* 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. [ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, APRIL 1, 2021 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 ] [00:00:10] SO ON. I'LL CALL THIS MEETING OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT TO ORDER. IT IS THURSDAY, APRIL 1ST. IT'S 4:32 PM WE ARE IN, UH, CITY HALL COUNCIL CHAMBERS. WE DO HAVE A QUORUM. UH, [1. MINUTES] WE HAVE FIRST ITEM IS OUR MINUTES APPROVAL OF THE MINUTES FROM THE MDD SPECIAL MEETING HELD ON MARCH 4TH, 2021. I'D ENTERTAIN A MOTION FOR APPROVAL. MOTION TO APPROVE ONE A SECOND. OKAY. ANY QUESTIONS, COMMENTS? ABSTENTIONS, IF NOT ALL THOSE IN FAVOR OF, UH, THE MINUTES AS WRITTEN, PLEASE SAY, AYE. AYE. AYE. ALL THOSE OPPOSED? AYE. OH, THANK YOU, LAURA. UH, [a. Consider a resolution authorizing the General Manager to pursue the possible restructuring of the MDD's bond issuance for the purpose of financing the City Facilities, including the Convention Center and related infrastructure, and to make a report of his findings.] ITEM TWO A, CONSIDER A RESOLUTION AUTHORIZED IN THE GENERAL MANAGER TO PURSUE THE POSSIBLE RESTRUCTURING OF THE MBDS BOND ISSUANCE FOR THE PURPOSE OF FINANCING THE CITY'S FACILITIES, INCLUDING THE CONVENTION CENTER AND RELATED INFRASTRUCTURE, AND TO MAKE A REPORT OF HIS FINDINGS. SO, MR. CITY MANAGER, THANK YOU. I, I WANNA MAKE SURE THAT WE ALSO HAVE, UH, MR. DAVID DAWSON AND CHRIS JANNING YES. UH, ONLINE AS WELL. YES. GREAT. THEY'LL BE, UH, PARTICIPATING IN THIS PRESENTATION, UH, MR. CHAIR AND MEMBERS OF THE BOARD. AS, AS WE BEGAN THE CONSTRUCT OF THE FINANCING STRUCTURE FOR BAYLEN ISLAND HOTEL AND CONVICTION CENTER, UH, WE DID SO IN AN ENVIRONMENT WHERE CERTIFICATES OF OBLIGATION REPRESENTED A LESS EXPENSIVE AND FRANKLY, MORE CONVENTIONAL WAY TO FINANCE THE CONVENTION CENTER PORTION OF THE PROJECT. IN OUR CURRENT ENVIRONMENT, THE COST DIFFERENTIAL BETWEEN CERTIFICATES OF OBLIGATION AND SALES TAX REVENUE BONDS HAS BECOME NEGLIGIBLE. THERE ARE MEANWHILE OTHER ADVANTAGES TO CONSIDER, AS WE RECOMMEND TO YOU THIS EVENING, THAT WE MIGRATE AWAY FROM CERTIFICATES OF OBLIGATION IN FAVOR OF SALES TAX REVENUE BONDS TO FUND OUR PORTION OF THE PROJECT. FIRST AND FOREMOST, IT IS AND EVER HAS BEEN OUR INTENT TO UTILIZE SALES TAX REVENUE TO SUPPORT THE DEBT SERVICE OF THIS FACILITY. THE MIGRATION TO SALES TAX REVENUE BONDS ALLOWS US TO MAKE AN UNEQUIVOCAL STATEMENT TO THIS REALITY. SECOND, OUR MIGRATION FROM COS