* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [Economic Development Corp Meeting] [00:00:05] OKAY. ALL RIGHT, WE'LL GO AHEAD AND CALL THE MEETING TO ORDER AT 6 0 1 AGAIN, WITH THE PLEDGE OF ALLEGIANCE WITH RICE. . THANK YOU. ALL RIGHT, WE'LL MOVE NEXT TO OUR ROLL CALL OF MEMBERS STARTING WITH THE MAYOR. YEAH, WHICHEVER ONES YOU RICHARDSON PRESENT. SCOTT BERRY PRESENT, PRESENT, PRESENT FRANCIS BOND PRESENT. ALL RIGHT, NEXT ITEM. UH, PUBLIC COMMENTS. NEXT ITEM, CONSENT AGENDA, OR MINUTES FROM JANUARY 25TH, 2022. DO I HAVE I'LL SECOND. ANY DISCUSSION? ALL IN FAVOR. AYE, CARRIES NEXT ITEM. ACTION ITEMS. WELCOME OUR NEW BOARD MEMBERS, SHERRY PATE, AND VINCENT'S TULLY'S WELCOME TO THE BOARD. THERE. ANYTHING THAT'S THAT STANDARD OPERATING PROCEDURE WOULD BE THAT WE WOULD HAZE THEM AND THEN TAKE THEM INTO THE NUNS AND TO GIVE THEM THEIR TATTOOS. BUT WE SAVED THAT UNTIL I OPENED MY COAT OR WHATEVER IT IS. AGAIN, WELCOME ABOARD. MR. DUNKIN HAS GOT SOME HANDOUTS FOR MY PRESENTATION. I APOLOGIZE FOR NOT PUTTING THOSE OUT. UH, ROSIE, DO THEY DO NEED TO TAKE AN OATH OF OFFICE DON'T THEY? OR DO THEY, IF THEY DO, THEY DO. YES. MA'AM. CAN WE COME BACK TO THAT? WE CAN COME BACK TO THAT. UH, ACTION ITEM B CONSIDERATION AND POSSIBLE ACTS ACTION TO NOMINATE AND ELECT A PRESIDENT FOR THE 2022, 2024 TERM. DO WE HAVE A MOTION OR NOMINATIONS? CAN I MAKE A NOMINATION? I WOULD LIKE TO NOMINATE YOU TO CONTINUE AS OUR PRESIDENT. I THINK YOU'VE DONE A WONDERFUL JOB. YEAH. YEAH. WHEN I WAS READING THE MINUTES I SAW HIM, HE WAS HERE. I DON'T REMEMBER HIM. I SAID, YEAH, I DON'T REMEMBER A SINGLE ONE EITHER, BUT IT'S BEEN SEVEN MONTHS. I DON'T FEEL TOO BAD ABOUT IT. UH, ARE THERE ANY OTHER NOMINATIONS ON THE FLOOR? ANY DISCUSSION? ALL IN FAVOR? AYE. ANY OPPOSED? ALL RIGHT. MOTION IS UNANIMOUS. ACTION ITEM C AND CONSIDERATION AND POSSIBLE ACTION TO NOMINATE AND ELECT A VICE PRESIDENT FOR THE 2022, 2024 TERM. WE HAD VICE-PRESIDENT WE EITHER HAVE ONE OR NOW, UH, NO, MR. MR. NO CLASS, WE DON'T HAVE, SO WE HAVE VOLUNTEER. EVERYBODY STARTS LOOKING DOWN THE ROAD. I'M NEW. SO, I MEAN, I DON'T, I DON'T WANT TO VOLUNTEER CAUSE I DON'T REALLY KNOW EXACTLY WHAT I'M DOING YET, SO I DON'T FEEL CAPABLE IN A POSITION FRANCIS CAUSE SHE'S BEEN MY MENTOR FRANCIS, FRANCIS. I WOULD ACCEPT IF THERE'S NOT ANY OTHER NOMINATION. I'M LIKE EMOTION WE'RE CLOSED NOMINATIONS. OKAY. SO, UH, ANY FURTHER DISCUSSION WITH ABOMINATION OF FRANCIS VAUGHN? ALL IN FAVOR. AYE. MOTION CARRIES. CONGRATULATIONS. [00:05:01] FOR INSTANCE, UM, ACTION ITEM D CONSIDERATION OF POSSIBLE ACTION TO APPROVE THE PRESENTATION OF THE 2021, 2022 ANNUAL EDC REPORT BY THE ECONOMIC DEVELOPMENT DIRECTOR. I GUESS IT WOULD BE ME AND, UH, AS WE KIND OF ALLUDED TO THERE HADN'T BEEN A WHOLE LOT GOING ON. SO I MERGED THE TWO PRESENTATIONS INTO ONE, IF YOU ARE OKAY WITH THEM, THAT'S NOT TO SAY THAT WE HAVEN'T HAD A LOT GOING ON BEFORE. JUST HASN'T MET THAT FREQUENTLY. MAYBE THERE WE GO. UH, SO WE'RE GOING TO TALK A LITTLE BIT ABOUT YOUR REVIEW, UH, PROJECT UPDATES, KIND OF LET THE BOARD KNOW WHERE WE'RE AT ON SEVERAL OF THE PROJECTS THAT HE'S GOT GOING ON AND THEN TALK ABOUT THE CURRENT FINANCIAL SITUATION OF THE ORGANIZATION AND OUR BUDGET GOING FORWARD. TJ PULLED THE MIC NOW. OH YEAH. I'M SORRY. IS THAT BETTER? OKAY. I WAS WORRIED ABOUT HAVING TWO AT THE SAME TIME. WHEN YOU MOVED THAT ONE THERE, MAYBE WE GIVE HER THE FEEDBACK, DESPITE THE ONGOING UNCERTAINTY RELATED TO EVERYTHING THAT'S HAPPENED OVER THE LAST COUPLE OF YEARS, WE'VE STILL SEEN SUBSTANTIAL GROWTH IN OUR RESIDENTIAL SECTOR. AND THAT IN TURN HAS DRIVEN