~ g,~ k'06 1. 3 J , 3 COMMISSIONERS' COURT AGENDA REOUEST MADE B MEETING DATE: August 28, 2006 TIME PREFERRED: 9%tS SUBJECT: Report from the Kerr Economic Development Foundation. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON] NAME OF PERSON ADDRESSING THE COURT: County Judge/Guy Overby ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday. THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. KERR ECONOMIC DEVELOPMENT FOUNDATION (I~DF) ECONOMIC PROJECT UPDATES TO KERR COUNTY COMMISSIONERS 9:00 A.M. MONDAY, AUGUST 28~ @ KERB COUNTY COURTHOUSE 1. KEDF Budget Comparison Report for July 2006 2. Kerrville/Ken• County Business and Economic Delegation visit to Washington D.C. September 20"' thru 22"d. Request for a representative from the County to be a part of the Delegation to Washington. 3. Presentation on the Economic Impact Analysis Study on the Downtown Redevelopment of the Existing SPMH facility. This report will provide an estimation of the direct and indirect economic benefits to Kenville/Kerr County. KEDF has encouraged one our economic partners the "City of Kerrville" to discuss and review this opportunity as a possible option to locate their offices in the Guy Griggs Professional Building. 4. Other Project Updates will include: • TxDot Projects- Sidney Baker/Highway 16, Holdsworth Drive and opening of Spur 98 Bridge. • USDA Knipling-Bushland Reseazch Laboratory updates for the Retention/Expansion Project in Kenville/Kerr County. • EIC Updates from Monday, August 21 ~` • Airport Business Commerce Pazk Activity Fa112006 • Economic Development Strategy for Kenville/Ken• County • Other projects Invitation to attend our annual KEDF Full Board of Directors meeting with Kerr County Commissioners and Kemille City Council. The annual meeting is scheduled to begin at noon, Thursday, September 14`^ at the KPUB Conference Room, 2250 Memorial Boulevard. Fi~st`we work-then we play. 1700 Sidney Baker, Suite 200 #4 Kerrville, Texas 78028 (830) 896-1157 Business (830) 896-1175 Fax Email: information@kerredf org Website: www.kerredf.org ECONOMIC DEVELOPMENT FOUNDATION Pending Royce's Approval trCer~ Fc®¢aoeroic ®eveloprelent Foundation budget Comparison F~e~aort For the Period through 07/31/06 Budget Ac4ual Budget ActuaY 43udget Last Ye. Amt. Amt_ YTD YTD Annual YTD Jut. '06 Jul. '06 Jul. '05 REVENUE: KERR COUNTY - - 15,000.00 15,000.00 15,000.00 15,000.00 CITY OF KERRVILLE - 15,000.00 15,000.00 15,000.00 15,150.00 PUBLIC CONTRIBUTORS - - 20,000.00 20,000.00 20,000.00 20,000.00 PRIVATE BUSINESS - 750 00 50,000.00 36,450.00 50,000.00 32,400.00 EIC - - 8,000 00 8,000 00 - INTEREST EARNED - 132.76 - 1,193.84 - 868.03 TOTAL REVENUE: XPENDITURES: - 882.76 108,000.00 87,643.84 108,000.00 63,418.03 ADMIN. PAYROLL DEPOSITS 350.00 318.75 3,800.00 3,459.84 4,500.00 3,492.50 SALARY/RELATED 4,166.66 4,166.67 43,666.68 43,758.70 52,000.00 42,166.70 OFFICE LEASE 600.00 600.00 6,000.00 6,000.00 7,200.00 8,000.00 INSURANCE - W/C 8. D!O 2,350.00 - 2,850.00 2,039.03 2,850.00 2,250.03 POSTAGE 83.33 - 833.30 190.02 1,000.00 230.00 PRINTING - - 750.00 250.00 1,000.00 1,470.41 OFFICE SUPPLIES 62.50 89.69 625.00 1,237.94 750.00 1,207.80 TELEPHONE & CELL 250.00 220.01 2,500.00 2,739.18 3,000.00 - RETIREMENT PLAN - - 1,560.00 1,560.00 1,560.00 - BOARD EXPENSE 41.67 - 416.70 121.25 500.00 419.94 LEGAUACCOUNTING - - 3,000.00 9,368.75 3,000.00 4,991.81 DUES/SUBSCRIPTIONS - 23$.00 1,925.00 9,582.00 1,500.00 1,456.00 AUTO ALLOWANCE 208.33 772.12 2,083.30 2,575.70 2,500.00 1,761.56 TRAININGlGOVERNMENTREU~- - - 8,000.00 262.55 S,DOO.OD 1,105.09 IARKETiNG INTERNETANEBSITE 275.00 - 2,750.00 3,475.00 3,300.00 1,519.90 ADVERTISING 403.33 - 4,033.30 9,199.75 4,840.00 592.34 BUSINESS ATTRACTION 333.33 17.46 3,333.30 1,752.51 4,000.00 2,767.57 BUSINESS EXPANSION/RETENT 549.67 31.59 5,416.70 2,581.99 6,500.00 2,668.36 TOTAL EXPENDITURES: 9,665.82 6,454.29 92,74328 76,15421 10$,000.00 76,100.01 NET (9,665.82) (5,571.54) 15,256.72 11,489.63 - 7,318.02 8/3/2006 9:52 AM --6- 8/03/2006 1Kerr Ecowornic Dev_ ;Fare. 09.34 57 AM BALANCE S?F1EET Ju9y 31, 2006 ASSETS dRESTRICTED FUND Checking Account ~ 2,958.48 Money Market 36,708.78 Money Market #2 59,002_ IZ Equipment 4,611.45 TOTAL UNRESTRICTED FUND ~ 103,280.83 TOTAL ASSETS ~ 103,280 83 J03/2006 9Core- Economic Dev. )H'due. 09:34:57 AM BALANCE SgIEET July 31, 2006 LIABILITLES AND FUND BALANCE °"tPID BALANCES Fi1ND BALANCES Fund Balance (Central) $ 56,907.09 Equity 34,884.12 TOTAL FiJND BALANCES ~ 91,791.21 EXCESS OF SUPP AND REV OVER EX 11,489.62 TOTAL Fi.JND BALANCES $ 103,280.83 TOTAL LIABILITIES AND FUND BALANCE $ 