[PAGE 1] SUNNYVALE 4A DEVELOPMENT CORPORATION BOARD OF DIRECTORS REGULAR MEETING WEDNESDAY, JUNE 19, 2019 TOWN HALL - 127 N. COLLINS RD 5:00 PM CALL MEETING TO ORDER President calls the Meeting to order, state the date and time. State members present and declare a quorum present. PUBLIC FORUM Citizens may speak on any matter other than personnel matters or matters under litigation. No actions or discussion will be taken until such matter is placed on the agenda and posted in accordance with law. DISCUSSION / ACTION ITEMS 1. DISCUSS, CONSIDER AND ACT UPON THE REGULAR MEETING MINUTES FOR MAY 8, 2019. 2. DISCUSS, CONSIDER AND ACT UPON APRIL 2019 FINANCIAL REPORTING AND RELATED ITEMS. 3. DISCUSS, CONSIDER AND ACT UPON THE MAY 2019 FINANCIAL REPORTING AND RELATED ITEMS. 4. DISCUSS, CONSIDER AND ACT UPON THE RECOMMENDED 2019-2020 BUDGET. 5. DISCUSS, CONSIDER AND ACT UPON THE ECONOMIC DEVELOPMENT INCENTIVE GUIDELINES AND APPLICATION. 6. DISCUSS BOARD REQUESTS FOR FUTURE AGENDA ITEMS AND EVENTS. EXECUTIVE SESSION Recess into executive session pursuant to Chapter 551, Subchapter D of the Texas Government Code: EXECUTIVE SESSION AGENDA: 1. SECTION 551.071 CONSULTATION WITH ATTORNEY To seek the advice of the Town’s attorney about pending or contemplated litigation; or a settlement offer; or on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this Chapter. Regarding matters of taxation. [PAGE 2] END OF EXECUTIVE SESSION Reconvene into open session and take any action necessary as a result of the Executive Session. 1. SECTION 551.071 CONSULTATION WITH ATTORNEY To seek the advice of the Town’s attorney about pending or contemplated litigation; or a settlement offer; or on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this Chapter. Regarding matters of taxation. ADJOURN ALL LOCATIONS IDENTIFIED ARE IN THE TOWN OF SUNNYVALE UNLESS OTHERWISE INDICATED. FOR A DETAILED PROPERTY DESCRIPTION, PLEASE CONTACT THE BUILDING OFFICIAL AT TOWN HALL. ALL ITEMS ON THE AGENDA ARE FOR POSSIBLE DISCUSSION AND ACTION. PLEASE TURN OFF ALL TELEPHONES AND HANDHELD COMMUNICATION DEVICES WHILE IN ATTENDANCE AT THIS MEETING. THE SUNNYVALE 4A DEVELOPMENT CORPORATION RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME DURING THE COURSE OF THIS MEETING TO DISCUSS ANY OF THE MATTERS LISTED ABOVE, AS AUTHORIZED BY TEXAS GOVERNMENT CODE SECTION 551.071 (CONSULTATION WITH ATTORNEY), 551.072 (DELIBERATION ABOUT REAL PROPERTY), 551.073 (DELIBERATIONS ABOUT GIFTS AND DONATIONS), 551.074 (PERSONNEL MATTERS), 551.076 (DELIBERATIONS ABOUT SECURITY DEVICES), AND 551.087 (ECONOMIC DEVELOPMENT). THE TOWN OF SUNNYVALE IS COMMITTED TO COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT (ADA). REASONABLE ACCOMMODATIONS AND EQUAL ACCESS TO COMMUNICATIONS WILL BE PROVIDED TO THOSE WHO PROVIDE NOTICE TO THE DIRECTOR OF COMMUNITY SERVICES AT 972 226 7177 AT LEAST 48 HOURS PRIOR TO THE MEETING. I HEREBY CERTIFY THAT THE FOREGOING NOTICE WAS POSTED ON JUNE 14, 2019, IN THE FOLLOWING LOCATION AND REMAINED SO POSTED CONTINUOUSLY FOR AT LEAST 72 HOURS PRECEDING THE SCHEDULED TIME OF SAID MEETING: TOWN HALL AT 127 N. COLLINS ROAD RACHEL RAMSEY, TOWN SECRETARY [PAGE 3] Town of Sunnyvale 1. June 19, 2019 Prepared By: Traci Anderson, Economic Development Director Summary: DISCUSS, CONSIDER AND ACT UPON THE REGULAR MEETING MINUTES FOR MAY 8, 2019. Staff Recommendation: Approval. Background & Analysis: This will be sent upon completion. Fiscal Impact: N/A Attachments: [PAGE 4] Town of Sunnyvale 2. June 19, 2019 Prepared By: Traci Anderson, Economic Development Director Summary: DISCUSS, CONSIDER AND ACT UPON APRIL 2019 FINANCIAL REPORTING AND RELATED ITEMS. Staff Recommendation: Approval of April 2019 Financials as presented. Background & Analysis: None. Fiscal Impact: N/A Attachments: • April 2019 financials [PAGE 5] 4A Economic Development Corporation Financial Statement April 30, 2019 [PAGE 6] Town of Sunnyvale 4A Monthly Finance Report April 30, 2019 Budget: Net Revenues/Expenses:Budget = $ ( 378,883.00) Actual = $ 210,969.16 Highlights: Revenues: MTD = $ 32,145.35 YTD = $ 300,964.62 Expenses: MTD = $ 6,595.85 YTD = $ 89,995.46 Net: $ 25,549.50 $ 210,969.16 Revenues: Sales Tax recorded YTD is $236,168.92 (2 months accrual, 5 months actual). Interest YTD is $10,028.93. Special Assessment receipts YTD toal $54,766.77. Expenses: The YTD expenses total $89,995.46. The MTD expenses include routine payroll, Brown & Hofmeister (legal fees), Walls Printing (EDC page in newsletter), Marketing Alliance (EDC website restoration), IEDC (membership renewal), Premier Transportation (gratuity for bus driver), Main Street Conference expenses (hotel and meals), and ICSC Conference expenses (registration, airfare). 4A EDC Budget As of Fund Summary 2018‐2019 04/30/2019 Beginning Fund Balance (unaudited) 2,330,452 2,330,452 Revenue Summary Sales Tax 431,250 236,169 Transfers In (Special Assessments) 54,767 54,767 Interest 17,000 10,029 Total Revenues 503,017 300,965 Expenditure Summary Operating Expenditures 881,900 89,995 Total Expenditures 881,900 89,995 Excess or (Deficit) Revenue/Expenditures (378,883) 210,969 Total Fund Balance 1,951,569 2,541,421 Assigned ‐ The Barn at Long Creek 54,000 Assigned ‐ Hope Development 187,500 187,500 Unassigned Fund Balance 1,710,069 2,353,921 [PAGE 7] 5-03-2019 11:48 AM CITY OF SUNNYVALE PAGE: 1 BALANCE SHEET AS OF: APRIL 30TH, 2019 91 -4A SALES TAX CORPORATION ACCOUNT # ACCOUNT DESCRIPTION BALANCE _____________________________________________________________________________________________ ASSETS ====== 91-1112 4A - COMPASS BANK ACCOUNT 2,454,100.73 91-1441 SALES TAX ACCRUAL 62,500.00 91-1509 DUE FROM SPECIAL ASSESSMENT GF 54,766.77 2,571,367.50 TOTAL ASSETS 2,571,367.50 ============== LIABILITIES =========== 91-2181 DUE TO GENERAL FUND 29,946.40 TOTAL LIABILITIES 29,946.40 EQUITY ====== 91-3117 UNRESERVED FUND BALANCE 2,142,951.94 91-4302 ASSIGNED HOPE DEVELOPMENT 187,500.00 TOTAL BEGINNING EQUITY 2,330,451.94 TOTAL REVENUE 300,964.62 TOTAL EXPENSES 89,995.46 TOTAL REVENUE OVER/(UNDER) EXPENSES 210,969.16 TOTAL EQUITY & REV. OVER/(UNDER) EXP. 2,541,421.10 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 2,571,367.50 ============== [PAGE 8] 5-03-2019 11:48 AM TOWN OF SUNNYVALE PAGE: 1 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: APRIL 30TH, 2019 91 -4A SALES TAX CORPORATION FINANCIAL SUMMARY 58.33% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ REVENUE SUMMARY 5100-TAXES 486,017.00 30,649.86 290,935.69 59.86 195,081.31 5500-OTHER REVENUES 17,000.00 1,495.49 10,028.93 58.99 6,971.07 TOTAL REVENUES 503,017.00 32,145.35 300,964.62 59.83 202,052.38 ============== ============== ============== ======= ============== EXPENDITURE SUMMARY 91-4A SALES TAX CORPORATI 881,900.00 6,595.85 89,995.46 10.20 791,904.54 TOTAL EXPENDITURES 881,900.00 6,595.85 89,995.46 10.20 791,904.54 ============== ============== ============== ======= ============== REVENUES OVER/(UNDER) EXPENDITURES ( 378,883.00) 25,549.50 210,969.16 ( 589,852.16) [PAGE 9] 5-03-2019 11:48 AM TOWN OF SUNNYVALE PAGE: 2 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: APRIL 30TH, 2019 91 -4A SALES TAX CORPORATION 58.33% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ 5100-TAXES 91-5111 INTERGOVERNMENTAL TRANSFER IN 54,767.00 0.00 54,766.77 100.00 0.23 91-5140 SALES TAX RECEIPTS 431,250.00 30,649.86 236,168.92 54.76 195,081.08 TOTAL 5100-TAXES 486,017.00 30,649.86 290,935.69 59.86 195,081.31 5300-PERMITS, FEES & FINE ______________ ______________ ______________ _______ ______________ 5500-OTHER REVENUES 91-5510 INTEREST EARNED 17,000.00 1,495.49 10,028.93 58.99 6,971.07 TOTAL 5500-OTHER REVENUES 17,000.00 1,495.49 10,028.93 58.99 6,971.07 ____________________________________________________________________________________________________________________________ TOTAL REVENUES 503,017.00 32,145.35 300,964.62 59.83 202,052.38 ============== ============== ============== ======= ============== [PAGE 10] 5-03-2019 11:48 AM TOWN OF SUNNYVALE PAGE: 3 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: APRIL 30TH, 2019 91 -4A SALES TAX CORPORATION 91-4A SALES TAX CORPORATI 58.33% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ LABOR AND BENEFITS 91-691-6000 WAGES & SALARIES 40,820.00 3,167.68 23,247.29 56.95 17,572.71 91-691-6002 TMRS 4,874.00 376.32 2,786.24 57.17 2,087.76 91-691-6004 PAYROLL TAXES 3,123.00 242.35 1,778.56 56.95 1,344.44 91-691-6005 EMPLOYEE INSURANCE 4,100.00 304.58 2,134.31 52.06 1,965.69 TOTAL LABOR AND BENEFITS 52,917.00 4,090.93 29,946.40 56.59 22,970.60 SUPPLIES AND MATERIALS 91-691-6113 ADMINSTRATIVE SERVICES 10,000.00 0.00 0.00 0.00 10,000.00 TOTAL SUPPLIES AND MATERIALS 10,000.00 0.00 0.00 0.00 10,000.00 CONTRACTUAL SERVICES 91-691-6371 PROMOTIONAL SERVICES 36,385.00 832.35 9,172.71 25.21 27,212.29 TOTAL CONTRACTUAL SERVICES 36,385.00 832.35 9,172.71 25.21 27,212.29 TRAINING/DUES/SUBSCRIPT 91-691-6512 GENERAL OFFICE SUPPLIES 500.00 0.00 156.92 31.38 343.08 91-691-6513 DUES, SUBSCRIPTIONS, MEMBERSHI 7,100.00 217.50 3,063.03 43.14 4,036.97 TOTAL TRAINING/DUES/SUBSCRIPT 7,600.00 217.50 3,219.95 42.37 4,380.05 CAPITAL OUTLAYS & PROJEC 91-691-6751 LEGAL SERVICES 7,500.00 22.50 316.52 4.22 7,183.48 91-691-6755 BOND BRIDGE PAYMENTS 34,998.00 0.00 30,516.38 87.19 4,481.62 91-691-6830 OUTSIDE TRAINING EXPENSE 7,500.00 1,036.53 1,675.16 22.34 5,824.84 91-691-6831 LOCAL BUSINESS EVENTS (BRE) 10,000.00 0.00 0.00 0.00 10,000.00 91-691-6890 OTHER MISCELLANEOUS EXPENSE 2,000.00 396.04 3,148.34 157.42 ( 1,148.34) 91-691-6891 TRANSFERS OUT INDIRECT COSTS 12,000.00 0.00 12,000.00 100.00 0.00 TOTAL CAPITAL OUTLAYS & PROJEC 73,998.00 1,455.07 47,656.40 64.40 26,341.60 CAPITAL-TOWN IMPROVEMENT 91-691-9211 TOWN BEAUTIFICATION 100,000.00 0.00 0.00 0.00 100,000.00 TOTAL CAPITAL-TOWN IMPROVEMENT 100,000.00 0.00 0.00 0.00 100,000.00 MARKETING & INCENTIVES 91-691-9422 CAPITAL IMPROVEMENTS 100,000.00 0.00 0.00 0.00 100,000.00 91-691-9424 INCENTIVES 500,000.00 0.00 0.00 0.00 500,000.00 91-691-9425 SUNNYVALE CHAMBER SUPPORT/MEMB 1,000.00 0.00 0.00 0.00 1,000.00 TOTAL MARKETING & INCENTIVES 601,000.00 0.00 0.00 0.00 601,000.00 CAPITAL-PARK/REC IMPROVEM ______________ ______________ ______________ _______ ______________ ____________________________________________________________________________________________________________________________ TOTAL 91-4A SALES TAX CORPORATI 881,900.00 6,595.85 89,995.46 10.20 791,904.54 ____________________________________________________________________________________________________________________________ TOTAL EXPENDITURES 881,900.00 6,595.85 89,995.46 10.20 791,904.54 ============== ============== ============== ======= ============== REVENUES OVER/(UNDER) EXPENDITURES ( 378,883.00) 25,549.50 210,969.16 ( 589,852.16) [PAGE 11] Town of Sunnyvale 3. June 19, 2019 Prepared By: Traci Anderson, Economic Development Director Summary: DISCUSS, CONSIDER AND ACT UPON THE MAY 2019 FINANCIAL REPORTING AND RELATED ITEMS. Staff Recommendation: Approval as presented. Background & Analysis: None. Fiscal Impact: N/A Attachments: • May 2019 Financials [PAGE 12] 4A Economic Development Corporation Financial Statement May 31, 2019 [PAGE 13] Town of Sunnyvale 4A Monthly Finance Report May 31, 2019 Budget: Net Revenues/Expenses:Budget = $ ( 378,883.00) Actual = $ 155,068.27 Highlights: Revenues: MTD = $ 45,032.72 YTD = $ 345,997.34 Expenses: MTD = $ 100,933.61 YTD = $ 190,929.07 Net: $ (55,900.89) $ 155,068.27 Revenues: Sales Tax recorded YTD is $279,717.42 (2 months accrual, 6 months actual). Interest YTD is $11,513.15. Special Assessment receipts YTD toal $54,766.77. Expenses: The YTD expenses total $190,929.07. The MTD expenses include routine payroll, Brown & Hofmeister (legal fees), Baker's Ribs (1/2 cost of dinner for Joint Meeting), TEDC (1/2 cost of 2019 Mid Year Conference sponsorship & registration), Pok-e-Jo's (Sunnyvale Day at the Capital lunch), Flamingo Hotel (ICSC Conference), Hope Development (payment for qualified expenses upon completion of underground site work - assigned funds), and misc office supplies. 4A EDC Budget As of Fund Summary 2018‐2019 05/31/2019 Beginning Fund Balance (unaudited) 2,330,452 2,330,452 Revenue Summary Sales Tax 431,250 279,717 Transfers In (Special Assessments) 54,767 54,767 Interest 17,000 11,513 Total Revenues 503,017 345,997 Expenditure Summary Operating Expenditures 881,900 190,929 Total Expenditures 881,900 190,929 Excess or (Deficit) Revenue/Expenditures (378,883) 155,068 Total Fund Balance 1,951,569 2,485,520 Assigned ‐ Hope Development 187,500 93,750 Unassigned Fund Balance 1,764,069 2,391,770 [PAGE 14] 6-07-2019 04:50 PM TOWN OF SUNNYVALE PAGE: 1 BALANCE SHEET AS OF: MAY 31ST, 2019 91 -4A SALES TAX CORPORATION ACCOUNT # ACCOUNT DESCRIPTION BALANCE _____________________________________________________________________________________________ ASSETS ====== 91-1112 4A - COMPASS BANK ACCOUNT 2,403,237.37 91-1441 SALES TAX ACCRUAL 62,500.00 91-1509 DUE FROM SPECIAL ASSESSMENT GF 54,766.77 2,520,504.14 TOTAL ASSETS 2,520,504.14 ============== LIABILITIES =========== 91-2181 DUE TO GENERAL FUND 34,983.93 TOTAL LIABILITIES 34,983.93 EQUITY ====== 91-3117 UNRESERVED FUND BALANCE 2,142,951.94 91-4302 ASSIGNED HOPE DEVELOPMENT 187,500.00 TOTAL BEGINNING EQUITY 2,330,451.94 TOTAL REVENUE 345,997.34 TOTAL EXPENSES 190,929.07 TOTAL REVENUE OVER/(UNDER) EXPENSES 155,068.27 TOTAL EQUITY & REV. OVER/(UNDER) EXP. 2,485,520.21 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 2,520,504.14 ============== [PAGE 15] 6-07-2019 04:53 PM TOWN OF SUNNYVALE PAGE: 1 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2019 91 -4A SALES TAX CORPORATION FINANCIAL SUMMARY 66.67% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ REVENUE SUMMARY 5100-TAXES 486,017.00 43,548.50 334,484.19 68.82 151,532.81 5500-OTHER REVENUES 17,000.00 1,484.22 11,513.15 67.72 5,486.85 TOTAL REVENUES 503,017.00 45,032.72 345,997.34 68.78 157,019.66 ============== ============== ============== ======= ============== EXPENDITURE SUMMARY 91-4A SALES TAX CORPORATI 881,900.00 100,933.61 190,929.07 21.65 690,970.93 TOTAL EXPENDITURES 881,900.00 100,933.61 190,929.07 21.65 690,970.93 ============== ============== ============== ======= ============== REVENUES OVER/(UNDER) EXPENDITURES ( 378,883.00)( 55,900.89) 155,068.27 ( 533,951.27) [PAGE 16] 6-07-2019 04:53 PM TOWN OF SUNNYVALE PAGE: 2 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2019 91 -4A SALES TAX CORPORATION 66.67% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ 5100-TAXES 91-5111 INTERGOVERNMENTAL TRANSFER IN 54,767.00 0.00 54,766.77 100.00 0.23 91-5140 SALES TAX RECEIPTS 431,250.00 43,548.50 279,717.42 64.86 151,532.58 TOTAL 5100-TAXES 486,017.00 43,548.50 334,484.19 68.82 151,532.81 5300-PERMITS, FEES & FINE ______________ ______________ ______________ _______ ______________ 5500-OTHER REVENUES 91-5510 INTEREST EARNED 17,000.00 1,484.22 11,513.15 67.72 5,486.85 TOTAL 5500-OTHER REVENUES 17,000.00 1,484.22 11,513.15 67.72 