TO SALES TAX REVENUE BONDS FOLLOWS A MORE CONVENTIONAL METHODOLOGY THAT FACILITATES BOTH THE RATING AND THE PLACEMENT OF OUR BONDS. TO SPEAK TO THE SPECIFIC STRUCTURE AND FINANCIAL ASPECTS OF WHAT WE'RE PROPOSING IS MR. CHRIS JANNING OF HILLTOP, AND TO SPEAK TO THE LEGAL ELEMENTS OF THIS CHANGE AND HOW THE ATTORNEY GENERAL VIEWS THIS INITIATIVE AS DAVID DAWSON FROM WINSTEAD FOLLOWING DAVID, UH, DAVID'S REMARKS. I WILL CONCLUDE. MR. JANNING. THANK YOU, RICK. THIS IS CHRIS JANNING WITH HILLTOP SECURITIES. UH, OF COURSE WE'RE, WE'RE YOUR FINANCIAL ADVISOR ON THIS TRANSACTION. AS, AS RICK SAID IN HIS OPENING REMARKS, UH, UH, YOU KNOW, WE, WE'VE BEEN WORKING WITH A, UH, WEEKLY WORKING GROUP, UH, ON MARKET UPDATES. AND, UH, EVERYBODY WAS VERY CONCERNED COMING OUT OF COVID. THE, THERE HADN'T BEEN HOTEL OCCUP OR HOTEL PROJECT REVENUE BONDS TRADED IN THE MARKET. THERE WAS A VERY LARGE TRANSACTION, UH, FOR, WITH A, WITH A HOTEL PROJECT COMING OUT OF GEORGIA. AND WE ALL WANTED TO SEE HOW IT WENT. AND THE BOTTOM LINE IS THE SALE WENT VERY WELL. AND, UH, WHAT'S MORE IS FROM NOVEMBER, YOU KNOW, ONCE WE GOT PAST THE PRESIDENTIAL ELECTION THROUGH DECEMBER AND INTO EX, EXCUSE ME, GOING INTO JANUARY, WE SAW INTEREST RATES COME DOWN SHARPLY TO ALL TIME HISTORIC LOWS. AND WHEN INTEREST RATES COMPRESS LIKE THAT, ANOTHER THING THAT HAPPENS IS THE CREDIT SPREAD. THE DIFFERENCE BETWEEN SAY, A DOUBLE A SECURITY LIKE YOUR COS AND AN A RATED SECURITY NARROWS AND GETS SHARPER. SO WHAT DOES THAT MEAN TO YOU ALL? WHEN WE STARTED THIS PROJECT AND WE STARTED WORKING WITH YOU ALL, WE HAD SAID THE DIFFERENCE BETWEEN WHO, UH, SALES TAX OR REVENUE BONDS THAT THE MDD COULD ISSUE VERSUS COS WITH A BACKSTOP, UH, OF, OF THE CITY TAXES. AND WE KNOW YOU ALL ARE VERY FAMILIAR WITH THAT. WE'VE NEVER HAD TO TAP THE TAX PLEDGE, BUT THERE IS THAT BACKSTOP AND THAT ALL WE, THE REASON WE DID THAT, WE ALWAYS HAD ESTIMATED THAT IT SAVED THE CITY SOMEWHERE AROUND 1% OR MORE IN CREDIT, UH, CHARGES ANNUALLY. SO THERE, THERE WAS A BIG INTEREST RATE SAVINGS. WELL, WHAT WE HAVE SEEN AND WHAT WE RAISED OUR HANDS, UH, TO MANAGEMENT IS, UH, WE SAW THOSE CREDIT SPREADS COME DOWN SHARPLY WITH, WITH THE DECREASE IN INTEREST RATES, UH, THROUGH THE WINTER AND GOING INTO THE BEGINNING OF THE YEAR. AND INDEED, EVEN THOUGH YOU'VE HEARD RATES ARE RISING, WE'RE STILL AT RELATIVE HISTORICAL LOWS AND THOSE CREDIT SPREADS, THERE'S NOT MUCH VOLUME OUT THERE. PEOPLE WHO BUY BONDS, FIXED INCOME