103,280.83 ------------ Fags --5- ICERRVII,LE/I~RR COUNTY BUSINESS AND ECONOMIC PARTNER TRIP TO WASHINGTON D.C. SEPTEMBER 20- 22, 2006 The Kerr Economic Development Foundation and economic partners will travel to Washington D.C. on September 20'" thru the 22°d to visit with our national elected officials. This trip is very important to Kenville/Ken• County citizens as we continue to build and develop business and economic relationships with our elected officials. We all are aware that our local USDA Laboratory is in the middle stage of receiving the funding from Congress on the building of a new facility in Kerrville/Kerr County. This project has already had the feasibility study funded and completed in 2006 for a new laboratory and also the recommendation of funding for the design and engineering for the project in 2007. Congressman Henry Bonilla has been very instrumental in efforts for obtaining funding for the development of a new laboratory in Kenville/Kerr County. On August 4, 2006 a court decision to realign the Congressman's territory was approved to not include Kerr County with four other counties in Bonilla's district. Kerr County was again appointed to Congressman Lamar Smith's district who once served as our Congressman before Bonilla. Smith will begin his term pending election in 2006 effective January 1, 2007. This delegation's trip has many key objectives to accomplish for business and economic efforts for Kerr County. However, the most significant goal is to continue and build strong government relations at the national level that can help secure the final funding for the business retention/expansion project of the Knipling-Bushland USDA Laboratory. KEDF strongly encourages all economic partners to consider sending representation for this trip. Tn addition to our meetings at the Congressional level we plan to visit with Senator Hutchison and Senator Connyn's offices to assist in economic and business development efforts. The following objectives would be very beneficial for a strong delegation being sent to Washington D.C. • Continue Relationship Building with National leaders on efforts to secure the £mal funding for the local USDA Laboratory in Kerrville/Kerr County. • Establish the transition relationship between Congressman Bonilla and Congressman Smith offices in Washington D.C. • Senator Hutchison has expressed much interest with visiting with local government leaders on business and economic issues they have in their communities. • In March of 2004 Kemille/Kerr County sent a delegation to support the Kerrville Veterans Administration Hospital efforts on retaining services for the hospital. This trip accomplished with elected officials that the Kerrville Veterans Administration Hospital has a significant medical role for thousands of veterans living in the Hi11 Country and surrounding counties in addition a major economic partner in Kemille/Kerr County. Our support for another government service and economic partner in our community is needed once again this time for the Knipling-Bushland USDA Laboratory. It is very important to have strong representation from our economic partners for this trip. We appreciate your considerafion in sending a representative with our business economic team to Washington D.C. SinQlerely, O Guy~Ov~e by ~ President of Kerr onomic Develo~r~,~'~~~ we play. 1700 Sidney Baker, Suite 200 #4 Kerrville, Texas 78028 (830) 896-1157 Business (830) 896-1175 Fax Email: informationC~?kerredf org Website: www.kerredf.org ECONOMIC DEVELOPMENT FOUNDATION Confidential Economic Impact Analysis: Hospital Downtown Development Kerr County, Tegas July 2006 Economic Impact Analysis Executive Summary Kerrville: Hospital Redevelopment Sid Peterson Memorial Hospital (SPMH) is expanding its operations within Kerrville and the old hospital has been sold to a developer. The information provided to the Kerr Economic Development Foundation reports that the developer will redevelop the SPMH into a residential, commercial and retail center. The Kerr Economic Development Foundation requested an evaluation of the potential economic impacts of the project including the extent to which the development will create jobs and increase spending in Kerr County during the construction and operation of the redevelopment. LCRA's Community & Economic Development Department evaluated the potential economic impacts utilizing IMPLAN, an econometric model designed by the University of Minnesota. The model is used to determine the increased spending associated with new business investment. Developed By 1 August 21, 2006 LCFZ4's