[00:00:21]
UH, DO WE HAVE A FORUM TO GO HERE TO HOPEFULLY GET TO THIS STARTED? WHAT JUST HAPPENED? TO LOOK, YES, WE DO HAVE A CAN.
GONE ON YOUR CELL OR OUR PRESENT? SO WE CAN GO FROM THERE.
OKAY, WE'LL GO AHEAD AND OPEN THIS MEETING THEN.
UM, I GUESS IT IS THE FIRST THING
[1. MINUTES]
ON THE AGENDA TO, UH, ACCEPT THE MINUTES FROM THE LAST, LAST YEAR'S.UH, IT IS, I MOVE TO ACCEPT THE MINUTES FROM LAST YEAR'S MEETING.
AND IS IT OKAY FOR ME TO PUT SECOND THAT YOU WOULD SECOND THAT AND THEN TAKE THE VOTE? OKAY.
AND WE'LL HAVE, HAVE A VOTE NOW.
UH, DO SO BY SAYING AYE FOR ACCEPTANCE.
[a. Conduct the election of officers for the positions of Chairman and Vice Chairman of the Baytown Industrial Appraisal Review Board.]
ON THE AGENDA WOULD BE THE, UH, CONDUCT THE ELECTION OF OFFICERS FOR THE POSITION OF CHAIR, VICE CHAIR.UM, AGAIN, I THINK, UH, WITH YOU BOTH HERE, I THINK, UH, UM, YOU GUYS CAN MAKE NOMINATIONS FOR EACH OTHER AT, AT THIS POINT, AND THEN WE CAN GO AHEAD AND FILL THOSE, UH, FILL THOSE SEATS FOR THE, UH, FOR THE CURRENT YEAR.
I WOULD LIKE TO GO AHEAD AND NOMINATE RON.
IS THERE, IS THERE A SECOND? UH, YEAH, SURE.
UM, AND NOMINATE, UM, RICHARD AGAIN FOR VICE TRIP.
AND YOU'LL SIGNIFY BY SAYING I TO BOTH? I, I TO BOTH.
I RISE SLOWER THAN I TALK, SO BEAR WITH ME.
UH, WITH OUTTA THE WAY WE ARE NOW,
[b. Consideration of the Industrial District Values for Industrial Districts 1, 2 and 3.]
UH, ON ITEM THREE, UM, MR. VICE CHAIR.SO, UM, WITH THAT, I'M GONNA TURN IT OVER TO HUGH AND, UH, WE'LL BE ABLE TO, UH, GO THROUGH, UH, THE VALUATIONS THAT YOU SEE HERE.
UM, AND THEN OF COURSE, FIELD ANY QUESTIONS THAT YOU MIGHT HAVE, UH, REGARDING THE VALUES.
HOPE YOU GUYS HAD A CHANCE TO LOOK THESE OVER.
UH, WHEN I SAID THIS TO YOU OUT THE OTHER DAY, MAYBE HAD A CHANCE TO KIND OF PERUSE THAT.
SO WE'RE, WE'RE HERE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.
I DID LOOK AT IT, UM, WHEN YOU SENT IT, SO THANK YOU.
I'M WAVING AT WHERE I CAN SEE YOU FROM.
I DON'T KNOW WHERE I'M BEING VIDEOTAPED FROM, SO IF I'M NOT LOOKING STRAIGHT AT YOU, I CAN SEE YOU.
UM, WE DO HAVE A FEW THINGS TO, TO TALK ABOUT.
UM, YOU CAN SEE THE 2019 VALUES.
IT'S THIS PAGE WITH THE VALUES ON IT.
UM, I'M NOT GONNA GO THROUGH EVERY SINGLE ONE OF 'EM.
UH, A LOT OF THE VALUES, YOU KNOW, FLOATED A LITTLE BIT UP, FLOATED A LITTLE BIT DOWN, STAYED ABOUT THE SAME.
UM, HOWEVER, THERE ARE TWO, NO, NO, I'M GONNA START WITH THE NEW COMPANIES.
