expenditure will be charged to the Professional Outside Services line item ($15,000) and additional funds from the advertising line item ($35,000) will be moved over to cover the cost. This action is for approval of an item over $25,000. Legal Review: The Town Attorney has reviewed the contract and it is ready for the packet. Board/Commission/ or Committee Recommendation: The EDC 4-B requested the Town Manager have the feasibility and highest and best use study be completed. Staff Recommendation: Staff recommends approval of contract with CDS not to exceed $32,000 Attachments: CDS Proposal Town Council Approval: Mayor Alicia L. Fleury EDC 4-B Approval: ______________________ President of Trophy Club EDC 4-B PROPOSAL INDEPENDENT MARKET STUDY REVIEW AND ASSESSMENT OF COMMERCIAL USE POTENTIAL DESTINATION MIXED-USE SITE TROPHY CLUB, TEXAS Prepared for: TOWN OF TROPHY CLUB 1 Trophy Wood Drive Trophy Club, Texas 76262 Prepared by: CDS COMMUNITY DEVELOPMENT STRATEGIES 1002 S. Dairy Ashford Suite 450 Houston, Texas 77077 January 25, 2022 2 January 25, 2022 Wade Carroll Town Manager TOWN OF TROPHY CLUB 1 Trophy Wood Drive Trophy Club, Texas 76262 RE: PROPOSAL – INDEPENDENT MARKET STUDY REVIEW AND ASSESMENT OF DESTINATION COMMERCIAL USE POTENTIAL Dear Mr. Carroll: CDS Community Development Strategies (CDS) is pleased to submit this Proposal for performance of market research, analysis and consulting services to the Town of Trophy Club (the Town). Specifically, CDS is herein describing a research and analysis effort to accomplish two tasks: (1) independently review and verify the assumptions, methods, and findings of a set of market studies prepared in support of a proposed destination entertainment / retail / dining development in Trophy Club; and (2) independently assess the potential for unique and destination-quality entertainment, dining, and retail uses on the site of the proposed development and a contiguous adjacent site. BACKGROUND AND OBJECTIVE A developer has approached the Town for an economic development agreement to construct a four- story commercial development and structured parking facility on a 5.4-acre site with frontage on State Highway 114. The project concept consists of a family entertainment facility on the first floor, very high- end destination retail on the second and third floors, and a set of restaurants in a configuration similar to a food hall on the fourth floor. The structured parking facility could be shared with adjacent commercial and civic uses and is something the Town has been seeking to alleviate parking constraints in the area and permit customers to park on the corresponding level with their destination. The developer has provided a set of market studies corresponding to the discrete components of the project to support the assertion that each component will have sufficient demand at that site. The studies, however, do not address potential compatibility issues or beneficial synergies between the uses in this vertically mixed configuration. Before the Town enters into an agreement with the developer in question, it has asked for a proposal of services from CDS to provide independent verification of the analyses and findings presented in the developer’s market studies and some additional consideration of the interaction of the uses in the proposed concept. In addition, the Town would like CDS to perform its own market analysis to assess the potential for dining, retail, and entertainment uses that would be unique in the northwestern Dallas – Fort Worth metro region, be attuned to the tastes and consumption patterns of the affluent residents of Trophy Club and nearby suburban communities, and have a destination quality that would attract a substantial customer base from outside this immediate market area. 3 SCOPE OF WORK The Scope of Work will have two primary elements: the review and verification of the analyses and findings in the developer-provided market studies, and a CDS-generated analysis of the potential for desired destination retail / dining / entertainment on the developer’s site and an adjacent site. Independent Review of Developer-Provided Market Studies CDS will review the existing market studies to verify several aspects of their analyses and findings, including: 1. Existing Conditions • Market area – geographic definition, demographic trends and projections • Nonresident support – local employment and visitor traffic • Competitive sites – identification and performance evaluation of relevant existing and planned competitive locations to capture spending • Current spending – documentation of existing spending in relevant business categories 2. Demand Analysis • Estimation of potential market area resident spending in relevant business categories • Estimation of potential nonresident spending • Site competitive position – description of strengths and weaknesses of subject site in relation to competitive locations • Projections of spending capture by proposed project based on competitive position • Projection of supportable leasable space 3. Conclusions and reporting • Assessment of assumptions and analysis methodology • Assessment of likely impacts on conclusions if different assumptions or methodologies are indicated Independent Market Analysis CDS will prepare its own market analysis to determine potential support for the desired retail, dining, and entertainment uses on the developer’s site combined with an adjacent contiguous site. CDS will focus on space for business types that are unique or uncommon in the DFW metro area in terms of brand name and/or product offering, targeted to an affluent customer, and likely to be a destination for customers outside of Trophy Club and its immediately adjacent communities. The analysis will include the following components and methodology: 1. Economic and demographic context a. Define the Competitive Market Area (CMA) relative to the site’s location and nature of commercial uses under study b. Review population and socio-demographic trends and patterns for the CMA c. Estimate local non-resident population (employment, visitors) around the site that could support spending on retail, dining, and entertainment 4 d. Compile overview of economic trends and prospects for employment growth relevant to the CMA e. Document