[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, DECEMBER 3, 2020 4:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 Due to the COVID 19 Disaster and the CDC's recommendation regarding social distancing measures, the public may not be allowed to be physically present at this meeting, as there is a limited amount of space when maintaining the required 6-feet separation from others. For those members of the public that cannot or do not wish to be physically present at the meeting, they will be able to participate through two-way communications. For video conferencing, use the following website www.zoom.com, click on "join a meeting" on the top right-hand corner, and input the following Meeting ID: 871 9813 9144. For telephone conferencing please use the following toll-free number: 1-888-788-0099, Meeting ID: 871 9813 9144. Any person, who is participating through video/teleconferencing and is interested in speaking on any item on the agenda, must submit his/her request via email to the Assistant Secretary at cityclerk@baytown.org. The request must include the speaker's name, address, and phone number that will be used if teleconferencing as well as the agenda item number. The request must be received prior to the posted time of the meeting. The agenda packet is accessible to the public in both HTML and PDF formats at the following link: https://www.baytown.org/city-hall/city-clerk/agendas-minutes. After the meeting, a video recording of this meeting will be made available to the public at https://www.baytown.org/city-hall/city-clerk/agendas-minutes. For more information or questions concerning the teleconference, please contact the Office of the City Clerk at 281-420-6504. AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
[00:00:21]
SO I'LL CALL THIS, THIS, UH, MEETING OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT.
UH, TO ORDER, WE, TODAY IS THURSDAY, DECEMBER 3RD, AND IT'S 4:33 PM WE ARE IN THE CITY HALL COUNCIL CHAMBERS.
[1. PROPOSED RESOLUTIONS]
WE HAVE ITEM ONE, A CONSIDER RESOLUTION AUTHORIZED IN THE INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN TO PROVIDE SUB SUPPLEMENTAL FUNDING FOR THE BAYTOWN TOURISM GRANT PARTNERSHIP PROGRAM.SO I'M ASSUMING, IS THERE ANY, YEAH, I'LL TAKE THIS.
UM, BASICALLY THE GREATER HOUSTON FOOTBALL COACHES ASSOCIATION, UM, APPLIED FOR A, ORIGINALLY APPLIED FOR A TOURISM HOTEL OCCUPANCY TAX GRANT, UH, THROUGH THE CITY COUNCIL.
AND THEIR REQUEST WAS, UH, FOR $25,000.
IN THAT REVIEW, THE ONLY AMOUNT THAT WAS ELIGIBLE FOR ACTUAL HOT TAX FUNDING WAS 12,000.
AND SO THAT LEFT A REMAINDER OF 13,000.
AND THAT IS THE AMOUNT THAT'S IN FRONT OF YOU TONIGHT FROM MDD, AND I THINK COACH OLAND IS HERE IF THERE'S ANY, I SEE.
COACH OLAND, IS THERE ANY WORDS THAT YOU'D LIKE TO SPEAK OF BEFORE WE DISCUSS? NO.
IF BEGAN HERE, YOU WOULD LIKE TO HAVE IT HERE AGAIN.
YOU GOTTA DO A ROTATING BASIS SO THAT YOU GOTTA CUT THE MICROPHONE.
I KNOW YOU LIKE YELLING, BUT USED TO YELLING.
DO I HAVE TO KEEP THIS ON? I DO.
IT, IT BEGAN IN BAYTOWN AND, UH, WE WANNA BRING IT BACK.
AND WHAT WE WENT TO WAS WE WENT TO ROTATING SITES SO THAT ONE COMMUNITY WOULDN'T HAVE TO FUND EVERYTHING EVERY SINGLE YEAR, WHICH WAS WHAT WAS WHAT OCCURRED.
AND THEN ALSO IN THE BEGINNING, AND MIKE, MIKE IS HERE, WILSON, BUT, UH, THE IDENTITY BECAME, IT WAS A BAYTOWN GAME AND THERE WAS NOTHING WRONG WITH THAT AT ALL, BUT IT WAS HARD TO GET OTHER PEOPLE TO COME AND DO ALL THOSE THINGS.
SO ONCE THE G-H-F-C-A BECAME OWNERS OF IT, AND, UH, WE MOVED IT AROUND FROM EAST TO WEST, AND THAT'S WHAT WE WOULD LIKE TO CONTINUE TO DO SO.
BUT THIS IS WHERE IT ALL BEGAN AND WE'D LIKE TO HAVE IT HERE ONE MORE TIME.