5,486.85 ____________________________________________________________________________________________________________________________ TOTAL REVENUES 503,017.00 45,032.72 345,997.34 68.78 157,019.66 ============== ============== ============== ======= ============== [PAGE 17] 6-07-2019 04:53 PM TOWN OF SUNNYVALE PAGE: 3 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2019 91 -4A SALES TAX CORPORATION 91-4A SALES TAX CORPORATI 66.67% OF FISCAL YEAR CURRENT CURRENT YEAR TO DATE % OF BUDGET DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL BUDGET BALANCE ____________________________________________________________________________________________________________________________ LABOR AND BENEFITS 91-691-6000 WAGES & SALARIES 40,820.00 3,959.60 27,206.89 66.65 13,613.11 91-691-6002 TMRS 4,874.00 470.40 3,256.64 66.82 1,617.36 91-691-6004 PAYROLL TAXES 3,123.00 302.95 2,081.51 66.65 1,041.49 91-691-6005 EMPLOYEE INSURANCE 4,100.00 304.58 2,438.89 59.49 1,661.11 TOTAL LABOR AND BENEFITS 52,917.00 5,037.53 34,983.93 66.11 17,933.07 SUPPLIES AND MATERIALS 91-691-6113 ADMINSTRATIVE SERVICES 10,000.00 0.00 0.00 0.00 10,000.00 TOTAL SUPPLIES AND MATERIALS 10,000.00 0.00 0.00 0.00 10,000.00 CONTRACTUAL SERVICES 91-691-6371 PROMOTIONAL SERVICES 36,385.00 0.00 9,172.71 25.21 27,212.29 TOTAL CONTRACTUAL SERVICES 36,385.00 0.00 9,172.71 25.21 27,212.29 TRAINING/DUES/SUBSCRIPT 91-691-6512 GENERAL OFFICE SUPPLIES 500.00 119.36 276.28 55.26 223.72 91-691-6513 DUES, SUBSCRIPTIONS, MEMBERSHI 7,100.00 750.00 3,813.03 53.70 3,286.97 TOTAL TRAINING/DUES/SUBSCRIPT 7,600.00 869.36 4,089.31 53.81 3,510.69 CAPITAL OUTLAYS & PROJEC 91-691-6751 LEGAL SERVICES 7,500.00 112.50 429.02 5.72 7,070.98 91-691-6755 BOND BRIDGE PAYMENTS 34,998.00 0.00 30,516.38 87.19 4,481.62 91-691-6830 OUTSIDE TRAINING EXPENSE 7,500.00 90.14 1,765.30 23.54 5,734.70 91-691-6831 LOCAL BUSINESS EVENTS (BRE) 10,000.00 0.00 0.00 0.00 10,000.00 91-691-6890 OTHER MISCELLANEOUS EXPENSE 2,000.00 1,074.08 4,222.42 211.12 ( 2,222.42) 91-691-6891 TRANSFERS OUT INDIRECT COSTS 12,000.00 0.00 12,000.00 100.00 0.00 TOTAL CAPITAL OUTLAYS & PROJEC 73,998.00 1,276.72 48,933.12 66.13 25,064.88 CAPITAL-TOWN IMPROVEMENT 91-691-9211 TOWN BEAUTIFICATION 100,000.00 0.00 0.00 0.00 100,000.00 TOTAL CAPITAL-TOWN IMPROVEMENT 100,000.00 0.00 0.00 0.00 100,000.00 MARKETING & INCENTIVES 91-691-9422 CAPITAL IMPROVEMENTS 100,000.00 0.00 0.00 0.00 100,000.00 91-691-9424 INCENTIVES 500,000.00 0.00 0.00 0.00 500,000.00 91-691-9425 SUNNYVALE CHAMBER SUPPORT/MEMB 1,000.00 0.00 0.00 0.00 1,000.00 91-691-9426 INCENTIVES ASSIGNED 0.00 93,750.00 93,750.00 0.00 ( 93,750.00) TOTAL MARKETING & INCENTIVES 601,000.00 93,750.00 93,750.00 15.60 507,250.00 CAPITAL-PARK/REC IMPROVEM ______________ ______________ ______________ _______ ______________ ____________________________________________________________________________________________________________________________ TOTAL 91-4A SALES TAX CORPORATI 881,900.00 100,933.61 190,929.07 21.65 690,970.93 ____________________________________________________________________________________________________________________________ TOTAL EXPENDITURES 881,900.00 100,933.61 190,929.07 21.65 690,970.93 ============== ============== ============== ======= ============== REVENUES OVER/(UNDER) EXPENDITURES ( 378,883.00)( 55,900.89) 155,068.27 ( 533,951.27) [PAGE 18] Town of Sunnyvale 4. June 19, 2019 Prepared By: Traci Anderson, Economic Development Director Summary: DISCUSS, CONSIDER AND ACT UPON THE RECOMMENDED 2019-2020 BUDGET. Staff Recommendation: Staff recommendation will be presented at the board meeting. Background & Analysis: The attachment includes the recommended changes from the board at the last board meeting. This was presented to the budget committee and no changes were mentioned. We are still waiting for the possibility of an IT/Office line item that would include assisting with the new IT server that is needed. If there are any recommended changes during the meeting, the updated budget will be distributed prior to the next meeting. The budget has to be adopted in July at the latest. Fiscal Impact: N/A Attachments: • Recommended 2019-2020 Budget [PAGE 19] 4A EDC Approved Actual Recommended Amended Proposed Budget YTD Adjustment Budget Budget Fund Summary 2018-2019 05/29/2019 Mid Year 2018-2019 2019-2020 Beginning Fund Balance 2,330,452 2,330,452 2,330,452 1,764,069 Revenue Summary Intergovernmental Transfer In 54,767 54,767 0 54,767 53,260 Sales Tax 375,000 279,717 56,250 431,250 431,250 Interest 5,500 10,029 11,500 17,000 17,000 Total Revenues 435,267 344,513 67,750 503,017 501,510 Expenditure Summary Labor and Benefits 52,917 33,419 0 52,917 52,917 Supplies and Materials 10,000 0 0 10,000 10,000 Contractual Services 36,385 9,173 0 36,385 20,000 Training/Dues/Subscriptions 7,600 4,089 0 7,600 11,000 Capital Outlays and Projects 73,998 48,933 0 73,998 76,664 Capital-Town Improvements 100,000 0 0 100,000 100,000 Hope Development - Assigned 187,500 93,750 0 187,500 0 Marketing & Incentives 226,000 0 375,000 601,000 650,000 Total Expenditures 694,400 189,364 375,000 1,069,400 920,581 Excess or (Deficit) Revenue/Expenditures (259,133) 155,149 (307,250) (566,383) (419,071) Total Fund Balance 2,071,319 2,485,601 (307,250) 1,764,069 1,344,998 05/30/20193:17 PM [PAGE 20] REVENUES BY DEPARTMENT 691 4A ECONOMIC DEVELOPMENT Account Approved Actual Mid-Year Amended Proposed Number Account Name Description 2018-2019 05/29/19 Adjustment 2018-2019 2019-2020 91-5111 INTERGOVERNMENTAL TRANSFER IN Special Assessments - Year 4 Payments $ 54,767 $ 54,767 $ - $ 54,767 $ 53,260 91-5140 SALES TAX RECEIPTS Current Year $ 375,000 $ 279,717 $ 56,250 $ 431,250 $ 431,250 91-5510 INTEREST EARNED CY annualized $ 5,500 $ 10,029 $ 11,500 $ 17,000 $ 17,000 TOTAL REVENUES - 4A EDC $ 435,267 $ 344,513 $ 67,750 $ 503,017 $ 501,510 EXPENSES BY DEPARTMENT 691 4A ECONOMIC DEVELOPMENT Account Approved Actual Mid-Year Amended Proposed Number Account Name Description 2018-2019 05/29/19 Adjustment 2018-2019 2019-2020 91-691-6000 WAGES & SALARIES 50% EDC Director $ 40,820 $ 26,415 $ 40,820 $ 40,820 91-691-6002 TMRS 11.94% weighted average $ 4,874 $ 2,786 $ 4,874 $ 4,874 91-691-6004 PAYROLL TAXES 7.65% Wages $ 3,123 $ 1,779 $ 3,123 $ 3,123 91-691-6005 EMPLOYEE INSURANCE Re-rate from TML $ 4,100 $ 2,439 $ 4,100 $ 4,100 91-691-6113 ADMINISTRATIVE SERVICES Administrative assistance for EDC Director $ 10,000 $ - $ 10,000 $ 10,000 91-691-6371 PROMOTIONAL SERVICES Brochures, publications, business development, marketing $ 36,385 $ 9,173 $ 36,385 $ 20,000 Misc office supplies, ink, copier paper, etc (EDC Director and 91-691-6512 GENERAL OFFICE SUPPLIES Admin Assistant), iPads (5 board members @ $260 each) $ 5 00 $ 2 76 $ 5 00 $ 3,000 IEDC, SEDC,TEDC, ICSC, GIS Planning, Dallas Business Journal, Dallas Morning News, Chamber Membership, Impact Dashboard, Sunnyvale Expo, Tyler Technologies, Main Street America, Texas 91-691-6513 DUES, SUBSCRIPTIONS, MEMBERSHIPS Downtown Association, Sketch-Up, Scenic City Application $ 7,100 $ 3,813 $ 7,100 $ 8,000 91-691-6751 LEGAL SERVICES Professional legal services $ 7,500 $ 4 29 $ 7,500 $ 7,500 91-691-6755 BOND BRIDGE PAYMENTS Bond Payment 02/15/20 & 08/15/20 $ 34,998 $ 30,516 $ 34,998 $ 35,164 Seminars, classes, certifications, on-site EDC training, TAPE, Public 91-691-6830 OUTSIDE TRAINING EXPENSE Participation Training $ 7,500 $ 1,765 $ 7,500 $ 7,000 91-691-6831 LOCAL BUSINESS EDC LUNCHEON Local Business Qtrly Meetings, Annual