IF YOU LOOK AT THE, THE ONES THAT HAVE A BLANK IN THE 2019 VALUE, THERE'S 1, 2, 3, 4, 5, 6, 7 ON THE FIRST PAGE AND TWO ON THE SECOND PAGE.
UM, AMERICORPS HAS STEADILY BEEN BUILDING ADDITIONAL BUILDINGS OUT THERE, AND AS SOON AS THEY GET COMPLETED, THE CITY ENTERS INTO A CONTRACT WITH THEM SEPARATELY.
UM, AND THEREFORE WE WANTED TO HAVE A SEPARATE CONTRACT FOR EVERY ONE OF THEM.
UM, THIS A-X-P-B-J IS A WAREHOUSE BUILDING THAT HAS POPPED UP.
UH, CHAMBERS COUNTY LOGISTICAL TERMINALS, WE'VE GOT A COUPLE OF NEW ONES THERE.
FAMILY, THIS IS MISSPELLED, IT'S F-A-M-I-L-Y-W-T-S.
[00:05:01]
I THINK THEY'RE A FRUIT, A CITRUS COMPANY, BRENT, IS THAT THAT RIGHT? THEY'RE OVER THERE RIGHT OFF OF, UH, OF 1405 NEAR CEDAR PORT.AND THEN LONE STAR, NGL IS BUILDING HAS BUILT A COUPLE OF NEW, UH, FRACTIONATION UNITS.
UM, AND THEN THERE ARE SOME VALUE LOSSES.
THE BIGGEST ONES, IF YOU LOOK DOWN AT CHEVRON PHILLIPS, YOU SEE ABOUT A $200 MILLION LOSS THERE.
IF YOU LOOK DOWN AT EXXON, YOU'LL SEE A 200, $240 MILLION LOSS THERE.
THOSE ARE BOTH FOR THE SAME REASONS.
WHAT'S BEEN HAPPENING OVER THE PAST FIVE YEARS, LET'S SAY, UM, IS THAT COMPANIES HAVE BEEN BUILDING THESE BIG, HUGE, A BILLION AND A HALF, $2 BILLION, $3 BILLION, UM, OLEFINS UNITS.
OLEFIN IS A FAMILY OF CHEMICALS, BUT THEY'RE SPECIFICALLY ETHYLENE UNITS, EXCUSE ME.
UH, THEY HAVE HUGE, UH, CAPACITY ON THEM.
THE PROBLEM IS, IS THAT THERE'S LIKE SEVEN COMPANIES BUILDING HUGE ETHYLENE UNITS.
AND WHEN I LOOK BACK AT THE VALUES OF WHY THERE WAS A 200, $250 MILLION LOSS ON THESE, IT WAS ON ONE ACCOUNT.
IT WAS ON THE NEW ABATED OLEFIN UNITS.
AND WHAT'S HAPPENING IS THAT THERE'S AN OVERSUPPLY OF ETHYLENE OUT THERE NOW BECAUSE OF THESE UNITS.
UH, WE'VE BEEN SCRATCHING OUR HEADS FOR THE PAST FOUR OR FIVE YEARS THAT US IN THE APPRAISAL WORLD THAT APPRAISE THESE TYPE OF BUILT OF UNITS BECAUSE WE'RE WONDERING WHERE ALL THIS CAPACITY'S GONNA GO.
ARE THE OLD UNITS GONNA BE SHUT DOWN OR IS EVERYBODY GONNA RUN AT 50% OF CAPACITY? UM, AND SO WHAT WE'RE SEEING NOW, NOW THAT THESE UNITS ARE BUILT AND THEY'RE UP IN OPERATION, THEY'RE RUNNING AT 60% OF CAPACITY, 70% OF CAPACITY, AND THEY'RE NOT RUNNING, UH, AT A HUNDRED PERCENT.
AND SO THAT IS AN ECONOMIC OBSOLESCENCE ON THAT UNIT.