THE, THE ROOFTOPS, AS I ALWAYS SAY, LEADS TO RETAIL AND THAT'S IN TURN GROWING OUR COMMERCIAL BASE. UH, IN ADDITION TO THE NEW RETAIL THAT WE BROUGHT ON BOARD IN THIS PAST FEW YEARS, PAST YEAR, UH, WE ALSO BENEFITED GREATLY FROM A REVISION TO THE WAY THE CONTROLLER ALLOCATE SALES TAX IN THE PAST SALES TAX WILL BE ALLOCATED AT A POINT OF PURCHASE OR POINT OF DELIVERY. SO IF YOU ORDERED SOMETHING FROM AMAZON, WHEREVER THAT AMAZON WAREHOUSE WAS GOT THE SALES TAX. NOW WHEN IT'S DELIVERED HERE, WE GET THE SALES TAX, WHICH IS A SIGNIFICANT BENEFIT TO US AND ACCOUNTS FOR MOST OF OUR, MOST OF OUR GROWTH. AND SO IN OUR MOST OF OUR REVENUE GROWTH IN SALES TAX. AND SO WE WANT TO ENCOURAGE FOLKS, UH, AT SOUNDS IRONIC, BUT TO SHOP LOCAL, BUT ALSO DON'T BE AFRAID TO GO ONLINE BECAUSE YOU'RE HELPING CLEAN. THAT'S AWESOME. BUT I HAVE GOT AN AMAZON ACCOUNT AND THIS CHART KIND OF SPEAKS TO THAT, THAT RHYTHM THAT I WAS TALKING ABOUT IN TERMS OF GROWTH. UH, YOU CAN SEE THE EXPONENTIAL GROWTH ALMOST IN RESIDENTIAL AVALON VALUE, UH, BUT KIND OF A FLAT LINE WHEN IT CAME TO SALES TAX DUE IN LARGE PART TO THE FACT THAT WE DIDN'T HAVE THAT MUCH BRICKS AND MORTAR OUTSIDE OF KROGER HERE, THAT WAS VERY, VERY ACTIVE. UH, AND THEN YOU SEE THE UPTAKE AT THE START OF THE PANDEMIC WHEN EVERYBODY STARTED BUYING ONLINE AND THEN WE BROUGHT ALL THESE ONLINE AND WE INCREASED SIGNIFICANTLY. AND SO WE'RE VERY EXCITED ABOUT THE FUTURE AND WHERE THINGS ARE GOING IN THAT REGARD. UM, THERE ARE SOME PRETTY SIGNIFICANT CHANGES THOUGH TO THE WAY WE OPERATE, UH, THAT I WANT TO TALK ABOUT REAL QUICK. UH, ONE OF THE MAJOR THINGS THAT HAS COME ONLINE AS THE LEGISLATURE HAS TURNED MORE TOWARDS ME, I DON'T WANT TO SAY DISINCENTIVIZING LOCAL DEVELOPMENT, BUT CREATING A MORE CENTRALIZED FOCUSED OR CONTROL. THERE'S A BELIEF AMONG SOME IN AUSTIN THAT THE USE OF SALES TAX TAX ABATEMENTS TAX REBATES HAS BEEN ABUSED BY CERTAIN JURISDICTIONS. AND BECAUSE OF THAT, THEY WANTED GREATER CLARITY. AND SO FOR THE FIRST TIME THIS YEAR, WE HAD TO FILE A THREE 80 REPORT. UH, AND WHEN WE ENTERED INTO EVERY TIME WE ENTER AND IT'S ONLY FOR ACTIVE ONES, BUT WE HAD A, I THINK SIX EDC, THREE 80 AT CITY, THREE 80 ACRE AGREEMENTS THAT HAD TO BE POSTED THE STATE COMPTROLLER'S WEBSITE. SO IF YOU GO THERE, EVERY ONE OF THOSE AGREEMENTS IS THERE IN LIVING COLOR AND IN DETAIL, UH, INCLUDING POTENTIAL TRADE SECRETS, ALL THAT STUFF IS OUT THERE IN THE OPEN FOR ANYBODY TO SEE, UH, SO PROVIDES GREATER CLARITY TO OUR TAXPAYERS TO UNDERSTAND WHERE THEIR SALES TAX DOLLARS MAY OR MAY NOT BE GOING TO. UH, BUT IT'S ALSO DESIGNED TO BE A METRIC AND ALSO IN A WAY, DISINCENTIVE FOR CITY TO USE THOSE CITIES, TO USE THOSE AGREEMENTS. SIMILARLY, THERE'S A PUSH. UH, WE UNDERSTAND COMING IN THIS NEXT LEGISLATIVE SESSION TO TRY AND UNDO THE THREE 13, UH, SYSTEM, UH, THREE 13 AGREEMENTS ARE BASICALLY, UH, AGREEMENTS BETWEEN SCHOOLS, COUNTIES, LOCAL JURISDICTIONS, AND INDUSTRY TO PROVIDE FOR TAX ABATEMENTS, UH, RELATED TO ECONOMIC DEVELOPMENT, THE END GAME. WE'RE NOT REALLY SURE WHAT THE END GAME IS THERE QUITE FRANKLY, BECAUSE THOSE PROGRAMS ARE WHAT PUTS TEXAS ON A COMPETITIVE EDGE WITH SAY, GEORGIA, CALIFORNIA, THOSE PLACES DO THAT HAS A STATEWIDE INCENTIVE PROGRAM. TEXAS HAS SOME STATEWIDE INCENTIVE, BUT NOTHING LIKE THOSE AGGRESSIVE PROGRAMS YOU SEE IN SOME OF THESE OTHER SUNBELT STATES. SO WE'RE A LITTLE CONCERNED ABOUT WHERE THAT'S GOING. UM, BUT THAT'S NOT TO SAY THAT IT'S DISSUADED US FROM PURSUING ADDITIONAL THREE 80 AGREEMENTS. WE ARE IN THE PROCESS RIGHT NOW. ACTUALLY I'VE GOT FIVE OF THEM. CUTE, CUTE, POTENTIALLY THREE OF