Jan 07, 2021 Municipal Development Committee

[00:00:01]

ALL RIGHT.

SO I CALL THIS,

[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, JANUARY 7, 2021 6:15 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 ]

UH, MEETING TO ORDER IS THURSDAY, JANUARY SEVEN IS SIX 16.

WE ARE IN CITY HALL COUNCIL CHAMBERS.

WE DO HAVE A QUORUM.

WE HAVE ITEM ONE

[1. MINUTES]

SO I'D ENTERTAIN A MOTION FOR APPROVAL OF ITEM ONE A AND B, MOTION TO APPROVE ITEM ONE A AND B.

SECOND.

SECOND.

OKAY.

ALL THOSE.

I HAVE A MOTION TO SECOND ANY QUESTIONS, COMMENTS, OR ABSTENTIONS? UH, IF NOT, OTHER THAN THAT, UH, ALL THOSE IN FAVOR.

ITEM ONE A AND B AS WRITTEN, PLEASE SAY AYE.

A AYE.

ALL THOSE OPPOSED.

ITEM TWO A CONSIDER RESOLUTION

[2. PROPOSED RESOLUTIONS]

UH, SO WE HAVE ITEM TWO A, MR. WOOLEY.

ALL RIGHT.

SO WE ARE ALMOST THERE WITH THIS PROJECT.

UM, IF YOU'LL RECALL, UH, LAST YEAR, THE MDD AUTHORIZED AND INTER INTERLOCAL TO FUND THE DESIGN OF THIS PROJECT.

UM, WE ARE ALMOST FINISHED WITH DESIGN.

I'M GONNA LET ANDREA COME UP AND TALK ABOUT THE STATUS HERE IN A SECOND.

BUT THIS WILL FUND A PORTION OF THE PROJECT, UH, $1.4 MILLION.

THE TOTAL IS ROUGHLY 2.45 MILLION.

UM, IT WILL BE JOINTLY FUNDED WITH THE CITY, UM, AND THE WATER AND SEWER FUND OF THE CITY.

SO, UM, I WILL LET ANDREA BRINKLEY, OUR ASSISTANT DIRECTOR OF PUBLIC WORKS, COME UP AND GIVE YOU A LITTLE UPDATE ON THE, THE STATUS OF THE TIMELINE AND SHOW YOU A FEW OF THE RENDERINGS OF THE PROJECT.

GOOD EVENING DIRECTORS.

ALRIGHT.

GOOD EVENING.

GOOD EVENING.

YOU'RE IN HERE.

PARDON ME.

ALRIGHT.

OUR UPDATE ON THE SCHEDULE HERE IS THAT WE ARE AT THE 90% LEVEL WITH OUR PLANS IN THE NEXT MONTH.

WE WILL COMPLETE THEM.

WE WILL THEN PROCEED INTO THE PERMIT STAGE IN MARCH, AND THEN WE WILL GO OUT FOR BID.

HOPEFULLY YOU'LL SEE US BACK ON THE CONSTRUCTION AWARD IN MAY.

ALRIGHT, SO LET'S LOOK AT SOME FUN PHOTOS.

THESE ARE RENDERINGS, BUT THEY'RE VERY CLOSE TO WHERE WE WILL BE IN OUR FINAL.

SO THIS IS OUR CUSTOMER SERVICE LOBBY.

SO YOU CAN SEE ENTERING HERE THE WINDOWS THAT, UH, CUSTOMERS WILL BE ABLE TO TALK TO OUR STAFF.

THIS IS A NEW TERRAZZO FLOOR THAT IS BEING SHOWN BECAUSE WE CANNOT SAVE THE ORIGINAL.

IT'S TOO DAMAGED AND WE NEED A NEW FOUNDATION.

MM-HMM.

THIS IS A VIEW FROM THE OTHER END.

SO THIS WOULD BE AS IF WE WERE STANDING AGAINST JONES SIDE OF THIS, OF THE BUILDING.

THIS IS THE VIEW FROM THE STAFF SIDE LOOKING OUT INTO THE CUSTOMER LOBBY.

THIS IS A VIEW FROM THE REAR FROM THE PARKING LOT.

SO IF THERE ARE ANY, UH, CITIZENS THAT WOULD COME TO THE BUILDING AND WOULD LIKE TO ENTER THE BUILDING, THIS IS WHAT THEY WOULD SEE FROM THE PARKING LOT AHEAD OF US WOULD BE THAT SMALL GREEN SPACE.

AND THEN TEXAS AVENUE.

THIS IS THE VIEW LOOKING FROM TEXAS AVENUE.

NICE.

SO LOOKING AT THE BRUNSON DOWN ON THAT SIDE, WE CAN SEE WE HAVE A LOT OF, UH, OPENED UP WINDOWS.

AND THEN THIS IS THE ORIGINAL FACADE.

ONE OF THE THINGS THAT I WANTED TO SHOW YOU WAS WE'VE LOOKED AT THE EXISTING FACADE AND IT IS LIMESTONE.

IT'S VERY FRAGILE, VERY CRACKED.

AND SO WE'RE LOOKING AT ADDITIONAL, UM, WINDOWS.

SO THIS IS JUST A COUPLE OF THE, UH, DESIGN DRAWING RENDERINGS, BUT I WANTED TO PAUSE ON THIS.

THIS WILL SHOW THAT WE ARE GOING TO ADD A FEW WINDOWS.

WE'RE GOING TO TAKE AND SALVAGE THAT LIMESTONE THAT IS GOOD AND REMAINING.

SO THIS WILL ADD A LOT OF REALLY NICE, BRIGHT LIGHT EYES ON THE STREET.

I THINK IT'LL BE A MUCH IMPROVED, UH, AREA FOR THE INSIDE OF THAT BUILDING.

SO WANTED TO AT LEAST SHOW YOU WHERE WE EXACTLY ARE AT THIS MOMENT.

AND THAT'S ALL I HAVE.

HMM.

OKAY.

IS THERE ANY QUESTIONS, UM, FOR STAFF? MR. BRETT? LENNY, I DON'T HAVE ANY QUESTIONS JUST TO COMMENT THAT.

OKAY.

I GUESS IN THE WORDS OF, UH, WE'VE ALL HEARD FORMER COUNCILMAN DIRECTOR HESSEL SAY, WE GOT THIS ONE.

RIGHT.

AND I REMEMBER US DELIBERATING THE THREE DIFFERENT OPTIONS, WHITE BOX, TRY TO FIND THE TENANT COMMUNAL FOOD HALL, AND WITH EVERYTHING THAT'S TRANSPIRED.

AND WE EVEN HAD A FEW EMPLOYEES RAISE THEIR HAND AND SAY, THAT'S WHAT WE NEED TO DO.

AND ESSENTIAL SERVICES TURNED OUT TO BE A BIG WINNER AND, AND WE GOT THIS ONE.

RIGHT.

THAT'S FOR SURE.

YEAH.

SO, ALRIGHT, GREAT.

GREAT TO HEAR.

UM, YES MA'AM.

I HAVE A, A COMMENT AND A QUESTION.

AND SO I THINK THE, THE BUILDING LOOKS GREAT.

UM, I'M SURE THE STAFF WILL BE HAPPY, THE UB STAFF WILL BE HAPPY WITH WHAT IT LOOKS LIKE.

AND SO, UH, BRINGING THAT ADDED TRAFFIC TO TEXAS AVENUE, WHICH WAS REALLY ONE OF THE MOTIVATORS AS WELL.

UM, BUT MY QUESTION, DID WE, HAVE WE FINALIZED, OR WHAT IDEAS DO WE HAVE IN TERMS OF THE USE OF THE OLD UB? CAN YOU REMIND US OF SURE.

WHAT THE

[00:05:01]

WE CONSIDER JUST EXPANSION OF THE PARKING LOT.

NICK CAN DESCRIBE TO YOU THAT IT'S, IT'S PRETTY SERENDIPITOUS THAT WE ACTUALLY LAUNCHED INTO THIS PROJECT ONCE WE DID AN ANALYSIS OF THE EXISTING BUILDING.

YEAH.

I MEAN, THE, THE EXISTING BUILDING IS, IS NOT IN THE BEST SHAPE.

SO, UM, PUTTING, JUST RELOCATING SOMETHING INTO THAT EXISTING BUILDING WOULD PROBABLY NOT BE IDEAL.