UM, IF THEY WERE GONNA RUN AT 75% OF CAPACITY FOR THE WHOLE LIFE OF THE UNIT, THEY WOULD'VE ONLY BUILT, THEY WOULD'VE BUILT A UNIT THAT'S 25% SMALLER THAN WHAT THEY BUILT, AND IT WOULD BE LESS, LESS EXPENSIVE TO, TO DO THAT.
UM, SO THERE'S AN ECONOMIC OBSOLESCENCE ON BOTH OF THESE THAT CAUSE THAT, THAT LARGE LOSS.
MOST OF THE OTHER ONES THAT I'VE GONE THROUGH ARE, YOU KNOW, RELATIVELY FLAT ON THEIR VALUES.
UM, BUT IF ANYTHING STICKS OUT TO YOU, UM, I, YOU KNOW, I'D BE HAPPY TO ANSWER QUESTIONS ON IT.
UM, WALMART WENT DOWN ABOUT $30 MILLION, AND THAT'S PRIMARILY, UH, INVENTORY THAT THEY HAVE STORED OUT THERE IN THE WAREHOUSE.
SO MAY, MAY I ASK A QUESTION? YES, MA'AM.
SO THE, UM, THE ELEPHANT UNIT, THEY'VE BEEN DECREASING OVER, YOU MENTIONED FIVE YEARS.
SO DID COVID ADVERSELY AFFECT THEM FURTHER? AND DO WE EXPECT TO SEE A RECOVERY? UM, NO, COVID DID NOT, UM, COVID HIT IN MARCH, FEBRUARY OR MARCH.
OUR ASSESSMENT DATE IS JANUARY 1ST OF EACH YEAR.
SO WHEN ON JANUARY 1ST, NOBODY KNEW THIS WAS GONNA HAPPEN.
AND, UH, SO WE WERE ASSESSING AS OF JANUARY 1ST.
THERE WERE A NUMBER OF PEOPLE OUT THERE THAT WANTED TO SHIFT THE ASSESSMENT DATE TO LIKE APRIL 1ST OR MAY 1ST.
THE, UM, WE GOT AN OPINION FROM THE STATE COMPTROLLER'S OFFICE, THE STATE COMPTROLLER'S OFFICE, UH, IS WHO ALL OF THE APPRAISAL DISTRICTS IN THE STATE OF TEXAS REPORT TO.
WE GOT AN OPINION FROM HIM AND HE SAID, MOVING THE ASSESSMENT DATE IS A HARD NO.
SO WE APPRAISE AS OF JANUARY 1ST OF THIS YEAR, AND THEY WERE RUNNING JUST FINE.
UM, THE, THE LOSSES I THINK ARE, THERE'S JUST TOO MUCH SUPPLY OUT THERE NOW TODAY.
COVID HAS, HAS HURT EVERYBODY.
WE'RE, WE'RE PLANNING MEETINGS HERE IN THE NEXT FEW WEEKS TO MEET WITH INDUSTRY TO SEE HOW BAD IT IS.
UM, BECAUSE IT, IT'S COVID HAS DEFINITELY SLOWED DOWN EVERYBODY BECAUSE PEOPLE ARE JUST NOT OUT THERE BUYING STUFF ANYMORE OR, OR THE WAY THEY WERE THAT WE WERE.
UM, AND SO THESE COMPANIES OUT HERE PRODUCE THE
[00:10:01]
MATERIALS THAT GO INTO THE, THE CONSUMER PRODUCTS THAT WE ALL BUY.AND WHEN WE STOP BUYING, THEY STOP PRODUCING.
SO WE'RE STILL WAITING TO SEE WHAT HAPPENS FOR 2021.
DID THAT ANSWER YOUR QUESTION? UH, YEAH.
AND I'M THINKING IT MIGHT SHOW A FURTHER DECREASE GIVEN THE WAY THE ECONOMY HAS SHIFTED IT VERY WELL.
COULD THIS LAST SEVERAL MONTHS? IT VERY WELL COULD, THERE'S A GOOD POSSIBILITY THAT THERE'LL BE, YOU'LL BE SEEING INVENTORY REDUCTION GOING INTO NEXT YEAR.