THEM READY ACTUALLY TO COME BEFORE YOU. BUT WE DECIDED NOT TO STACK THAT ON NEW MEMBERS IN AN ANNUAL MEETING AND AN ELECTION NIGHT. SO WE'LL BE BACK IN A COUPLE OF WEEKS TO BRING THOSE APPLICATIONS [00:10:01] TO YOU. UM, BECAUSE WE DO HAVE A LOT OF GROWTH GOING ON. AND WHEN YOU HAVE A LOT OF FOLKS REALLY INTERESTED IN TRYING TO DO BUSINESS HERE. AND SO WE HAVE TWO REALLY BIG SUCCESS STORIES TO SPEAK OF WHEN IT COMES TO 3 82 DEVELOPMENT AGREEMENTS. UH, THE FIRST THAT WE ALL KNOW A SINCLAIR WEITZMAN AND KROGER, UH, AND I'M GONNA TALK A LITTLE BIT MORE ABOUT THAT. UM, WE HAVE THE OPPORTUNITY TO RETIRE THAT AGREEMENT THREE YEARS EARLY, AND THAT'S GOING TO BE MY RECOMMENDATION WHEN WE GET INTO THE BUDGET SECTION OF, TO TALK ABOUT RETIRING THAT AND WHY I THINK IT'S A GOOD IDEA, THE OTHER, UH, THE OTHER ONE, AND WE DIDN'T EXPECT IT TO BE PAYING AS QUICKLY AS IT HAS, BUT THE ALWAYS AGREEMENT, UH, FOR WHERE THE ALLEYS SHOPPING CENTER IS NOW. UH, WE ENTERED INTO A, A BIFURCATED 50, 50 SALES TAX SPLIT ABOVE THE BENCHMARK NUMBER, WHICH WAS SET IN 2019 PRE PANDEMIC. UH, WE DIDN'T EXPECT THEM TO HIT THAT NUMBER IN THE FIRST YEAR AND THEY MORE THAN HIT THAT NUMBER IN THE FIRST YEAR. THEY ALMOST DOUBLED THE NUMBER OF THE FIRST YEAR. SO WE WERE VERY, VERY EXCITED ABOUT THAT. UM, AND THEN, LIKE I SAID, WE'VE GOT SOME OTHER THINGS COMING IN THE PIPE, UH, RELATED TO THREE 80 AGREEMENTS THAT I'LL KIND OF DISCUSS IN JUST A SECOND. SO LOOKING AT YOUR PROPOSED BUDGET, YOUR CURRENT FINANCIAL POSITION, UH, YOU'LL SEE THAT WE ARE SET TO FINISH THE YEAR A LITTLE BIT LOWER ON SALES TAX REVENUE THAN WE ENDED ANTICIPATED. WE'RE PROJECTING A NINE, ROUGHLY A $12,000 LAW DIFFERENTIAL BETWEEN WHAT WE PROJECTED AND WHAT WE'RE GOING TO BRING IN A TOTAL EXPENDITURES, WHICH ARE PRIMARILY SET. AND I'LL GET INTO OUR TALKING ABOUT OUR DEBT STRUCTURE AS WELL, WHICH IS SOMETHING THAT'S GOING TO BE A FOUR MIND IN THE NEXT TWO YEARS FOR US. UH, AND THEN, UH, THE NET REVENUES AND LAW NET REVENUES ARE UNDER EXPENDITURES OR OVER, OVER EXPENDITURES, OVER REVENUES. WE'RE ABOUT 345,000 THAT MAY COME DOWN A LITTLE BIT TOO, CAUSE THAT STILL ENTAILS A POTENTIAL PROPERTY PURCHASE, WHICH I DON'T THINK IS GOING TO BE ABLE TO CLOSE BEFORE THE END OF THE YEAR ANYWAY. SO THAT NUMBER WILL BE A LITTLE BIT, A LITTLE BIT HEALTHIER, BUT I WANT THE BOARD TO PAY ATTENTION TO THAT 2.4, $3,000,004 MILLION AT THE BOTTOM OF THE BASE BOTTOM LINE. UH, WE BEGAN THE YEAR AT 2.7. WE'RE GOING TO FINISH HERE. WE THINK AT ABOUT 2.4, MAYBE CLOSER TO 2.6, DEPENDING ON HOW THAT WORKS OUT. UH, BUT HALF OF THAT, NUMBER 1.2, FOUR EIGHT, ACTUALLY 1.2 4 8 7 7 3 IS RELATED TO SAVINGS THAT WE HAVE SET ASIDE OVER THE PAST SIX YEARS FOR THE KROGER REIMBURSEMENT. SO WE'VE BEEN STEADILY BUILDING UP FUNDS THERE, UH, PAYMENT, HOLDING BACK A REVENUE TO PLACE TOWARDS THAT. AND I'M HAPPY TO SAY THAT WE MET OUR OBLIGATION, UH, RELATED TO THAT AGREEMENT. WE CAN MAKE, WE CAN MAKE IT NOW, UH, BUT WE'VE GOT IT PROJECTED GOING INTO NEXT FISCAL YEAR CYCLE. AND SO, UH, THE WAY THAT AGREEMENT WAS STRUCTURED, IT WAS A 10 YEAR, $3.7 MILLION INCENTIVIZATION TIGHT TO THE DEVELOPMENT OF THAT POWER CENTER WHERE THE KROGER'S IS A BAHAMA BUCKS, ALL OF THAT, UH, WITH A ANNUAL PAYOUT, UH, WE SET BENCHMARKS FOR PROPERTY VALUE, UH, AND BENCHMARKS FOR, UH, SALES TAX VALUE AND THE SALES TAX VALUE IT'S KIND OF BEEN HIT OR MISS IT'S REALLY KIND OF SHOCKING. UH, WE PAID OUT THE LAST TWO YEARS, BUT THERE WAS A THREE-YEAR GAP IN BETWEEN WHERE WE DID NOT PAY OUT JUST BECAUSE THEY DIDN'T MEET THEIR BENCHMARK CRITERIA FOR PERFORMANCE PROPERTY TAX. THE, THE