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46 Regular Meeting November 22, 1993 Page 2 addition, $381,000 has already been matched, mostly in-kind. Southwest Texas dedicated $50,000 in equipment and in-kind, and the Manufacturers Association pledged $135,000 in-kind technical assistance as well as equipment usage. CPAs and Attorneys have pledged over $18,000 in-kind as well as various other supportive businesses. Mayor Morris directed Mr. Gilley to report to the Council the financial amount and how many years the City would be -- committing to the revolving loan funds and what amount would be returned to the City. Mr. Hart asked if the revenue funds that would be coming into the revolving loan fund would be held frozen until the contract was closed or the two years expired. Lynn Brooks, Texas Department of Commerce, stated the revolving loan funds would be returned to the City at the end of the small business incubator program contract period. Discussion ensued. Ms. Fruit stated approximately 27 jobs would be created during the first year. Mr. Guerra asked who was making the profit off the program. Ms. Fruit stated the beneficiaries would be the persons beginning new businesses. Mr. Guerra asked the cost of the building and who would be paying for the building. Ms. Fruit stated the cost of the building would be approximately $200,000. Mr. Hart asked who owned the building. Ms. Fruit stated the status of the building was changing daily. Mayor Morris asked if the building was owned by Coca-Cola, however, Terry Gilmore had a contract on it and the Feltner Estate had first lien. Ms. Fruit stated that was correct. Ms. Fruit stated the San Marcos Industrial Foundation would own the building. Mayor Morris asked if the entire project was dedicated to low and moderate income persons. Ms. Brooks stated tenants applying for the program did not have to be low or moderate income persons. Mayor Morris asked what provisions would insure low income tenants. Ms. Brooks suggested that policy be a part of the entrance criteria. Mayor Morris asked what provisions would assist low/moderate income tenants. Ms. Fruit stated reduced rent, reduced service package and creation of jobs would,benefit these persons. Discussion ensued. Mr. Hart asked what would happen once the application was approved. Ms. Fruit stated the City and the Texas Department of Housing and Community Affairs would enter into a contract. The City would also enter into a contract with the San Marcos Industrial Foundation which is the sponsor of the incubator. Ms. Fruit stated the formal application would be ready for submission in approximately two weeks. Mayor Morris asked if environmentals had been done on the area. Ms. Fruit stated the seller of the building would be responsible for the environmental requirements and the site had a clean bill of health. Mayor Morris asked about the complete financing. Ms. Fruit stated in addition to what was previously stat~d there would possibly be $30,000 from the State Agriculture and $465,000 from the Texas Department of Commerce. Mayor Morris asked if anyone would like to speak on the incubator program. Chris Blood stated he was in support of the concept. Kyev Tatum stated he supported the program; however, he stated two concerns. There would be a need to create opportunities to encourage low income persons to apply and the need to set guidelines to target low income business persons. Bucky Couch stated he supported the project; however, upon creating the program, all persons involved should state their concerns and opinions toward the project. Mayor Morris stated she would like all persons involved to meet and discuss their expectations. No one else wished to speak so Mayor Morris closed the public hearing. Mayor Morris introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS AMENDING THE CITY BUDGET ORDINANCE FOR THE 1993-1994 FISCAL YEAR TO PROVIDE FUNDING FOR COMPUTER SOFTWARE ~~INTENANCE SERVICES; AND DECLARING AN EMERGENCY.