INVESTMENTS ARE LOOKING [00:05:01] FOR ANY KIND OF YIELD. SO THESE CREDIT SPREADS HAVE STAYED VERY NARROW. SO WHAT THAT MEANT TO YOU ALL IS IF YOU WANTED TO STAY AND JUST USE THE MDD AND THE ONLY, THE MDD AS THE PROJECT SPONSOR, THE COST OF DOING SO, AND RIGHT NOW, BELIEVE IT OR NOT, IS LESS THAN ONE QUARTER OF 1% VERSUS USING THE COS. UH, SO THAT'S WHY, THAT'S WHY WE SAY THE COST HAS COME DOWN SIGNIFICANTLY. THE SECOND THING IN, AND, AND AGAIN, YOUR CITY MANAGER, UH, MENTIONED IT IN HIS OPEN REMARKS IS IT DOES MAKE, IT MAKES THE PROJECT LOOK MUCH MORE TRADITIONAL TO A MUNICIPAL HOTEL AND CONVENTION CENTER PROJECT. UH, BELIEVE IT OR NOT, EVEN IN WORKING WITH THE RATING AGENCIES, AGAIN, OUR MAIN DEBT IS THE HOTEL PROJECT DEBT, WHICH IS A STRUCTURED PROJECT RATING TEAM THAT'S A DIFFERENT RATING TEAM THAN DEALS WITH THE CITY ON ITS COS AND ON THE MDD OBLIGATIONS. AND WHILE OUR TEXAS, UH, GENERAL OBLIGATION RATING TEAM UNDERSTAND COS AND, AND THEY UNDERSTOOD THE FUNDING SOURCE AND WHAT WE WERE DOING AND WHY WE WERE HAVING TO EXPLAIN IT TO THE RATING ANALYST. AND, UH, YOU KNOW, WHEN, WHEN, UH, JOE MORROW AND MYSELF TALKED WITH THE, UH, UNDERWRITING TEAM AT CITI, UH, YOUR UNDERWRITER, WHO'S GONNA BE SELLING THESE FUNDS THAT THEY AGREED WITH US, YOU KNOW, YEAH, THAT'S GONNA BE AN ISSUE OR COULD BE AN ISSUE ALSO MAKING THESE, UH, POTENTIAL INVESTORS UNDERSTAND THAT. SO IT TAKES THAT COMPLEXITY AWAY AND, AND THAT'S WHY, UH, WE SAY IT'S GOTTEN CHEAPER AND IT CERTAINLY WILL BE A, A, A MUCH MORE TRADITIONAL AND EASIER TO UNDERSTAND, UH, IF YOU WILL, A MORE MARKETABLE WE BELIEVE ISSUE. ALSO, UH, THE ONE THING I WOULD SAY AS ADVISOR, UH, AND, AND WE'RE GONNA LET DAVID TALK ABOUT IT ON, ON THE LEGALITY, IS THOUGH IT DOES SLIGHTLY CHANGE THE PLEDGE, WHAT WHAT WE'RE GOING TO NEED TO DO TO SELL THESE, UH, SALES TAX REVENUE BONDS BY THE MDD, IS WE NEED TO PLEDGE THE SALES TAX. SO AGAIN, UH, IN ORDER TO PROTECT THE CITY, WHEN WE WERE USING CO STRUCTURE, WE HAD DEMANDED THAT THE SUPPLEMENTAL, UH, MINOR RES, UH, LONG-TERM RESERVES ON THE HOTEL PROJECT BE SUBORDINATE TO ANY CONTRIBUTION CALLED FOR FROM, UH, THE, THE MDD ON THE SALES TAX BACKSTOPPING. ITS, UH, SEA BONDS, UH, THAT WHAT WE'RE GOING TO DO IS TRADITIONALLY WHEN YOU SEE THESE PROJECTS, THE DEBT IS STRUCTURED WHERE THE HOTEL, ALL OF THOSE HOTEL FUNDS, THAT WATERFALL OF THE HOTEL REVENUES WILL BE FILLED FIRST. THE, THE C BONDS, UH, WILL HAVE, WILL THEN HAVE ANY SURPLUS REVENUE