GENERAL FUND SIDE HAS BEEN SIGNIFICANTLY IMPACTED. AND SO YEAR BY YEAR, UH, THE IMPACT THE NET REVENUE ENCUMBERED BY THE SALES TAX CORPORATION, DEC HAS BEEN ABOUT $212,000. THE GENERAL FUND HAS SEEN ABOUT $389,000, UH, IMPACT TO ENCUMBERED REVENUES, UH, AND LIKE EXPENDITURES TIED TO DISAGREEMENT. AND SO, UH, WE ARE PROPOSING IN THIS NEXT YEAR'S BUDGET. AND THAT'S WHY THAT BIG, HAIRY NUMBER IS THAT BEING HEARING NUMBER ON THE FAR RIGHT, OR MAYBE THE FAR LEFT. UM, 1.4 IS THE DRAWDOWN OF THOSE OF THAT MONEY TO GO AHEAD AND RETIRE. THIS NOTE IN MY MIND, WE'RE PAYING OFF THE CAR NOTE, WE'RE PAYING OFF THE MORTGAGE EARLY, AND THEN WE ARE ALLOWED TO UNDER THAT BENEFIT OF THAT SALES TAX DOLLAR, ALL OF THAT SALES TAX DOLLAR FOR THE BDC AND THE SALES TAX DOLLAR AND THE PROPERTY TAX DOLLAR FOR THE GENERAL FUND GOING FORWARD. AND SO THAT'S KIND OF OUR BIG ASS, THIS FISCAL CYCLE. WE ARE VERY CONSERVATIVE ON WHAT WE PLAN TO DO WITH THIS BUDGET OUTSIDE OF THAT, UH, BECAUSE WE KNOW THAT'S A FAIRLY SIGNIFICANT HIT TO THE BOTTOM LINE, BUT THE REALITY IS, IS IT'S MONEY THAT WE'RE EITHER GOING TO HAVE TO PAY TODAY OR THREE YEARS DOWN THE ROAD. AND I THINK IT WOULD BEHOOVE US TO GO AHEAD AND RETIRE THAT NOTE AND FOCUS ON OTHER PROJECTS THAT WE HAVE POTENTIALLY COMING DOWN THE PIPE. YES, I HAVE A QUESTION. DO THE SHIFTS IN INTEREST RATES RIGHT NOW IMPACT THAT. AND THAT'S WHY WE WOULD WANT TO PAY THAT DOWN. WELL, IF WE WERE NETTING AND THIS IS WHY WE HAD THIS INTERNAL DEBATE AMONG OUR FINANCE STAFF HERE AT THE CITY, AND ALSO WITH CITY COUNCIL, IF WE WERE NETTING THREE, FOUR, 5% IN NET INTEREST, I WOULD SAY, HEY, THIS IS A GREAT OPPORTUNITY FOR US TO MAKE SOME BANK OR PUT SOME MONEY ASIDE WE'RE NETTING 1.08. AND EVEN WITH THE INTEREST RATE THAT THE MODEL I SAW TODAY, IF THEY'RE GOING TO DO A THREE AND A HALF OR A 0.3 0.75 INTEREST RATE HIKE TOMORROW AT THE FED, WE'RE NOT GOING TO SEE THAT UNTIL MAYBE NOVEMBER. AND EVEN THEN WE'RE TALKING [00:15:01] MAYBE A 0.2, FIVE NET CHANGE IN THE ACTUAL T-BILLS. AND THAT'S ONE THING I ALSO WANTED TO POINT OUT, LET ME GO BACK TO THIS NEXT ONE IN THE WALL CONTROLLER. IF YOU'LL TAKE A LOOK HERE, UH, AT END OF YOUR PROJECTION, WE HAVE A SIGNIFICANT AMOUNT OF MONEY, UH, WITH UBS CAPITAL MARKETS. AND WE ARE BEING FEED TO THAT. OUR NET CHANGE IN VALUE THIS YEAR WAS NEGATIVE 1 0 6 FOR THIS BOND. AND SO, UH, WE WILL BE MOVING OUR MONEY OUT OF UVS AT THE BEGINNING OF THE FISCAL YEAR AND MOVING EVERYTHING INTO A CLASS TEXAS CLASS OR TEXAS STAR ACCOUNT. UH, THE YIELDS WILL BE SIGNIFICANTLY LOWER, BUT WE THINK THE RISK IS ALSO LOWER AND THE FEES WILL BE LOWER. SO WE'LL BE BETTER STEWARDS OF THE MONEY IN THE LONG RUN. ONE THING, OTHER ITEM OF INTEREST, I DID WANT TO KNOW, I HAVE A SIGNIFICANTLY INCREASED THE TRAINING BUDGET FOR THIS BOARD. WE, UH, WE DO ALL NEED TO PARTICIPATE IN THE SALES TAX WORKSHOP. UH, I, I, IT'S BEEN A LONG TIME FOR ME. I CAN'T REMEMBER THE LAST TIME ANYBODY WENT OCTOBER 28TH. YOU GUYS WILL MARK THAT ON YOUR CALENDAR IS THE NEXT SESSION IT'S IN HOUSTON, THEREBY THE, EXCUSE ME THERE BY HOBBY AIRPORT. UH, IT IS AN ALL DAY AFFAIR. UM, SO, UH, WE'LL BUY YOU LUNCH AND MAYBE BUY YOU BREAKFAST, BUT I WOULD, UH, WOULD LIKE TO GET EVERYBODY BOOKED TO THAT IF I CAN, IF YOU'RE NOT ABLE TO MAKE IT, IF YOU'LL PLEASE LET ME KNOW AND I'LL PUT YOUR NAME OFF THE REGISTRATION MOVING FORWARD, MOVING FORWARD AS I DID, AS I DID THE SAFE, THE, UH, MY, MY THEORY IS, IS THAT WE'RE GOING TO RETIRE THE MORTGAGE EARLY AND HAVE SOME SHORT-TERM PAIN FOR SOME LONG-TERM GAME. UH, WE HAVE SOME ADDITIONAL PROJECTS, UH, TEED UP ON THE