IT WOULD PROBABLY REQUIRE QUITE A BIT OF ADDITIONAL WORK.

UM, SO THERE'S NOT JUST A PLUG AND PLAY NECESSARILY, UM, BUT IT IS A COMPONENT OF OUR, UM, FACILITIES MASTER PLAN PROCESS, WHICH WE'RE IN THE MIDDLE OF RIGHT NOW.

SO IT'S ONE OF THE BUILDINGS THAT'S BEING LOOKED AT.

UM, YOU KNOW, WE'RE LOOKING AT ALL OF OUR OPERATIONS ACROSS THE CITY AND SO, UM, WE DON'T HAVE ANY SOLUTIONS.

SO I DON'T WANNA THROW ANYTHING OUT TODAY.

UM, THERE'S NO SOLUTIONS THAT ARE NECESSARILY ON THE TABLE, BUT IT'S ONE OF THE BUILDINGS THAT WE'RE LOOKING AT, UM, WITHIN THAT PROCESS.

GREAT.

NOW, DO THOSE PLANS INCLUDE, UM, MAYBE A SALE IF, UH, BUSINESS WANTS TO COME IN AND THEY REDEVELOP OR REMODEL IT, WHETHER THEY WANNA TEAR IT DOWN OR REFURBISH WHAT'S THERE? IS THAT PART OF THE PLAN AS WELL? EVERYTHING'S ON THE TIP.

OKAY.

MM-HMM .

I'M JUST THINKING LONG TERM AS WE'RE WORKING ON THE REDEVELOPMENT FOR MARKET STREET, THE NEW SCHOOL ACROSS THE STREET.

YEAH.

WE WANNA TRY TO MAXIMIZE WHAT'S AVAILABLE.

SURE.

I COMPLETELY UNDERSTAND WHERE IT'S GOING.

THERE'S EXISTING NEEDS.

NO, THAT'S A GOOD IDEA.

I MEAN, THAT, THAT WOULD BE A, WE'D LIKE TO GET RID OF SOME CITY BUILDINGS.

YEAH.

THAT WOULD BE A, AN EASY WAY TO OFFER AN INCENTIVE.

LAURA, THEY'RE IN MARKET STREET D ONES.

ABSOLUTELY.

OKAY.

THANK YOU.

THANK YOU MAYOR.

YES, I COULD.

YES.

AS A NEW DIRECTOR.

UM, THIS IS GREAT FOR TEXAS AVENUE.

I'VE BEEN AROUND IN TOWN A LONG TIME.

ONE OF THE TOP SUBJECTS THAT DIRECTOR CHRIS AND OTHERS HAVE TALKED ABOUT OVER THE YEARS IS WE NEED TO GENERATE PEOPLE TRAFFIC ON TEXAS AVENUE.

MOVING UB DOWN THERE IS GONNA CREATE THAT AND IT'S GONNA SPURSE SOME ADDITIONAL BUSINESS GROWTH.

AND I THINK THAT THIS IS A GREAT PROJECT.

YEP.

SO PROUD TO BE PART OF IT.

GREAT.

ANY OTHER COMMENTS OR QUESTIONS FOR STAFF? I ONLY HAVE ONE COMMENT WOULD BE, UM, I THINK, I THINK THE FACADE AND, AND YOU KNOW, TRYING TO CAPTURE OBVIOUSLY THE, THE LIMESTONE IS AS BEST WE CAN.

UH, I KIND OF LIKE THE MIX OF KIND OF WHAT'S THERE AND KIND OF THE NEW, UH, NEW, I GUESS YOU WOULD SAY, ALMOST KIND OF A UPDATED TECHNICAL INDUSTRIAL LOOK.

I THINK IT'S GREAT.

I WOULD LIKE TO SEE SOME ACCENT LINING IF WE CAN ADD THAT.

UM, WHERE AT NIGHT YOU COME, THE BUILDING IS LIT.

NOT SO MUCH JUST SECURITY, BUT JUST SOME ACCENT LINING TO REALLY MAYBE MAKE THE ADE TOP.

AND SO I, THAT WOULD BE MY, WE'LL CARRY THAT DEFINIT.

OKAY.

UM, ALRIGHT.

UH, WE DO HAVE A RESOLUTION, SO, UM, IF I CAN HAVE A MOTION FOR THIS RESOLUTION FOR ITEM TWO A, MR. PRESLEY, MOVE TO APPROVE.

SECOND, WE HAVE A MOTION TO SECOND ANY, ANY ADDITIONAL QUESTIONS, COMMENTS, IF NOT ALL THOSE FAVOR THE ITEM AS PRESENTED, PLEASE SAY, AYE.

AYE.

AYE.

OPPOSED? WE HAVE ITEM THREE

[3. DISCUSSIONS]

GOOD EVENING DIRECTORS.

UM, WE FIRST INTRODUCED THIS TO YOU BACK IN THE, UH, BUDGET CYCLE TO NEW ECONOMIC DEVELOPMENT PROGRAMS THAT WE WANTED TO GET CREATED, THAT THAT'LL GIVE US A COUPLE MORE TOOLS IN OUR TOOLBOX.

AND WE WANT TO KIND OF WALK THROUGH A LITTLE BIT OF A HIGHER LEVEL INTRODUCTION TO WHAT THE PROGRAMS ARE, UM, AS WE MOVE FORWARD.

AND THEN OF COURSE, BEFORE NEXT MONTH'S MEETING, WE PLAN TO HAVE IN FRONT OF YOU THE GUIDELINES FOR EACH PROGRAM.

SO YOU'LL HAVE AN OPPORTUNITY TO READ THROUGH THEM AND GIVE US SOME MORE COMMENTS BACK, UH, NEXT MONTH.

BUT THE TWO PROGRAMS, THE, THE BUSINESS IMPROVEMENT GRANT IS REALLY, IT'S VERY KIND OF LOOSELY PATTERNED AFTER THE FACADE PROGRAM THAT WE ALREADY HAVE FOR OUR DOWNTOWN CORRIDOR.

BUT WE'RE TAKING THIS PROGRAM AND WE'RE MAKING IT CITYWIDE.

SO WE WANT TO HAVE THE ABILITY TO GO OUT AND ATTRACT, UH, ANY OF THESE BUSINESS OPPORTUNITIES THAT YOU GUYS SEE, THAT I SEE THAT OUR, OUR INSPECTORS SEE OUT WITHIN THE CITY TO BE ABLE TO COME IN FRONT OF US AND WORK WITH US ON HELPING THEM IMPROVE THEIR BUILDINGS.

IT'S A REIMBURSEMENT GRANT.

WE'RE NOT GIVING OUT MONEY UPFRONT.

THEY DO HAVE TO GET ACCEPTED INTO THE PROGRAM FIRST, AND, UH, THEN THEY BECOME ELIGIBLE TO DO THE WORK ONCE THEY'RE ACCEPTED INTO THE PROGRAM.

AND THEN IT'S A 50 50 MATCH WITH A $10,000 MAXIMUM GRANT AMOUNT.

SO $20,000 ON SOMEONE'S PROPERTY CAN GO A LONG WAY TO MAKING THESE IMPROVEMENTS.

WHAT WE'RE LOOKING FOR IS REALLY TO BEAUTIFY THESE PROPERTIES, WHICH WILL MAKE THEM MORE VALUABLE, NOT ONLY ON THE TAX ROLLS, BUT IT'LL MAKE 'EM MORE VALUABLE TO THEIR CUSTOMERS BECAUSE WE WANNA MAKE SURE THAT WE'RE MAKING SOME IMPROVEMENTS AND PEOPLE WILL STOP AND GO IN.

SO WE'RE LOOKING AT EVERYTHING IN THE EXTERIOR FROM PAINTING TO SIGNAGE.

IT COULD EVEN BE REMOVING OLD SIGNAGE, UH, THAT THEY DON'T HAVE THE MONEY FOR REPAIRING PARKING LOTS, FACADES OBVIOUSLY

[00:10:01]

AND THEN HOPEFULLY THE CUSTOMER SERVICE ON THE INSIDE WILL GENERATE THE SALES.

THE EVA UH, EVALUATION CRITERIA IS FAIRLY SIMPLE.