Community and Economic Development Department Economic Impact Analysis Kerrville: Sid Peterson Memorial Hospital Economic Benefits to Kerr County Construction The economic impacts of construction are one-time events and do not represent permanent increments to total economic activity. • The economic impact of construction could bring $15,510,557 to Kerr County • During the construction, workers will directly earn an estimated $2,856,211 and could generate an additional $1,490,875 in the county. The remediation and renovation of the buildings is estimated to create 81.2 full- or part-time jobs and spin off approximately 49.2 additional jobs during the construction period. Table 1: Summary of Economic Impacts to Kerr Coun -CONSTRUCTION Direct Economic Im act Total Economic Im act Ou ut $11,145,000 $15,510,557 Labor Income $2,856,211 $4,347,086 Em loyment 81.2 130.4 Data provided and model assumptions: • Cost for remediation: $2,500,000 • Cost for remodeling offices: $1,326,000 • Cost for remodeling condos: $7,319,000 Retail Development Table 2: Retail Assumptions T e of Business Sales S uare Feet Clothin & Accessories $664,065 3,302 S rt, Hobb ,Book & Music $299,696 1,841 Miscellaneous Store $1,312,984 8,825 Food 8c Drinltin Places $1,265,853 6,932 Personal Care Services $141,999 1,300 D Cleanin $141,999 1,300 Total $3,82b,596 23,500 • Annual output in Ken County is $5,580,120. • Labor income of Kerr County residents is $1,640,648 directly from jobs created and indirectly by an additional $2,218,866. There will be approximately 108.3 new fixll or part-time jobs in the County, which will spin off approximately 19.0 additional jobs in the county. Developed By 2 August 21, 2006 LCRA's Community and Economic Development Department Economic Impact Analysis Kerrville: Sid Peterson Memorial Hospital Table 3: Summary of Economic Impacts to Kerr Coun -OPERATIONS Direct Economic Im act Total Economic Im act Out ut $3,826,596 $5,580,120 Labor Income 1,640,648 2,218,866 Emplo ent 108.3 127.2 Model Assumptions: Direct Sales Direct Jobs Direct Labor Income Clotbin & Accessories 664,065 16.2 271,543 S orts, Hobb ,Books & Music 299,696 13 170,588 Miscellaneous Store 1,312,984 46.7 677,640 Food & Drinkin Places 1,265,853 25.1 396,415 Personal Care Services 141,999 3.4 54,399 D Cleanin 141,999 3.9 70,063 Total 3,826,596 108.3 1,640,648 City Benefits Table 4: Summa of Tax Benefits to Kerr Coun Pro a Tax Sales Tax City of Kerrville $134,680.81 $43,049.21 Kerr County $103,099.15 $14,349.74 KISD $403,221.50 Assumptions: • 75% of retail sales will be subject to sales tax ^ Property Valuation estimate is $24,145,000 Developed By 3 August 21, 2006 LCRA's Community and Economic Development Department Economic Impact Analysis Kerrville: Sid Peterson Memorial Hospital IMPLAN and Economic Impact Modeling This analysis was conducted using the IMPLAN model developed by Minnesota Implan Group (MIG). The model uses economic theory combined with historical trends to anticipate changes in direct, indirect and induced employment and income generated due to the presence of a new business or industry. The results of this analysis aze strictly for the use of its recipients and are not to be published for general viewing. This analysis reflects the anticipated county and regional impacts. The output and analysis from IMPLAN simulations are theoretical in nature and are contingent on the quality and quantity of data provided as input. About LCRA LCRA is a conservation and reclamation district created by the Texas Legislature in 1934 to improve the quality of life in Central Texas. LCRA provides energy, water and community services to the people of Texas. It cannot levy taxes, but funds its operations with income from the sale of electricity, water and other services. LCRA generates electricity and sells it wholesale to city-owned utilities and cooperatives that serve more than 1.1 million people in Texas. LCRA also builds and operates transmission projects through a nonprofit corporation, manages and protects the lower Colorado River, provides water and wastewater utilities, owns and operates parks, and offers economic and community development assistance to communities. The Community and Economic Development Department provides services that help communities in LCRA's service area successfully plan for, attract and manage local and regional development. The department's services include planning and analysis, community training, mazketing and business development, and tourism development. Developed By 4 August 21, 2006 LCRA's Community and Economic Development Department