SO WITH THAT, IS THERE ANY QUESTIONS FOR STAFF? UM, I GUESS REGARDING THE EVENT, I THINK, UH, MY UNDERSTANDING THAT IT PROBABLY GONNA BE ABOUT A THREE OR FOUR YEAR KIND OF EVOLVING, RE REVOLVING, UM, GAME IN BAYTOWN.
I GUESS THAT'S THE KIND OF THE PLAN.
SO WITH THAT, I WOULD ENTERTAIN A MOTION FOR ITEM ONE A.
WELL, LEMME ASK A QUESTION ON ITEM ONE A.
THERE'S, THERE'S NOT MUCH INFORMATION THERE OTHER THAN WE'RE GUESSING THAT IT'S FOR $13,000 JUST FOR THIS YEAR? YES, I THINK, OR IS OR IS IT, IS THIS ITEM GOING TO BE REOCCURRING FOR YEAR AFTER YEAR? NO, I'M SAYING, IT'S MY UNDERSTANDING IT'S GONNA, IT'S GOING TO ALTERNATE SITES.
SO BAYTOWN MAYTOWN MAY ONLY COME UP THREE EVERY THREE TO FOUR YEARS.
THIS IS JUST A REQUEST FOR THE 2021.
SO MOVE TO APPROVE ITEM ONE A FOR THE 13,000 FOR YEAR 2021.
ANY QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR OF THE ITEM MS. PRESENTED, PLEASE SAY AYE.
A OPPOSED? WE HAVE ITEM ONE B CONSIDERED RESOLUTION AUTHORIZED IN INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN FOR THE ACQUISITION OF 4,000 TOMPKINS ROAD, BAYTOWN, HARRIS COUNTY, TEXAS.
SO UNLESS STAFF WANTS TO, UM, AT LEAST ENLIGHTEN, UH, THE MBD MEMBERS ON WHAT THIS MAY IN INTEL, THE CITY COUNCIL ENTERED INTO A EARNEST MONEY AGREEMENT AT ITS LAST CITY COUNCIL MEETING TO PURCHASE THIS PROPERTY.
THAT, THAT EARNEST MONEY WAS CONTINGENT UPON, UH, MD'S FUNDING OF THE PROJECT.
AND SCOTT CAN TELL YOU MORE ABOUT THE PROPERTY.
DO YOU TELL ME MORE ABOUT THE PROPERTY.
I WAS WAITING FOR KAREN AND I WAS LOOKING UP THERE WHERE SHE USUALLY SITS.
SHE WASN'T THERE, SO I DIDN'T LOOK OVER HERE.
UM, NOW WE HOPE TO, UH, IT'S FUTURE PARKLAND, UH, THE, UH, LAND PROPERTY RIGHT THERE AT, UH, 1 46 AND, UH, TOMPKINS ROAD.
IT'S ABOUT FIVE AND A HALF AC ACRES.
IT'S A BEAUTIFUL PIECE OF PROPERTY.
UM, WE HAVE SECURED A, UH, WAIVER OF RETROACTIVITY WITH THIS, THE TEXAS PARKS AND WILDLIFE DEPARTMENT, WHICH MEANS THAT WE CAN USE THE VALUE OF THE LAND AS A MATCH IN THE FUTURE GRANT APPLICATION.
WE HAVE TWO YEARS TO USE THAT.
ANY QUESTIONS OR COMMENTS? SO I GUESS I'D ENTER, MOVE TO APPROVE ITEM ONE B.
SECOND, WE HAVE MOTION TO SECOND.
ANY QUESTIONS OR COMMENTS? I, I'VE GOT A QUESTION.
UH, LAST TIME WE TALKED ABOUT THIS, THERE WAS SOME TAXES INVOLVED AND OFFSET SOME OF THE PRICE.
WHAT, WHERE DO WE, WHAT'S THE NET ON THIS? SO THEY'RE TO PAY THE WHATEVER TAXES ARE OWED.
[00:05:01]
SO IT'S, IT'S SHOULD ALL BE CLEARED AT, AT THE SALE? I DO NOT, I HAVEN'T CALCULATED THE NET.SO WE DON'T KNOW EXACTLY WHAT, WHAT THE COST IS GONNA BE OR HOW WE'RE GONNA WELL, WE'LL PAY THE PURCHASE PROCESS, WE'LL PAY THE 2 25 AND THEN OUT OF THAT THEY'LL PAY FOR THE TAXES AND ANY OTHER LIENS OR ANYTHING ON PROPERTY, WE PAID, WE PAID THE VALUE OF THE LAND, AND THEN WHATEVER, WHATEVER OBLIGATIONS THEY HAVE, THEY, THEY HAVE THAT RESPONSIBILITY.