RELEASED, UH, FROM THE HOTEL PROJECT AND THE SALES TAX, AND WILL MAKE IT CLEAR TO THE INVESTOR THEY'RE GETTING THE FULL SALES TAX PLEDGE OF THE MDD. SO THERE IS A SLIGHT CHANGE, UH, IN THAT WE WILL BE MAKING TO THE, UH, PROPOSED BOND ORDINANCE. OKAY. ANY QUESTIONS? WANNA MAKE SURE EVERYBODY HERE, MDD UNDERSTANDS KIND OF THE, THE DYNAMICS OF A DIFFERENT FINANCIAL MODEL, I GUESS, UM, VEHICLE FOR, FOR THIS FROM COS TO THE, UH, SALES TAX REVENUE BONDS. ALRIGHT. I GUESS, MR. DAWSON, IS THERE ANY LEGAL ASPECTS THAT YOU WANT TO ADD TO THAT? SURE. CAN EVERYONE HEAR ME OKAY? YES. UH, THE, THE ONE THING I WANTED TO MAKE SURE OF ON BEHALF OF THE MDD AND THE CITY IS THAT THE OFFICE OF THE ATTORNEY GENERAL PUBLIC FINANCE DIVISION WAS COMFORTABLE WITH THE MDD ISSUING ADDITIONAL, UH, SALES TAX BONDS TO FINANCE THE CONSTRUCTION OF THE CITY FACILITIES, THE CONVENTION CENTER, AND THE OTHER INFRASTRUCTURE. UM, AND, UH, YOU KNOW, THERE HAVEN'T BEEN MANY, UH, IN, IN, IN FACT, THIS MAY BE THE FIRST TIME THAT, UH, A MUNICIPAL DEVELOPMENT DISTRICT HAS USED THEIR SALES TAX BOND AUTHORITY TO FINANCE, UH, A HOTEL IN RELATED, UH, FACILITIES. UH, THE STATUTE CLEARLY PROVIDES AUTHORITY TO DO THAT. SO WHAT WE'RE DOING IS NOT, UH, OUT OF GUARD IN, IN ANY WAY. UH, BUT WE JUST WANTED TO HAVE AN OPPORTUNITY TO HAVE A CONVERSATION WITH THE PUBLIC FINANCE DIVISION, MAKE SURE THEY WERE COMFORTABLE WITH WHAT WE WERE DOING. UH, THEY PREVIOUSLY HAD ABSOLUTELY APPROVED, UH, IN, IN THEORY, UM, AND BASED ON OUR DESCRIPTIONS OF THE TRANSACTION, WHAT THE MDD WAS ALREADY GOING TO DO WITH RESPECT [00:10:01] TO THE HOTEL. SO WE FOLLOWED UP WITH THEM EARLIER THIS WEEK ON TUESDAY TO MAKE SURE THEY WERE COMFORTABLE, UH, WITH THIS, UH, UH, ENHANCED STRUCTURE, AND THEY WERE FINE WITH IT. UH, WHAT'LL HAPPEN FROM A PRACTICAL PERSPECTIVE HERE IS THAT THE MVD WILL CONSTRUCT THE, THE CONVENTION CENTER AND THE RELATED CITY FACILITIES, UM, AND THEN WE WILL CREATE A CONDOMINIUM REGIME, UH, WHERE, UH, BECAUSE, YOU KNOW, THE, THE PROJECT IS ALL INTEGRATED INTO ONE, BUT THE TAX LAW IN TEXAS REQUIRES THAT THE CITY RETAIN OWNERSHIP, UH, OF THE CONVENTION CENTER PORTION OF THE PROJECT. UH, THAT'S JUST A, A CORK OF THE TAX LAW. UH, THE CITY DOES NOT HAVE TO RETAIN OWNERSHIP OR BE ASSOCIATED ANY WAY WITH OWNERSHIP OF THE ACTUAL HOTEL PORTION OF THE PROJECT. THE IMPROVEMENTS, UH, THEY DO, THEY DO HAVE TO OWN THE LAND FOR BOTH. AND, UM, AS YOU MAY RECALL, WILL BE LEASING THE LAND TO THE MDD