WE WE'RE GONNA LOOK AT THREE DIFFERENT ITEMS. OBVIOUSLY THE VISUAL IMPACT OF WHAT THIS PROJECT IS GOING TO DO IS GONNA BE MOST IMPORTANT FOR US BECAUSE THE GOAL, OBVIOUSLY WE'RE REPAIRING THE OUTSIDE OF IT, IS TO MAKE IT VISUALLY APPEALING.

THE ECONOMIC IMPACT, OF COURSE, IS THEN AFTER WE CAN IMPROVE THAT PROPERTY, IT SHOULD INCREASE IN VALUE, UH, ON OUR ADD VALIUM SIDE.

AND THEN OF COURSE, THE SECONDARY ECONOMIC IMPACT IS GETTING THE CUSTOMERS IN THE DOOR TO GIVE THAT BUSINESS OWNER, WHOMEVER THAT MAY BE THEIR MONEY.

SO WE CAN MAKE A BETTER ECONOMIC IMPACT, NOT ONLY FOR THAT BUSINESS, BUT UH, GENERATE SOME OTHER SALES TAX REVENUE AS WELL.

AND THEN THE THIRD ITEM THAT WE LOOK AT IS THE COMMUNITY AND THE HISTORICAL IMPACT.

AND WE'RE, THAT'S A LITTLE BIT FURTHER DOWN ON THE LIST BECAUSE ON THE HISTORICAL SIDE, IT'S A LITTLE MORE CHALLENGING TO WORK WITH, UM, BUILDINGS.

WHEN YOU'RE TALKING ABOUT DOING A PROGRAM LIKE THE CITYWIDE, WE DO HAVE MORE HISTORICAL AREAS IN THE CITY THAT WOULD WORK IN A MORE HISTORICAL TYPE OF PROGRAM.

BUT TO BE BROAD, WE KIND OF LESSEN THE IMPACT OF WHAT THAT'S GONNA BE.

BUT CERTAINLY THE COMMUNITIES AND DRIVING THIS DOWN TO SOME, UM, SOME DIRECT AREAS LIKE ALEXANDER, YOU KNOW, THOSE GIVE US THAT ABILITY TO GET INTO THE NEIGHBORHOODS THAT WE HAVEN'T HAD THE OPPORTUNITY TO GET INTO YET.

AND WE CAN WORK WITH THOSE FOLKS AND TRY TO MAKE A, A, A GOOD DIFFERENCE IN THAT COMMUNITY.

AND IN FACT, WE'RE KIND OF LOOKING AT TAKING ALEXANDER AS OUR, UH, TEST CASE STREET.

SO WHEN WE ROLL THIS PLAN OUT APPROVAL, HOPEFULLY AROUND MARCH OF THIS YEAR, BETWEEN OUR, UH, OUR PUBLIC WORK, OUR PLANNING GUYS AND MYSELF, WE REALLY WANT TO TARGET ON ALEXANDER TO GET INTO AS MANY BUSINESSES AND THE PROPERTY OWNERS AS WE CAN TO SEE HOW SUCCESSFUL, UH, WE CAN MAKE THIS PROGRAM AND HOW QUICKLY WE CAN MAKE IT SUCCESSFUL.

BECAUSE I'D LOVE TO COME BACK TO YOU IN FIVE OR SIX MONTHS AND SAY, HEY, WE'RE OUTTA MONEY AND WE NEED MORE, BECAUSE THAT MEANS WE'RE DOING WHAT WE NEED TO DO TO HELP BUSINESSES, UH, GET IMPROVED.

SO THAT'S THE BUSINESS IMPROVEMENT GRANT.

I KNOW HIGH LEVEL RIGHT NOW, I CAN ANSWER ANY QUESTIONS THAT YOU MAY HAVE ON IT, BUT I WANNA ROLL INTO OUR NEXT TOOL, WHICH WOULD BE THE BAYTOWN REVOLVING LOAN FUND.

THE LOAN FUND IS SOMETHING THAT, UM, OBVIOUSLY IT'S A REVOLVING LOAN FUND.

WE WANT TO CREATE IT.

SO WHATEVER WE'RE GIVING OUT INTO THOSE BUSINESSES COMES BACK AND CONTINUES TO BUILD THE FUND.

SO WE WILL CON WE WILL HAVE THIS AS A PERPETUAL FUND.

WE WILL NEED TO FUND IT UPFRONT WITH SOME MONEY.

AND WE'RE ONLY LOOKING TO CREATE A, UH, A LOAN THAT'S GONNA BE IN A SECOND POSITION TO A FINANCIAL INSTITUTION.

SO WE REALIZE FOR OUR PURPOSES TO DO THAT, WE CAN BRIDGE THE GAP FOR ANY BUSINESS THAT DOESN'T HAVE A HUNDRED PERCENT OF THE FINANCIAL MEANS TO GET WHERE THEY NEED TO GO.

NOW THIS PLAN HAS TWO DIFFERENT LOAN STRUCTURES TO IT, WHICH I'LL GET TO IN A SECOND.

BUT WHAT WE'RE HOPING OUT OF THIS IS WE CAN GET BUSINESSES TO EXPAND OR WE CAN FIND SOME OF THOSE BUSINESSES THAT WE CAN ATTRACT TO COME INTO OUR CITY THAT ARE MAYBE NOT HERE.

AND OF COURSE, THIS GIVES US THAT ABILITY TO WORK IN SOME OF THE, UM, UNDERSERVED OR REDEVELOPING AREAS THAT WE HAVE AROUND THE CITY.

SO WE CAN ATTRACT PEOPLE HERE TO PUT 'EM IN THOSE AREAS BECAUSE WE HAVE THIS ABILITY TO, UH, HELP THEM OUT WITH A LOW INTEREST LOAN.

SO IT IS ALL ABOUT CREATING PRIVATE SECTOR JOBS.

IT IS ALL ABOUT CREATING FULL-TIME JOBS OR FULL-TIME EQUIVALENT JOBS.

SO IF YOU HAVE TWO PART-TIMERS, WE'LL WE'LL TAKE THAT INTO CONSIDERATION.

NOW, THESE ARE LOANS ON THIS PARTICULAR PROGRAM.

WE WANNA MAKE SURE THAT THE BUSINESS HAS SKIN IN THE GAME, WHICH THEY WILL, THEY HAVE TO HAVE AT LEAST 10% EQUITY INTO IT.

BUT THIS IS ABOUT, AS I SAID, BRIDGING THAT GAP, MAKING THE, THE FINANCIAL INSTITUTION THAT WE END UP WORKING WITH ON THIS COMFORTABLE THAT IF THEY CAN'T LOAN A HUNDRED PERCENT OF THE MONEY, THE CITY'S GOING TO COME IN WITH UP TO A HUNDRED THOUSAND POTENTIALLY BASED ON THE JOB CREATION.

AND IF OUR RATE IS AT 4% AND A TYPICAL LOAN RATE RATE NOW IS ABOUT SIX TO SIX AND A HALF, DEPENDING ON CREDIT, WE CAN AGGREGATE THAT, THAT, UH, MONEY DOWN TO ABOUT A 5% RATE FOR THE BORROWER, WHICH GIVES THEM THE ABILITY TO HAVE A STRONGER FINANCIAL POSITION AND HAVE A STRONGER FINANCIAL POSITION TO MAKE THEIR PAYMENTS.

SO THAT'S WHY WE WOULD COME IN AS A SECOND POSITION, BUT WE'RE STILL GOING TO HAVE PERSONAL GUARANTEES ON THIS.

AND EVEN IF THEIR BUSINESS ENDS UP NOT SUCCEEDING, THEY WILL STILL OWE THE MONEY BACK.

THIS IS NOT A FORGIVABLE TYPE OF PROGRAM.

WE WANNA MAKE SURE THAT WE'RE, WE'RE COVERING OUR BASIS, UM, ON HELPING PEOPLE AS MUCH AS WE CAN.

AND LASTLY, ON THE REVOLVING LOAN FUND, AS I SAID, IT'S A 10% GAP, SECOND POSITION, 4%.

NOW, BOTH OF THESE PROGRAMS, THIS ONE WILL HAVE A COMMITTEE THAT APPROVES IT JUST LIKE THE OTHER PROGRAM DOES.

SO IT'S NOT LIKE ANYBODY CAN JUST APPLY, GET ACCEPTED AND MOVE FORWARD.