UM, YOU KNOW, AS YOU KNOW, THAT WE, WE DO CAPTURE INVENTORY IN, UH, UNDER OUR, UNDER OUR LOGISTICS CONTRACTS.
UM, SO WITHOUT, UH, OUR REAL BIG PICKUP PRIOR TO THE, THE NEXT ASSESSMENT DATE, WHICH IS JANUARY 1ST, UM, WE'RE, WE'LL OBVIOUSLY SOME TYPE OF SLOWDOWN IN THAT, UM, HOW DEEP, AGAIN, LIKE I SAID, THEY'RE, THEY'RE GONNA BE MEETING WITH INDUSTRY TO KIND OF FIND OUT, UM, YOU KNOW, WHAT, WHAT THE DEPTH OF THAT MIGHT BE.
DO YOU WANT TO TALK ABOUT, UH, ENTERPRISE COVESTRO? SOMETHING LIKE THAT? SO RICK, DO YOU WANT TO, YOU WANT TO SPOT TALK A LITTLE BIT ABOUT, UH, ABOUT COVESTRO ENTERPRISE, WE HAVE THEM ON HERE AS WELL.
UM, JUST WANTED TO, UH, TWO MORE RECENT AGREEMENTS THAT THE, THE CITY'S ENTERED INTO, UH, REPRESENT KIND OF A DEPARTURE FROM OUR TRADITIONAL INDUSTRIAL DEVELOPMENT AGREEMENTS.
UH, THE FIRST ONE I'LL TALK TO IS ACTUALLY ENTERPRISE.
UM, ENTERPRISE REPRESENTS, UH, I THINK, UH, KIND OF A INNOVATIVE, UH, STRATEGY HAS SATISFIED A COUPLE OF NEEDS.
FIRST OF ALL, ENTERPRISE WAS LOOKING FOR, UH, A PLACE TO MAKE, UH, INVESTMENT IN THE NEIGHBORHOOD OF SEVEN TO $10 BILLION IN ADDITIONAL PROJECTS IN THE YEARS TO COME.
THEY HAD A NUMBER OF PROPERTIES, UH, ACREAGE UP IN LIBERTY, ORANGE AND BATON ROUGE.
UH, AND OF COURSE, THEIR PROPERTY IN BAYTOWN THEY SOMETIMES REFER TO AS THEIR MONT BELLEVUE FACILITY, BUT IT'S BAYTOWN, ETJ
UH, WE HAD A NEED, UH, ALSO TO RETAIN, CAPTURE THAT INVESTMENT AND ENSURE THAT WE COULD PROVIDE A PLATFORM THAT WOULD BE, UH, ALMOST IRRESISTIBLE FOR THEM TO STAY IN BAYTOWN FOR THE DURATION OF THAT, THAT INVESTMENT.
WE DON'T KNOW HOW MANY YEARS IT'LL TAKE TO ACTUALLY MAKE THAT INVESTMENT.
WE ACTUALLY FORMED AN ECONOMIC DEVELOPMENT AGREEMENT WITH ENTERPRISE UNDER AUTHORITY FROM CHAPTER TWO 12, WHICH, UH, ACCOMPLISHES THREE THINGS.
FIRST OF ALL, IT ENSURES THAT WE CONTINUE TO RECEIVE, UH, THE RETURNS FROM THEIR CURRENT INVESTMENT THAT THEY'VE MADE.
IN OTHER WORDS, WE DON'T LOSE ANYTHING OFF THE GROUND OF WHAT THEY ALREADY HAVE.
BUT GOING FORWARD, IT INCENTIVIZES BY LOWERING THE RATE ON THAT EDA, SO THEY PAY LESS TAX IN THE FUTURE AS THEY MAKE MORE INVESTMENT INTO, UH, THE BAYTOWN FACILITY.
UM, THE THIRD THING THAT IT DOES IS IT PROVIDE, UH, ENTERPRISE PROVIDED THE CITY WITH A ONE-TIME CAPITAL INVESTMENT, UH, IN THE NEIGHBORHOOD OF $66 MILLION, WHICH THE CITY WILL UTILIZE FOR THE CONSTRUCTION OF A NEW STATE-OF-THE-ART PUBLIC SAFETY BUILDING, WHICH WILL BECOME THE HOME OF OUR POLICE DEPARTMENT AND OUR FIRE ADMINISTRATION.