UNDER A LONG-TERM GROUND LEASE. SO WHAT WE'LL DO IS HAVE THE MDD CONSTRUCT EVERYTHING ALTOGETHER. UM, AND THEN ONCE WE'RE COMPLETED WITH CONSTRUCTION, UH, WE'LL USE A CONDOMINIUM REGIME TO SPLIT THE ASSET INTO TWO PIECES, THE HOTEL PORTION AND THEN THE, UH, THE CONVENTION CENTER PORTION. AND THE ONLY REASON WE'RE REALLY DOING THAT IS SO THEN WE CAN GIVE THE CONVENTION CENTER PORTION BACK TO THE CITY, UH, SO WE CAN MEET THIS OWNERSHIP REQUIREMENT THAT IS REQUIRED UNDER THE TAX LAW. OF COURSE, THE CITY IS NOT INTENDING TO OPERATE IT. THEY WILL THEN IMMEDIATELY TURN AROUND AND, UH, PROVIDE AN OPERATING LEASE OF THE COMMENCEMENT CENTER BACK TO THE MDD. SO D DECONSTRUCTS DEEDS IT TO THE CITY, CITY, THEN TURNS AROUND, SENDS IT BACK TO THE MDD, UH, FOR OPERATION PURPOSES. UM, AND, UH, THE ATTORNEY GENERAL IS, IS FINE WITH THAT. UH, THERE ARE, THERE, THERE ARE SOME FINDINGS THAT THEY WANT US TO INCLUDE IN THE DOCUMENTATION THAT, UH, UH, THAT THE CONVENTION CENTER PROJECT IS BENEFICIAL TO THE DISTRICT. UM, AND, UH, YOU KNOW, WE DON'T SEE ANY ISSUES WITH THAT. THE OTHER THING THEY WANTED TO MAKE SURE IS THAT, UH, THE MDD HAD SUFFICIENT, UH, SALES TAX, UH, UH, PROJECTIONS THAT IT COULD SUPPORT THE DEBT. THAT'S ADDITIONAL DEBT THAT'S BEING ISSUED. AND OF COURSE, MR. JONES IS SPEAKING TO THAT, AND THAT'S NOT, UH, THAT'S NOT AN ISSUE. UH, I WOULD, UH, UH, REITERATE WHAT MR. JONES, UM, IN YOUR CITY MANAGER HAS SAID. FROM A LAWYER'S PERSPECTIVE, THIS IS SIMPLER. UM, ANYTIME AS A LAWYER, I DON'T HAVE TO DEAL WITH TWO SEPARATE SETS OF LEGAL DOCUMENTS AND FINANCING DOCUMENTS. IT'S JUST EASIER. I CAN TAKE EVERYTHING, WE CAN PUT IT INTO ONE INDENTURE, UH, AND, UH, IT'S JUST SIMPLER. UM, SO THAT'S, THAT'S A GOOD THING. OKAY. HAPPY TO ANSWER ANY QUESTIONS. ALRIGHT, LET ME FIRST, FOR THE FOLKS THAT ARE LINE, I HAVE MS. ALVARADO AND MR. ENGLER DOES ANY QUESTIONS OR COMMENTS? EITHER ONE OF YOU. THANK YOU, MAYOR. I HAVE NO QUESTIONS OR COMMENTS. ALRIGHT, THANK YOU, GARY. OKAY. HOW ABOUT, UM, ANYBODY UP HERE HAVE ANY QUESTIONS OR COMMENTS, LEGAL OR, UH, FINANCE RELATED? I DON'T HAVE ANY QUESTIONS, BUT I'M CURIOUS IF ANYBODY HAS ANY CONCERNS ABOUT THE SWITCH AND EVERYBODY FEELS OKAY ABOUT IT. I MEAN, IT SOUNDS GOOD SO FAR. I, I DON'T, I DON'T HAVE ANY ISSUES, BUT I'M JUST CURIOUS IF THERE'S SOMETHING I'M OVERLOOKING OR CHRIS, YOU OKAY WITH IT? YES, IT SOUNDS OKAY TO ME SO FAR IT SOUNDS FROM A LEGAL STANDPOINT, IT'S CLEANER. OKAY. UM, UM, THE, I GUESS