Travis County Commissioners Court
April 14, 2009,
Item 24
24.
consider and take appropriate action on request to nominate golfsmith as a Texas enterprise project.
we discussed this item in brief last week.
afterwards I had a good meeting with the applicants and I think that I much better understand the nature of this program now.
we delivered backup to you.
and it represents some of the work that has to be done.
on this project and -- and which they had done anyway.
do you all just want to walk us through it.
>> thank you, Commissioner Biscoe, I mean judge Biscoe.
>> it's been a rough morning, don't demote me.
i can't take that
>> [laughter]
>> I'm sorry, sir.
my name is dusty mccormick, with the city of Austin's economic growth and redevelopment services office.
i am accompanied by several folks here, mr.
bryan hamilton
>> [indiscernible] with the city of Austin,
>> [papers shuffling - audio interference], consultant with ryan, inc., I was also mr.
jonathan ferguson,
>> [papers shuffling - audio interference] consultant with ryan, inc., I have ms.
jeanette ramirez the comptroller with golf smith.
we were here two weeks ago to provide you with some information.
you asked us to go back and gather more information.
i think at that time there wasn't enough provided for you, so we are here to -- to further discussion --
>> [papers shuffling - audio interference] we have a powerpoint presentation for you that we would like to provide for you this morning.
we would like to go into that if it's at all possible.
>> thank you judge, Commissioners, my name is jonathan ferguson, we put together a -- a powerpoint presentation for this morning.
it's just a brief summary of the enterprise zone program and a little background history of the program.
the county's participation in the program.
what that would entail as well as some -- some details on golfsmith and the project.
to begin the enterprise zone program from its inception back in 1988 is a state incentive offered by the office of the governor, the economic development tourism.
to induce and attract investment in the state of Texas as well as to -- to create and retain jobs in the state, in some of those jobs, the purpose of the program is to create or retain -- retain jobs for economically disadvantaged individuals.
the program --
>>
>> [indiscernible]
>> I'm sorry?
>> may be a misnomer.
>> the program?
>> no the economically disadvantaged.
that may be a misnomer and the way I'm looking at this thing.
so when you say that, in other words either/or situation in this particular deal so --
>> correct.
>> you don't have to be economically disadvantaged.
and you can still be employed.
so when you say economically disadvantaged it must be exclusively economically disadvantaged with no outside chance of not being economically disadvantaged.
so we need to say it like it really is.
>> right, we'll get to that later on.
>> I was just getting to you right there early.
because misinformation can get out accordingly.
we don't want that.
>> right.
>> thank you.
>> the program is available to all of the businesses in Texas that -- that make a commitment to investing new capital in a new or existing business as well as a commitment to create or retain jobs.
the designations, there are 105 available per -- per biennium and those 105, if theory not all used, they can carry forward to future bienniums.
and -- and initially, businesses were required to be in an enterprise zone in order to participate in the program.
and those enterprise zones originally were -- were -- were areas that were just drawn up by the local governing bodies where those areas were located.
now enterprise zones are designated by census tract block groups where the poverty level is -- is -- is 20% or greater within that block group.
there are also federally designated renewal communities, federally designated empowerment zones.
if there are still some local enterprise zones that weren't drawn up by cities or counties in the past that are still active in a -- and a company is located in one of those, they would be considered to be in an enterprise zone.
as well as state declared distressed counties.
as far as eligibility criteria for participating in the program.
under the retention provision, which is what we would be requesting here, the business would have to -- would have to -- to follow one of the -- one of the following criteria, which permanent employees of the business would be laid off, the business would permanently close down, they would relocate out of state, the business facility would have had to have been legitimately destroyed or impaired because of a natural disaster or the business would be able to employ individuals in accordance with government code section 2303.402 and that states that a qualified business would be able to show that they are able to employ residents of an enterprise zone, as I just stated, under those definitions of an enterprise zone or economically disadvantaged individuals.
there are a number of criteria that would make a person be designated as an economically disadvantaged individuals.
so the next slide.
supervision the scoring of the applications, once they are submitted, their designations the 105 that are available per biennium are awarred on a first come, first served basis.
so -- so they could run out of the 105 before -- before the last application round which is going to be here June 1st '09.
just first come, first served.
if there's that many good projects that the governor's office deems worthy of receiving a designation, they will use as many of those as they can.
