HomeMy WebLinkAboutEDA 2009-02-11 Minutes City of North Richland Hills Economic Development
Advisory Committee
City Hall Pre-Council Room
Wednesday, February 11, 2009
MINUTES
•
Board Members Present:
- Mr. Jim Makens, the Makens Company
Mr. Dan Quinto, Roaring Brook Development
Ms. Janet Golightly, Golightly's Gallery
Mr..Randy Moresi, North Hills Hospital
Mr. Mike Rigby, Liberty Bank
Ms. Cindy Brewington, Edward Jones
Mr. Mark Sanders, Bates Container
Board Members Absent:
Mr. John Hunter, HealthMarkets
Mr. Kevin Sutherland, Home Depot
Ms. Trish Myers, Alan Young Pontiac-Buick-GMC Trucks
Staff Present:
Mr.Jimmy Perdue, Assistant City Manager, City of NRH
Mr. Craig Hulse, Economic Development Director, City of NRH
Ms. Kristin Weegar, Marketing and Research Coordinator, City of NRH
Ms. Phyl Baloga, Administrative Secretary, City of NRH
• Mr. Makens, President of the Economic Development Advisory Committee, called the meeting to
order at 11:47a.m.
• Previous minutes were approved unanimously at which point President Makens turned the
meeting over to Mr. Hulse.
The first topic of business was a Powerpoint presentation regarding the Economic Trends and City
• Sales Tax Revenues
o Overall unemployment in the U.S. was 7.6% in January of '09, however NRH is under
the National average with 5.1% as of Nov. of'08
o Looking back at NRH Unemployment,the City peaked in Jan.'93 at 6.0%, bottomed out
at 2.1% in Dec of'99 and back up to 6.0% in June of '03. Currently at 5.1% in Nov of
'08
o The third graph deals in Certificate of Occupancies over the last three years. 2007 was
excellent with 20 new businesses overall however no retail. 2008 was okay with eight
net businesses closed and six retail businesses out. 2006 was a bit graver with 24 net
businesses out and 19 retail businesses out
o Our fourth graph reflects net employees. Once again 2007 looks encouraging with 340
net employees. This would be because of the opening of Burlington Coat factory, Ross
Dress for less and other large box opening. 2006 and 2008 don't look as promising but
some of these numbers could be from a delayed effect of the mall closing and timing.
o In the fifth graph 2007 accentuates how healthy 2007 was with large box spaces
opening
o Data on the sixth graph comes from the Weitzman Group. This graph indicates square
footage and percent available. In 2005 the City had 31.5% available square footage
which equaled a little less than 4,000,000 sf which was vacant. Mr. Hulse suggested
- 1
_..�:
that the reduction of lease space available is due to the demolition of the mall. In 2007
the City's percentage rate was 16.0% of available square footage. A typical average is
10% and strong cities usually show between 5% and 8%
o The next graph shows NRH Sales Tax Revenue as of Nov. 2008. From a year ago the
percentage of change is -12.1%. This information is shared with administration and
finance and is evaluated to see how much City spending should be cut to offset the
decline in sales tax. Wal-Mart and Target remain in the black and show a positive
percentage of sales tax coming back to the City
o The eighth graph indicates that as gas prices rise so does the economy in Texas
o The ninth graph represents Monthly Mortgage Rate Resets. Basically Arm's that were
originated in '04, '05 and '06 are now coming up to be reset at a higher rate which
could ultimately create a disaster
Mr. Hulse turned the next portion of the meeting over to Kristin to discuss the new Economic
Development Website.
o Economic Development now has a new website along with a new logo in hopes this
will attract businesses
o The left hand side focuses more on developers and businesses. The right hand side
focuses on the News, Business Tips and Advice and Calendar of Events. These topics
are archived
o On the top of the screen is the Message from the City with the Mayor's mission
statement and those of the Council
o Along side of the Message from the City is About NRH Economic Development. In the
drop down there is a page dedicated to the Economic Development Department.
Economic Development encompasses not just our department but all City departments
and so there are comments from each one of the directors
o Strategies Plans and Programs have a page devoted to South Boulevard 26, Loop 820
Corridor, Hometown, Smithfield Area and Regional Rail
o Another tab for Publications and then lastly up top is Contact Us
o Topics to the left are; Home, Start of Business, Find Financing, File Taxes, Hire
Employees, Available Buildings and Sites, NRH Maps, Business Development &
Incentives, Key Economic Development Data, Local.Business Data and Helpful Links
o Kristin presented a brief explanation on all areas of the new webpage but emphasized
each area has detailed information
o This website will highlight a business each month and committee members are
encouraged to provide us with any news or milestones pertaining to their business or
any business in our City. Please refer any information to Kristin
o Committee members mentioned they would like their business name, phone number
and a link to their website posted under the Economic Development Advisory
Committee
o Committee members also mentioned that a transportation tab might be a great idea
since NRH has such a positive location
o A community video will be coming on in May and a link will be attached to this website.
o Economic Development is targeting our existing businesses, future businesses along
with our citizens with our new website
The next item to be discussed on the agenda was the Loop 820 Widening
o The first phase will be a 13 mile stretch from IH 35 to the 121-183 split
o Cost of Phase I will be two billion and the toll pricing will depend upon the time of day
for travel and the number of vehicles
o The project will begin in February, 2010 and be completed in 2015
o In 2007 there were 132,000 people traveling this area and it is predicted that by 2030
that figure will more than double
-2-
o The toll lanes will be at grade level with the other lanes, and there will be two toll lanes
going each way
o There will also be two free existing lanes as well as two frontage lanes
O 121 and 183 will be in the air 60 to 100 feet above the Davis flyover which will be quite
high
O The process will be design, build, design and build and so on and so on...