historical spending in relevant business categories in the CMA 2. Review and evaluation of relevant competitive supply of retail / dining / entertainment space a. Review historical, current and planned development of relevant uses in the CMA b. Document performance and trends in new construction such as occupancy, lease rates, and absorption as available c. Review the inventory and rental rates of competitive developments and locations d. Examine relevant case study examples elsewhere in the DFW metro area and Texas for indications of market performance, key location characteristics, and use/business mix 3. Estimate future demand for relevant potential uses at the site a. Convert population and employment characteristics into demand segments b. Analyze the current and anticipated supply and demand balances in the CMA, including “gap analysis” for relevant retail / dining / entertainment uses if applicable c. Forecast overall demand for retail / dining / entertainment uses in the CMA d. Estimate the share of future demand for retail / dining / entertainment space that can be captured at the subject site over time based on location characteristics e. Convert demand capture into projections of supportable leasable space f. Identify potential beneficial use / business mix synergies and design features 4. Reporting and presentation a. Organize the findings and results of the research program into a practical and useful format and prepare a fully illustrated report suitable to aid in development and financial planning b. Conduct a presentation of findings to the client and community members (see language regarding project fee below) DELIVERABLES Upon completion of the research program as described above, a written draft report (or separate reports for each main component of the Scope of Work) will be prepared for Town review. Following discussions regarding the findings, CDS will prepare a final electronic copy of the report(s). Hard copies will be made available at our cost of reproduction. FEE AND TIME QUOTATIONS Fees for professional services are based upon time allotted to the performance of various study tasks at our standard per diem rates. Based on the scope of work described addressing four real estate uses and our experience with similar assignments, the project fee quotation is $28,500.00 plus reimbursable travel expenses not to exceed $2,000.00 without client authorization. CDS would include up to four person-nights by CDS staff for field visits (one 2-night visit by 2 CDS staff persons or two 2-night visits by 1 CDS staff person per visit) to Trophy Club for research. This fee does not include an in-person 5 presentation of findings; such a visit would require a contract amendment including a separately invoiced fee of $3,750.00 per staff member attending in-person plus reimbursable travel expenses. A purely remote / virtual presentation of findings that does not require CDS travel is included in the base fee stated above and would not require a contract amendment to adjust the fee. Turnaround time for commencement and completion of the study will be related to our in-house production schedule at the time of assignment and is currently estimated at 8 to 10 weeks from the date work commences on the study, not including any intervening holiday periods. Projects are started and completed in the order in which contracts / retainers are received and dependent on the availability of staff time for commitment to the work. BILLING POLICIES CDS will issue an invoice for a retainer of one-half the contracted fees with written authorization to proceed. This invoice is due upon receipt. We are not obligated to start work or determine a completion date until both the contract, retainer fee, and credit check form (if applicable) are received. A final invoice for the balance will be issued upon delivery of the draft report. This invoice is due and payable upon receipt. All reimbursable expenses will be documented and included with the final invoice. CDS is not obligated to issue a final report document until payment of this invoice is confirmed. Payment timing is not affected by an elective review period. All reasonable and necessary corrections or revisions brought to our attention within 30 days of delivery of the report will be immediately addressed. Any requests for supplemental services, meetings or presentations not described herein will be considered additions to the scope and billed at our standard hourly rates. PAYMENT POLICY With written authorization to proceed, CDS will issue an invoice for a retainer of one-half the quoted fees. This invoice is due upon receipt. CDS is not obligated to start work or determine a completion date until both the contract and retainer fee is received. A final invoice for the balance plus any approved expenses will be issued upon delivery of the report. This invoice is due and payable within 30 days of client receipt and timing for payment is not affected by an elective review period. Any reasonable and necessary corrections or revisions to the report will be immediately addressed. The above fee incorporates the cost of professional and clerical time, overhead, processing and production of an electronic copy of the final report. Requests for supplementary services such as additional visits or presentations will be quoted separately. Fees associated with outside job services such as overnight delivery, etc. will be documented and submitted with the final invoice for reimbursement. QUALIFICATIONS OF CDS CDS Community Development Strategies was formed in 1971 to provide professional market and economic research and consulting services including market feasibility and market planning for real estate and economic development. The firm is staffed with professional market analysts and planners. Over 4,000 independent studies have been completed addressing a wide range of real estate issues for both public and private clients. Staff members are experienced in assessing market support and strategic 6 planning for development of all types of residential, commercial, industrial, recreational and mixed-use real estate properties throughout Texas and Oklahoma. The following is a partial list of CDS’ local government and civic organization clients: Action CDC Aldine Improvement District