the factors that are considered when the -- when the panel goes over the -- reviews the applications to -- to decide who gets a designation or not is the amount of capital investment.
of course increased capital investment and more alert -- a larger number of jobs that are going to be created or retained will definitely carry more weight in their eyes as well as the distress level of the community and, you know, kind of its need for that -- for that increased capital investment and job creation or retention as well as the -- the businesses commitment to hire disadvantaged workers.
here you have on the next slide here is a table of the potential benefits to projects.
and you can see as you go up in the -- in the level of proposed capital investment, over the five year period, it's -- the -- the maximum refund per job also increases and what we're looking at here today as far as golfsmith, they would be in that five to $150 million range right there.
so it was a $2,500 per job benefit, which is capped out at 500 jobs per benefit, which would lead to a maximum eligible refund of 1.25 million over the five year period.
again, that is only the benefit is only a -- a refund of the the state portion of sales tax paid on taxable items that are used at that designated facility.
as far as the nomination process, as I said, 1505 projects per biennium, the applications are accepted on a quarterly basis during the biennium.
we are about to -- to the June 1st 2009 application cycle is the last application cycle of the current biennium.
Travis County aloe indicated six designations per biennium.
since Travis County never participated in the program, you of course have your six left available and as you know you also can use three of those six to nominate projects that are actually in the city's jurisdiction, that's -- that is what we are looking at here since golfsmith is within the city limits of Austin.
>> >
>> [indiscernible] used theirs up?
>> sent 2009.
beginning of the next biennium.
>> sent -- and what happened they have used the six, goes back to 0, then they will be eligible for an additional six?
>> yes.
>> within that two year period.
>> uh-huh.
>> we're talking about sent?
>> yes.
>> that's right around the corner of this year right.
>> yes, sir.
>> that's right around the corner, then you will get six more, the city of Austin will get six more at that time; that's correct?
>> uh-huh.
>> all right.
i didn't mean to cut you off in your presentation, I'm trying to flush things out as best I can to keep things on track.
>> go ahead.
>> okay.
next I wanted to touch on the county's participation.
this also goes back to the checklist that -- that I believe you received kind of distinguishing the -- the ryan and golfsmith responsibilities as it pertains to -- to the application process and even past that kind of -- kind of delineating that between the county's participation.
i believe on that checklist anything that the county would be responsible for taking care of is highlighted in yellow.
that really only applies to kind of what we are doing here, what would happen at a public hearing as far as there are some -- some public hearing notices that would have to be taken care of.
being published on the bulletin board.
also a letter that would need to be sent to the ed bank and also considering a nominating order which would establish the county's participation in the program and also nominate golfsmith as an enterprise project.
that said, right here three requirement of the order it would establish participation and also designated a local liaison for the project which would either be the judge or his designee would be a liaison between the county, golfsmith and the governor's office and also would nominate the enterprise project.
now, on October 1st, there is a mandatory annual report that is due to the governor's office.
basically a survey.
asked from the county what sort of impact its participation in the enterprise zone program has had on the revitalization goals and efforts here in the community.
the benefits of Travis County participating in the program, it is a no cost -- incentive at no cost to Travis County.
there's no physical impact.
really all that we're here to do is request a nomination to the governor's office as an enterprise project that would allow us to prepare, submit an application and compete on a state-wide basis with other projects and other jurisdictions.
so with that said, if Travis County decides not to use any of their -- of their -- available designations for this biennium or any other, then basically those -- those designations are going to be -- going to be applied for and used by companies in another jurisdiction, in another county or city, so they would be gaining that state benefit.
it also -- it is a -- it is again just a no cost incentive that would allow you to promote job creation and retention as well as new capital investment in Travis County.
in this case, you know, promoting that job retention and new capital investment in a locally based company's golfsmith is with, you know, a pretty large employer, they have about 331 jobs currently.
so the benefits to Travis County of participating in the program.
a little background on golfsmith, founded in 1967, headquartered in Austin in 1973, operate 74 stores nationwide as well as a retail internet website and a catalog service.
in 1992, I figured this out, judge, they moved to their current headquarters location over off of north i-35 and braker lane.
it includes all of their corporate wide administrative offices, practice range, 30,000 square foot retail super store, 230,000 square feet shipping and distribution facilities for all of their internet and catalog orders as well as a call center and harvey penick golf academy.