Meeting/Awards $ 10,000 $ - $ 10,000 $ 10,000 91-691-6890 OTHER MISCELLANEOUS EXPENSE Misc. expenses to include business lunches, board dinners $ 2,000 $ 4,222 $ 2,000 $ 2,000 91-691-6891 TRANSFERS OUT INDIRECT COSTS Transfer Out to Gen Fund - Audit, admin, reporting costs $ 12,000 $ 12,000 $ 12,000 $ 15,000 91-691-9211 TOWN BEAUTIFICATION Gateway signage and beautification projects, façade grants $ 100,000 $ - $ 100,000 $ 100,000 91-691-9422 CAPITAL IMPROVEMENTS Infrastructure improvements $ 100,000 $ - $ 100,000 $ 150,000 91-691-9424 INCENTIVES Incentives $ 125,000 $ - $ 375,000 $ 500,000 $ 500,000 Chamber support (Moved to 691-6513 Dues, Subscriptions, 91-691-9425 SUNNYVALE CHAMBER SUPPORT/MEMB Memberships) $ 1,000 $ - $ 1,000 $ - 91-691-9426 INCENTIVE ASSIGNED HOPE DEVELOPMENT INCENTIVE - SUNNYVALE PARK SQUARE $ 187,500 $ 93,750 $ 187,500 $ - TOTAL EXPENSES - 4A EDC $ 694,400 $ 189,364 $ 375,000 $ 1,069,400 $ 920,581 $ (259,133) $ 155,149 $ (307,250) $ (566,383) $ (419,071) $ ( 71,633) $ (378,883) 05/30/20193:16 PM [PAGE 21] Town of Sunnyvale 5. June 19, 2019 Prepared By: Traci Anderson, Economic Development Director Summary: DISCUSS, CONSIDER AND ACT UPON THE ECONOMIC DEVELOPMENT INCENTIVE GUIDELINES AND APPLICATION. Staff Recommendation: Review and approve the Economic Development Incentive Guidelines and Application. Background & Analysis: This document was presented at the last board meeting and all were asked to provide feedback. The attached documents incorporate the feedback that was received. Fiscal Impact: N/A Attachments: • Economic Development Incentive Policy • Incentive Application [PAGE 22] TOWN OF SUNNYVALE INCENTIVE POLICY Created May 2019 [PAGE 23] Table of Contents General Purpose and Objectives ..................................................................................................... 3 Methodology ................................................................................................................................... 3 Criteria............................................................................................................................................. 3 Eligible Projects ............................................................................................................................... 3 Available Incentives ........................................................................................................................ 4 Tax Abatement for Real and/or Personal Property .................................................................... 5 Fee-based Incentives/Fee Waivers ............................................................................................. 5 Infrastructure Improvements ..................................................................................................... 6 Fast Track Town Services ............................................................................................................ 6 Job Creation ................................................................................................................................ 6 Matching Grants .......................................................................................................................... 6 Other Incentives .......................................................................................................................... 6 Targeted Incentives ..................................................................................................................... 6 Specialty Retail, Entertainment and Restaurant ..................................................................... 6 Location ................................................................................................................................... 7 Existing Business Retention/Expansion .......................................................................................... 7 Incentive Reconsideration .............................................................................................................. 8 Exception ......................................................................................................................................... 8 Approval .......................................................................................................................................... 8 Performance ................................................................................................................................... 8 Annual Evaluation ........................................................................................................................... 9 Procedural Guidelines ..................................................................................................................... 9 Completion of Application ........................................................................................................... 9 Consideration of Application ....................................................................................................... 9 2 | P age Draft v3 with board edits 5/30/2019 [PAGE 24] I. GENERAL PURPOSE AND OBJECTIVES The Town of Sunnyvale is committed to the attraction and promotionpromotion of uniqiueunique business development that will drive growth and facilitate job creation through a diverse local tax base.and retention of job creation, as well as the attraction of high quality and unique business development in all areas of Sunnyvale that meets the needs and desires of residents throughout the community, and which helps to grow and diversify the local tax base. Success in economic development ensures Sunnyvale’s long-term financial ability to provide continued quality services and updated infrastructure to provide for an ongoing improvement in the quality of life for its residential and corporate citizens. In an effort to promote Insofar as such objectives are generally served by the enhancement and expansion of the local economy, the Town may, on a case-by-case basis, give consideration to providing financial incentives as a stimulus for economic development in Sunnyvale. It is the policy of the Town that consideration for such incentives will be provided in accordance with the procedures and criteria outlined in this document. This policy establishes that all business incentives and agreements shall be governed by applicable state statutes relating to economic development. Nothing herein shall imply or suggest that the Town is under any obligation to provide financial incentives to any applicant. II. METHODOLOGY All applications shall be considered and negotiated on a case-by-case basis. Incentives may be utilized only as inducements to generate development that otherwise would not occur. Incentives will not be considered if a building permit for new construction has already been issued, the purchase of an existing building has been finalized, or a tenant lease has been executed. III. CRITERIA Information provided in applications pertaining to fiscal, community, and employment impacts will be used to determine whether or not it is in the best interest of the Town to recommend incentives be offered for a project. In order toTo determine the feasibility of a project, a Cost/Benefit Analysis will be performed internally to determine the expected economic impact to the community. Specific consideration will be given to projects which advancefurther the goals and objectives of the community as described in the Town of Sunnyvale Comprehensive Plan, the