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06.26.2025 EDC Agenda Packet TOWN OF TROPHY CLUB ECONOMIC DEVELOPMENT CORPORATION AGENDA MEETING 1 Trophy Wood Drive Trophy Club, Texas 76262 June 26, 2025 7:00 PM Council Chambers CALL TO ORDER AND ANNOUNCE A QUORUM PUBLIC COMMENT(S) This is an opportunity for citizens to address the Board/Commission on any matter pursuant to Texas Government Code Sec. 551.007. The Board/Commission is not permitted to discuss or take action on any presentations made concerning matters that are not listed on the agenda. Presentations are limited to matters over which the Board/Commission has authority. Speakers have up to three (3) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email tdixon@trophyclub.org REGULAR ITEMS 1. Consider approval of the May 22, 2025, Economic Development Corporation Meeting Minutes. (Tammy Dixon, Town Secretary) 2. Consider approval of the Economic Development Corporation FY 2025-2026 Budget. (Tamara Smith, Assistant to the Town Manager) 3. Discuss the Thrive Business Grant Program. (Tamara Smith, Assistant to the Town Manager) ADJOURN The Board/Commission may convene into executive session to discuss posted items as allowed by Texas Government Code Sections 551.071 through 551.076 and Section 551.087. Notice is hereby given that a quorum of the Town of Trophy Club Town Council may be in attendance at this meeting. The Town Council will not deliberate or take any action. Page 1 of 11 CERTIFICATION I do hereby certify that the Notice of Meeting was posted on the bulletin board at the Town Hall for the Town of Trophy Club, Texas, in a place convenient and readily accessible to the general public at all times on the following date and time: June 18. 2025, at 1:45 p.m., and said Notice of Meeting was also posted concurrently on the Town’s website in accordance with Texas Government Code Ch. 551 at least 72 hours prior to the scheduled time of said meeting. /s/ Tammy Dixon Tammy Dixon, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 6822372900, 48 hours in advance, and reasonable accommodations will be made to assist you. Page 2 of 11 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: June 26, 2025 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the May 22, 2025, Economic Development Corporation Meeting Minutes. (Tammy Dixon, Town Secretary) BACKGROUND/SUMMARY: The Economic Development Corporation held a regular meeting on May 22, 2025. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. 05.22.2025 EDC Minutes ACTIONS/OPTIONS: Move to approve the May 22, 2025, Economic Development Corporation Meeting Minutes. Page 3 of 11 Town of Trophy Club Economic Development Corporation Meeting Minutes May 22, 2025, 6:00 p.m., Regular Meeting 1 Trophy Wood Drive, Trophy Club, Texas 76262 CALL TO ORDER President Addington called the meeting to order at 6:00 p.m. EDC BOARD MEMBERS PRESENT Teri Addington, President James Calaway, Secretary Greg Fox (Arrived at 6:02 p.m.) Joseph Longo Garrett Wallace EDC BOARD MEMBERS ABSENT Allan Pedersen, Vice President Scott Hinshaw STAFF PRESENT Brandon Wright, Town Manager Tammy Dixon, Town Secretary Tamara Smith, Assistant to the Town Manager April Duvall, Director of Finance Matt Cox, Director of Community Development PUBLIC COMMENTS There were none. REGULAR ITEMS 1. Consider approval of the April 3, 2025, Economic Development Corporation Meeting Minutes. Director Longo moved to approve the April 3, 2025, meeting minutes. Director Calaway seconded the motion. VOTE ON THE MOTION AYES: Wallace, Addington, Longo, Calaway NAYES: None ABSENT: Pederson, Hinshaw, Fox VOTE: 4-0-3 2. Discuss the Thrive Business Grant Program. (Tamara Smith, Assistant to the Town Manager) Page 4 of 11 EDC Meeting Minutes – May 22, 2025 Page 2 Tamara Smith, Assistant to the Town Manager, presented updates on Cycles 1 and 2 of the Thrive Business Grant Program. The board discussed the progress of Cycle 1 projects, including one that passed inspection, and the rescinding of an inactive application. For Cycle 2, they reviewed outreach efforts —such as social media, newspaper ads, business visits, and Chamber of Commerce promotion—which have resulted in early interest from new applicants. Board members were encouraged to assist with further outreach using provided flyers and cards. 3. Discuss and provide feedback on the draft final plan document of The Grove at TC Small Area Plan Project. (Tamara Smith, Assistant to the Town Manager) Tamara Smith presented the draft final plan and summarized feedback received from board members and staff. The board discussed the need for improvements to the layout, grammar, and overall readability of the draft plan. Specific recommendations included enhancing visuals, updating outdated or unclear figures, reducing reliance on consultant recommendations, and clarifying the market analysis and connectivity strategies. Feedback will be compiled and submitted to McAdams for revisions, then brought back to the board for final review and approval prior to submission to the Town Council. 