SO THOSE THREE THINGS, INCENTIVIZING, CAPTURING THE LONG-TERM COMMITMENT IN BOTH JOBS AND INVESTMENT FROM ENTERPRISE, ENSURING THAT CURRENT VALUE REMAINS WITH US.
UH, AND NUMBER THREE, PROVIDING THAT MEANS TO CONSTRUCT THAT EXTREMELY CRITICAL FACILITY FOR OUR CITY ARE THE THREE THINGS THAT WE WE RECEIVED OUT OF THAT AGREEMENT.
IT IS A LONG-TERM AGREEMENT, AND AS YOU KNOW, EVEN MORE VALUABLE SOMETIMES THAN TAX BREAKS TO PRIVATE SECTOR BUSINESSES IS THE PREDICTABILITY, UH, ELEMENT.
AND SO THERE IS A GREAT VALUE TO ENTERPRISE JUST SIMPLY BASED ON THAT PREDICTABILITY AND TO THE CITY AS WELL.
UM, THAT'S ABOUT, UH, ABOUT, AS ALL I KNOW ABOUT THE ENTERPRISE, UH, AT THIS POINT.
AM I MISSING ANYTHING? IS THAT NO, THAT, THAT, THAT PRETTY MUCH CAPTURES THE, OKAY.
[00:15:01]
COVESTRO IS VERY INTERESTING.UH, JUST, UH, WEEKS AGO WE CONCLUDED, UH, NEGOTIATIONS WITH COVESTRO FORMATION OF AN INDUSTRIAL DEVELOPMENT AGREEMENT.
UNLIKE PREVIOUS, UH, INDUSTRIAL DEVELOPMENT AGREEMENTS, WE HAVE BEEN ABLE TO SECURE A DEPARTURE AWAY FROM REALLY THE, THE CITY RESIDENTIAL PROPERTY TAX RATE.
NOW THAT BIFURCATION IS VERY IMPORTANT TO THE CITY, AND I THINK IT WILL BECOME MORE IMPORTANT IN THE FUTURE.
UH, COVESTRO WAS SEEKING SOME TAX RELIEF ON THE FRONT END OF THEIR IDA FOR VARIOUS REASONS.
AND YOU CAN RELATE THIS BACK TO THE FACTORS THAT WE JUST DISCUSSED, UH, AND WE WERE INTERESTED IN CAPTURING IN THE YEARS, UH, THAT WILL, UH, BE SOMEWHERE ALL THE WAY TO ABOUT 20 27, 20 26, THE, UH, FUTURE INVESTMENT THAT THEY'RE GOING TO MAKE IN THAT PROPERTY.
AS YOU REMEMBER, THE CITY, UH, COMPETED WITH THE TWO GERMAN CITIES AND SHANGHAI, CHINA FOR A $1.8 BILLION COVESTRO, UH, INCURSION INTO A NEW MARKET.
THIS IS A NEW PRODUCT THAT THEY WERE, UH, INVESTING MONEY IN BACK IN JANUARY.
COVESTRO, UH, THIS IS PRE COVID COVESTRO APPROACHED THE CITY AND INFORMED US THAT DUE TO, UH, I THINK AN OVEREXTENSION THEY HAD MADE IN SOME CAPITAL INVESTMENT AS WELL AS, UH, NEW ENTRANCE INTO THE PRODUCT MARKET THAT THEY WERE INVESTIGATING.
IN OTHER WORDS, COMPETITION KIND OF EMERGED OUTTA NOWHERE, UH, FOR THIS, UH, PRODUCT.
THEY HAD DECIDED TO PUT THAT PROJECT ON ICE FOR 18 TO 24 MONTHS.
NOW, THAT WAS NEARLY 12 MONTHS AGO.