Economic Development Strategic Plan, as well as those with a significant positive impact on diversifying existing markets, adding employment, expanding the local tax base through added improvement values, and increasing sales tax revenues to the Town. IV. ELIGIBLE PROJECTS. Eligible projects include: A. Job training as provided by Sections 501.102 and 501.165 of the Act; B. Recycling facilities; C. Any project authorized under Chapter 501, Subchapter C of the Act, including but not limited to: 3 | P age Draft v3 with board edits 5/30/2019 [PAGE 25] i. the land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements that are for the creation or retention of primary jobs and found by the Board to be required or suitable for the development, retention or expansion of the following: • manufacturing and industrial facilities, • research and development facilities, • military facilities, • transportation facilities, • sewage or solid waste facilities, • recycling facilities, • air or water pollution control facilities, • facilities for the furnishing of water to the public, • distribution centers, • small warehouse facilities capable of serving as decentralized storage and distribution centers, • primary job training facilities for use by institutions of higher education, and • regional or national corporate headquarters facilities; ii. expenditures found by the Board to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises limited to streets and roads, rail spurs, water and sewer utilities, electric utilities, gas utilities, drainage, site improvements, and related improvements, and telecommunications and Internet improvements; and D. Any project included in the definition of “project” under Section 505.152 of the Act, including but not limited to land, buildings, equipment, facilities and improvements found by the Board to: i. be required or suitable for use for professional or amateur sports, including children’s sports, athletic, entertainment, tourist, convention and public park purposes and events, including stadiums, ballparks, auditoriums, amphitheaters, concert halls, park and park facilities, open space improvements, museums, exhibition facilities, and related store, restaurant, concession, and automobile parking facilities, related area transportation facilities, and related roads, streets, and water and sewer facilities, and other related improvements that enhance any of those items; ii. promote or develop new or expanded business enterprises that create or retain primary jobs; iii. be required or suitable for the development or improvement of water supply facilities; or iv. be required or suitable for the development and institution of water conservation programs. V. AVAILABLE INCENTIVES The Town of Sunnyvale may consider providing one or a combination of any of the following economic development incentives. 4 | P age Draft v3 with board edits 5/30/2019 [PAGE 26] Tax Abatement for Real and/or Personal Property The Town of Sunnyvale may offer real and/or business personal property tax abatements for qualifying projects that meet the thresholds listed below. Qualifying projects include new tenancies, expansions, or renovations of existing facilities. Tax abatements shall only apply to the value of improvements made for real property and the value of new business personal property brought into the taxing jurisdiction. The following are the objective criteria used to determine if a tax abatement should be offered for a project, (Town of Sunnyvale Resolution 15-06):  Base value of improvements or facilities added to qualify - $2,500,000.00.  For every $500,000.00 of improvement erected or placed upon the premises - 1 point.  For every twenty-five (25) new jobs created - 1 point.  For every $5,000.00 of sales tax revenue generated annually, payable to the town - 1 point.  For every $100,000.00 of monthly payroll added -1 point.  For every $500,000.00 of personal property value added subsequent to the erection of the new improvements or the new expansion - 1 point.  Minimum points necessary to qualify as an applicant - 10 points. Once determination has been made that a tax abatement should be offered, the value and term of the abatement may be determined by referencing the following schedule: Minimum Capital Investment Years of Abatement Percentage of Abatement $2,500,000 – 4,999,999 1-5 10 – 75% $5,000,000 – 9,999,999 1-6 10 - 75% $10,000,000 – 19,999,999 1-7 10 – 100% $20,000,000 – 39,999,999 1-8 10 – 100% $40,000,000 or greater Negotiable 10 – 100% The thresholds as described above are considered guidelines for establishing tax abatement agreement terms. The Town retains discretion to determine the resulting amounts and terms of abatement for individual projects. Nothing herein shall imply or suggest that the Town is under any obligation to provide financial incentives at any time to any applicant. Fee-based Incentives/Fee Waivers Fee-based incentives may also be considered in lieu of or in addition to a tax abatement if the project presents extraordinary value to the Town in terms of added tax value, increased employment opportunity, or enhanced quality of life amenities. Fee-based incentives may include the reduction or full waiver of building permit fees and/or impact fees assessed by the Town. 5 | P age Draft v3 with board edits 5/30/2019 [PAGE 27] Infrastructure Improvements Provision of, or participation in, the extension of community infrastructure to the project site, including water, wastewater, drainage or road improvements. Fast Track Town Services A fast track service involving all inspections, permitting and planning activities may be provided. The Town’s Development Services Director would be assigned to assist with the progress of the project. Job Creation The Town may consider an incentive for the creation and maintenance of jobs within the Town of Sunnyvale by offering a grant payment for companies that create and relocate a minimum of 25 full-time jobs. The company must maintain the number of jobs created and/or relocated for at least a 2-year period to receive the total grant payment. Each job eligible for grant payment must pay at least 100% of the average annual wage for Dallas County, as determined by the United States Labor, Bureau of Labor Statistics.  For each job paying 75-100% of the average annual wage for Dallas County, the incentive is $1,000 per job, payable as $500 each year over a two-year period.  For each job paying 100-124% of the average annual wage for Dallas County, the incentive is $2,500 per job, payable as $1,250 each year over a two-year period.  For each job paying 125% or more of the average annual wage for Dallas County, the incentive is $4,000 per job, payable as $2,000 each year over a two-year period. The maximum grant amount cannot exceed 50% of the net new ad valorem and business personal property taxes paid annually to the Town of Sunnyvale as a result of the project. Matching Grants The Town may reimburse up to 50% of the costs of tenant improvements (including FFE – fixtures, furniture, and equipment). Other Incentives Under Chapter 380 of the Texas Local Government Code, the Town may, on a case-by-case basis, consider other incentive options to promote and encourage economic development, including but not limited to cash grants, sales tax rebates, training grants, and relocation assistance or any combination of listed options. Targeted Incentives A. Specialty Retail, Entertainment and Restaurant: The Town seeks to recruit new unique, specialty retailers and restaurants that do not already have a strong presence in the marketplace and those that will help to differentiate Sunnyvale from dining and entertainment venues in other communities within the Dallas Metroplex. 