and one -- a big aspect is that the governor's office likes to see the businesses that it -- that shows this incentive on that they are active participants in their local community.
and as you can see here, I have listed out some of the organizations and activities that golfsmith participates in.
for one the Austin sunshine camps which is the year round enrichment program for disadvantaged childrenment back in 1996 golfsmith agreed to donate $250,000 over a five year period to cover operational costs for that program.
they are still an active partner there.
the golfsmith sunshine trust scholarship and Austin sunshine camps endowed scholarships, those are just scholarships for higher education for -- for disadvantaged or at-risk youth in the area as well as the marne paul arts center, for kids with cerebral palsy or other physical mental disabilities.
the current employment situation at golfsmith, they have 331 jobs, as I said we have also provided a -- a breakdown here of the employees.
and wanted to -- to point out as far as how they have been able to increase their footprint here in this area as far as job creation.
in 1992 when they moved into that current headquarters location, they had approximately 200 employees.
they are currently at 331 employees.
at that location there.
so that would be what they would be -- what they would be committing to retain at that site.
if they would receive this incentive.
now, the project -- the project, like I said earlier, they would be -- they would be in that five to $150 million capital investment range.
they would be committing to over $5 million over the five years designation period.
that's for -- that's for -- for information services and initiatives such as the overhaul of their enterprise resource planning system which manages all business information and resources and functions from a shared data source.
payment card industry, compliance architect changes.
pci compliance is really operational requirements for companies who process credit card payments to -- to -- it's a security measure that helps them basically prevent any sort of credit card fraud.
advice over internet protocol implementation and replacement of end of life hardware there.
if you can imagine, that's the main administrative location at golfsmith.
that would be -- that would be a large portion there.
as well as a website redesign to improve -- customer experience.
on the website as well as customer relationship management software that would help them to attract and retain customers.
next we have provided a map of where the location is, here on braker line, on i-35, it is in
>> [indiscernible] tract 16.23 block group 2 which is an interview zone, according to the most recent -- enterprise zone according to the most recent u.s.
census.
again, no fiscal impact to the county, no cost state incentive as far as taking up any -- any resources that we would try to attempt to handle as much of that as burden as we could.
as far as the notice and the order and anything else beyond -- beyond that.
next steps, sending the outcome of today's meeting.
>> [one moment please for change in captioners] pending the outcome of today's meeting.
>> [one moment please for change in captioners] I want to basically go through some of the things that you stated in your presentation to make sure that we separate what's what.
an example, residents in an enterprise zone and you mentioned economic disadvantage, the person that may be hired.
and I say may be because they don't necessarily have to be hired.
that person does not have to be economically disadvantaged.
it's an either/or situation.
in other words, you can reside in an enterprise zone, but if you receive the job from golfsmith, then you don't necessarily have to be economically disadvantaged.
so I think that needs to be flushed out and publicly stated, and, of course, what I'm all about is not only job retention and job creation, but what I'm all about is making sure that the economic disadvantaged person in this community to have a fair shot at employment opportunities.
and if there is an opportunity where you do not have to do it, in other words, a shell versus a -- a shall versus a may, then I have an issue with that.
and when you look at the -- and another thing that I am looking at is that as far as job opportunities are concerned, the only way if a person is hired for this particular location, and if I'm wrong, you correct me, there has to be basically a vacancy.
in other words, a replacement mechanism.
in other words, somebody drop off of the employment roll at golfsmith, then only at that time a person can be considered for employment.
if I'm wrong about that, and I think this is what this is all about, those persons there will retain their jobs.
and like I said, it's all about capital investment.
and, of course, Travis County as far as I'm going to speak for myself, I can't speak for Travis County, but as far as I'm concerned, there was a bunch of kids here this morning that was with american youth works, for an example, who are looking for permanent employment opportunities.
they are doing some great things, but it's a lot of young folks out there that need employment opportunities.
this appears not to be the aggressive employment opportunity maker as it's being presented to us today.
now, when you look at the breakdown of the 331 employees that are now currently hired, employed by golfsmith at this location, if you look at the breakdown of that situation, you have 60% are white -- and I'm just going to throw it out like that -- and 27, almost 28% hispanic, 3 -- not even 4%, 3.4, 3.5% are black, and then asian, other, american indians and stuff like that make up the rest.