UM, IN DISCUSSIONS WITH COVESTRO, I DON'T THINK THERE WAS A LOT OF CERTAINTY WHEN COVESTRO WOULD RECOMMIT TO THAT $1.8 BILLION PROJECT.
SO WE WANTED TO MAKE SURE THERE WAS, THERE WAS SOME APPRECIATION AND BASE AS WE HEAD TOWARDS THE END OF THAT COMMITMENT, UH, THAT IDA TERM, BUT ALSO PROVIDE SOME RELIEF UPFRONT AS THEY CONTINUE TO TRY AS MANY INDUSTRIES TRY TO GET THEIR FEET UNDERNEATH THEMSELVES AGAIN AND GO FORWARD.
WE WANTED TO MAKE SURE THAT THAT PROJECT, WHICH WE COMPETED FOR AND WON REMAINED BAY TOWNS.
UH, SO, UM, WE FEEL LIKE WE, WE ACCOMPLISHED NOT ONLY THAT, BUT ALSO THAT BIFURCATION BETWEEN THE RESIDENTIAL PROPERTY TAX RATE AND THE CALCULUS OR THE FORMULA THAT WE USE TO DETERMINE A SET AMOUNT EVERY YEAR FOR COVESTRO, UH, TO PAY WAS A VERY IMPORTANT ACCOMPLISHMENT.
AND, UH, WE'RE, WE'RE PROBABLY FOR THIS TERM, UH, VICTOR, PROBABLY ABOUT 1,000,005 UNDERNEATH WHAT WE WERE IN THE PREVIOUS IDA TERM FOR IT.
SO IT'S ABOUT $45 MILLION FOR THE CITY OVER THE NEXT SEVEN YEARS.
BUT AFTER THAT, THE CITY SHOULD REALLY, UM, UH, BENEFIT FROM THAT, UH, LARGER COMMITMENT THAT, UH, WE STILL BELIEVE AND HAVE CERTAINTY FROM TALKING TO THE COVESTRO PEOPLE THEY ARE GOING TO MAKE.
UH, BUT AGAIN, IT WAS DOUBTFUL THEY WERE GONNA MAKE THAT COMMITMENT IN THIS, UH, COMING IDA TERM.
SO THAT'S, THAT'S WHAT I KNOW ABOUT, UH, COVESTRO AS WELL.
UH, I THOUGHT IT WAS, UH, I WOULD GIVE A LOT OF CREDIT TO, UH, TO BRENT AND NICK AND, AND VIC, UH, FOR REALLY CRUTCHING THE NUMBERS AND COMING UP WITH SOMETHING THAT COVESTRO COULD LIVE WITH, SOMETHING THAT COULD, THAT WOULD STILL KEEP COVESTRO INTERESTED IN MAKING FUTURE INVESTMENT IN BAYTOWN.
AND THEN, UH, KEEPING US FROM BEING IMPACTED BUDGETARILY.
ALL OF THAT WAS ACCOMPLISHED THROUGH THE COVESTRO UH, NEGOTIATION.
AND, AND ONE OTHER THING WHILE WE'RE TALKING ABOUT COVESTRO, IF YOU REMEMBER BACK, WE USED TO HAVE TWO COVESTRO INDUSTRIAL DISTRICTS.
THERE WAS THE INDUSTRIAL PLANT AND THEN THERE WAS A BUSINESS ENTITY, BUSINESS AND TECHNOLOGY SERVICES.
BUSINESS AND TECHNOLOGY SERVICES.
AND THEN THERE WAS A COMPANY CALLED EL DORADO NITROGEN, WHICH WAS A UNIT THAT WAS OUT IN COVESTRO THAT PRODUCED NITROGEN FOR THEM.
CO IT'S MY UNDERSTANDING, COVESTRO HAS TAKEN OWNERSHIP OF EL DORADO NITROGEN AND THEY WANTED TO ROLL ALL THREE OF 'EM INTO ONE CONTRACT.
SO THERE'S ONLY ONE COVESTRO ON HERE, NOT TWO.
AND EL DORADO NITROGEN IS NO LONGER ON HERE.