WHAT, WHAT HAPPENS IF THEY DECIDE NOT TO PAY THE TAXES ON IT? YEAH.
AFTER WE PURCHASE IT? WELL, WE CAN'T PURCHASE IT UNTIL THEY CLOSE.
WELL, THEY'LL, THAT'LL BE A CONDITION OF CLOSING, BUT I WOULD ASSUME TAXES HAVE TO BE ESCROWED AND PAID AT CLOSING, CORRECT.
TAXES ARE PRO WILL BE PRORATED.
IT WILL BE, UM, JANUARY ONE, OR JAN, IT WILL BE IN JANUARY.
SO THE, THE PRORATED TAXES WON'T BE A TON EXCEPT IT WOULD BE THIS YEAR IN 21.
ANOTHER QUESTION, I WOULD ASSUME THAT WE OBTAIN A TITLE POLICY WHEN WE PURCHASE PARKLAND ON MOST OF ALL OUR ACQUISITIONS.
AND THIS WILL BE NO EXCEPTION.
ALL THOSE IN FAVOR OF THE ITEM, UH, 1D AS PRESENTED, PLEASE SAY AYE.
ALL THOSE OPPOSED? ALRIGHT, ITEM CARRIES TWO
[a. Receive a report concerning updates on the Hotel/Convention Center Project.]
WAY.UH, WE HAVE A REPORT, RECEIVE A REPORT CONCERNING UPDATES TO THE HOTEL CONVENTION CENTER PROJECT, UM, MAYOR, MEMBERS OF THE MDD, UM, AYE, UH, PARTICIPATED IN A CALL WITH, UH, GARFIELD AND OTHER, UH, PROJECT PARTNERS, UH, TODAY AT ONE 30.
IT WAS A VERY BRIEF CALL, BUT, UM, WANTED TO LET YOU KNOW THE LATEST ON A COUPLE OF THINGS.
FIRST OF ALL, AS YOU REMEMBER, WE AS A RESULT OF HAVING, UH, BEEN HIT BY THE VIRUS AND, UH, THE KIND OF IMPLOSION OF THE MUNI BOMB MARKET, UH, WHICH CAUSED A INCREASE TO THE, UH, COST OF DEBT, UH, PROJECTIONS, UH, AT THE TIME, UH, AS TO WHAT REVENUE WAS GOING TO BE, REMEMBER, CREATED THAT DELTA OR THAT DEFICIENCY THAT WE WERE HOPING WOULD MEND ITSELF, UH, LATER ON.
WELL, WE WILL KNOW WITHIN ABOUT A WEEK WHETHER THAT IS INDEED THE CASE.
BUT BASED ON, UH, THE RESULTS THAT OTHER MUNICIPALITIES, UH, PARTICULARLY CONROE JUST RECEIVED FROM CBRE, UH, WE ARE EXTREMELY OPTIMISTIC.
UH, WE DO BELIEVE THAT, UH, GIVEN THE RECOVERY THAT HAS OCCURRED IN THE BOND MARKET AND CONTINUES AS OF TODAY TO, UH, IMPROVE AND ON THE FAVORABLE RESULTS THAT CBRE HAS DELIVERED TO OTHER MUNICIPALITIES, INCLUDING, UH, CONROE VERY, VERY RECENTLY, THAT WE, UH, MY EXPECTATION IS THAT WE WILL BE AT, UH, A STASIS OR EQUILIBRIUM THAT WILL ALLOW US THEN TO GO FORWARD WITH THE SALE OF THE BONDS FOR THE HOTEL CONVENTION CENTER.
UH, THIS IS MUCH SOONER THAN I THOUGHT WAS GONNA BE POSSIBLE, BUT YOU MIGHT REMEMBER MONTHS AGO MY SAYING THAT, UH, IT WILL BE MAGIC WHAT THE ANNOUNCEMENT OF A VACCINE WILL, UH, AND THE IMPACT THAT THAT WILL HAVE ON OUR ABILITIES TO MOVE FORWARD.
YEAH, AND I'M, I'M, YOU KNOW, MR. PRESSLEY, UH, ECHO THE SAME SENTIMENTS.
UM, I I VERY ENCOURAGED ABOUT THAT.
NEVERTHELESS, FROM THE TIME THAT WE, UH, PUT THE PROJECT ON QUOTE UNQUOTE HOLD UNTIL THIS PERIOD, THERE ARE SOME ADDITIONAL COSTS THAT, UH, WE'RE INCURRED TO KEEP THE TEAM TOGETHER AND TO PERFORM OTHER, UH, THINGS THAT WE NEEDED TO.
