Presented To DeSoto City Council October 07, 2014

Presented to DeSoto City CouncilOctober 07, 20141

To plan, promote, finance, and createopportunities for the attraction, growth,and retention of enterprises that enhancethe tax base, quality of life, and level ofemployment for the citizens of DeSoto, TX.2

DEDC Board Members Lucious Williams, PresidentMichael Hurtt, Vice PresidentPerry Holloway, Secretary-TreasurerBill Dendy, Board memberBelinda May, Board member Curtistene McCowan, City Council Liaison DEDC Staff Jeremiah Quarles, CEOAntoine Long, Eco Dev SpecialistAlicia Villanueva, Executive Assistant3

Business Retention and Expansion Marketing and Business Attraction New Commercial & Industrial Developments Strategic Infrastructure Investments4

Business Success/Retention Visits: ITT Technical Institute – signed a new lease and infused an additional 250,000 Retention Site Visits – 86 ; which include, but not limited to, the following in new tenant improvements related to their postsecondary expansion efforts. TheEarly Career Academy allows students in grades 11 and 12 to earn a high schooldiploma while also earning an associate degree from ITT Technical Institute inNetwork Systems Admin, Software Development or other degree programs thatmay be offered. (19,738 of leased space and 30 employees)visits: Solar Turbines, Kohl’s e-Commerce Facility, Zep Manufacturing, WalmartDistribution, DIAB, DW Distribution.Medical Corridor(s) – Pleasant Run Neighborhood Health Plaza, BacelineInvestments (Serenity Dental Spa) and Bolton Boone area.Building Inventory-Hillwood Properties, KTR Capital Partners, SeefriedProperties, million square-foot pad sites. McGraw-Hill buildings – joint marketing.6

*Source: Texas Workforce Commission, May 20147

Participated in Texas One business recruitment trips toWashington D.C and New York City (met with top site consultantsthat represent Fortune 100 companies). Gov. Perry was inattendance for both trips.Tradeshows and Conventions: RECon:Global Retail Real EstateConvention(ICSC), BIO International Convention, InternationalAsset Management Council (IAMC)City of DeSoto and DEDC joint effort in marketing and rebrandingof the city with Ft. Worth-based Brand Era MarketingRefresh of the DEDC Website and marketing brochures9

DEDC Website – Old Feature10

DEDC Website – New &Improved11

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New DEDC Brochures17

New DEDC Brochures18

D Magazine’s Real Estate Blog19

BUSINESSADDRESSSouthfield 35 - SeefriedPropertiesDanieldale & OldHickory RoadKTR Capital PartnersAcquisitionDanieldale & Polk StUplift DeSoto Hampton(K-5)SQ FTCapitalInvestment1.12M 28 Million300,000(min) 27 MillionHampton & Seahawk Rd40,000 5.5 MillionH2 Suites by HiltonInterstate 35E & CentrePark Blvd.70,000 10.4 MillionSolar Turbines(expansion)215 E. Centre Park Blvd45,000 42 MillionOther projects in the pipeline: El Pollo Regio, Hillwood Properties, Serenity Dental Spa, 24-hourEmergency Room, Dollar General, Dollar Tree, Luby’s Façade Renovation21

Attraction ActivityCommitted Projects and Development Prospects: Inquiries/Leads/ProspectsNew jobsCapitalProject NameLead/ProspectprojectedInvestmentHillwood Prop.50-150 40 MillionProject – 50%Southfield 35KTR CapitalProject San PedroWalMart Store50-15050-1508050-75 28 Million 27 Million 27 MillionTBDProject – 50%Prospect – 75%Prospect – 60%Prospect-100%2520 1 Million 4 MillionProspect – 95%Prospect–100%El Pollo RegioDeSoto RegionalDialysis CenterStatusBroke ground 2013; pursuingtenantsActively pursuing tenantsPursuing tenantsSr. Assist LivingNeighborhood store w/ fuelstationCharbroiled Chicken franchiseOpening in Q4 2014Note: Leads are inquires of interest; Prospects are confirmed interest in a City of DeSoto site.22

