Meeting Minutes from Monday, August 20, 2007

NEDERLAND ECONOMIC DEVELOPMENT CORPORATION

Minutes
August 20, 2007

MEETING

A meeting of the Nederland Economic Development Corporation was called to order at 5:30 p.m. at the Nederland Economic Development Corporation Office, 1903 Atlanta Avenue, by President Larry Ducharme.

QUORUM

Board members present were: Larry Ducharme, Mike Guidry, Dick Nugent, Billy Neal, Nick Phillips and Bert Rogers. Absent: Paul Baker. Others present were: Jim Wimberley, NEDC Attorney; Tracie Killian, Executive Director and Marlinda Eastberg, Secretary, NEDC. Guests were Wanda Hollier, Nederland Heritage Festival; Cynthia A. Drawhorn, Sew-N-Sew's and Jake Tortorice, Texas Desserts & Coffee Cafe' Inc., doing business as Rao's Bakery Coffee Cafe.

MINUTES

A motion was made by Billy Neal and seconded by Bert Rogers to approve the minutes of July 24, 2007 meeting. Motion carried.
Ayes:Ducharme, Guidry, Nugent, Neal, Phillips and Rogers
Noes: None.
Absent: Baker

NEDERLAND HERITAGE FESTIVAL

Wanda Hollier, Manager, Nederland Heritage Festival reported that the 2007 festival was very successful. She stated that the festival started in 1973 with a two (2) day event with approximately ten (10) volunteers and has grown to a six (6) day event with approximately eighty (80) volunteers.

Ms. Hollier reported that in conjunction with Tracie Killian, NEDC; Kasey Taylor, Small Business Development Center and Jerry Walker, Impact Data Source information was collected and an analysis was performed which gave the results of an economic impact analysis of the 2007 Nederland Heritage Festival and related revenues for the City of Nederland, other area cities and Jefferson County during the event. The analysis estimated of the 225,000 people attending the festival, an estimated thirty percent (30%) were from Nederland, approximately sixty-nine percent (69%) were from nearby areas and one-half percent were from over 100 miles away. The eighty (80) volunteers put in over 20,000 man hours each year to host this event. Ms. Hollier reported that the 2007 festival had a significant impact on the Nederland area economy providing an approximate six million dollar ($6,000,000.00) economic impact during that event.

PUBLIC HEARING

The regular meeting was recessed at 5:44 p.m. by President Ducharme for the purpose of conducting a public hearing regarding the potential expenditure of funds for an economic development incentive to Cynthia A. Drawhorn, doing business as Sew-N-Sew's.

Cynthia A Drawhorn, owner of Sew-N-Sew's presented the board with her plans for a new retail sewing store. She reported she has purchased the franchise for Brother Sewing Machine from the recently closed Sew Much More's Sewing Center. The retail store will be located at 2703 Avenue H, Nederland, Texas and will offer fabrics, sewing machines and notions as well as customer service, hourly machine rental, alterations and sewing classes. Sew-N-Sew's will employ two (2) full time employees and have plans to hire additional employees during peak times. Ms. Drawhorn has a one (1) year lease with an option for an additional one (1) year for this facility.

A discussion was held concerning new business venture and previous business experience. With no more questions and/or comments, President Ducharme adjourned the Public Hearing at 5:50 p.m.

SEW-N-SEW'S

Tracie Killian reported that the Impact Analysis Committee (IAC) has met and recommends that the NEDC approve an expenditure of funds not to exceed seven thousand dollars and no/100 ($7,000.00) with a payback period of 1.2 years (14 months) to Cynthia A. Drawhorn, doing business as Sew-N-Sew's. A motion was made by Nick Phillips and seconded by Bert Rogers to approve the expenditure of funds, not to exceed seven thousand dollars and no/100 with a payback period of 1.2 years (14 months) to Cynthia A. Drawhorn, doing business as Sew-N-Sew's for the development of retail sewing center to be located at 2703 Avenue H, Nederland, Texas, contingent upon the proper financial statements released and projected numbers met through the recovery period. Motion carried.
Ayes: Ducharme, Guidry, Nugent, Neal, Phillips and Rogers
Noes: None.
Absent: Baker

PUBLIC HEARING

The regular meeting was recessed at 5:55 p.m. by President Ducharme for the purpose of conducting a public hearing regarding the potential expenditure of funds for an economic development incentive to Texas Desserts & Coffee Cafe' doing business as Rao's Bakery Coffee Cafe.

Mr. Jake Tortorice, owner of Rao's Bakery Coffee Cafe presented the board with plans to open a bakery/cafe at 3504 Highway 365, Nederland, Texas. After opening several locations in the Houston area and expanding in the Beaumont area he reported the decision was made to open a store in the Mid County area. He stated he has signed a five (5) year lease with an option to sign an additional two (2), five (5) year leases. The building is approximately three thousand, four-hundred square feet (3,400 sq.ft.) and will offer assorted bakery goods, coffees and gelatos.

A discussion was held concerning the hours of operation, employee numbers and projected opening. With no more questions and/or comments, President Ducharme adjourned the Public Hearing at 6:25 p.m.

TEXAS DESSERTS & COFFEE CAFE', INC., DOING BUSINESS AS RAO'S BAKERY COFFEE CAFE'

Tracie Killian reported that the IAC Committee has met and recommends that the NEDC approve an expenditure of funds not to exceed ninety-four thousand, five hundred dollars ($94,500.00) with a payback period of 3.2 years (38 months) to Rao's Bakery Coffee Cafe.

A motion was made by Billy Neal and seconded by Nick Phillips to approve the expenditure of funds, not to exceed ninety four thousand five hundred dollars with a payback period of 3.2 years (38 months) to Texas Desserts & Coffee Cafe, Inc. doing business as Rao's Bakery Coffee Cafe for the development of a retail bakery and cafe to be located at 3504 Avenue H, Nederland, Texas, contingent upon the proper financial statements released and projected numbers met through the recovery period. Motion carried. Ayes: Ducharme, Guidry, Nugent, Neal, Phillips and Rogers
Noes: None
Absent: Baker

FINANCIAL REPORTS

Tracie Killian reported the July financials were not reconciled at this time.

EXECUTIVE SESSION

The regular meeting was recessed at 6:28 p.m. by President Larry Ducharme for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.087, to discuss the offer of an incentive to a business prospect; Texas Government Code, Chapter 551.071 to discuss litigation and/or legal advise; and Texas Government Code, Chapter 551.072, to discuss acquisition, exchange, and/or release of property.

RECONVENE

The regular meeting was reconvened by President Larry Ducharme at 7:40 p.m. President Larry Ducharme announced no action is needed on Texas Government Code, Chapter 551.087, to discuss the offer of an incentive to a business prospect; Texas Government Code, Chapter 551.071 to discuss litigation and/or legal advice; and Texas Government Code, Chapter 551.072, to discuss acquisition, exchange, and/or release of property.

COMMUNICATION

Tracie Killian presented the Board with a written Executive Director's Report detailing the activities of the NEDC office since the last board meeting.

ADJOURN

There being no further business, a motion was made by Dick Nugent and seconded by Nick Phillips that the meeting be adjourned at 7:44 p.m. Motion carried. Ayes: Ducharme, Guidry, Nugent, Neal, Phillips and Rogers
Noes: None
Absent: Baker

END Meeting Minutes from Monday, August 20, 2007