THIS WILL HAVE TO HAVE COMMITTEE APPROVAL, WHICH WE'RE LOOKING AT STAFF MEMBERS TO DO RIGHT NOW BECAUSE Y'ALL ARE SO BUSY.

UM, AND THOSE STAFF RECOMMENDATIONS WOULD COME TO YOU GUYS FOR FINAL YES OR NO ANYWAY, AS WE MOVE

[00:15:01]

SO I KNOW HIGH LEVEL RAN THROUGH IT QUICK.

DIDN'T WANNA KEEP EVERYBODY HERE LATE, BUT I'LL CERTAINLY ANSWER ANY QUESTIONS.

ALRIGHT, YES, MS. PRESSLEY.

SO I'M JUST GONNA START, I'M GONNA TAKE IT ONE AT A TIME.

SO ON THE THE BIG BUSINESS IMPROVEMENT GRANT PROGRAM, YES.

JUST TO BE CLEAR, WE PRETTY MUCH DID AWAY WITH THE FACADE PROGRAM A A YEAR OR SO AGO.

REMEMBER WHEN WE KIND OF NIXED THAT, THAT PROGRAM AND THAT PROGRAM OFFERED UP TO $40,000 AS A 50 50 MATCH.

SO I SEE THE, THE BIG HERE IS ESSENTIALLY FOR FACADES, PARKING LOTS AND LANDSCAPING.

SO INSTEAD OF 40 THAT WAS PREVIOUSLY AVAILABLE PER APPLICANT WE'RE DOWN TO 10 NOW.

SO I DON'T REALLY SEE THIS AS INCREASING THE INCENTIVES THAT WE'VE TALKED ABOUT ON SEVERAL OCCASIONS.

I SEE IT AS A DOWNSIZED INCENTIVE.

AND WHEN YOU, WHEN YOU GET INTO FACADES AND CONCRETE PARKING LOTS AND THINGS LIKE THAT, MAN, I'M JUST SPEAKING FROM EXPERIENCE HERE AND LEARNED SOME THINGS THE HARD WAY.

OVER 25 YEARS, IT'S, THAT'S AN ASTRONOMICALLY LOW NUMBER.

AND I THINK, WHAT DID WE DESIGNATE FOR THIS PROGRAM? 50 OR 150,000.

$50,000.

REMEMBER, YOU KNOW, REMEMBER THIS WAS, WE WANTED TO PILOT SOMETHING NEW.

SO OUR HOPE IS WE GET SOMEBODY THAT WALKS, WE GET 10 BUSINESSES THAT WALK IN THE DOOR AND THEY'VE GOT GREAT PROJECTS AND WE REALIZE WE NEED TO UP THE GAME.

MAYBE WE NEED, WE NEED TO PROVIDE MORE.

MAYBE WE NEED MORE FUNDING.

YEAH.

BUT WE DON'T KNOW THAT QUITE YET.

SO THE, THE FACADE MONEY, WE, WE DO STILL HAVE FACADE PROGRAM MONEY, BUT NOBODY'S COMING IN THE DOOR FOR I UNDERSTAND.

SO WE COULD REPROGRAM THE FACADE PROGRAM MONEY INTO THIS PROGRAM.

I THINK THE INTENT IS TO, BUT YOU, YOU SEE WHERE I'M COMING FROM.

I MEAN, WE ESSENTIALLY NIXED A PROGRAM THAT OFFERED 40,000 INCENTIVES.

NOW WE'VE GOT A PROGRAM THAT OFFERS UP TO 10.

WELL, THE FACADE PROGRAM STILL EXISTS.

I'M SORRY.

NO, IT'S STILL IN EXISTENCE.

THIS IS AN ADDITIONAL PROGRAM.

AND WHAT WE DID WITH THE FACADE PROGRAM IS NOT N IT, BUT WE EXPANDED IT.

AND ONE OF THE THINGS COUNCIL WANTED TO DO IS, IS, IS WE DISCUSSED, IS WE WANTED TO MAKE SURE THAT WE FACADE IS GREAT, BUT THAT MAY NOT BE THE ONLY NEED.

WE WILL BRING ANY WORTHY PROJECT TO YOU.

AND THIS PROGRAM DOES NOT PRECLUDE THIS BODY'S ABILITY TO PARTNER ON ANY ECONOMIC DEVELOPMENT PROJECT.

SO THIS IS ADDITIONAL, NOTHING HAS EVER BEEN DONE AWAY AND FACADE ONLY GOT BIGGER.

WE, WE BECAME LESS SPECIFIC ABOUT FACADE AND REMEMBER US TALKING ABOUT, MAN, THEY MAY NOT BE ABLE TO AFFORD THE SPRINKLER SYSTEM, OR I UNDERSTAND.

OR SOMETHING LIKE THAT.

AND, AND MAYBE WE WANNA PARTICIPATE IN THAT WAY.

SO IF YOU'LL LOOK AT THIS AS, AS SOMETHING NEW SUPPLEMENT, UH, SUPPLEMENT ON TOP OF EVERYTHING ELSE THAT THIS BODY'S ABLE TO DO, AND AS YOU WELL KNOW, YOU GUYS ARE ABLE TO PARTNER, UH, WITH ANY WORTHY PRO PROJECT.

WELL, THAT'S GREAT.

I JUST, I HAD, I GUESS I WAS A BIT CONFUSED.

I THOUGHT I HAD REMEMBERED US TALKING ABOUT THE FACADE PROGRAM WASN'T WELL USED.

RIGHT.

NO ONE'S APPLIED IN EIGHT YEARS AND WE'RE GONNA SUPPLANT THAT PROGRAM INSTEAD OF SUPPLEMENT.

SO I GUESS MY RECOLLECTION WAS A LITTLE OFF.

SO THAT'S GOOD.

I'M, I'M OKAY WITH THIS PROGRAM OVERALL AS LONG AS IT SUPPLEMENTS THE FACADE PROGRAM.

FANTASTIC.

SO IF YOU DON'T MIND, MAYOR, COULD I HAVE A FEW COMMENTS ON THE NEXT PROGRAM? SURE.

THE, UH, THE REVOLVING LOAN FUND.

SO HOW MUCH DO WE HAVE IN THIS PROGRAM DEDICATED CURRENTLY IN THE BUDGET? WELL, I MEAN, WHAT ARE WE LOOKING AT ON A TOTAL DOLLAR 100,000? YEAH, SO I, I GUESS I'D LIKE TO START WITH CITYWIDE FIRST.

YOU KNOW, $100,000 DOESN'T GO VERY FAR CITYWIDE.

AND YOU KNOW, I GUESS WHAT I HAD ENVISIONED, IT'S NOT ONLY OLD BAYTOWN AND DISTRICT TWO AND MARKET STREET AND IN DISTRICT ONE, BUT WHETHER IT'S BAYWAY OR, OR ALEXANDER, I MEAN, MAYBE THERE'S A, A PORTION OF DISTRICT FIVE, AND I KNOW THERE'S SOME OLDER PORTIONS OF DISTRICT FOUR, BUT I MEAN, WOULD WE REALLY CONSIDER THIS PROGRAM FOR A BUSINESS ON GARTH ROAD THAT'S PAYING $3 A SQUARE FOOT IN RENT OR PAID $14 A SQUARE FOOT FOR THEIR LAND? OR, I MEAN, I, I KIND OF THOUGHT THIS WAS THE FOCUS WAS ON THE OLDER AREAS.

SO I, I UNDERSTAND THE, THE TERM IT'S PREFERRED IN THE AREAS WE'RE REDEVELOPING, BUT WOULD WE WANT TO CONSIDER MAYBE REQUIRED TO BE IN, OR IF IT'S IN THOSE AREAS, IT'S GIVEN HIGH PRIORITY? I JUST THOUGHT THE FOCUS WAS INCENTIVES TO HELP REDEVELOP THE AREAS THAT NEEDED REDEVELOPING.

WELL, IT'S, IT'S A CONCEPT CALLED ECONOMIC DEVELOPMENT GARDENING.

I MEAN, IT COULD BE ANYWHERE IN THE CITY.

AND THEN THE INTENTION IS TO CREATE JOBS AND OBVIOUSLY,

[00:20:01]

BUT, UM, I DON'T KNOW.

THAT'S, THAT'S REALLY UP TO YOU.