Brittle Brittle, Inc. – relocation and expansion to 1621 Osprey Drive. 1.8 Million in Capital Investment, 30FTE’s. Customers include Costco, Sam’s, Walmart etc. DEDC Infrastructure Grant for project improvementsWalmart Neighborhood Store – SW corner of Hampton & Parkerville Rd. Begun construction in Q3 2014.Anticipated jobs: 50-75 new employeesALDI Food Market - Opened in June 2014. Currently have 20 FTE & capital investment of over 2 millionTwister Spirit Athletics – relocation and expansion from Cedar Hill. They will occupy 15,000 square feet at 100Ezell Drive. The new space will be used for an expanded office, pro shop, lobby, media & photography roomalong with the gym. Currently trains over 160 athletes.Pleasant Run Health Plaza – renovation of retail strip center that is primarily supported by health and wellnesstenants. Anchor: Serenity Dental Spa DEDC Infrastructure Grant for Façade Improvements.Texas Rangers Partnership, Questar CNG Fuel Station and DeSoto Heliport23

Number of Formal Inquires47 Number of Written Proposals23 Number of Visits to Local Firms (face-to-face)87 Number of Jobs Committed105(ALDI, Pappa Murphy’s, H2 Suites, Brittle Brittle, DeSoto RegionalDialysis Center etc.)24

Ribbon Cutting &Grand Opening onAugust 27th 5 million, 19-acrefacility that will employ6 FTE’sAmenities include:Passenger and pilotlounges, a coffeebar/Internet café,three a/v-equippedconference rooms and10 offices26

Continuation of DanieldaleRoad ImprovementsFaçade improvements atPleasant RunNeighborhood Health Plaza27

CITY/DEDC ParallelGoals & ObjectivesFY 2013-14 Work Plan Goals & ObjectivesDEDC & CITYDescription Goals 1 & 3 Goals 4 & 9Increase net sales tax by15% Focus on revitlizingexisting shopping centers Goals 5 & 6Goals 7 & 8Make DeSoto moreprosperous byattracting newinvestment to EagleIndustrial ParkFocus on increasingnon-residential tax baseand creating moreprimary jobs forDeSoto. Increase Marketing inRegion & out-state Promote more medicaluses in areas of CityDescriptions are from the FY13 Goals for City & DEDCWork PlansInitiativesTrack leads and prospectsDocument number ofpotential jobs andinvestments.Call, list & documentpotential retailers.Work w/ City on retailplan for center.Market both land andexisting buildings forprospective developmentDocument & assess jointefforts w/ BSW, etc.Meet with medical &healthcare networks topromoteSTATUSObjectivesOld Kmart site purchased.Danieldale Rd. activityDeSoto Heliport,CNG Fueling Farm.Expedite development of I35 corridor. Increase thevalue of commercial assetsthrough developmentOngoing.New entry’s into our marketInclude: ALDI’s, PappaMurphy’s, Walmart.Market & plan w/ City newways to attract destinationretail and dining.Pivot focus twd healthcare,non traditional office ,destination retail & dining.Partnerships with DCCSBDC and Cedar Valley CCNurture /leverage connections Texas One, DRC andwith in Metroplex.Tradeshows & Conventions.Re-establish relationships with Gained traction with newrealtors in the area of healthDialysis Regional Centercare.and Pleasant Run HealthPlazaAllocate leads andprospect count per areas.Initiatives will help achievethe goals on an annual andmonthly basis.Objectives are the acutalmetrics that should beevaluated each month.Your Logo29

Concluding Remarks The DEDC Board of Directors and staff continue to market,develop and tell the story of the City of DeSoto. Our aim is to promote and encourage businessdevelopment and enhance the overall quality of life inDeSoto. The DEDC thanks you for your continued support, and wewill continue to work diligently to bring positive economicgrowth to DeSoto.3030