6 | P age Draft v3 with board edits 5/30/2019 [PAGE 28] The Town may consider providing incentives to “destination” retailers and restaurants that have the capability to attract customers from outside the community, do not have another existing location within a five-mile radius and fit well into the existing retail/restaurant economy to provide new and different shopping, dining, and/or entertainment experiences. Local, Regional, and National retailers or restaurants may apply if they meet the above qualifications. This incentive may also be considered for existing “destination” retailers and restaurants that are expanding or relocating if their added square footage is a minimum of 50% larger than their current space. Developers and Shopping Center Owners leasing space to destination retailers and restaurants may apply. In order toTo qualify for incentives, specialty retailers and/or restaurants are required to sign a minimum five-year lease with the Developer/Shopping Center Owner, no matter which party is the applicant and potential recipient of the incentive. Based on the value of the incentive requested, the Town may require the tenant to sign a lease for a period longer than five (5) years but not to exceed 15 years. Consideration for incentives shall require a return on investment (ROI) for the Town; any and all incentives under this provision shall be limited by an ROI of 10:1 (for example, a $1 million investment, maximum incentive would be $100,000). B. Location. Special consideration will be given for high priority areas as follows in order from most to least importance: a. Town Center District b. State Highway 352/South Collins c. U.S. Highway 80 d. Beltline Corridor, specifically at Town East and Beltline e. Beltline Corridor, all other areas VI. EXISTING BUSINESS RETENTION/EXPANSION The Sunnyvale Town Council may consider the use of incentives to retain existing businesses that have necessity to request assistance in the cases that these businesses propose to improve or redevelop property within the Town limits, or to keep jobs in Sunnyvale that would otherwise go elsewhere. Tax abatement for the expansion of an existing facility will only apply to the increased valuation of the improvements over the appraised value of the property prior to such improvements as established by the appraisal district the year in which the tax abatement agreement is executed. All incentives mentioned above could also be considered. 7 | P age Draft v3 with board edits 5/30/2019 [PAGE 29] VII. INCENTIVE RECONSIDERATION Application for incentive may be made at any time and in regards to any commercial project within the Town of Sunnyvale. Reconsideration of an application previously denied may be requested after any of the following alterations: the type of incentive requested is different, the terms associated with the requested incentive are different, new information related to the project and its benefit to the community is obtained, or on an annum basis following initial rejection in response to the changing economic needs, desires, goals, and objectives of the community. Applicants seeking the reconsideration of an incentive are to complete and submit an Incentive Application in the same manner as a new incentive request and will receive additional information in the same timely manner as a new incentive request. Previously submitted documents may be referenced in each subsequent determination. VIII. EXCEPTIONS 1. The Town will not consider any incentives for residential projects or the residential portion of designated mixed-use projects. 2. In order toTo encourage the retention/expansion of existing business, attraction of new businesses which satisfy a community goal or objective, or to meet a special need of the community, the Town Council retains the ability to approve an incentive which does not comply with the terms outlined in this policy. 3. Tax abatements will not be considered within any Tax Increment Zone (TIRZ) created in the Town. Providing ad valorem tax abatements would dilute the projected value of the Fund and limit the ability to carry out approved projects within the TIRZ District. IX. APPROVAL All applications are considered on a case-by-case basis and all incentive agreements are subject to final approval by the Town Council. Even though a project may meet the criterion set forth in this policy, an application may be denied for any reason at the discretion of the Town. The Town will not enter into an incentive agreement with a business entity unless the business entity, in accordance with Section 2252.908 of the Texas Government Code and rules adopted by the Texas Ethics Commission, submits a disclosure of interested parties to the Town at the time the business entity submits the signed incentive agreement to the Town. X. PERFORMANCE All financial incentives granted by the Town of Sunnyvale are performance-based. Should a project granted incentive fail to satisfy the terms outlined within each individual agreement, the contracted party will be denied the full amount of abatement to be received for that given year. Approved incentive agreements other than tax abatements will include individual performance measures to be met by the contracted party and specific recapture provisions intended to safeguard the Town from potential financial loss. 8 | P age Draft v3 with board edits 5/30/2019 [PAGE 30] XI. ANNUAL EVALUATION The Town will perform evaluations of approved incentive agreements in order toto ensure compliance by all parties on a yearly basis. XII. PROCEDURAL GUIDELINES Any person, organization, or corporation desiring that the Town of Sunnyvale consider providing incentives to encourage local economic development within the Town limits shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that the Town is under any obligation to provide a tax abatement or any other incentives to any applicant. Completion of the Application 1. Applicant shall complete the "Application for Economic Incentives" and include a statement regarding the applicant’s desire for consideration of available incentives listed in the Town of Sunnyvale Incentive Policy. 2. The incentive request should include any aerial maps, proposed site plans, floor plans, architectural renderings or other such documents related to the proposed facility/site. This should include the precise location of the property and all roadways within 500 feet of the site, the metes and bounds or complete legal description and any proposed zoning changes. This is noted on Page 2 of the application. 3. Applicant shall complete all forms and information, along with and information detailed in the application and submit all information to the Director of Economic Development, at: Town of Sunnyvale ATTN: Economic Development Corporation 127 N. Collins Road Sunnyvale, Texas 75182 4. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested, as needed. Once an application has been submitted to the Director of Economic Development, it shall be regarded as a matter of public record and will be available for inspection by the public should a Public Information request be completed. Any proprietary information included as a part of the application should be so indicated, marked in advance and supplied in such a manner so as toto be readily separated from the remainder of the application. Consideration of the Application Grant Funding. Grants will be funded on a reimbursement basis. Applicants shall submit estimates of the total improvement costs for projects being submitted for assistance consideration. Estimated project 9 | P age Draft v3 with board edits 5/30/2019 [PAGE 31] costs will be considered by the Board in determining grant award amounts. Grant awards will specify a percentage of reimbursement of actual project improvement costs and will include a specified not-to exceed grant amount. Upon completion of construction of project improvements, invoices verifying actual project costs shall be submitted by the applicant for reimbursement. Grants shall be funded upon confirmation of completion and acceptance of construction by the Town Engineer for public infrastructure projects or by the Building Official for improvements completed on private property within the time set by the Board. Consideration by the Sunnyvale 4A and/or 4B Development Corporation Board. Grant requests shall be considered for recommendation to the Board by the Economic Development Director. The Sunnyvale 4B Development Corporation Board may not award an Economic Development Incentive until it has held a public hearing at which interested persons are entitled to speak and present evidence for or against the incentive. Notice of the public hearing shall be posted in accordance with state law. Performance Agreement. A successful applicant must enter into a performance agreement with the Corporation which provides for a schedule of additional payroll, or jobs to be created/ or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the Corporation. The performance agreement must also specify the terms under which repayment must be made if the applicant fails to meet the performance requirements outlined in the agreement. Town Council Consideration. Upon a favorable recommendation of the Board(s), the grant requests will be forwarded to the Town Council for their consideration. The final decision of any incentive application will rest with the Sunnyvale Town Council. 10 | P age Draft v3 with board edits 5/30/2019 [PAGE 32] Prospect Questionnaire – Economic and Fiscal Impact Analysis Note: To objectively evaluate the economic and fiscal impact that your company may have on the Town of Sunnyvale and other public entities, the Sunnyvale Economic Development office will review and evaluate specific information related to your project. Your assistance in providing the referenced information is respectfully requested. Please complete the questions below and email a completed copy of this form to traci.anderson@townofsunnyvale.org. Call 972.203.4154 should you have any questions or need assistance. Thank you! Date Survey Completed: __________________ A. Basic Company Information: 1. Person to contact concerning this questionnaire:____________________________________________ 2. Company Name:________________________ __ ______ ____ 3. Company Address: ___________________________________________ 4. City:_____________________________________________ State:________________ Zip:_________ 5. Company Phone:_____________________________________ Fax: ___________________ 6. Company Email: Company website: 7. Is your company registered to do business in the State of Texas? Yes / No 8. Is this a new business start-up? Yes / No 9. How long has the company been in operation? _______Years 10. Ownership (check one): _______ Public Traded Stock or __________ Privately Held 11. Form of Business (check one): ____Corporation ___Joint Venture ___Partnership___ Sole Proprietorship Please attach to this Questionnaire the company’s financial statements for the preceding 3-year period. B. Company Business Activities: 12. NAICS code: ___________________ [PAGE 33] 13. Describe the company’s principal business (attach additional sheets as necessary): ____________________________________________________________________________________ ____________________________________________________________________________________ 14. Describe the specific operations to be performed at the proposed Sunnyvale facility: ____________________________________________________________________________________ ____________________________________________________________________________________ C. Company’s Proposed Facility: 15. Describe the company’s plans for expanding or locating in Sunnyvale (attach additional sheets as necessary): _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 16. Area (Square Feet) Requirements: (a) Office ______________ SF (b) Manufacturing: SF (c) Warehouse: ______________ SF (d) Showroom/Retail SF (e) Corporate HQ SF (f) Regional HQ SF (g) Call Center SF (h) Data Center SF (i) Lab/Research SF (j) Other: ______________ SF Total Area (a+b+c+d+e): ______________ SF 17. Is the company expanding its existing local operations or relocating its operations from somewhere else to our area? (check one) Expansion _ Relocation 18. Does the company plan to lease or own the facility? (check one) _________ Lease __________ Own 19. If the company is planning to lease space in Sunnyvale, what is the lease term? _______________ 20. Will the facility be built or does the facility already exist? (check one) _________ New __________ Existing 21. If the company is occupying an existing facility, what is the address? _________________________ 22. If the company is constructing a new facility, what is the approximate location or address of the site? _______________________________________________________________________ _ 2 | Pa ge [PAGE 34] 23. If the company is constructing a new facility, what is the anticipated date for commencement of construction? ___________________________________________ 24. Anticipated date for company to move into the facility: _________________________________ Please attach any aerial maps, proposed site plans, floor plans, architectural renderings or other such documents related to the proposed facility/site. This should include the precise location of the property and all roadways within 500 feet of the site, the metes and bounds or complete legal description and any proposed zoning changes. D. Capital Investment: 25. Initial and subsequent investments by the company in real and business personal property: Instructions • List only the additional capital investment made each year. • Only complete information for the number of years that you plan to lease the facility. If you plan to own your facility, please include information for the full 10-year period. Furniture, Industrial Buildings & Fixtures, & Machines Year Land Improvements Office Equipment & Equipment Total 1 $________ $____________ $_____________ $___________ $___ _____ 2 $________ $____________ $_____________ $___________ $___ _____ 3 $________ $____________ $_____________ $___________ $___ _____ 4 $________ $____________ $_____________ $___________ $___ _____ 5 $________ $____________ $_____________ $___________ $___ _____ 6 $________ $____________ $_____________ $___________ $___ _____ 7 $________ $____________ $_____________ $___________ $________ 8 $________ $____________ $_____________ $___________ $________ 9 $________ $____________ $_____________ $___________ $________ 10 $________ $____________ $_____________ $___________ $________ Total $________ $____________ $_____________ $____________ $________ 26. Estimated total inventories in