NORTH SIDE THERE ALONG THE OYSTER CREEK AND WHERE IT TURNS INTO COLLEGE PART, THEY'RE GOING TO BE COMING ONLINE IN THE NEAR FUTURE. AND I KNOW THAT WE'RE GOING TO SEE A REQUEST FOR ADDITIONAL DEVELOPMENT ASSISTANCE TIED TO THE COLLEGE PARK DEVELOPMENT THERE ALONG CALLERS DEPARTMENT OF LAUREN. AND ALSO WE'VE BEEN WORKING VERY CLOSELY WITH THE HK DEVELOPMENT, WHICH, UH, IF YOU LOOK AT POINTER, NOPE, THAT'S NOT IT. OH, WAIT. NOPE. OH, CAN YOU SAY, I'M SORRY, IF YOU LOOK JUST TO THE RIGHT, THE GREEN IS THE EXISTING THREE 80 AGREEMENT THAT WE HAVE WITH SYNCHRO WEITZMAN FOR KROGER, THE TWO BLUE PANELS, UH, THE, THE ONE IMMEDIATELY ADJACENT TO THAT JUST TO THE WEST OR JUST TO THE EAST IS THE DHQ COMMERCIAL TRACK, ABOUT 4.3 ACRES. UH, WE'VE BEEN WORKING WITH THE HK AND OUR DEAR FRIENDS AT THE CITY OF LAKE JACKSON TO TRY AND GET A KIRK CUT THERE SO THAT WE CAN FACILITATE THE DEVELOPMENT OF A CAFFEINATED BEVERAGE COMPANY, UH, THAT HAS ALREADY SIGNED A LETTER OF INTENT. UH, AND THERE'S ANOTHER RESTAURANT HAD SITE ACROSS FROM THE CAFFEINATED BEVERAGE COMPANY THAT SIGNED A LETTER OF INTENT, BUT I STILL CAN'T NAME, UH, AT THAT SIDE, BUT IT'S CONTINGENT UPON ACCESS OFF OF OYSTER CREEK. AND SO WE'RE WORKING WITH LATE LIKE JACKSON TO DO THAT RIGHT NOW. LIKEWISE, UH, WE'VE BEEN DISCUSSING WITH MR. KIRK AND HIS PARTNERS, UH, UM, KEVIN AND KYLE ABOUT POTENTIAL INCENTIVIZATION FOR THE RESTAURANT, UH, SLASH CENTER, UH, THEREBY COLLEGE PARK DEVELOPMENT AND COLLEGE PARK BOULEVARD. UH, AND I KNOW THAT THEY'RE GOING TO BE, THEY'VE STARTED GETTING READY TO START CLEARING AND DOING DIRT WORK WITH THEY'RE GOING TO NEED SOME INFRASTRUCTURE ASSISTANCE FROM US. AND SO WE KNOW WE'RE GOING TO NEED SOME, UH, NEED SOME LEAD AND SET ASIDE FOR THAT. ADDITIONALLY, UH, IF YOU LOOK AT THIS MAP, UH, THE YELLOW IS THE PREVIOUS, UH, THREE 80 THAT WE DID WITH DAN SUE HAN WITH THE SHOPPING CENTER THERE, WHERE THE FIRESTONE AND A PICKET FENCE AND THE FOLK BOTH, BOTH, UH, UH, SORRY, I ALWAYS MESSED UP PLACE SITS CURRENTLY. THAT WAS PRETTY SUCCESSFUL FOR US. DAN HAS TAKEN ON, UH, THE OPPORTUNITY I'M GOING TO CALL IT, NOT NECESSARILY THE RISK, BUT THE OPPORTUNITY OF BUYING UP A COUPLE OF ADDITIONAL PROPERTIES, UH, THAT HE SUBSEQUENTLY RENOVATED, UH, LONE STAR FURNITURE AND THE BUILDING NEXT TO THAT, WHERE HE HAS HIS ORIGINAL DOJO AND HE'S IN THE PROCESS OF RENOVATING AND THEN THE STRIP CENTER, THE SHOPPING CENTER ACROSS IMMEDIATELY ACROSS FROM ALL BEHIND THE BELT. IF YOU NOTICE HE'S IN A COMPLETE REMODEL THERE, HE'S DRESSED IT UP. HE'S TRIED TO MATCH, WILL MIMIC WHAT'S HAPPENING ON THE OTHER SIDE OF THE STREET. UH, AND HE'S ALSO SEEKING A THREE 80. WHAT I'VE TRIED TO EXPLAIN TO HIM IS THAT WE ARE NOT GOING TO DO THE SAME TYPE OF AGREEMENT THAT WE DID FOR FIRESTONE. I DON'T THINK IT PUTS US IN A GOOD POSITION, UH, BUT WE DO WANT TO INCENTIVIZE HIS DEVELOPMENT AND HELP REWARD HIM FOR THAT INVESTMENT. AND THEN OF COURSE WE DISCUSS THE SUCCESS THAT WE'VE HAD THERE AT, UH, AT WILLIAMSBURG WOULD NOT NORMALLY, [00:20:01] SORRY, IT'S NOT WILLIAMSBURG ANYMORE. UH, THERE AT THE ALI SITE, UH, NOT DISCUSSING THE CURRENT ONGOING PLUMBING ISSUES, WHICH I'M NOT GOING TO GET INTO, CAUSE I JUST DON'T FEEL GOOD. IT MIGHT SAY THE WRONG THING. THEN WE HAVE SOME OTHER SMALLER SCALE PROJECTS, UM, AT THE CORNER OF TWO 80 OR SORRY, LAZY AND PLANTATION WHERE THE, UH, QUICK MART WITH NO GAS SERVICE AND YOU HOPE BUSINESSES WITH THEIR ABDEL NASSER HAS DECIDED THAT HE'S GOING TO UPGRADE THAT FACILITY. HE HASN'T MADE AN ASK YET, BUT HE DID ASK WHAT INCENTIVES WERE AVAILABLE. SO I'VE GOT A FEELING WHAT'S COMING. I