DEDC NINE MONTHFinancial OverviewOctober 1, 2013 to June 30, 2014

Operating BudgetOctober 1, 2013 to June 30, 2014ActualRevenues:Sales TaxInterestTotal RevenuesBudgetVariancePositive(Negative)%Variance 1,185,3216,212 1,191,533 1,111,6577,5001,119,157 73,664(1,288) 72,3766.6%-17.2%6.5%Expenditures:Operating & AdministrationPromotion 295,35053,589 366,753112,500 71,40358,91119.5%52.4%Prospect Development;Long Term DebtProspect DevelopmentGrants/Commitments 307,1998,918260,000 309,70671,250260,000 2,50762,33200.8%87.5%0.0%Capital OutlayTotal Expenditures 9,417 934,474 4,500 1,124,709( 4,917) 190,235-109.3%16.9%Resources Over (Under)Expenditures 257,060( 5,552) 262,6123232

Grant Obligations, Grants Funded, GrantsOutstanding, and Loans MadeOctober 1, 2013 to June 30, 2014Initial Obligation-ProjectedNEW DEVELOPMENT:Wildwood DevelopmentCintasGrants FundedTo DatePayments Still DueProjected 400,000 684,000 0 442,759 400,000 230,400 1,000,000 150,000 322,619 100,000 0 50,000 100,000 365,000 160,000 115,000 2,974,000 0 0 160,000 0 1,025,378 100,000 365,000 0 115,000 1,260,400 700,000 291,198 0 3,674,000 1,316,576 1,260,400Amount Loaned 35,000 65,000Principal Repaid 11,102 0Principal Outstanding 23,898 65,000 100,000 11,102 88,898Hillwood,City, Cintas, & DEDC (Tax)Potential Incentive Grants:Osuji Family LP ( 100K paid)Aldi Texas, LLC ( 100K not paid)DanieldaleDW DistributionStrategic Locations/Harbour RealtySub-TotalRETENTION & EXPANSIONMcGraw Hill CompaniesGrand TotalLOANS MADEFriends PlaceGorley & DWPTOTAL3333

General Fund Balance SheetBalance Sheet-General FundJune 30, 2014AssetsCurrent Assets:Checking/SavingsChecking-Wells FargoPetty CashCD @ Plains Capital BankCD @ Comerica BankCD @ Bank of DesotoTotal Checking/SavingsLiabilities and Fund Balance Cert# 445020059Cert# 385110333353Cert# 14415Sales Tax ReceivableOther ReceivableTotal Current 0.002,496,616.56 Total Current nt Assets:Note Receivable-Friends PlaceNote Receivable-Gorley & DWPTotal AssetsCurrent Liabilities:Accounts PayablePayroll Liabilities Due to City22,189.8820,087.3242,277.20Fund BalanceDesignated for Grant Commitments FY 2014Restricted for Economic DevelopmentTotal Fund 7665,000.0088,897.76 2,867,596.72Total Liabilities and Fund BalanceDesignated for grant commitments FY 2015-202534 2,867,596.72 442,000.0034

DEDC Investment ReportOctober 1, 2013 to June 30, 2014BANKISSUE VALUEISSUE ORRENEWEDDATEComericaBank250,0008/19/138/19/140. 1/10/1311/10/140.65%1,298.97250,00014415Bank ENDINGBALANCEOF DEPOSIT385110333353Balance of the DEDC checking account as of June 30, 2014 was 1,746,416.56 andinterest earned for the nine months was 2,764.35.Interest received on the Loan Fund through 6/30/14 was 559.72. Total interest from checking, CD’s,and Loan Fund though 6/30/14 was 6,212.43.This report was prepared in compliance with the Investment Strategy established in this Investment Policy and by the PublicFunds Investment Act.3535

primary jobs for DeSoto. Ongoing. New entry’s into our market Include: ALDI’s, Papparetail and dining. Murphy’s, Walmart. Track leads and prospects . Document number of potential jobs and investments. Call, list & document Work w/ City on retail plan for center. Expedite development of I - 35 corridor. Increase the value of commercial assets