4. Discuss the Economic Development Corporation FY 2025-2026 Budget. (Tamara Smith, Assistant to the Town Manager) Tamara Smith presented the proposed FY 2025–2026 EDC budget. The board discussed the proposed revenue of $776,250 and expenditures of $741,763. They agreed to reduce Thrive Business Grant funding to $150,000 to allow continuation of the program into next year and supported maintaining $150,000 for a new Incentive Program. The board emphasized the importance of preserving flexibility for future opportunities, including potential use of fund balance and TIRZ funding to support strategic initiatives in the small area plan ADOURN President Addington adjourned the meeting at 6:27 p.m. _____________________________ Teri Addington, President ATTEST: ____________________________ Tammy Dixon, Town Secretary Page 5 of 11 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: June 26, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Consider approval of the Economic Development Corporation FY 2025-2026 Budget. (Tamara Smith, Assistant to the Town Manager) BACKGROUND/SUMMARY: The Economic Development Corporation (EDC) is required to approve its FY 2026 Budget prior to consideration by the Town Council. Per EDC bylaws, Article IV Functional Corporate Duties and Requirements, Section 2, Annual Corporate Budget, the Board shall adopt a proposed budget of expected revenues and proposed expenditures for the ensuing fiscal year. The attached document outlines the EDC budget, detailing how the 0.5% sales tax dedicated to economic development is projected to be used in the upcoming fiscal year. Proposed revenue for FY 2026 is $776,250—a 15% increase over FY 2025, to better reflect the revenues received from prior years. Proposed expenditures total $696,763 representing a 6.5% increase from FY 2025, primarily due to anticipated incentive costs associated with the Small Area Plan and potential additional incentives the EDC may offer to support businesses in Trophy Club, and the remaining allocation to the Thrive Business Grant. Total sales tax revenue collected in FY 2024 was $865,900. As of the end of the second quarter, year-to-date revenue stands at $514,492. Current projections indicate that collections will exceed the budgeted amount of $675,000. The total expenditure of $696,763 includes $150,000 anticipated for the Thrive business program and another $150,000 for consideration of other grant opportunities with Trophy Club businesses. The Board allocated $300,000 from the EDC Fund for the FY 2024 grant program. For FY 2025, the budget included a cap of $150,000 for the Thrive Grant Program, which ensures that the remaining funds are available for the grant program in subsequent years. In FY 2025, a total of $104,380.67 in grant funds was awarded, with one $20,000 grant subsequently rescinded. These previous grant commitments result in a remaining balance of $215,619.33 available for FY 2026 and beyond. The professional outside services account is projected to remain flat in the upcoming fiscal year, in anticipation of additional service needs related to the implementation of the Small Area Plan. Legal services were included in the FY 2025 Budget to cover ongoing fees related to the attempted recapture of funds owed to the EDC. Legal expenses for FY 2026 are expected to remain flat for potential additional costs associated with the recapture efforts or other legal Page 6 of 11 matters that may arise during the year. The process for allocating General Fund costs to the EDC was revised in the FY 2025 Budget. Instead of direct payroll costs being charged to the EDC Fund, 15% of the Town Manager and Assistant to the Town Manager personnel costs plus $10,000 for other administrative functions are set up as a transfer between funds to reimburse the General Fund for the cost of staff support for the economic development function. Staff recommends approval of the Economic Development Corporation budget for FY 2025- 2026. BOARD REVIEW/CITIZEN FEEDBACK: On May 22, 2025, the Economic Development Corporation met to review the FY 2025–2026 budget. During the meeting, the EDC Board adjusted the line item for the Thrive Business Grant, reducing it to $150,000 to allow for an additional grant cycle. The Board also requested an additional $150,000 allocation for consideration of other grant opportunities with Trophy Club businesses. FISCAL IMPACT: In FY 2026, the proposed revenue amount for the EDC Fund is $776,250, and the proposed expenditure is $696,763. The increase in revenues of 15% over the prior year, and the increase of 6.5% over the prior year for expenditures is the implementation of the Small Area Plan, an allocation of $150,000 for the Thrive Business Grant, and an additional $150,000 for consideration of other grant opportunities with Trophy Club businesses. LEGAL REVIEW: N/A ATTACHMENTS: 1. FY26 Proposed Budget ACTIONS/OPTIONS: Staff recommends that the Economic Development Corporation move to approve the Economic Development Corporation FY 2025-2026 Budget. Page 7 of 11 FY2025-26 Proposed Budget EDC FY 2022  ACTUAL FY 2023  ACTUAL FY 2024  ACTUAL FY 2025  APPROVED FY 2025  AMENDED FY 2025 YEAR  TO DATE FY 2026  PROPOSED FY 2027 PROJECTED Starting Net Position 1,285,396$ 1,901,850$ 2,466,867$   3,085,780$ 3,085,780$   3,085,780$   3,409,864$ 3,489,351$     Revenue    Sales Tax ‐ General  $     748,791  $     767,911  $       865,900  $     650,000  $       650,000  $       514,492  $     750,000  $       772,500     Interest Income 4,831            43,606          88,512           25,000          25,000           88,512           26,250          27,038               Miscellaneous Revenue ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                        Total Revenue 753,622$     811,517$     954,412$       675,000$     675,000$       603,004$       776,250$     799,538$         Expenses Personnel    Salaries  $                ‐     $                ‐    $         23,386  $                ‐     $                  ‐     $                  ‐     $                ‐     $                  ‐       Overtime ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Longevity ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Certification Pay ‐                      ‐                     2,308               ‐                      ‐                        ‐                        ‐                      ‐                           Cell Phone Stipend ‐                      ‐                     120                  ‐                      ‐                        ‐                        ‐                      ‐                           Retirement ‐                      ‐                     3,744               ‐                      ‐                        ‐                        ‐                      ‐                           Medical Insurance ‐                      ‐                     1,401               ‐                      ‐                        ‐                        ‐                      ‐                           Dental Insurance ‐                      ‐                     125                  ‐                      ‐                        ‐                        ‐                      ‐                           Vision Insurance ‐                      ‐                     26                     ‐                      ‐                        ‐                        ‐                      ‐                           Life Insurance & Other ‐                      ‐                     79                     ‐                      ‐                        ‐                        ‐                      ‐                           Social Security Taxes ‐                      ‐                     1,322               ‐                      ‐                        ‐                        ‐                      ‐                           Medicare Taxes ‐                      ‐                     407                  ‐                      ‐                        ‐                        ‐                      ‐                           Unemployment Taxes ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Workers' Compensation ‐                      ‐                     51                     ‐                      ‐                        ‐                        ‐                      ‐                           Auto/Housing Allowance ‐                      ‐                     2                       ‐                      ‐                        ‐                        ‐                      ‐                        Total Personnel ‐$                   ‐$              32,972$          ‐$               ‐$                 ‐$                 ‐$               ‐$                    Professional Outside Services  $                  ‐   $         5,000  $         13,605  $       80,000  $         80,000  $         70,202  $       80,000  $         82,400     Legal Services ‐                      ‐                      ‐                       20,000          20,000            ‐                       10,000          10,300               Auditing 5,000            5,000            4,269              5,100            5,100              4,254              5,100            5,253                  Advertising 12,895          5,658            6,861              8,000            8,000              1,800              8,000            8,240                  Legal Notices ‐                      ‐                      ‐                       1,000            1,000               ‐                       1,000            1,030                  Printing ‐                      ‐                      ‐                       250               250                  ‐                       250               258                     Schools & Training ‐                      ‐                      ‐                       3,000            3,000               ‐                       3,000            3,090                  Dues & Membership ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Travel & Per Diem ‐                      ‐                     912                 3,000            3,000               ‐                       3,000            3,090                  Office Supplies ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Miscellaneous Expense 2,500            2,500             ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Incentive Programs ‐                      ‐                      ‐                       100,000       100,000          ‐                       150,000       154,500             Thrive Business Grant ‐                      ‐                      ‐                       150,000       150,000          ‐                       150,000       154,500             Depreciation Expense ‐ EDC 24,693          24,691          24,693            ‐                      ‐                        ‐                        ‐                      ‐                           Bond Interest 91,280          1,333            82,841            ‐                      ‐                        ‐                        ‐                      ‐                           Paying Agent Fees 800               800               800                 400               400                 200                 200               200                     Transfer to General Fund ‐                      ‐                      ‐                       80,752          80,752            ‐                       84,000          88,200               Transfer to General Fund/DSR ‐                      ‐                      ‐                        ‐                      ‐                        ‐                        ‐                      ‐                           Transfer to Debt Service ‐                     201,518       201,518         202,463       202,463         202,463         202,213       201,688          Total Expenses 137,168$     246,500$     335,499$       653,965$     653,965$       278,920$       696,763$     712,749$        Net Increase (Decrease) 616,454$     565,016$     618,913$       21,036$       21,036$         324,084$       79,487$       86,789$          Ending Net Position  $ 1,901,850  $ 2,466,867  $   3,085,780  $ 3,106,817  $   3,106,817  $   3,409,864  $ 3,489,351  $   3,576,141  POSITION TITLE FY 2024 FY 2025 FY 2026 TOWN MANAGER 0.15 0.00 0.00 TOTAL FTEs 0.15 0.00 0.00 PERSONNEL SCHEDULE Page 8 of 11 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: June 26, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Discuss the Thrive Business Grant Program. (Tamara Smith, Assistant to the Town Manager) BACKGROUND/SUMMARY: On July 11, 2023, the Economic Development Corporation (EDC) discussed and considered a grant program tailored to benefit businesses within the Trophy Club community. The EDC deliberated and expressed the desire to support projects encompassing exterior and interior enhancements, equipment, and signage upgrades. Moreover, the Board has advocated for a nominal contribution from businesses in the form of matching funds, which will foster a sense of mutual accountability. The Board allocated $300,000 to the grant program for FY 2023-2024. The program is an annual application with an evaluation and presentation to the EDC. Formal agreements are developed for each award recipient with progress reporting, final inspections, and performance requirements. The Thrive Business Grant program offers reimbursable matching grants (75%) of up to $20,000 to support facade enhancements, sign improvements, interior renovations, equipment upgrades, and other critical investments. Under the terms of the grant, work must begin within six months from the date of the award. Grantees are required to submit regular progress reports, including financial statements, photos, and updates on project milestones. Failure to meet specified performance requirements as set forth in each agreement requires 100% repayment of the grant dollars received. On October 11, 2023, staff presented a draft of the grant program to the Economic Development Corporation (EDC) for review. The proposal was then discussed and approved by the EDC Board during its meeting on February 27, 2024. Following this, the Thrive Business Grant received Town Council approval on May 28, 2024. The grant program was officially opened to the public on July 8, 2024. During the first round of Thrive Business Grant application, the Economic Development Corporation and Town Council approved six businesses and seven projects for a total grant amount of $104,380.67 leaving a remaining balance of $195,619.33 for the second cycle of grants. The EDC met on February 27, 2025 to discuss continuing the Thrive Business Grant for another year. During the meeting, the EDC Board made recommendations for amendments to the Page 9 of 11 program. The EDC met on April 3, 2025 to approve amendments to the second cycle of the Thrive Business Grant program. These proposed changes were approved by the Town Council at its April 14, 2025 meeting. The amendments address several areas, including grant requirements, monitoring and accountability, and the addition of a new timeline section. Key revisions include: • Any equipment purchased with grant funds must remain in Trophy Club for the duration of the business’s operational life. • Grant awards may be adjusted by up to 10%, with a maximum grant amount of $20,000. • Businesses must demonstrate efforts to obtain local quotes when available and submit three quotes in total, including at least one from a local vendor. • International shipping and customs fees are not reimbursable, and all shipping costs must be itemized. • Town approval is required for any exterior modifications to the business premises. The revised Thrive Business Grant program will span approximately 18 months, with key deadlines for the second cycle scheduled from April 2025 through October 2026. Thrive Business Grant Timeline – Fiscal Year 2025-2026 • Grant Launch: April 15, 2025 • Grant Application Deadline: June 15, 2025 • EDC Review: July 2025 • EDC Approval: July 2025 • Town Council Approval: August 2025 • Performance Agreements Signed by Business: September 2025 • Performance Agreements Signed by EDC: October 2025 • Project Start: October 2025 • Project Completion Deadline: October 2026 This agenda item will provide updates on the first round of Thrive Business Grants and discuss the second round of Thrive Business Grant. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The Board allocated $300,000 from the EDC 4B Fund for the Fiscal Year 2023- 2024 grant program. For the Fiscal Year 2024-2025, the budget includes a cap of $150,000 for the Thrive Grant Program. This arrangement ensures that the remaining $150,000 will be available for the grant program in subsequent years. In FY 2025, a total of $104,380.67 in grant Page 10 of 11 funds was awarded, with one $20,000 grant subsequently rescinded. This results in a remaining balance of $215,619.33 available for FY 2026 and beyond. LEGAL REVIEW: N/A ATTACHMENTS: None ACTIONS/OPTIONS: This agenda item is being presented for discussion only. No action will be taken by the Economic Development Corporation Board regarding this agenda item. Page 11 of 11