UH, WE ARE IN THE PROCESS OF VERIFYING SOME OF THOSE COSTS, UH, UH, VALIDATING THEM, GETTING DETAIL ON THOSE COSTS.
BUT AS OF TODAY, EVEN OUR MASTER DEVELOPER SAID, LOOK, THE MOST IMPORTANT THING IS TO MOVE TOWARDS CLOSING AS SOON AS POSSIBLE.
AS YOU REMEMBER, WE HAVE FRONTED A LOT OF THE FUNDING, UH, FOR THIS PROJECT BASED ON OUR ABILITY TO CLOSE, UH, ON, ON THE PROJECT.
UH, WE HAVE BEEN, UH, KEEPING VERY METICULOUS, UH, NOTE AND RECORD OF ALL OF THOSE, UH, TRANSACTIONS AND, UH, FEEL VERY GOOD ABOUT, UH, BEING ABLE TO BRING THIS PROJECT TO FRUITION.
BUT THERE'S TWO THINGS THAT I WANTED TO BRING TO YOUR ATTENTION.
UH, FIRST OF ALL, THE VERY, UH, UH, A GREAT DEAL OF OPTIMISM THAT WE HAVE, THAT WE ARE GONNA BE ABLE TO MOVE FORWARD WITH THIS PROJECT SOONER THAN WE HAD THOUGHT.
AND EVERY TIME I GIVE YOU A DATE, I JINX IT.
SO I'M NOT GONNA GIVE YOU THAT DATE
WE HAD, WE HAD LOOKED AT THE FIRST WEEKEND IN APRIL, IS A POSSIBLE, UH, TIME FOR, UH, BREAKING GROUND ON THE PROJECT? UH, I WOULD LIKE TO DO THAT BEFORE MARCH, IF POSSIBLE.
[00:10:01]
THIS HAS TO DO WITH, REMEMBER, OUR NEXT STAGE IF WE DECIDE TO GO FORWARD WITH THE VENDING OF THE, OF THE BONDS AND PLACEMENT OF THAT DEBT IS THAT NOW WE HAVE TO, UH, GET THE, UH, POS FROM S AND P AND THEN AFTER THAT, UH, THEN WE'RE ABLE TO PLACE THE DEBT AND THEIR PROCESS.S AND P IS GONNA HAVE TO TAKE A LOOK AT OUR STUDY AND SOME OTHER THINGS.
USUALLY TAKES THEM ABOUT THREE WEEKS OR SO TO, TO DO THAT.
WE ARE IN THE MIDDLE OF THE CHRISTMAS SEASON, SO THERE'S TIME.
THIS IS JUST GONNA TAKE, UH, BEFORE WE'RE READY TO DO THIS, BUT I WOULD THINK THAT PROBABLY FE EARLY FEBRUARY, WE SHOULD DEFINITELY BE READY TO, UH, PLACE OUR, UH, DEBT AND, AND MOVE FORWARD WITH THE PROJECT, SELL THIS, THIS PROJECT, UH, THAT WOULD ALLOW US TO MOVE OUR GROUNDBREAKING UP REALLY AS MUCH AS A MONTH.
UH, THIS IS IMPORTANT BECAUSE PRICES CHANGE WITH REGARD TO LABOR AND MATERIALS, AND WE DON'T WANT THAT TO OUTPACE US, UH, IN THIS REGARD.
SO, UH, THE OTHER, UH, MESSAGE, UH, AGAIN, WAS THAT WE'RE STILL TRYING TO VALIDATE WHATEVER, UH, UH, I WOULD SAY COLLATERAL I COSTS OCCURRED DURING THIS PERIOD THAT WE WERE SHUT DOWN, UH, THAT, UH, WE, WE MIGHT NEED TO, UH, SUPPORT, BUT I, I CAN'T SPEAK AUTHORITATIVELY TO WHAT THOSE ARE.
I CAN'T GIVE YOU A LOT OF DETAIL RIGHT NOW.
I DON'T THINK IT'S GOING TO BE TERRIBLY, UH, SIGNIFICANT COMPARED TO THE, THE COST OF THE PROJECT.
BUT I WANTED TO GIVE YOU A HEADS UP SO THAT, YOU KNOW, AS EARLY AS I DID, THIS IS GONNA OCCUR.
SO THAT, THAT'S ALL I KNOW RIGHT NOW, BUT GOOD NEWS.