DID PROVIDE HIM WITH A PACKET. AND THEN LOOKING BACK AT 2 88 B UH, WE MADE A RUN IS THAT YOU OR MAY, MAY WITH THE OWNERS, THE SHOPPING CENTER, UH, AT THE CORNER OF MAIN SLASH STRATTON, REGGIE TO EIGHT B WAS ALLOWED TO SUBDIVIDE YEARS AGO. AND SO, UH, WE'VE GONE FROM 11 OWNERS DOWN TO SEVEN, WHICH IS A GOOD THING. UH, BUT WE DO STILL HAVE SEVEN INDEPENDENT OWNERS IN THAT PROPERTY. WE HAVE TWO NEW INVESTMENT GROUPS THAT HAVE PURCHASED THE SOUTHERN END OF THAT BUILDING, UM, OR THE SOUTHERN END OF THAT SHOPPING CENTER. UH, WE WILL BE SEEING A NEW CONVENIENCE STORE SLASH FAST FOOD RESTAURANT ON THE CORNER OF STRATTON RIDGE INTO AB. UH, AND THEN I KNEW IN CLIMATE CONTROLLED STORAGE FACILITY AND WHAT USED TO BE THE OLD SAME WAY. UH, WE THOUGHT WE HAD A DEAL WITH THE OTHER OWNERS BECAUSE THERE'S A NEW EVENT SLASH RESTAURANT FACILITY GOING IN. AND THEN WE ALSO HAVE A NEW BETS BAKERY AND THE VAPE SHOP AND ALL THAT GOING IN THAT THEY'RE ALL UNDER THE SAME OWNERSHIP. WE THOUGHT WE HAD BEEN ABLE TO PUT TOGETHER A DEAL WITH, THEY WERE GOING TO COME ASK FOR A BIFURCATED THREE, A YEAR AGREEMENT TO DO A RENOVATION AND CLEAN UP MUCH LIKE WE DID WITH THE ALI'S FACILITY. UH, ONE OF THE OWNERS WALKED AWAY AND UNFORTUNATELY HE OWNS THE MIDDLE PIECE. SO EVEN IF WE WANTED TO BUY SEPARATE HIM FROM THE DEAL, IT WOULD LOOK REALLY BIZARRE TO HAVE THE CENTERPIECE OF THAT PROPERTY LOOKING COMPLETELY. I DON'T EVEN KNOW WHAT THE WORD IS. UM, SO THERE WAS A POTENTIAL THERE, BUT I DON'T THINK IT'S REALISTIC THAT ANYTHING HAPPENS THERE. THAT'S INCENTIVIZED BY THE CITY. UH, BUT WE DO HAVE SOME GROWTH ELEMENTS THAT ARE GOING TO COME AND KIND OF HOPEFULLY REDEFINE THE AESTHETIC, AT LEAST ON THAT CORNER. AND THEN THE BIG ONE THAT WE'VE BEEN TALKING ABOUT, UH, SINCE 2018, UH, WE FINALLY ARE UNDER LAUNCH WITH THE LIVABLE CENTER STUDY. UM, THAT IS A, THE IDEA IS THAT WE'RE GOING TO FOCUS ON THE DEVELOPMENT OF A LOCAL CENTER IN THE OLDER PART OF CLUED, A TRADITIONAL POOR WE'VE NOT REALLY HAD A DOWNTOWN. AND SO THE IDEA WOULD BE THAT WE DEVELOP A FLEXIBLE ZONING PATTERN THAT WILL ALLOW FOR LIVING, WORKING, PLAYING ALL ON THE SAME AREA. UH, AND THEN THE BROADER GOAL FROM THAT IS TO TAKE THAT AND MOLD THAT IN AND UPSCALING IT TO A COMPREHENSIVE PLAN, WHICH WHEN THEY, WE CAN THEN REDO OUR ZONING TO FIT WHAT REALLY IS ON THE GROUND. BECAUSE IF YOU TAKE A LOOK AT HOW OUR ZONING LAYS OUT RIGHT NOW, I THINK IT WAS DRAFTED IN THE LATE SEVENTIES. IT WAS GREAT FOR THEM, BUT WE HAVE A BIFURCATED WEIRD COMMERCIAL SETUP WHERE YOU HAVE C1 AND C2, AND SOMETIMES THEY ABUT ALTERNATIVE USES. AND THEN YOU GET A WHOLE SLEW OF WHAT SHOULD BE IN ONE OR ITU UNDER STANDARD ZONING ALONG WHAT IS RIGHT NOW, C1 ZONE ON PLANTATION. AND IT'S, WE'RE DUE FOR A WE'RE DUE FOR A REDO THERE. SO THE PROCESS, UH, THE PROCESS IS A LITTLE BIT SLOWER THAN WE WOULD HAVE LIKED. WE REWARDED THAT, UH, WHEN I FIRST GOT HERE AND IT'S TAKEN THIS LONG TO GET HJC IN TXDOT TO GET THE, UH, GET THE CHECKBOOK OUT AND GET MOVING. BUT WE'RE EXCITED THAT, THAT ONE'S FINALLY GOING TO LAUNCH THAT MY REPORT, UNLESS YOU GUYS HAVE QUESTIONS CAN YOU REPEAT, CAN YOU REPEAT ALL THAT? HOW ARE THINGS LOOKING FOR THAT CURVE CUT TO RETURN TO THAT? UM, WELL, MAKING SOME HANDLING, ASKING US TO DO AN UPDATED TRAFFIC STUDY, THE DEVELOPERS IN THE PROCESS OF GETTING THAT DOWN RIGHT NOW, AND AFTER WE GET THE REVISED UPDATED ATTRACTS TOADY, WE'LL GO BACK AND VISIT WITH THEM AGAIN, UH, AND REQUIRE A TRACK REQUIREMENT THAT, WELL, IT'S GOING TO BE A RIDE AND RIDE OUT. SO THERE'S NOT GOING TO BE A MEDIA CUP. THERE'S NOBODY YOU'RE NOT GOING TO, BUT