and, of course, I'm looking for a lot of diversity and it's kind of -- and yet, again, those persons are employed by golfsmith, and thank goodness they have employment opportunities the way things are going these days, but it is just bogglesome to me that we aren't going to benefit as we say we're going to benefit, especially if we are reaching out to persons in this community for employment opportunities.
last question is this.
you mentioned that in September the cylinders will be reloaded again, the silos are empty, now they will be filled as far as the city of Austin having opportunity to -- to nominate a company for the enterprise zone.
why do you need to push this now with the county who has never built an enterprise zone, we have no history of it and it hasn't benefited the county and minimum benefits, if any.
and why are you coming to the county and not wait until September of '09 when the city will be eligible again for six new nominating categories for projects?
what's the deal on that?
>> my name is cheryl wallhouse.
>> okay.
>> we had approached the city originally regarding a potential nomination for a project.
they've already used their designation.
>> could you state your name again?
>> yes.
sharon wallhouse.
we had approached the city regarding a possible nomination as an enterprise project and they had stated that they did not have any destinations available and had recommended that we come forth with Travis County.
they had also stated that the judge and I think the governor's office has met to potentially maybe participate in the enterprise zone to become familiar, brenda claire from the governor's office had talked with the judge about the enterprise program so he could become familiar and brian ham it ton has facilitated meeting with the judge as maybe having Travis County participate in the enterprise program.
>> but my question is can this go back before the city of Austin since they have dealt with this many, many, many times?
and since the county really doesn't benefit nil, per se, and what would be the objection of waiting until September when they get six more opportunities to nominate, to select a company and nominate for enterprise zone such as golfsmith?
that's my question.
>> brian hamilton, economic development manager with the city of Austin.
it's my understanding from golfsmith that this is a timing issue.
the last -- the last -- in this cycle June 1 is the last that you can go and proceed forward with an enterprise zone in this biennium.
that also allows you to look back 180 days, correct?
>> it's 90 business days.
>> 90 business days on any investment they may have made.
so this is also a timing issue.
so one is a timing issue, and two, by ryan and company agreeing to pretty much put all of the paperwork in place and golfsmith agreeing to pay for all of the expenses for Travis County to set up an enterprise zone program, this will allow Travis County in the future to attract more jobs and more investment to the county.
this is -- the enterprise zone program has been utilized by the city of Austin very successfully.
this is a program that Travis County can utilize.
we consider it at the city a no cost incentive because it does not cost the city any dollars.
little a state incentive, but we're rewarding our existing industry such as in this case we have used -- excuse me.
>> how does the city benefit?
>> the city benefits through the increased investment and retained jobs.
and Travis County will benefit through the golfsmith project by the five-plus million dollars investment they will make in equipment, which is then tax I believe by Travis County.
and the new jobs that will be added must also follow the enterprise zone requirements or the designation requirements.
so taking this as a first step in setting up the enterprise zone program, you can then in the future use after -- you will get six more in September as well, consider other projects inside and outside of the city of Austin.
>> I haven't seen any cost numbers, figures at all from our p.b.o.
department, our planning and budget department, on just what you stated.
in other words, if there's a significant investment, then what would that amount of money be as far as what you are saying Travis County can capture?
now, maybe someone else has seen it, but I haven't.
>> I do not believe that information has been yet provided.
>> well, that's information I think I need to have before I make a decision.
i want to make sure that what we're talking about is what is the benefit for Travis County.
i've been trying to get to that -- the bottom line on this for a little while here.
>> and we can provide that information.
>> hold on.
hold on.
let me finish.
so like I say, I'm trying to get to the bottom line on this, but I do know this, on the employment end of this thing, on the employment end of this thing, it's not what it should be.
because of the way -- and I've described it.
i'm not going to go back into that anymore, but I want to make sure that p.b.o.
is listening to this so I can hear how would Travis County benefit financially also.
so that's another tier that has not been -- another rock that hasn't been overturned until this morning as far as I'm concerned because nobody has brought this up before.
so, again, it's just still some information that's out there that -- that I need to see as far as the basis on me making a decision.
and anything that's hidden from me as far as me making a decision, in my opinion, is not acceptable.
it's just not acceptable if I don't have all the facts to make an accurate decision.
so those kind of things should have been forefront a long time ago if that is the case.
now, I really don't know.
so I need more information.
thank you.