WE ANTICIPATE THAT MOST LIKELY IT'S, IT IS GONNA BE BUSINESSES IN THE OLDER PART OF BAYTOWN THAT WILL PROBABLY, UH, PARTICIPATE IN THIS PROGRAM.

BUT, UH, I GUESS WE CAN, WE CAN TALK ABOUT THAT AS A POLICY, UH, MODIFICATION.

BUT, AND, AND LIKE I SAID, WE'RE JUST DISCUSSING THIS AND DEBATE.

I'M JUST, I'M JUST PLAYING DEVIL'S ADVOCATE AND FOOD FOR THOUGHT HERE.

SO, AND AS FAR AS THE, THE OTHER PORTIONS OF IT, YOU KNOW, GAP FINANCING, SECOND LIEN POSITION, THERE NEEDS TO BE FULL-TIME EMPLOYMENT.

THERE'S PERSONAL GUARANTEES.

I MEAN, LET'S REMEMBER THAT THIS IS GEARED PREDOMINANTLY TO SMALL BUSINESS OWNERS WHO ARE NOT OVERLY SOPHISTICATED AND WHO ESSENTIALLY RUN FROM RED TAPE MORE OFTEN THAN NOT IN, IN MY OPINION, THIS IS JUST ONE PERSON'S OPINION HERE.

IT SEEMS LIKE IT'S TOO ONEROUS TO ME TO BE CONSIDERED A TRUE INCENTIVE.

AND I THINK THAT, THAT THE, YOU KNOW, WE'RE GONNA HAVE TO HAVE AN ANALYST NOW A LOAN COMMITTEE.

WE'RE GONNA HAVE TO FIGURE OUT CREDIT WORTHINESS.

WE'RE GONNA HAVE TO MAKE CREDIT DECISIONS.

WE'RE GONNA HAVE TO FIGURE OUT WHAT THE GAP IS.

I MEAN, IT JUST SEEMS TO ME THAT THE BUREAUCRATIC COST WILL EXCEED THE COMMUNITY BENEFIT FIVE OR 10 TIMES OVER.

THAT'S JUST MY OPINION.

WHERE I, I'M SORRY, I I, I WOULD LIKE US TO CONSIDER THIS IS JUST FOOD FOR THOUGHT.

I LIKE THE BIG MUCH BETTER.

IT'S SIMPLE.

IF YOU INVEST IN AN OLD BUILDING, IN OLD BAYTOWN OR ON BAYWAY OR ON ALEXANDER IN AN OLDER PART OF DISTRICT , WE'RE GONNA HELP YOU AND WE'RE GONNA DO A 50 50 MATCH ON THE IMPROVEMENTS THAT WE THINK MAKE SENSE.

YOU HAVE THE, THE BUILDING OR THE PROPERTY LISTED FOR SALE.

YOU HAVE IT LISTED FOR RENT.

IF YOU HAVE AN ACTIVE BUSINESS, MAYBE YOU PUT THE STIPULATION IN.

THEY HAVE TO BE IN BUSINESS FOR A YEAR OR TWO YEARS.

BUT I MEAN, LISTEN, WE'RE, WE'RE, WE'RE TRYING TO HELP SMALL BUSINESSES AND, AND TO, TO MAKE THIS CONGRUENT WITH THE PAPERWORK AND THE LEGWORK THAT'S REQUIRED FOR A FIRST LIEN LOAN.

YOU KNOW, I, I'M JUST NOT SURE IT'S NOT, IT'S NOT GOING TO ACHIEVE WHAT I HAD ENVISIONED IT ACHIEVING WITH ALL OF THESE STIPULATIONS AND REQUIREMENTS.

I WOULD, I WOULD LIKE TO SEE THIS COMBINED INTO THE BIG TO WHERE IT'S REAL SIMPLE.

YOU DO THOSE THINGS, WE'RE GONNA HELP YOU PERIOD.

NO IFS, ANDS, OR BUTS.

WE'RE ONLY, YOU KNOW, NONE OF THIS OTHER, ALL THESE OTHER CONTINGENCIES.

SO THAT, THAT'S JUST, I'M JUST THROWING THAT OUT THERE GUYS.

OBVIOUSLY I'M PASSIONATE ABOUT IT BECAUSE, YOU KNOW, MY DISTRICT NEEDS ALL THE HELP IT CAN GET AS DOES LAURA'S, AS DOES THE OLDER AREAS OF EVERYBODY'S DISTRICT.

SO, WELL, I, I'M AGGRESSIVE ON THIS AND, AND I'M PUTTING IT OUT THERE BECAUSE I THINK WE ALL NEED TO KIND OF CONSIDER IT AND TRY TO MAKE THIS THING THE BEST IT CAN BE.

AND I WISH GARY ENGLER WAS HERE 'CAUSE HE WOULD REALLY HAVE SOME GOOD INFORMATION AS WELL ABOUT SMALL BUSINESS LENDING AND, AND THE CHALLENGES THAT THEY ALREADY FACE.

MM-HMM .

SO, YOU KNOW, LIKE I SAY, I, I WOULD, I WOULD LIKE TO SEE THE BIG PROGRAM BIGGER.

AND I, I JUST, LIKE I SAY, IF, IF WE'RE WILLING TO SEE WHO SIGNS UP FOR THIS THING, THAT'S FINE, BUT I DON'T, I DON'T, I THINK WE'RE GONNA BE SADLY DISAPPOINTED AND I'M JUST GONNA LEAVE IT AT THAT.

BUT I MEAN, WE'RE HERE TO DISCUSS IT AND I'M JUST GETTING IT OUT THERE.

SO LET ME, LET ME JUST COMMENT ON THAT.

I MEAN, I DO APPRECIATE YOUR COMMENTS.

UM, MR. PRESLEY, UM, I GUESS THE BIGGEST THING I DO TO SEPARATE THESE TWO, REGARDLESS OF AMOUNTS, UM, AND KIND OF THE, I GUESS YOU'D SAY THE CONCEPTUAL FRAMEWORK AND GUIDELINES IS, YOU KNOW, THE, THE, THE, UH, THE, THE BIG, UH, IN A SENSE IS A GRANT, RIGHT? SO IT'S A 50, YOU KNOW, SO IT'S A GRANT.

THERE IS NOTHING TO RECOVER.

AND THEN THE REVOLVING LOAN PROGRAM IS, LET'S JUST SAY IF IT'S A HUNDRED THOUSAND, I MEAN, WE HAVE TO START SOMEWHERE.

WE HAVE TO KIND OF SAY, THIS IS THE FUND.

WE HOPE THAT IT'S SUCCESSFUL.

SO WE HAVE TO COME BACK AND SAY, HEY, IS WE'VE KNOCKED IT OUTTA THE PARK, LET'S GO AND WE NEED MORE FUNDING.

UM, BUT THAT IS, THAT'S GONNA BE A PROGRAM THAT WILL REPLENISH AND HOPEFULLY KEEP SUSTAINING WHATEVER BALANCE THAT WE SEE IF IT'S A HUNDRED K OR 200 K.

SO I WANT TO KIND OF SEPARATE THOSE TWO.

BUT I THINK WHAT I'M HEARING FROM YOU IS, IS YOU LIKE THE CONCEPT AND FRAMEWORK OF, OF THE PROGRAM ITSELF, BUT ONE, ONE NEEDS TO BE A GRANT, KIND OF A GRANT CATEGORY.

I DON'T LIKE THE REVOLVING LOAN FUND AT ALL, BECAUSE LET ME TELL YOU SOMETHING.

IT PUTS US IN A POSITION, LET'S SAY WE HAVE A DEFAULT MM-HMM .

LET'S SAY IT'S A A, A RESIDENT WITH A SMALL BUSINESS, WE'RE GONNA FORECLOSE.

YOU KNOW, I MEAN, DO WE REALLY WANNA BE IN THE POSITION TO ADD INSULT TO INJURY? I JUST, I LIKE A CLEAN GRANT PROGRAM.

LOOK, WE'RE TRYING TO REVITALIZE OUR OLDER AREAS.

I MEAN, WE'VE BEEN TRYING FOR 10 YEARS.

I JUST THINK THERE'S ROOM, THE BIG IS MUCH MORE AGGRESSIVE.

IT'S EASIER, IT'S SIMPLER.