IS THERE ANY QUESTIONS, SIR? RICK? I GUESS REGARDING AT LEAST AS A LATEST UPDATE, I GUESS, SO FOR INSTANCE, I MEAN, WHAT, WHAT WOULD ONE EXAMPLE OF COLLATERAL COST TO BE? ONE OR TWO EXAMPLES? SO SOME ADDITIONAL, UH, NOT NUMBERS, JUST GENERAL AND, AND IT'S NOT JUST ONLY AS A RESULT OF THE VIRUS, UH, SHUT DOWN.
BUT, UH, YOU KNOW, WE'VE, WE'VE MADE SEVERAL IMPROVEMENTS TO THE ISLAND.
WE'RE, AGAIN, WE'RE, WE'RE TRYING TO WRAP OUR HEADS AROUND WHAT THESE COSTS ARE, BUT ONE OF THE, UH, UH, ONE OF THE ITEMS PERTAINS TO SOME ADDITIONAL DESIGN COSTS THAT WE DIDN'T ORIGINALLY, UH, ANTICIPATE COMING FROM BOCA POWELL.
UH, DPR WANTED, UH, SOME ADDITIONAL, UH, UH, FUNDING, OR I SAY FUNDING PRIOR TO CLOSING, BUT RIGHT NOW THAT'S A MOVE POINT SINCE WE'RE MOVING TO CLOSING SO QUICKLY THAT, THAT PROBABLY WON'T BE, UH, YOU KNOW, AN ISSUE.
UH, AGAIN, WE'LL, WE'LL, UH, WE'LL BRING BACK AN ITEMIZATION OF EVERYTHING THAT, UH, THAT WE MAY NEED TO, UH, ADDRESS.
BUT WE'RE NOT THERE RIGHT NOW.
WE, WE DON'T HAVE, WE HAVE SOME VERY VAGUE IDEAS, AND THIS IS BASED ON SOME COMMUNICATION WE'VE HAD WITH OUR MASTER DEVELOPER.
NOTHING THAT WE'VE BEEN ABLE TO AUDIT, REVIEW AND ITEMIZE IF AND WHEN WE, WE FEEL LIKE THERE, THERE IS SOMETHING THAT NEEDS TO COME TO MDD, WE'LL HAVE OUR MASTER DEVELOPER ACTUALLY PRESENT THAT TO YOU AND GO OVER, UH, SOME OF THOSE THINGS.
BUT, UH, IT'S, IT'S BEEN, UH, IT'S BEEN NOT DIFFICULT, BUT I WOULD WOULD'VE THOUGHT IT WAS, UH, A LITTLE IMPROBABLE, UH, GIVEN THE IMPACT OF, OF THIS VIRUS THAT WE WOULD'VE BEEN ABLE TO KEEP THE ENTIRE TEAM TOGETHER TO MAINTAIN THE EN ENTHUSIASM OF HYATT AND, AND OTHER THINGS LIKE THAT.
BUT, UH, WE'VE BEEN ABLE TO DO IT.
I, I WOULD'VE THOUGHT WHEN, WHEN WE HAD TO DELAY THIS PROJECT, I THOUGHT FOR SURE THAT THE PROJECT WAS IN PERIL AND THAT WE WOULD NOT BE ABLE TO KEEP EVERYBODY TOGETHER.
BUT EVIDENTLY THERE ARE SOME COSTS ASSOCIATED WITH, WITH DOING THAT.
AND, UH, TIME IS MONEY KIND OF THING.
AND SO WE'LL FIND OUT WHAT THOSE ARE.
WE, WE NEED TO REALLY VET THESE, BUT I WANTED YOU TO KNOW AS EARLY AS WE KNOW THAT, THAT THIS MIGHT BE A FACTOR.
SO, YOU KNOW, YOU KNOW, RIGHT AWAY AND THEN WE'LL BRING YOU MORE DETAIL.
[3. MANAGER'S REPORT]
UH, DO YOU HAVE YOUR MANAGER REPORT? DO YOU HAVE ANY, ANY, ANYTHING TO ADD? NO, I THINK THAT WAS IT.WELL, UH, EXCEPT THAT, UH, MY OBLIGATION IS TO TELL YOU THAT WE'LL MEET AGAIN ON JANUARY 7TH, UH, 2021.
AND SO HAVE THE MERRITT OF CHRISTMASES.
UH, WE'RE NOT DOING OUR CHOCOLATE FOUNTAIN THIS YEAR,
[00:15:01]
JUST GO AHEAD AND YEAH, PUT THAT ON YOUR CALENDAR.SO, BEING THAT THE MED HAS ADDRESSED, ALL POSTED AGENDA ITEMS AS MAY USE NOW ADJOURNED.