Andrews EDC Ardmore Development Authority Avenue CDC BAHEP Big Lake EDC Brays Oaks Management District Bryan Business Council Buffalo Bayou Partnership Central Houston City of Alice City of Alvin City of Amarillo City of Angleton City of Aransas Pass City of Arlington City of Austin City of Austin City of Bartlesville City of Bay City/EDC City of Baytown City of Bellaire City of Brenham City of Brownwood City of Cedar Hill City of Claremore City of Cleveland/EDC City of College Station/EDC City of Conroe/EDC City of Corpus Christi/EDC City of Cuero/EDC City of El Paso City of Friendswood/EDC City of Fulshear City of Galveston City of Garland City of Georgetown City of Houston City of Hurst City of Lake Jackson City of LaPorte City of Laredo City of League City/EDC City of Lewisville City of Lufkin City of Mesquite City of Mexia City of Missouri City City of Mont Belvieu City of Nassau Bay City of New Braunfels City of Oak Ridge North City of Pasadena / Second Century City of Pearland/EDC City of Pflugerville City of Plainview City of Ponca City City of Rockdale City of Rosenberg EDC City of San Angelo City of San Angelo City of San Angelo Development Corporation City of San Juan City of Seabrook City of Sugar Land City of Temple City of Texas City City of Tulsa/EDC City of Waller Downtown Midland Association Downtown Oklahoma City, Inc. East Downtown Management District East End District East Montgomery County Imp. District Economic Development Alliance of Brazoria County Energy Corridor Management District Enid Regional Development Authority Fifth Ward Redevelopment Fort Bend County Fort Worth Housing Authority Grand Parkway Association Grayson County Greater Houston Builders Association Greater Houston Partnership Greater Southwest Houston C of C Gulf Coast Rail District Harris County Community Services Department Harris County Toll Road Authority Housing Authority City of Houston Houston Community Development Houston Downtown Management District Houston Galveston Area Council Houston Housing Finance Corporation Houston Parks Board Houston Southeast District 7 Katy Area Economic Development Corp Katy Independent School District Lawton Fort Sill Chamber of Commerce Main Street Corridor Coalition Memorial District METRO Midtown Redevelopment Authority Montgomery Area Chamber Neighborhood Recovery North Harris County College EDC North Houston Association North Houston District Odessa Development Corporation Oklahoma City Urban Renewal Authority Port Arthur Downtown Renewal Pryor Area Chamber of Commerce Spring Branch Management District Sweeny Independent School District Sweetwater MDD The Woodlands Township Parks and Recreation Tomball EDC TxDOT United Methodist Church United Way / Grayson County Uptown Houston District Urban Land Institute West Houston Association Westchase District Wharton EDC GOVERNING LAWS FOR BUSINESS AGREEMENTS • The signed proposal for services acts as the business Agreement between CDS Community Development Strategies (CDS) and Client entities thereto signed. • Upon receipt of a signed agreement, CDS may conduct a standard customer credit review. Results of this review could affect payment terms prior to release of a final report. • New Clients are asked to provide accounts payable contact information for our files. • CDS studies are independent and objective and may return findings that do not support the Clients stated or unstated objectives. • CDS will use its professional qualifications, experience and efforts to provide an objective report based on the data and methodologies it commonly uses for this type of project. CDS does not warrant or guarantee the success of client’s project. CDS’ and its affiliates’ sole and only liability and/or damages under this Agreement is limited to a refund of the fee paid by client. IN NO event will CDS or its affiliates be liable for indirect, consequential, special or punitive damages. • Retainer payments are non-refundable deposits to proceed with a study. • Payment of invoiced amounts are in no way dependent on the decision of the Client or any third party to proceed with a project or to secure funding or financing for a project regardless of whether the study is for purposes of deciding whether to proceed or to secure financing. • The only obligations are between parties explicitly named in the agreement and who have executed the agreement. CDS is not obligated in any way whatsoever to any party not named in the agreement who may act or fail to act whether directly or indirectly on the study. • Final payment is due upon receipt. All past due invoices will accrue interest at 1.5 % per month. • In the event of default in payment, Buyer shall pay all costs of collection incurred by Seller to collect such payment, including but not limited to collection agency fees, attorney’s fees, legal expenses and court costs. • The study is and shall remain the property of CDS until all outstanding invoices are paid. 8 • This Agreement is entered at arm’s length and shall be governed by and construed in accordance with State of Texas laws. If any provision of this Agreement is determined to be unenforceable according to such laws, that provision shall be severed from the remainder of the Agreement which will remain in force. The State of Texas shall have jurisdiction over the parties and all claims and causes of action related to this Agreement and venue shall lie in Harris County, Texas. • This Agreement supersedes any other agreements verbal or written related to the matter and can be modified only in writing signed by all parties to the Agreement. CONFIDENTIALITY CDS reports are proprietary and results will be held in confidence as required. There are no restrictions on client use of information provided in the reports. AUTHORIZATION OF THE WORK If the arrangements described above are satisfactory, please sign and return a copy of this proposal agreement as our formal authorization to proceed. CDS staff members are looking forward to the possibility of working with the Town of Trophy Club. Respectfully submitted, Steven R. Spillette ACCEPTANCE: President BY: FOR: DATE: Accounts payable contact name: _______________________________________________________ Email address: _____________________________________Telephone number: ______________________