I LIKE THAT 10 TIMES BETTER THAN I LIKE

[00:25:01]

YOU KNOW, LEMME LET, LET ME, LET ME ASK YOU, WHAT IF WE, WHAT IF YOU, IF THE BIG WAS FUNDED AT A HUNDRED K AND WE STARTED 50 K FOR, FOR, FOR THE LOAN PROGRAM, THAT WOULD BE BETTER.

THAT WOULD BE A GOOD START IN THE RIGHT DIRECTION.

AND YOU KNOW WHAT IF, IF I'M WRONG, LISTEN WHEN I'M WRONG AND THEN WE HAVE TO COME BACK TO COME BACK.

IF WE USE THIS 50 ON THE REVOLVING LOAN REVOLVING LOAN PROGRAM.

HEY, YOU KNOW, I, I GUESS I WAS WRONG, BUT I, I'M JUST, I'M JUST PUTTING THINGS OUT THERE AS SOMEONE THAT'S BORROWED HONESTLY, A COUPLE MILLION DOLLARS OVER 30 YEARS AND, AND STARTING OUT VERY SMALL AT ABOUT $10,000.

SO I, I KNOW HOW IT GOES AND I KNOW HOW RED TAPE AND BUREAUCRACY CAN BE DEAL KILLERS AND TURN PEOPLE OFF AND, AND ALSO THE FULL-TIME EMPLOYMENT CONTINGENCY.

YOU KNOW, WE DID THE DEAL WITH THE DELMONT AND WE ACTUALLY HAD TO DELETE THE FULL-TIME EMPLOYMENT PORTION OUTTA THAT AGREEMENT BECAUSE THEY COULDN'T MEET IT.

SMALL BUSINESS OWNERS ARE USUALLY OPERATORS.

THEY SUPPLEMENT THEIR WORK WITH PART-TIME WORK CONTRACT LABOR.

THE FULL-TIME EMPLOYMENT STIPULATION IS A VERY HIGH HURDLE TO CLEAR WHEN WE'RE REALLY JUST TRYING TO IMPROVE AND UPDATE THE AESTHETICS OF OLDER BUILDINGS AND A LOT OF, A LOT OF STUFF THAT REALLY JUST DOESN'T CONTRIBUTE ANYTHING TO THE CITY.

SO I, I KNOW I'M, I'M GOING ALL IN HERE, BUT YOU KNOW, I'VE, I'VE BEEN BEATEN ON THE TABLE TO DO MORE IN OUR OLDER AREAS AND LET'S GET SERIOUS ABOUT REVITALIZATION AND, AND MAN, I'M, I'M STILL POUNDING ON THE TABLE.

I, I, I, THAT'S A GOOD STEP.

MAYOR AND I, I WOULD, I'D RELUCTANTLY SUPPORT THAT, BUT I'VE GOT MY DOUBTS ON THE REVOLVING LOAN FUND.

I, I THINK THE IDEA IS SO THAT WE, WE HAVE TO START SOMEWHERE AGREE ON THE CONCEPT, THE FUNDING.

AGAIN, IF IT'S SUCCESSFUL MORE THAN THE OTHER, THEN WE COULD ALWAYS COME BACK FOR WORK JUSTICE.

I'M, I'M GONNA PUT A MOTION ON THE TABLE THAT WE FLIP FLOP THE NUMBERS TO WHERE IT'S 100 ON THE GRANT PROGRAM AND 50 ON THE REVOLVING LOAN.

AND I'M GONNA VIGOROUSLY ADVOCATE FOR IT TO PASS.

IF IT DOESN'T, IT DOESN'T.

BUT, BUT THAT'S, THAT'S WHAT I'M GONNA TRY TO, TO, TO, TO APPROVE.

I HAVE SOME QUESTIONS.

OKAY.

YES, MA'AM.

UM, I LIKE THE BUSINESS, UH, IMPROVEMENT GRANT, AND I LIKE THAT IT'S EXPANDED FOR MORE THAN THE THE FACADES.

UM, MY QUESTION IS, Y'ALL HAD MENTIONED THAT Y'ALL WOULD TAKE THIS PROPOSAL AND PILOT IT ON ALEXANDER.

SO THAT MEANS YOU'RE NOT GONNA OPEN IT UP TO THE COMMUNITY AT LARGE JUST YET.

IF WE APPROVED THIS, YOU WOULD JUST FOCUS ON ALEXANDER FIRST.

WHERE, WHERE DID YOU AND THEN OPEN IT UP.

WHERE DID YOU SEE THAT? NO, IT WAS, Y'ALL SAID IT, IT WAS SOMETHING THAT I'D SAID, OKAY, WHAT WE'RE, IT WILL BE OPENED UP CITYWIDE.

BUT WHAT WE'RE GOING TO DO IS BETWEEN OUR PLANNING FOLKS AND MYSELF, WE'RE GONNA FOCUS ON ALEXANDER AVENUE ON SENDING THEM DIRECT INFORMATION, BEING PROACTIVE AND COMMUNICATING IT.

CORRECT.

SO AGAIN, THAT WAS MY NEXT QUESTION IS HOW ARE YOU GONNA LET PEOPLE KNOW ABOUT IT? RIGHT.

BECAUSE I FIND THAT WE, WE COME UP WITH THESE GREAT PROGRAMS THAT ARE EXTREMELY USEFUL FOR REDEVELOPMENT.

AND THEN WHEN I'M OUT IN THE COMMUNITY TALKING TO PEOPLE, NO ONE HAS ANY IDEA THAT THEY EXIST.

RIGHT? AND I KNOW THAT, YOU KNOW, SOME OF IT FALLS ON THEM FOR NOT INQUIRING ABOUT IT, BUT I MEAN, IF OUR, OUR GOAL REALLY IS TO DRIVE REDEVELOPMENT, WE'RE GONNA HAVE TO GET A LOT MORE PROACTIVE, RIGHT? AND ACTUALLY GOING DOOR TO DOOR TO THESE BUSINESSES AND SAYING, HEY, DO YOU KNOW THAT THIS, THIS GRANT EXISTS IN THE FACADE AND THE REINVESTMENT ZONE? AND, AND SO, UM, SO IF WE, IF WE DO MOVE FORWARD WITH THAT ONE, I JUST ASK THAT WE BE VERY PROACTIVE.

I UNDERSTAND ALEXANDER'S Y'ALL'S PREFERRED PILOT, BUT THEN ONCE, UM, YOU KNOW, AFTER THAT WE JUST NEED TO DO MORE THAN JUST, YOU KNOW, PUT IT ON FACEBOOK EVERY NOW AND THEN.

I THINK YEAH, COMPLETELY AGREE.

I THINK BOTH OF THESE PROGRAMS PROVIDE ALL CITY EMPLOYEES, YOURSELVES INCLUDED.

IF YOU DRIVE BY A BUSINESS OR IF YOU STOP AT A BUSINESS AND THE PERSON NEEDS SOME ASSISTANCE WITH PAINTING SOMETHING, YOU KNOW, WHATEVER THE CASE MAY BE, OR THEY WANT TO EXPAND AND THEY DON'T KNOW HOW TO DO IT, THAT'S AN EASY IN FOR YOU TO EITHER CALL ME, EMAIL ME, OR TELL THE PERSON DIRECTLY, CALL THIS GUY.

WE HAVE THESE PROGRAMS. SO YES, THE ONE-ON-ONE MARKETING, UM, TENDS TO WORK BEST BECAUSE YOU'RE ABSOLUTELY TALKING TO THE DECISION MAKER WHO CAN HELP.

NOW, IF IT'S A A LEASE SITUATION, THEY STILL HAVE TO GET APPROVAL FROM THE PROPERTY OWNER TO DO THE IMPROVEMENTS, BUT MOST PROPERTY OWNERS AREN'T GONNA SAY NO TO HAVING THEIR BUILDING IMPROVED WITHOUT THEIR MONEY GOING INTO IT.

UM, SO THAT'S ONE OF THE WAYS WE WILL LOOK AT IT.

DIRECT MAIL IS ANOTHER WAY.

ON THE ALEXANDER AVENUE SIDE, FOR EXAMPLE, WE WANNA ATTACK THAT FIRST JUST AS A PILOT TO SEE WHAT KIND OF COMMITMENT WE CAN GET OUTTA PEOPLE ON IT.

