SHERMAN ECONOMIC DEVELOPMENT CORPORATION

MINUTES OF THE BOARD OF DIRECTORS

BOARD MEETING ON AUGUST 11, 2009

BE IT REMEMBERED THAT A Meeting of the Sherman Economic Development Corporation Board

of Directors was convened in the SEDCO Board Room at 307 W. Washington Street, Suite 102, Sherman, Texas, on August 11, 2009, at 7:30 a.m.

MEMBERS PRESENT: / Andy Olmstead, Greg Kirkpatrick, Joe Fallon, Jr., Kelly Bickerstaff, Rad Richardson
STAFF PRESENT: / John Boswell, Frank Gadek, Darlene Brown
GUESTS PRESENT: / John Hunter Smith, Robby Hefton, Kathy Williams

CALL TO ORDER, QUORUM DETERMINED, MEETING DECLARED OPEN, RECOGNITION OF GUESTS AND VISITORS

Olmstead called the meeting to order at 7:32 a.m., declared a quorum present and opened the meeting.

EXECUTIVE SESSION

The Sherman Economic Development Corporation held an Executive Session pursuant to the provisions of the Open Meetings Law, Chapter 551, Government Code, Vernon’s Texas Codes

Annotated, in accordance with the authority contained in Sections 551.087 and 551.072.

The open meeting recessed and reconvened in executive session at 7:32 a.m.

The executive session recessed and reconvened in open session at 8:00 a.m.

RECONVENE OPEN MEETING AND CONSIDER ITEMS DISCUSSED IN EXECUTIVE SESSION

Olmstead reconvened the open meeting at 8:00 a.m. and welcomed visitors.

CONSIDER FOR APPROVAL A PERFORMANCE AGREEMENT WITH MITCHELL D. BLUHM & ASSOCIATES, LLC

Mitchell D. Bluhm & Associates, LLC is a telephone call center that will work in conjunction with Capio Partners, both in the healthcare collections business. The performance agreement calls for the creation of 118 new, full-time employees with a minimum starting wage of $9 per hour with company benefits. In return, SEDCO has agreed to a money grant of $236,000 paid in four unequal installments between August, 2010 and August, 2013.

Motion was made by Richardson to approve the performance agreement; second by Fallon.

UPDATE ON THE JOINT MARKETING COMMITTEE ACTIVITIES

Richardson reported that there had not been any meetings lately, but said Retz continues to work with

Grayson County College regarding the grants to Air Safety Flight Academy.

FINANCIALS

Gadek presented the Economic Barometer report for the month of July. The total number of building permits was up for the month and year-to-date. Permit values were down for the month, but up year-to-date. Water utility customers were up slightly compared to last year’s totals.

The city’s sales tax proceeds were down 2.13 percent for the month of July, but up 10.77 percent year-to-date. SEDCO’s proceeds were down 8.25 percent for the month and down 1.30 percent year-to-date. Finally, the unemployment rate for Sherman was at 8.3 percent and Grayson County at 8.4 percent for the month of June.

Hefton presented the investment report for the quarter ending June 30, 2009. Motion was made by Fallon to approve the report; second by Kirkpatrick.

Motion was made by Richardson to table the agenda item to present the July financials; second by Kirkpatrick.

MEETING MINUTES

Olmstead asked board members if they had any questions and/or corrections regarding the minutes of the regular scheduled board meeting on July 14, 2009 and the special called meeting on August 4, 2009. Motion was made by Richardson to approve both sets of minutes as written; second by Kirkpatrick.

CONSIDER FOR APPROVAL THE BUDGET AND WORK PLAN FOR FY 2009-2010

Board members decided they wanted additional time to review the draft budget and work plan. Motion was made by Fallon to table the agenda item; second by Richardson.

PRESIDENT’S MONTHLY ACTIVITY REPORT

Boswell gave board members an overview of the 2008 – 2009 fiscal year.

Despite the challenges of a worldwide economic recession, Sherman’s economy has remained relatively strong. Some of the reasons Boswell said he feels that our local economy has fared better than other parts of the country is our commitment to business development. Staff continually worked with area employers; attended trade shows; mailed targeted marketing pieces to prospective companies; worked with local and non-local real estate professionals to attract new employers to Sherman; worked with the Denison Development Alliance and Grayson County to help promote the North Texas Regional Airport; worked with Workforce Solutions Texoma on the “Texoma Hot Jobs” initiative; supported a request from Leadership Sherman for assistance on a new “Welcome to Sherman” sign; and continued our “Opportunity Recruiters” marketing campaign.

SEDCO negotiated agreements with four companies during the 08-09 fiscal year that will create 155 new full-time jobs in Sherman and Grayson County.

With a continued determination and a focus on creating a positive business climate, Boswell said he feels we will ensure economic success for years to come.

BOARD MEMBER COMMENTS

Olmstead asked board members and guests if they had any other questions or comments; there were none.

ADJOURNMENT

No further business came before the SEDCO Board of Directors. The meeting adjourned at

8:20 a.m.

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SEDCO CHAIRMAN

ATTEST:

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SEDCO SECRETARY