THEIR, THEIR BIGGEST CONCERN WOULD YOU TURN TIME. OKAY. SO IT'S ONLY, OKAY, SO IT IS JUST A CURB CUT. NOT A, IT'S NOT A BEATING CUT. IT'S JUST THE CURB CUT RIGHT IN, RIGHT OUT ON [00:25:02] DAMN TWO CONCERNS, CONCERNS. ONE IS THE U-TURN, UH, HER AT, UH, THE LIGHT AND ALSO AT THE OTHER, UH, ESPLANADES SECTION ACROSS, WHICH WAS BEING CROSSING AND ALSO THE EMERGENCY INGRESS AND EGRESS SHOULD THERE BE. AND, UH, RIGHT NOW, UH, THE HK DID NOT SECURE CROSS ACCESS AGREEMENT WAS IN COURT WHEN THIS ALL CAME ABOUT, THERE'S A HATE SCRIPT THAT IS KEEPING THEM FROM BEING ABLE TO PROVIDE CROSS ACCESS, BUT WE'RE IN THE PROCESS OF WORKING THROUGH THAT. UM, AND WE THINK THAT BY HOPEFULLY RETIRING THE NOTE EARLY AND BEING KIND OF GOOD STEWARDS THERE, MAYBE THEY WILL SEE THEIR WAY TO DO THAT WITHOUT US BEING UGLY AND LACKING ACROSS EXCESS. THIS IS A CROSS ACCURUS LIKE THEREBY DISCOUNT, BASICALLY BEING ABLE TO COME THROUGH THERE INDIVIDUALLY, WHAT THE, WHAT THE MAJOR PROBLEM WAS THAT ORIGINALLY THAT FOUR ACRES WAS SUPPOSED TO BE PART OF THE GROVE. IT WAS AN OPTION AND THEY OPTED OUT AND THERE WAS NO GRIEVANCE PUT IN THERE FOR A CONTINUATION OF THE DRIVEWAY. SO NOW THAT'S, THAT'S WHAT THEY LIMBO RIGHT DOWN THE DRIVEWAY. SO IN ORDER TO GAIN ACCESS TO THAT, RIGHT NOW, WE NEED A CURB CUT. AND THEN THE REST OF IT MIGHT BE UP THE DOCKET AS FAR AS GETTING THE CONNECTING DRIVEWAYS, NO PRESSURE, BUT THERE WILL BE CONNECTING DRIVEWAYS JUST FOR THE SIMPLE FACT THAT WE HAVE TO, WE HAVE TO PROVIDE EMERGENCY SERVICES, OR WE HAVE TO HAVE FIRE AND AMBULANCE SERVICE OR FIRE TRUCKS AND AMBULANCES DON'T TURN AROUND REAL GOOD. THEY NEED TO GO. THEY NEED TO MAKE SURE THAT THEY'VE GOT UP A FULL THROUGH THE ONLY OTHER QUESTION I HAVE. AND, UH, JUST WITH PUTTING THAT LARGE AMOUNT OF MONEY TOWARDS THE RETIREMENT DEBT, WITH THE OTHER THING THAT YOU SEEING COMING ONLINE WITH THESE POSSIBLE THREE EIGHTIES, YOU DON'T SEE ANY RESTRICTION AND CAPABILITIES ON THE TOP TABLE WE'RE LOOKING AT NO, AND I'M GLAD YOU BROUGHT THAT UP BECAUSE THAT WAS ONE OF THE OTHER THINGS I MEANT TO DISCUSS THE WAY WE'VE STRUCTURED OUR COMMUNITIES IN THE PAST. WE HAVE USED INTERIM FUNDS AND PAID AS WE'VE GONE. AND THAT'S GREAT. UH, WE THINK THERE'S A MORE EFFICIENT WAY TO DO IT THROUGH THE ISSUE OF DEBT, IF IT'S GOING TO BE A SIZEABLE ENOUGH PROJECT. SO IF WE'RE TALKING OVER A MILLION DOLLARS, I THINK IT'S AT THAT POINT THAT THE EDC WOULD PROBABLY LEVERAGE DEBT TO DO THAT. AND THEN SECURE THAT KNOW WHAT THAT SALES TAX REVENUE, THAT WAY WE'RE NOT IMPINGING ON ONGOING CASHFLOW. UM, I DON'T SEE YOU THE PROJECTS THAT ARE ON THE HORIZON MEETING THAT LEVEL QUITE FRANKLY RIGHT NOW. AND I THINK WE HAVE ENOUGH CASH ON HAND AND CAN FLOAT THOSE THE WAY WE WANT TO. UH, I WOULD NOTE THAT YOU DO HAVE TWO MAJOR NOTES THAT ARE DUE TO RETIRE AT ONE AT 25 AND 1 26, WHICH IS GOING TO SIGNIFICANTLY ALSO PAID YOUR CASHFLOW SITUATION. UH, BECAUSE RIGHT NOW YOU'RE GOING OUT, UH, WAS IT, CAN YOU PUT IT BACK UP HERE? I GOT ABOUT A HALF A MILLION A YEAR. YOU'RE TALKING ABOUT $600,000 A YEAR. IT'S ONE OF THOSE, THE FIRE STATION ONE. YEAH. I THINK ONE OF THEM IS THE FIRE STATION. AND ONE OF THEM IS THE EVENTS THAT ARE ABLATING, CORRECT? YES. SO THOSE WILL BE COMING OFFLINE, VIRGINIA MAJORITY POSITION AS WELL WOULD ALSO HAVE THE DISHES BUDGET. WE TALKED ABOUT SHARING A POSITION WITH CBB. WE OPTED NOT TO FILL THAT POSITION MAY BE BACK LATER TO ASPIRATE SOLELY EDC POSITION, NOT SHARED, BUT WHEN RIGHT NOW WITH EVERYTHING LOOKING AT THIS, WE DIDN'T FEEL AS APPROPRIATE TO MAKE THAT ASK YOU HAVE A DISCUSSION QUESTIONS CONCERNING WHAT I