THAT WILL BE DONE THROUGH DIRECT MAIL TO THE PROPERTY OWNERS, NOT NECESSARILY THE BUSINESSES.

AND I WILL STILL HAVE THE OPPORTUNITY TO GO OUT AND FOLLOW UP GOING IN DOOR TO DOOR

[00:30:01]

'CAUSE THEY BOTH HAVE TO BE A PART OF THIS AND UNDERSTAND IT, RIGHT? UM, SO YES, ABSOLUTELY.

THAT'S, THAT'S A, A HUGE PART OF THIS MARKETING.

PUTTING IT ON OUR, OUR FACEBOOK PAGE, PUTTING IT ON THE CITY'S WEBSITE, UH, IS SOMETHING, UM, WHEN WE, RJ SAT IN A MEETING WITH, UH, WITH NICK AND I TODAY, AND WE WERE TALKING ABOUT WHEN HIS GUYS GO OUT ON CODE ENFORCEMENT CASES, WE CAN EASILY SHOW THE PERSON THAT IF YOU HAVE AN ISSUE THAT NEEDS TO BE ADDRESSED AND YOU DON'T HAVE THE THE FINANCIAL WHEREWITHAL TO DO IT, WELL, HERE'S A PROGRAM THAT CAN HELP YOU TO GET THAT DONE.

BECAUSE GOING THROUGH A CODE ENFORCEMENT PROCESS WOULD TAKE LONGER AND BE MORE COSTLY FOR BOTH US AND THEM.

SO IF WE HAVE THIS ABILITY TO OFFSET SOME OF THEIR COSTS ON FIXING WHATEVER THAT EXTERIOR CODE ENFORCEMENT, UH, ITEM MIGHT BE, SO MUCH THE BETTER FOR US BECAUSE IT, IT IMPROVES THE PROPERTY, IT HELPS THEM.

AND THAT'S WHERE WE'RE COMING INTO TRULY HELPING THE BUSINESS PEOPLE OR THE PROPERTY OWNERS TOGETHER.

I THINK THAT'S A GOOD POINT TO MAKE ABOUT THE CODE ENFORCEMENT ALTERNATIVE.

MM-HMM .

AND YOU ALSO MADE A GOOD POINT ABOUT COUNCIL MEMBERS ALSO HAVING A PROACTIVE ROLE IN IDENTIFYING, UH, BUILDINGS OR BUSINESSES AND BRINGING THAT BACK TO YOU.

AND THEN MY LAST COMMENT ON THE NEXT ONE ABOUT THE REVOLVING LOAN, I DO LIKE THE CONCEPT, BUT, UH, COUNCILMAN PRESLEY HAS A GOOD POINT ABOUT, UM, MAYBE THE BUREAUCRACY AND THE RED TAPE BEING A BIT MUCH FOR THE BUSINESS OWNERS OR THE TYPE OF ENTREPRENEURS THAT I THINK WE'RE TARGETING WITH THIS.

UM, THE TERMS THAT I'M LOOKING AT AREN'T MUCH DIFFERENT THAN THE TERMS I WOULD GET FROM A BANK, EXCEPT MAYBE THE INTEREST RATE'S A LITTLE LOWER, BUT I DON'T KNOW IF, IF THE REQUIREMENTS NEEDED WOULD INCENTIVIZE ME ENOUGH TO GET ONE PERCENTAGE POINT MORE TO ME.

AND, AND THIS IS AGAIN, FOOD FOR THOUGHT.

UM, THE PEOPLE WHO WOULD NEED SOMETHING LIKE THIS FROM THE CITY ARE PEOPLE WHO PROBABLY AREN'T THAT CREDIT WORTHY AND CAN'T GO TO A BANK.

AND SO HAVING, UM, YOU KNOW, UH, THESE TYPES OF TERMS STILL MAY NOT BE ATTRACTIVE TO THEM.

UM, BUT AGAIN, IF YOU START DIPPING INTO THAT POOL OF PERSON, LIKE HE SAID, ARE WE REALLY GONNA FORECLOSE? UM, AND SO I THINK, I THINK THERE'S SOME GOOD POINTS THERE TO, TO THINK THROUGH A LITTLE MORE, BUT I LIKE THE CONCEPT AS A WHOLE.

I THINK THERE IS A NEED FOR PEOPLE WHO MAYBE AREN'T CREDIT WORTHY, WHO WANNA OPEN A BUSINESS, EXPAND THEIR BUSINESS, OR IMPROVE THEIR BUSINESS AND CAN'T GO THE TRADITIONAL ROUTE.

THEY DO NEED AN ALTERNATIVE ROUTE.

I JUST, I DON'T, I'M NOT QUITE FEELING THAT THIS IS IT JUST YET.

AND I AGREE WITH THAT.

DIRECTOR BETTENCOURT, I THINK IF IT WAS A PROGRAM, IF IT WAS A LENDER OF LAST RESORT, I THINK IT WOULD BE MUCH MORE EFFECTIVE.

AND WHEN YOU TALK ABOUT BEING AGGRESSIVE, LISTEN, IF WE WANNA BE AGGRESSIVE OR WE GONNA BE MORE SUCCESSFUL BEATING ON DOORS, SENDING OUT DIRECT MAIL, TALKING ABOUT A 50% GRANT REIMBURSEMENT OR A SECOND LIEN, PERSONAL GUARANTEE CREDIT CHECK, FULL-TIME EMPLOYMENT REQUIREMENT, AND A 4% INTEREST RATE AND WOULD JUST SAY, NEVERMIND, I'M FINE WITH WHAT I'M DOING, YOU'RE GONNA LOSE THEM.

EXACTLY.

IF I MAY, IF I MAY JUST LET YOU KNOW, THEY'RE GONNA SAY, I'M GONNA GO TO MY AUNT OR UNCLE.

YEAH.

LET'S, I MEAN, LET'S, LET'S TRY TO WIND THIS DOWN.

I NEED SOME DIRECTION ON WE NEED TO AGREE ON A CONCEPT OF WHAT WE WANT TO DO.

WELL, IT REQUIRES A LITTLE DISCUSSION TO THINK IT THROUGH TO GET DIRECTION.

NO, I MEAN, LET'S, LET'S, YEAH, I CAN, I'VE WORKED BOTH OF THESE PROGRAMS IN PREVIOUS COMMUNITIES AND THEY'VE BOTH WORKED VERY SUCCESSFULLY IN INCLUDING THE REVOLVING LOAN FUND.

WE WOULD NOT INTERNALLY MANAGE THIS MONEY.

WHAT WE WOULD DO IS WE WOULD PUT AN RFQ OUT AND WE WOULD WORK WITH A LOCAL LENDER.

YEAH.

THAT LOCAL LENDER WOULD, THE BENEFIT TO THEM IS OBVIOUSLY THEY'RE GONNA BRING IN A NEW CLIENT, WHOEVER WANTS TO BORROW MONEY FOR A PROJECT, AND IT'S TYPICALLY AN EXPANSION PROJECT OR A RELOCATION.

IT'S NOT NORMALLY SOMEONE WHO'S, UM, WITH THE EXCEPTION OF THE MICRO LOAN, IT'S NOT NORMALLY SOMEONE WHO'S JUST STARTING UP, BUT THE BANK THEN RUNS THEIR LOAN THAT THEY CAN'T FUND IT A HUNDRED PERCENT FOR THIS PERSON.

SO THAT'S WHY WE COME IN AS A SECOND RIGHT.

TO CLOSE THAT GAP.

SO IT GIVES THE FINANCIAL INSTITUTION THE CONFIDENCE TO LEND TO THAT PERSON.

THEY'RE ALSO GETTING THAT PERSON AS A CLIENT.

SO THEY WILL END UP MAKING ADDITIONAL MONIES OFF OF THAT CLIENT AT SOME POINT IN TIME IN THE FUTURE THROUGH CREDIT CARDS OR WHATEVER ELSE THAT THEY USE.

AND THEN THEY MANAGE, UH, THE PAYMENT SYSTEM FOR US.

THEY SEND OUT THE NOTICES, THEY COLLECT THE MONEY, THEY WOULD LET US KNOW IF AND WHEN THE PERSON GETS BEHIND.