UM, IT IS ROLLED INTO THAT ONE CONTRACT, WHICH MAKES IT ADMINISTERING IT MUCH SIMPLER.
WE HAD HAD EARLY DISCUSSIONS ABOUT, ESPECIALLY AS WE CONTEMPLATED THIS NEW PROJECT COMING ON ABOUT MULTIPLE OR MORE THAN ONE IDA, THAT WASN'T
[00:20:01]
ATTRACTIVE TO US.THAT WAS NOT ATTRACTIVE TO COVESTRO.
SO WE'RE STILL, WE'RE STILL GOING TO GO FORWARD IN THE FUTURE BASED ON THE COVESTRO IDA.
I MEAN, IT'S JUST MORE PAPERWORK TO KEEP.
IT'S, AND IT'S EASIER TO UNDERSTAND AND TO, UH, KINDA GET YOUR ARMS AROUND.
SO WHEN YOU'RE LOOKING UP, CONGRATULATIONS, THAT'S ALL GOOD NEWS.
I JUST LIKE TO SAY I'M SO PROUD OF ALL THE CREATIVITY, UM, AND THE CITY OF BAYTOWN IS STRUCTURING ALL OF THIS.
UM, I KNOW IT'S NOT EASY TO ACCOMPLISH AND YOU GUYS ARE JUST DOING IT, YOU ROCK.
UM, SO I'M VERY PROUD TO BE A PART OF THE SENIOR BAYTOWN.
UM, AND, AND WHAT YOU'RE BRINGING TO THE TABLE, MR. UM, CITY MANAGER,
SO WHEN DOES, ONE QUESTION IS, WHEN DOES, UH, COVESTRO INITIAL IDA THE TERM OF THAT END? THAT'S THE END OF THIS THIS YEAR.
WELL, YOU'RE TALKING ABOUT THEIR CURRENT IDA, THEIR CURRENT IDA.
THEIR CURRENT IDA ENDED LAST YEAR, SO THAT'S WHY WE NEEDED TO NEGOTIATE A NEW ONE THIS YEAR.
THIS STARTS, THIS STARTS 20, THIS STARTS 21.
SO THIS YEAR, AND THIS, THIS NEW, THIS NEW AGREEMENT THAT, THAT RICK WAS, UH, WAS TELLING YOU ABOUT ACTUALLY EXPIRES IN 2026.
SO IN 2027, WE WILL, WE WILL RENEGOTIATE THAT AGREEMENT LIKE WE DO WITH IT'S SEVEN YEAR AGREEMENT, BUT WE'RE ONE YEAR IN THEIR, IN THE REAR.
ANY OTHER QUESTIONS? NOT FROM ME.
NO, I DON'T, I DON'T HAVE ANY ONE, ONE, UH, MINISTERIAL THING TO, UH, TO KIND OF GO OVER WITH, WITH YOU ALL.
UH, UH, SO CHAD, DON, WHEN, WHEN YOU ALL GET A CHANCE TO COME UP TO CITY HALL, UM, YOUR OATHS OF OFFICE ARE HERE, UM, I DON'T, I DON'T EVEN REMEMBER HAVING TO SIGN THOSE.
UM, AND THEN WE'LL JUST HAVE THOSE NOTARIZED AND EVERYTHING ELSE.
SO WHEN, WHEN YOU DO GET A CHANCE, IF YOU'LL STOP BY THE, UH, THE CITY CLERK'S OFFICE AND, UH, AND, UH, WE'LL GET THOSE TAKEN CARE OF FOR YOU.
SET UP A PROFESSIONAL PICTURE.
WELL, I'M SEEING IT IN PERSON NEXT TIME.
SO, UH, IF I GET A MOTION AND A SECOND AND THEN A, A VOTE, I'LL, I'LL MAKE THE MOTION TO ACCEPT THE VALUES AS PRESENTED.
I'D LIKE TO THINK THAT EVERYBODY WOULD VOTE.
AYE FOR THEIR MOTION, BUT OKAY.
HEY, WE WE'RE NOTHING, I'M NOT EFFICIENT AROUND HERE, SO, ALRIGHT.