O If you currently have a toll tag it will work on all toll locations
O Estimated toll cost between 121 and 35 will cost$6.00
O Regarding purchase of property for the expansion of Loop 820, City Hall will be
impacted. The City will lose all parking along the front of the building which is about
100 spaces
O The City may have to relocate and studies and options have been considered
o TxDOT will start purchasing individuals property in April and end in January. This is
accomplished thru a right-of-way company
O NTTA(North Texas Toll Association)will collect the toll monies and pay to the Centra.
Centra is a Spanish company who will own the tolls
O Centre has a 56 year agreement on this particular project
O Everything east of 26 was widened when the interchange was constructed so there is
no property to be purchased east of 26
South of the Loop Update
O The City is investing time and money south of the loop
o The City has identified the different parcels of property south of the loop that do need
repairs. Looking at the graph the homes in blue are homes that are aging and do need
some repair.The homes in red need significant repairs and have heavy code violations
O The departments involved with this revitalization program are Economic Development,
Public Works and Neighborhood Services
o All three of the departments are working closely together to present a plan of action
and will be presenting this to our City Manager in the near future
O TIF No. 1; TIF's freeze the value and in 1998 the City created.a TIF to encompass the
old Richland Plaza shopping center now called The Hills
o Prior to the TIF the old shopping center was vacant and blighted. Now it houses a
couple of thousand employees. The property also is now up to code and has been
very successful venture for the City. Because of the success of this TIF the City has
decided to extend the TIF area up Boulevard 26 to 820 and from Glenview to Rufe
•
Snow to include the old Food Lion (map shown)
O This allows the City to freeze the values and the increment associated with those
property values goes back into the TIF.
o The City will pull a bond and invest in the area by making a 3.5 million investment by;
bury utilities and improve the Glenview and Rufe Snow intersections that are along
Boulevard 26
O Both intersections will have cobblestone crosswalks, and extensive landscaping
O With the TIF expansion and the new BIG program this will help stimulate ongoing
revitalization of Boulevard 26
Summary of "20t Annual Tarrant County Commercial Real Estate forecast presented by Jim
Makens
o Jim Makens presented to the commercial brokers a Tarrant County Commercial
Forecast in January and Mr. Hulse asked Mr. Makens to share some of his
presentation
O Last year Wal-Mart opened only one store which is down from their usual three to five
stores
O Of the 14 power centers that he spoke of last year only five are under construction
o Vacancy remained flat or slightly increased
-3- . .
o Fast food and discount gas doing well
o The US is primarily a consumer buying country whereas other countries are more
involved in manufacturing
o Customers are expecting deep discounts
o Electronic and appliances were hardest hit
o Consumer less brand conscience and more interested in the better price
o We are seeing the reemergence of the coupon customer
o More stores closing in 2009
o Retailers cutting employees and cutting size of space
o Online shopping up
o Retailer gearing more to 16 to 28 year old shopper, considered most disposable ,
income
o More Direct Mail coupons being used
o Retailers are asking landlords for a reduction in rent
o New retailers are getting a reduction in rent and if their store doesn't perform at a
certain level they are able to walk away from their lease
o All high end brand name stores that have high debt ratio most impacted
o Wal-Mart is the number one grocery store in the Dallas/Fort Worth since 2004
o Wal-Mart increase in sales$63,000 million dollars a day
o Wal-Mart grocery store capture rate is two to four percent a year
o Wal-Mart has 38% of market, Kroger 15%, Albertson's 8%, Tom Thumb relatively flat
and the others went to Central Market or Mercado's, (the Mexican grocery stores)
o Kroger and Tom Thumb will expand, Aide's (German grocery) will be coming into our
area
o The Alde grocery store plans on opening 22 locations by 2010. Aide stores only take
three people to run their stores and love to go head to head with Wal-Mart
o Power centers expansions are on hold for a long time with vacancy at 13'/% in Tarrant
County. Last year that figure was a negative 1%
o Mixed use center such as Southlake Towne Center last year made close to a quarter of
billion dollars. Obviously a very successful project
o Montgomery center is 92% leased, office doing well, retail 60%
o Alliance Town Center is sustainable
o Glade Park in Euless, have committed 5'/Z million for infrastructure
o Convenient Centers with their easy financing will be hit the hardest in 2009 and will
probably go back to lenders
Upon the completion of Mr. Makens presentation, the meeting was adjourned at 1:35 for picture taking
of the Economic Development Advisory Committee.
-4-