SEE IN THE FUTURE IS, YOU KNOW, OUR PD IS GETTING PRETTY, PRETTY OUTDATED, PRETTY SMALL. UH, YOU KNOW, THERE'S GOING TO BE A NEED FOR UPDATED FACILITIES THERE. AND, YOU KNOW, IF WE UNENCUMBERED THIS MONEY THAT WE CAN POSSIBLY POSSIBLY HAVE SOME SAPONINS TO DO SOME OF THAT, THAT'S HOW IT WORKS AT A CITY. RIGHT. IF YOU GET SOMETHING PAID OFF, YOU HURRY UP AND GET OUT THERE AND JUMP RIGHT BACK IN. UNFORTUNATELY NOW YOU CAN'T DO A WHOLE LOT OF JUMPING IN BECAUSE YOU CAN'T GET STUFF TO BUILD WITH. YEAH, YOU'RE NOT KIDDING ABOUT THAT. WE DO HAVE A, IN THE CITIES, IN THE GENERAL FUND BUDGET, A PLANNING, A SET OF FACILITIES NEEDS ASSESSMENT, FACILITIES, NEEDS ASSESSMENT FOR THE POLICE AND POTENTIALLY THE [00:30:01] BUILDING, WHICH I THINK WOULD BE A SIGNATURE AT THE END OF MAIN STREET FOR THE CITY. UM, KIND OF SERVE AS AN ANCHOR FOR THIS AREA. YEAH. I WAS GOING SAY THAT WELL, DID THAT OTHER BROUGHT OUT, UNFORTUNATELY WE REMODELED A 40 YEAR OLD BUILDING WOOLERY. WE REMODELED THAT ONE. IT COULD BE, IT, IT COULD BE A MAIN STREET IN 3 32 AND ALL THAT PROPERTY, BUT THAT'S YEAH, THAT'S THAT'S IF YOU TOOK, IF YOU TAKE A LOOK AT THAT MAP, I SEE IF I CAN GET US BACK. I HEARD A RUMOR THE OTHER DAY THAT NOR ELK CONSTRUCTION MAY HAVE BOUGHT THE OLD LAKE TELLER PETE BUILDING HE'S UH, UM, YOU'VE BEEN ON CAMPUS FOR A YEAR, STILL SACRED, OR I DIDN'T KNOW ABOUT IT UNTIL JOHN TOLD ME, CAUSE I WAS HEADLINED EFFICIENCY WAS A POINT GAME. I LIKED THAT. I DIDN'T KNOW. I JUST HEARD A RUMOR. I DIDN'T KNOW IF IT WAS SECRET OR I WOULD THINK THAT IF THEY PUT ANYTHING DOWN THERE AT ALL, IT WOULD HAVE TO INCREASE THE VALUE OF THAT PROPERTY AS WELL, BECAUSE THEY'D JUST BEEN USING IT AS A STORAGE YARD FOR THE LAST 15 YEARS. THAT GREEN AREA IS THE AREA THAT WAS HIGHLIGHTED FOR THE LIVABLE CENTER STUDY. SO THAT CORE COULD GO ANYWHERE IN THAT MEME MAP AREA. UNFORTUNATELY, WE GOT NEW STAFF AT VASF WE GOING TO GET, UH, WE GOT TO GET ACCLIMATED UPDATED WITH AS WELL. SO AT THIS POINT, CJ, WE NEED TO MOVE AHEAD WITH APPROVING THIS PRESENTATION FIRST. CORRECT. DO I HAVE A MOTION TO APPROVE THE PRESENTATION OF THE 2021, 2022 ANNUAL EDC REPORT MOTION, BRUTAL MOTION. DO WE HAVE A SECOND? NO SECOND. ANY FURTHER DISCUSSION? ALL IN FAVOR, AYE. AND ITEM E CONSIDERATION AND POSSIBLE ACTION ON THE 2022, 2023 FISCAL YEAR BUDGET. WELL, I MIGHT JUST ADD THAT THIS IS JUST OUR RECOMMENDATION TO CITY COUNCIL. CITY COUNCIL STILL HAS TO APPROVE IT. SO, BUT I CAN'T GO BEFORE THEM UNTIL WE CAN'T GO BEFORE THEM UNTIL WE APPROVE IT, BUT WE HAVE A MOTION AND THINK IT WAS A GOOD IDEA FOR ME TO GET. YEAH, I DIDN'T THINK IT WAS A GOOD IDEA FOR ME TO MOTION TO RSA. WELL, I CAN SECOND BECAUSE I DON'T GET A BOAT LESSONS. YEAH. I CAN MAKE THE SECOND SECONDED BY CALVINS. ANY DISCUSSION ON THE FISCAL YEAR BUDGET, ALL IN FAVOR, MOTION CARRIES. IS THERE ANY FURTHER BUSINESS CJ? UH, WE'RE GOING TO SWEAR IN OUR NEW MEMBERS WE HAVE, ARE WE GOING UP THERE? I HAVE TO GO OVER THERE. UH, ELISE . I HAVE NOT DIRECTLY THAT I NOT DIRECTLY OR INDIRECTLY, THEY OFFER ROMS, THE BUDDY PAID, OFFERED CONTRIBUTED OR OR EMPLOYMENT THAT WOULD GIVE YOU A LITTLE BIT MORE OF A, BOTH SLASH SLASH SLASH SLASH REWARD [00:35:05] UPON APPOINTMENT OR WHICHEVER, WHICHEVER THAT TAKES ME. SO HELP ME GOD. UH, ECONOMIC DEVELOPMENT CORPORATION, TEXAS WELL TO THE BEST OF MY ABILITY AND UNDERSTAND THE TEXAS CHARTER ALL RIGHT. NOW WE CAN GO TO ITEM FIVE. DETERMINE DO I HAVE A MOTION FOR A GERMAN? SECOND, SECOND, ANY DISCUSSION? ALL IN FAVOR. WE ARE ADJOURNED 6 38. THANK YOU VERY MUCH, EVERYONE. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.