UM, AND I CAN SHARE WITH YOU IN A COMMUNITY THAT I WAS IN, WE DID HAVE TO GO OUT AND COLLECT ON PEOPLE THAT, THAT FORFEITED OR DEFAULTED ON THEIR NOTES.

AND THAT'S A PART OF THE STANDARD PROCESS OF BEING IN BUSINESS.

IF YOU TAKE OUT A NOTE ON SOMETHING AND YOU CAN'T MAKE YOUR PAYMENTS, YOU ARE STILL PERSONALLY LIABLE FOR IT.

IT'S NOT TRYING TO PUT THE CITY OR US AS INDIVIDUALS IN A BAD POSITION BECAUSE WE'RE QUITE HONESTLY DOING THE

[00:35:01]

WE'RE TRYING TO SUPPORT THESE PEOPLE WHO MAY NOT HAVE ALL THE CREDIT WORTHINESS IN THE WORLD TO GET WHERE THEY NEED TO GO.

AND WE'RE TRYING TO OFFSET THAT AND HELP THEM TO GET WHERE THEY NEED TO GO TO GET THEM INTO BUSINESS.

SO THAT HAS WORKED.

I HAVE SEEN IT WORK SUCCESSFULLY.

THE FAILURE RATE HAS BEEN LOW.

DOESN'T MEAN IT CAN'T BE DIFFERENT DOWN HERE, BUT IT'S JUST AN IDEA.

IT'S A CONCEPT HOW WE CAN HELP OTHER PEOPLE TO HELP THEMSELVES.

THE GRANT PROGRAM OBVIOUSLY IS A VERY SIMPLE AND EASY GRANT PROGRAM THAT WE CAN ALL BENEFIT FROM BECAUSE WE CAN GET OUT TO THESE PEOPLE DIRECTLY AND HELP THEM MAKE A DIFFERENCE.

COMPLETELY AGREE WITH THAT.

WE CAN CHANGE THE DOLLAR AMOUNTS FOR IT IF WE WANT TO.

UM, SINCE WE ONLY HAD 50 IN INITIALLY FOR THE PROGRAM AND WE WERE TRYING TO GO CITYWIDE, THAT'S WHY WE WERE KEEPING THE DOLLAR AMOUNTS LOW.

IF THERE'S MORE FUNDING THAT COULD BE MADE AVAILABLE TO THE PROGRAM AND INSTEAD OF A $10,000 CAP, WE WANT TO GO HIGHER, WE CAN DO THAT.

WE CAN ABSOLUTELY DO THAT BECAUSE WE KNOW THERE'S A LOT OF BUILDINGS AND A LOT OF PROPERTIES THAT NEED TO BE APPROVED AROUND, IMPROVED AROUND THE CITY.

SO WHATEVER WE CAN DO TO, TO HELP THOSE PEOPLE HELPS US AS WELL.

AND, AND THERE IS ONE KEY DIFFERENCE.

ONE OTHER REASON THAT IT'S IMPORTANT TO HAVE BOTH PROGRAMS. SO THE BUSINESS IMPROVEMENT GRANT IS ALL EXTERNAL STUFF.

IT'S ALL KIND OF PUBLICLY VISIBLE.

THE REVOLVING LOAN FUND CAN BE FOR ACTUAL INTERNAL IMPROVEMENTS.

UM, AND SO THAT'S A, A KEY POINT THERE THAT IS, UH, IN ASSISTANCE TO, TO SMALL BUSINESSES ESPECIALLY.

YEAH.

YEAH.

AND I'VE SEEN THE MICROLOAN, FOR EXAMPLE, UP TO $10,000 WORTH VERY SUCCESSFULLY TO START SMALL RETAIL BUSINESSES BECAUSE WE DO ALLOW PEOPLE TO BUY RACKING AND INVENTORY OUT OF THAT.

AND WE ALWAYS TREAT WHOEVER THE BUSINESS OWNER IS, WHO TYPICALLY RUNS IT BY THEMSELVES AS ONE FULL-TIME EQUIVALENT.

SO EVEN THOUGH THAT THE BUSINESS OWNER AND THEY HAVE SOME EQUITY IN THE GAME, THEY'RE ALSO MANAGING THAT BUSINESS OR WORKING IT FULL-TIME.

SO THEY ARE ONE FULL-TIME EQUIVALENT PERSON.

THAT'S WHY THE NUMBERS LOOK AT, WE LOOK AT IT AND WE SAY, WE'LL END UP TO $10,000 PER FULL-TIME EQUIVALENT.

NORMALLY IT'S VERY EASY ON THE FRONT END TO GIVE THEM THE $10,000 BECAUSE IT'S A, IT'S A MOM OR DAD OPERATION OR SOME ENTREPRENEUR THAT WE'VE HELPED TO GET INTO BUSINESS AND YOU KNOW, THEY'RE GONNA WORK IT.

SO, MAYOR.

ALRIGHT.

YES, MA'AM.

UM, I, I THINK I WOULD LIKE TO HAVE ADDITIONAL TIME IF NOT THIS EVENING.

UM, I THINK IT DOES REQUIRE ADDITIONAL DISCUSSION AND, UM, I DON'T KNOW IF, AND I'M IN AGREEMENT WITH, UM, DIRECTOR PRESLEY, IT'S THE FTES FOR SMALL BUSINESSES ARE SOME SOMETIMES HARD TO COME BY, ESPECIALLY IF WE'RE LOOKING AT A, A SMALL BUSINESS THAT ONLY MAYBE HAS ROOM FOR FIVE TO 10 EMPLOYEES, AND MANY OF THOSE MAY BE PART-TIME.

AND SO I DON'T SEE WHERE IT SAYS REQUIRED.

I SEE WHERE IT SAYS ASSIST.

SO IS IT A REQUIREMENT FOR THEM TO HAVE FTEI MEAN, IS THAT ONE OF THE, THE REQUIREMENTS? WE CAN, OBVIOUSLY WE'RE ON THE FRONT END OF THIS.

WE CAN CREATE THE DIALOGUE OUTTA THIS HOWEVER YOU WANT.

NORMALLY A FULL-TIME EQUIVALENT IS, IT COULD BE TWO TO THREE PART-TIME POSITIONS THAT MAKE UP THE HOURS TO GUARANTEE A FULL-TIME EQUIVALENT.

A FULL-TIME EQUIVALENT DOESN'T MEAN ONE PERSON WORKING 40, IT COULD BE TWO WORKING 20 OR THREE WORKING 13 AND A THIRD, FOR EXAMPLE.

SO, UM, BUT IT'S ALWAYS BASED ON IF, IF YOU THINK ABOUT FEDERAL GRANT DOLLARS THAT COME THROUGH THAT GO INTO PROGRAMS LIKE THIS, IT'S ALWAYS BASED ON A FULL-TIME EQUIVALENT.

AND THAT'S THE WAY THE FEDERAL GOVERNMENT TREATS IT.

SO THAT'S JUST THE WAY THAT I INITIALLY WROTE THIS LANGUAGE.

MM-HMM .

WE CAN ALTER IT HOWEVER YOU'D LIKE.

YEAH.

AND I KNOW THAT, YOU KNOW, AT, FOR WHATEVER LEVELS, DIFFERENT SMALL BUSINESSES NATIONWIDE HAVE BEEN IMPACTED IN ONE WAY OR ANOTHER.

UM, AND SO I THINK WE'RE, WE'RE OFF TO A GREAT START THINKING ABOUT THIS PROGRAM.

UM, BUT I DO CAUTION HOW WE'RE GOING TO, YOU KNOW, UM, PROMOTE THIS.

AND I KNOW AS WE'VE ALL MENTIONED, WE HAVE SOME, UM, SOMETHING TO SAY, YOU KNOW, AS WE GO OUT AND TALK TO DIFFERENT BUSINESSES WITHIN OUR DISTRICTS TO ENCOURAGE THEM TO APPLY.

UM, AND I, I JUST WITH THE REVOLVING ONE, I I KIND OF CAUTION ESPECIALLY SOME OF THE SMALLER BUSINESSES WHO MAYBE MAY HAVE HAD SOME, SOME MISCONCEPTIONS ON THE CARES ACT AND HOW THAT ONE WORKED AND, YOU KNOW, BUSINESSES WERE GETTING MILLIONS OF DOLLARS THAT THEY FELT MAYBE DIDN'T NEED THAT MUCH MONEY.