>> any other questions?
>> I have a couple.
the enterprise zone is very intriguing to me.
of course, it's rather new to Travis County and I am a little concerned about the level of information that's provided to us.
it sounds like y'all have a closer working relationship with the governor's office than the actual county government does.
just going through some of the information, you've already answered one of my questions which is that Travis County has six nominations with three available inside the city of Austin reloaded on September of 2009.
i'm wondering in regard to the city of Austin when did the city of Austin exhaust its six nominations?
>> the city has utilized four and we have pledged the others to pending projects as incentive offers.
>> did golfsmith put in an application to be included in your six?
>> no, ma'am, we did not.
>> what criteria do you use in evaluating proposals?
>> I guess as far as enterprise zones are concerned, we look at the company, whether it's an existing industry or new industry, we look at the investment the company will make, whether the jobs will be retained, and again, we utilize one for otis spunkmeyew that was going to add approximately -- and I can get the exact details, approximately 60 new jobs and several million dollars worth of investment.
so again, when we don't feel like it's appropriate at times to do a full chapter 380 incentive package, in your case it would be chapter 312, I believe, or 381, incentive package, we often offer the enterprise zone as an option, again because it is a no cost incentive.
>> no cost to the city or the county, but certainly there's a cost at the state level and since we're all state residents, I want to be mindful of that and be a good steward.
is golfsmith -- and this perhaps is too speculative a question.
you don't have to answer if it is.
if golfsmith had provided an application to the city, would it have met the criteria for investment, job creation and job retention?
>> the economic development committee, which meets monthly, would make that evaluation.
i did not make that evaluation.
>> fair enough.
absolutely fair enough.
in regard to the benefit to Travis County from I believe it was it's a 5 million capital investment?
>> yes.
>> is that my understanding?
have you all provided -- and I'm sorry if you have and I'm just not up to speed, have you all provided a breakout of the $5 million investment to us?
>> as far as categories of investment and dollar amounts?
>> uh-huh.
>> no, we have not.
we haven't provided anything like that beyond what we have listed in the presentation today as far as what -- what types of initiatives that there are money was going to be apportioned to.
>> okay.
and in regard to the information that you had provided to us earlier, an earlier backup I had more time with, frankly, the presentation today it's hard to read it during the meeting and absorb it.
in the prior backup, under community effort, which is e on page 1, I have some concerns there because it seems like that needs to reflect some level of community effort.
and again, this is more a statement than a question because this is new to county, to Travis County, I find that it might be difficult for us to meet that criteria in regard to community effort.
description of nominating jurisdiction's efforts to facilitate and encourage participation, it seems actually that it's coming from the business community rather than springing from the governmental entity.
but more to the point, I'm looking at f, g, h, i, j, k and l which are all described as items that ryan will provide, and I would very much like to see the f, g, h, i, j, k and l as part of our information on which we would base our decision.
>> correct.
that information that we have provided is all information that goes into the application binder, which in a sense you would be approving that this application be submitted to the state.
so all of this is just a breakdown of the kind of information that actually is provided in the application.
it's a three-ring binder which we can provide for review and approval.
>> that would be very good since it seems that's exactly what we would need to -- if we're going to sign off on an application, we would like to know what's in it and not just a category of what's in it but actually what's in it.
>> exactly.
and the process that we were -- the purpose of today, I guess, was to see if you would consider going forth and participating in the enterprise zone.
if there wasn't going to be, we didn't know if you wanted to see all of this information.
>> I understand.
>> to consider.
we were thinking if you were going to consider a nomination --
>> I understand.
the idea of the enterprise zone is very intriguing at least to me and I find it something that we should certainly, certainly investigate.
as to whether or not this should be our first project under the enterprise zone, I really would have to see more information along the lines of the business activity, the business information, the project description, the projected capital investment, the existing jobs at the qualified business sites, the commitment to the community and the property access in order to really do my appropriate due diligence.
>> correct.
>> moving on from that, looking at the items that were provided today, and again, I'm kind of flying by the seat of my pants since I didn't -- was this distributed earlier?
did I just miss the boat?
>> the presentation?
>> uh-huh.
>> yesterday.