Sunnyvale at the end of each calendar year: Year 1 $________________ 2 $________________ 3 $________________ 4 $________________ 5 $________________ 3 | Pa ge [PAGE 35] 6 $________________ 7 $________________ 8 $________________ 9 $________________ 10 $________________ 27. Projected annual inventory growth rate: _________ % 28. Estimated percentage of inventory that is exempt from taxation by Freeport: _____________ E. Taxable Sales/Purchases 29. Will the company have significant taxable sales at its Sunnyvale facility (> $500,000 annually)? ___________________________________ If you answered ‘yes’ to question 25, please complete questions 26-27 26. Projected annual sales volume of Sunnyvale-based operations (subject to state and local sales tax): Year 1 $________________ 2 $________________ 3 $________________ 4 $________________ 5 $________________ 6 $________________ 7 $________________ 8 $________________ 9 $________________ 10 $________________ 27. Will Sunnyvale be designated as the “point of sale” for sales tax purposes? _______________ 28. Will the company make significant taxable purchases of equipment or other goods for which the first point of use will be the Sunnyvale facility? (> $500,000 annually)? ______________________ If you answered ‘yes’ to question 28, please complete questions 29-30 29. Projected annual taxable purchases for the Sunnyvale-based operation (Subject to state and local sales tax): Year 1 $________________ 2 $________________ 3 $________________ 4 $________________ 5 $________________ 4 | Pa ge [PAGE 36] 6 $________________ 7 $________________ 8 $________________ 9 $________________ 10 $________________ 30. Approximately what percentage of these purchases will be executed with suppliers located outside the State of Texas? ____________% 31. Will Sunnyvale be designated as the “point of delivery” or the “point of first use” for the purpose of collecting sales/use taxes of these purchases? 32. If the company is constructing a new facility, making significant upgrades to an existing facility, or expanding an existing facility, would the company be willing to require its contractors to bill the company under a ‘separated contract’ that allows the sales taxes paid on construction materials to be accrued to the Town of Sunnyvale? _______________________________________________________ F. Employment and Payroll: 33. How many fulltime equivalent (FTE) positions will the company employ? ________________________ (If this is an existing company that is expanding in Sunnyvale, list only new employment positions) 34. What percentage of the projected employment positions would receive benefits? ____________________ 35. New Employees to be hired each year (salaries net of benefits): __________________________________ Instructions • List only the additional employment positions created in Sunnyvale each year • Only complete information for the number of years that you plan to lease the facility • If you plan to own your facility, please include information for the full 10-year period Employees Employees Employees Employees Employees Total Total to be paid to be paid to be paid to be paid to be paid Number Payroll $20,000/yr $20,000 $30,000 $50,000 $100,000 of Employees Per Year Year or less to $29,999 to $49,999 $99,999 or greater 1 _________ _________ _________ _________ __________ __________ $________ 2 _________ _________ _________ _________ __________ __________ $________ 3 _________ _________ _________ _________ __________ __________ $________ 4 _________ _________ _________ _________ __________ __________ $________ 5 _________ _________ _________ _________ __________ __________ $________ 6 _________ _________ _________ _________ __________ __________ $________ 7 _________ _________ _________ _________ __________ __________ $________ 8 _________ _________ _________ _________ __________ __________ $________ 9 _________ _________ _________ _________ __________ __________ $________ 10 _________ _________ _________ _________ __________ __________ $________ Total _________ _________ _________ _________ __________ __________ $________ 5 | Pa ge [PAGE 37] 36. Of the total employment positions to be located in Sunnyvale, please list the percentages of employment positions that will be (a) relocating from outside the area, (b) relocating from within the area, or (c) will be newly created positions: Percentage a. Employment Positions Relocated from Outside of Texas: _______ b. Employment Positions Relocated from within Texas, but Outside the Dallas-Fort Worth Area: _______ c. Employment Positions Relocated Inside the Dallas-Fort Worth Area: _______ d. New Employment Positions Created: _______ Total: 100% 37. Average wage paid to employees to be located at the Sunnyvale facility: _________________________ NOTE: Texas State Law prohibits any tax-payer subsidized job creation grant or tax abatement be given to any business entity in Texas that is in violation of federal immigration law. Any agreement providing a public subsidy will include a provision for repayment of the public subsidy with interest in the event the business violates the federal code, 8 U.S.C. Section 1324a (f). G. Other Economic Impact Considerations or Comments: 38. Please provide information regarding the company’s past involvement in the local community, as well as the level of involvement the Company would have in Sunnyvale: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ 39. Include or describe any other information relative to the company’s future economic and fiscal impact on the Town of Sunnyvale, area school districts and county governments: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ 40. Is the company requesting a specific incentive and, if so, how will such incentive be used? ___________________________________________________________________________________ ___________________________________________________________________________________ 41. Is the company considering any other communities besides Sunnyvale? If appropriate to share, please specify which communities: ____________________________________________________________________________________ 42. Has the company already entered into a contract or any form of agreement for the proposed project? Yes / No 6 | Pa ge [PAGE 38] I hereby certify that the information included on this form is complete and accurate: Signature: _________________________________________Title:______________ __ Print Name: _______________________________________Date: ____________________ Please Attach Any or All of the Following: • Company Financial Statements for Preceding 3-Year Period (The Town of Sunnyvale can sign a non-disclosure agreement, if necessary) • Aerial maps, site plans, floor plans, architectural renderings, etc. for proposed facility Other _____________________________________________________________________ Thank You! The Town of Sunnyvale Economic Development Corporation appreciates your cooperation and assistance in providing the above information. This information will be helpful in determining your firm’s economic and fiscal impact on the Town of Sunnyvale, Dallas County, the Dallas County Community College District, and Sunnyvale Independent School District. Please let us know if a non-disclosure agreement (NDA) should be signed. Upon Completion of this Form: Please e-mail this completed questionnaire to traci.anderson@townofsunnyvale.org. If you have further questions, please contact Traci Anderson at 972.203.4154. 7 | Pa ge