YOU KNOW, AND HONESTLY GUYS, THAT'S REALLY ALL WE HAVE RIGHT NOW.
UM, AGAIN, IF THERE, UNLESS THERE'S ANY OTHER QUESTIONS OR ANYTHING THAT WE CAN, WE CAN HELP YOU WITH, WE JUST WANTED TO, UH, GIVE RICK A CHANCE TO TALK TO YOU ABOUT THAT IN CASE YOU SAW THE, UH, THE 2020 VALUES IN THERE AND WHY THOSE, WHY THOSE ARE NOT WHERE THEY ARE RIGHT NOW.
'CAUSE OF THE NEW, THE NEW TYPE OF AGREEMENT.
SO, UM, IF THERE'S NOTHING ELSE, UM, YOU CAN CALL.
JUST A QUICK QUESTION TO HOW, HOW DO YOU SEE ANYTHING ELSE IN THE NEAR FUTURE IN REFERENCE TO ANY OTHER LOSSES AND VALUE ALONG THOSE? I KNOW IT'S ASKING TO LOOK INTO A CRYSTAL BALL.
I KNOW THAT AS AN APPRAISER THAT'S IMPOSSIBLE.
UM, JUST ANY SOFTNESS HAPPEN THAT, THAT YOU SEE.
WE WE'RE TRYING TO, WE'RE TRYING TO WRAP OUR ARMS AROUND IT RIGHT NOW.
UM, WE, AND IT GOES BACK TO COVID, UM, WHEN THE ECONOMY, THE UNITED STATES ECONOMY SHUT DOWN AND THE, THE WORLD ECONOMIES HAVE SHUT DOWN, UM, TO SOME DEGREE OR ANOTHER PEOPLE, YOU KNOW, PEOPLE ARE OUTTA WORK.
THEY DON'T HAVE MONEY TO GO OUT AND BUY THINGS WITH AS MUCH AS THEY USED TO.
UM, AND SO THE MATERIALS THAT ARE BEING PRODUCED OUT HERE AND STORED OUT HERE IN THESE WAREHOUSES IS MATERIAL THAT GOES INTO MAKING THOSE CONSUMER PRODUCTS, MAKING TOYS FOR KIDS, AUTOMOBILE PARTS, UH, CARPET, PAINT, YOU NAME IT.
UM, ANYTHING THAT WE, WE USE EVERY DAY, UM, IS THE MATERIALS FOR THAT ARE BEING PRODUCED OUT HERE.
AND SO, UM, AND WHEN THEY'RE NOT PRODUCING AS MUCH, THEY'RE, THEY'RE RUNNING AT LOWER CAPACITIES AND WE JUST DON'T KNOW, YOU KNOW, ARE THEY RUNNING AT, IF THEY WERE RUNNING AT 90% LAST YEAR, ARE THEY RUNNING AT 80% THIS YEAR?
[00:25:01]
ARE THEY RUNNING AT 50% THIS YEAR OR ARE THEY RUNNING AT 30%? WE, WE HAVEN'T GOTTEN OUR ARMS WRAPPED AROUND THAT YET.UM, BUT I'M, WE'RE TRYING TO WARN OUR CLIENTS THAT THERE COULD BE 20, 21 COULD BE A BAD YEAR FOR VALUES.
UH, AND YOU KNOW, AND THEN AS SOON AS A VACCINE COMES OUT, UM, ANTIBODIES COME OUT AND, AND THIS STARTS GOING AWAY, THAT CAPACITY WILL COME BACK UP AGAIN AND, AND IT'LL RAMP BACK UP AND WE'LL GET BACK TO WHERE WE WERE.
THERE IS A LIGHT AT THE END OF THE TUNNEL, IT'S JUST, WE'RE STILL PRETTY DEEP IN THAT TUNNEL RIGHT NOW.
ALRIGHT, WELL LISTEN, THANK YOU FOR YOUR TIME AND YOUR SERVICE AND, UH, UH, SAME TIME, SAME CHANNEL NEXT YEAR,