>> yesterday?
okay.
and I understand the need to move quickly, so I'm trying to be clear about what additional information I would need.
and this information is very, very useful, it answered many of the questions that I had intended to pose to you, but it's in here.
in regard to the -- and you don't have to answer this now, on page 13 there is a listing of participation in the sunshine camp, the sunshine trust scholarship, the sunshine camp endowment and this goes to I'm assuming item lettered k on page 2, the previous document.
i would like more information on those items regarding how much funding was made available, over what time frame and for what purposes.
additionally, in regard to the ethnicity breakdown, since this headquarters is located at i-35 between rundberg and breaker, knowing the demographics of that area, I would be interested to know what kind of -- what kind of recruitment policies that you might have in order to achieve a level of diversity in this enterprise zone.
knowing that -- that this breakout is not a reflection of the demographics in that region, it would be good to see what you are working toward and what kind of impediments you have to achieving it.
i want to be open about that, that there may be some impediments to achieving that kind of mix.
and I think those are all the -- that's all the shopping list I have.
>> Commissioners, questions?
>> I think I've gotten most of my answers with the presentation that was made.
some of the questions have been raised certainly are important for us to know.
the one question I had was, this is going to be in the city, so is there anything to prohibit going outside of the city to hire or outside of this census track to hire folks for you to recruit from?
there's nothing to keep you from going outside of that census group or going outside of the city of Austin to recruit?
>> no, ma'am.
>> so there's a possibility that you can improve the numbers -- because I think it is very important for all programs that the county has or participates in to have -- to make sure that whatever the participation rates are, that they reflect the makeup of the community or certainly the makeup of the area that you are going to serve, in this particular case with the enterprise zone.
so I think that is a very important goal that needs to be kept.
and not abandoned ever.
and so those are kind of the -- I think some very important questions have been raised and so we would need to kind of address those and still be really fair to everybody with the investment or in this -- even though we're not investing any money here from the county, still I think that we need to look out for the participation of folks and programs that we -- that we sponsor.
thanks.
>> Commissioner?
>> most of mine have been addressed.
i just have one additional one and that is how or who verifies and tracks the data of compliance, for example, the percentages of new hires or retentions?
>> actually we've been hired by golfsmith to actually monitor for them, but for the purposes of the program, what happens after a project receives a designation, then it has to do through a certification with the comptroller's office under two different audits.
one is under the payroll and they have to prove the tax is paid to the state.
the way that the job is certified is that there's a certification that is done by -- submitted to the comptroller's office, the comptroller's office verifies all the information they need all the hiring criteria and the jobs were maintained.
once it goes under that particular initial review, it goes out to a field office and at that time they actually come on site to the project's facility to verify that they actually worked 18, 20 hours, that the jobs were maintained, and they are maintained throughout the designation period.
the audit can go on either annually or it could go on every couple of years depending on how often they submit a refund claim.
but either way at the end of the project designation, there is a closure of the project whereas the comptroller's office will say they met the capital investment, certified the jobs, maintained the jobs, met the hiring criteria.
it's all done through the comptroller's office, which is pretty rigorous,ly say.
it's not something that's just granted.
>> Commissioner?
>> that's all.
>> what is the designation period?
>> the designation period is normally up to five years.
>> what, if anything, is golfsmith willing to do to increase the number of black employees?
>> 2.8%, judge.
>> think about that.
so time-wise, I'm aware of the June 1 deadline, but in terms of trying to provide answers to questions today, how are you looking in.
>> as far as time line, depending on whether or not we would be able to have an order passed by Travis County before a June 1st designation, we would be able to submit the application on time.
if it got shifted over to a September application, there is a possibility that the -- there's a good possibility that the capital investment will go below the 5 million threshold needed to in a sense maximize their benefit.
when we were looking at the chart before and they were stating that golfsmith would fall between the 5 minimum and the $150 million in capital investment, if have you capital investment of over 1 million but less than 5 million, the maximum benefit is up to 125 jobs.
so the benefit would be only 125 as opposed to if the capital investment was over 5 million, then they would be able to receive benefit for all jobs certified at the comptroller's office which would be around 331 jobs.
>> okay.
>> so they would lose the benefit because the capital investment could decrease.
>> what you would like to know before doing a whole lot of additional work for us is whether we're inclined to be supportive.
>> correct.
>> now, it seems to me that each time we meet we will have a new set of questions.
that's the nature of what we do.
when this came to me, I had no idea of the program.
a state representative came and kind of described it and they would like to see all urban counties, especially, participate, and I tried to get as much up to speed as I could and pointed out that Commissioners court makes the decision.
this is a state program, and any financial incentive provided is provided by the state.
and since day one of the program, other counties have participated, not travis.
>> correct.
>> and in my view, the financial benefit has gone to businesses in other counties and not travis.
so if we don't want to do this, I just think we ought to say we don't want to do it.
i don't think we ought to tell them where to go.
it ain't our business, in my view.
330 jobs is quite a few, or 331.
and if we can help retain them, I think we ought to.
if you make a $5 million investment, even if you update your technology, there ought to be some increase in the apraised value of the property.
that call is not made by our budget office but it's made by the central travis appraisal district.
as are the values of all other commercial and residential properties.
so my motion is that we indicate our inclination to support this, ask for the additional information, and then proceed with the public notice, et cetera, to put this in place.
and I think in fairness we ought to let them know whether we're inclined to be supportive today or not.
>> I'll second that.
>> the motion was seconded by Commissioner Gomez.
any discussion of the motion?
Commissioner Davis.
>> I would like to see that additional information before I think we go forward with anything.
it's almost like signing a blank check.
it's a lot of information that's missing.
i don't think a week or two is going to hurt these folks at all to bring this information back.
as far as information that we are trying to seek in example, the investment capital that will be -- that will be made available and the county may benefit from that.
that -- that -- pardon me?
>> as far as determining that, I don't think that's determinable right now.
what the benefit on the tax rolls.
>> the point is someone can come up with some numbers on it and I know p.b.o.
can get those numbers wherever they have to go to get them.
the point is I would like to see that information.
i think Commissioner elkhart's statements of what's within the application itself still needs to be looked at.
and it's just a lot of missing parts here, and new employees, that's the whole point.
the way the law is, let's lay it out like it really is.
those 331 employees are -- will retain those jobs currently.
any new -- any person that would like to become an employee must be a new hire.
in other words, one of those persons would actually have to be laid off or be misfortune of lose their job, lose the slot.
once that slot is lost, then the person can come in and hire a new person.
and that new person does not have to be economically disadvantaged.
and we look at the -- you go ahead and look at the percentages, you got 38.87% that are black persons hired right now out of these 331 folks with golfsmith.
27 point something hispanic.
60% white.
and it does not represent the demographics of that area.
so something is -- is missing here.
and I'm trying to fit in the loose ends and I don't think another week is going to hurt or two or whatever.
we need to get the accurate information, otherwise we'll be going with a blank check, in my opinion.
>> how much longer can it wait before it has to go to a public hearing to get that which is a necessary part, step here?
so how much longer can you wait so we can post the notices and have the public hearing on a Tuesday at 9:00 a.m.?
>> right, well, June 1st is the deadline that we have to have all information, all public hearings commenced.
>> so if you back up from that date, when does the public hearing have to take place?
>> two weeks prior to the June 1st.
i don't have a calendar in front of me.
>> two weeks before June 1.
>> correct.
because the public hearing would have to occur two weeks before the application has to get submitted because one of the other requirements of the application is a coach minutes, which wouldn't be -- copy of the minutes which wouldn't be available until the last meeting.
so two weeks would be the save time that would be the last possible date to consider order.
>> I would also suggest I am inclined to be support I have of moving forward with this and further exploring it, but I would submit that those items contained in the application which are so material to the decision need to be available so that the public meeting process can be meaningful.
if we have a public input process and they also don't have this information that would be included in the application, the public meeting won't be as meaningful.
>> I agree.
but if we say we're inclined to be supportive, go ahead and put the application together and we want to see it.
>> yeah, we need to see it.
>> if we still -- see, my problem with the public hearing you don't know what will surface.
there may be something that surfaces there that requires a little additional time.
there's no reason to wait until the last minute.
i know how we work.
on some of these things you ought to take a little time.
i have no problem with trying to go to the central travis appraisal district and ask if you put $5,000 of new technology in what's likely to be the increase in the property value.
guess for us.
which is what they would be doing anyway.
that may take some time.
so we can do a whole lot of stuff, but I don't think if we're going to close this path, we ought to let them know today.
if we're inclined to be supportive and want you to get the additional information, it seems you have a lot more motivation to do it.
isn't that true?
>> correct.
>> well, and I'm inclined to support because I hear from people who need jobs, and granted there's some here that you are trying to retain, but through attrition, people will leave for one reason or another.
>> correct, and they are required.
>> and so at that point, though, you can fill positions and in a way it reflects the community you are trying to serve.
and I think that's very, very important.
but I hear from people who are in real need of a job and they are about to lose their home and they can't -- they don't have any -- any health insurance and they are juggling trying to find out, you know, whether to pay for medicines or pay for food.
i mean there's some people out there really waiting on us to do something.
and while I think that we need to get all of this information and for the application, I think we need to kind of not drag our feet either.
people are out there, you know, desperate, guys.
you know, and we need to get out there.
that's one good reason for getting out of the office and getting out there where people are so you can really see for yourself the condition that some people are living in.
and we need to -- we need to gather all this information and this can't just be academic or financial.
it's got to be some personal stuff that goes into these decisions.
so I think we ought to move ahead.
>> as far as the completed application?
>> when can you have all this information available?
>> probably within --
>> a lot of questions asked.
when can you have it?
>> probably within the week.
>> within a week?
>> yes, it wouldn't be a problem.
>> depending on as judge Biscoe is mentioning getting an estimate of the increased value from tcad.
>> that would be our place, not yours.
>> we're not asking you to do that.
we're going to do that.
>> judge, I think we need to move today so we can know who is going to do what, when we're going to get the information and I think that's what we're being asked today.
>> I want to know we're inclined to support it before doing a lot of extra work.
this information can be gotten in a week or two.
>> yes, sir.
>> I do agree we ought to have as many details as possible for the public hearing.
now, at our public hearings typically we don't have 40, 50 people.
but it wouldn't surprise me if we have four or five.
even that four or five ought to have as many details about the project as possible.
>> are you asking for the application to be made available to the public to review?
or is it just the county Commissioners that would be reviewing it?
because the application -- because of the competitiveness of the applications, you would be allowing other companies, businesses, communities to be able to review a competitive application that we would like to have a competitive edge on perhaps we could provide the highlights from that application.
>> correct.
>> so the public could make a determination based on some of the factors today.
there is no issue revealing you intend to make a $5 million or that your demographic breakout is given your location and the census track is.
these I think are the pieces of information the public wants to know.
they don't want to know which software you are purchasing.
>> correct.
i can provide a completed application for the county Commissioners and the judge.
i just didn't know if you were going to make the whole application available to the public.
>> I think we can take that under consideration.
>> we can work with you on that.
we can cover tonight executive session.
can you read the motion, please?
>>
>> [inaudible].
>> I hope that golfsmith is willing to look at the attrition situation, but when they have the job vacancies, again, the demographics doesn't -- isn't reflected here, especially when you get down to the -- just an example, black at 3.89% of the employment rate, how can you hold them to make sure that these figures come up?
that is something that I don't -- you know, by law it's not a shall situation, that's my whole point, it's not a shall, it's a may in this.
and so that's a real legitimate concern.
>> Commissioners court thinks that's very important.
can you all get that to us in writing somewhere?
>> I understand.
i do want -- I'm not sure just because of the confusion on it.
the economically disadvantaged as far as the ethnicity of the community, demographics of the community versus what's considered economically disadvantaged is not based on race.
>> right.
>> the program is not based on race.
you do understand that, right?
>> we understand the program is not based on it and we understand the program criteria.
but our concerns is that the demographics and the break outof I don't remember employees don't reflect the demographics graph action of economically disadvantaged for which you qualify for this benefit.
it's true what you are hearing.
it sounds like we're holding you to a higher standard than the state does.
that's true.
>> when you were looking at the percentages and comparing to it the percentage of the 25%, I didn't -- I just want to clarify because there's seven different criteria.
>> one of the things you have is you locate in a distressed neighborhood and that census track is a distressed neighborhood.
the likelihood is very high I think that you would find economically disadvantaged folks in that census track in which you are operating.
>> correct.
>> so it's just a matter of --
>> linking the two.
>> my motion was to indicate our inclination to support the project, but we need the additional information that we asked for today.
>> and I second it.
>> that's fair enough.
>> all in favor?
that passes by unanimous vote.
>> thank you.
>> thank you very much.
>> thank you, Commissioners.
>> all right.
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Last Modified:
Tuesday, April 14, 2009 2:20 PM