YOU'D SAY THE INTEREST RATES ARE BASICALLY CAME TO AN EQUAL YEAH. POINT MAYBE WHEN THEY WEREN'T THERE LAST YEAR. UM, SO IT JUST, IT MAKES THE WHOLE PROJECT A LITTLE BIT EASIER TO, TO MANAGE FROM A FINANCIAL STANDPOINT. OKAY. SO, OKAY. ANYBODY ELSE? IF NOT, THEN WE'LL MOVE FORWARD. NOTHING, UH, ANYTHING ELSE FROM YOU, MR. GENERAL MANAGER? YES, I, I, JUST A COUPLE OF CONCLUDING REMARKS FOR YOU. OKAY. AND THEN I'LL LEAVE THE ISSUE IN YOUR HANDS. WE ACTUALLY RECEIVED WORD FROM THE AG VERY RECENTLY, UH, MUCH PAST THE ACTUAL POSTING OF THIS MEETING. THEREFORE, THE RESOLUTION THAT YOU HAVE BEFORE YOU, IF YOU CONCUR, AUTHORIZES ME TO PURSUE THE POSSIBLE RESTRUCTURING OF THE MD'S PROPOSED BOND ISSUANCE TO INCLUDE THE FINANCING OF THE CITY FACILITIES AND RELATED INFRASTRUCTURE, AND TO PREPARE A REPORT ON THE POSSIBLE MIGRATION AWAY FROM CERTIFICATES OF OBLIGATION IN FAVOR OF SALES TAX REVENUE BONDS. THIS REPORT WILL TAKE THE FORM OF TWO SEPARATE INITIATIVES, ACTUALLY ONE FOR THE CITY COUNCIL AND ONE FOR THE MDD. WE HAVE TENTATIVELY SLATED A RESCINDING OF THE NOTICE OF INTENT ASSOCIATED [00:15:01] WITH THE COS FOR APRIL THE EIGHTH COUNCIL MEETING. THE COUNCIL WILL NEED TO MAKE THAT DETERMINATION, A SEPARATE INITIATIVE TO ISSUE THE SALES TAX REVENUE BONDS WILL THEN BE BROUGHT TO MDD AND MR. CHAIR AND MEMBERS OF THE BOARD. THAT'S ALL I HAVE FOR YOU TODAY. OKAY. WITH THAT SAID, I GUESS I WOULD ENTERTAIN A MOTION FOR ITEM TWO A. IT'S PRESENTED MOTION TO APPROVE ITEM TWO, TWO A SECOND. OKAY. WE HAVE MOTION TO SECOND ANY ADDITIONAL QUESTIONS OR COMMENTS? IF NOT, ALL THOSE IN FAVOR OF ITEM TWO A, PLEASE SAY AYE. AYE. AYE. ALL THOSE OPPOSED? AYE. OKAY. [b. Consider a resolution approving the guidelines for the Baytown Revolving Loan Fund.] WE HAVE ITEM TWO B, CONSIDER RESOLUTION APPROVING THE GUIDELINES FOR THE BAYTOWN REVOLVING LOAN FUND. MR. AL, GOOD AFTERNOON BOARD. THANK YOU VERY MUCH, CHAIR. UH, WE'RE PRESENTING TO YOU THIS, THIS AFTERNOON, THE APPROVAL OF THE TWO PROGRAMS THAT WE PRESENTED ABOUT 60 DAYS AGO TO YOU, THE BUSINESS APPROVAL GRANT AND THE REVOLVING LOAN FUND. WE DID ALTER THE PROGRAMS BASED ON THE COMMENTS THAT WE HAD, UH, THAT WERE PROVIDED BY YOU, UH, INCLUDING, UH, INCREASING THE AMOUNT OF THE BUSINESS IMPROVEMENT GRANT FROM 10,000 TO 20,000, ALLOWING SOME INSIDE STRUCTURAL AND CODE RELATED ITEMS TO BE TAKEN CARE OF AS WELL, AS OPPOSED TO JUST, UH, EVERYTHING ON THE EXTERNAL PART. AND ON THE REVOLVING LOAN SIDE, UH, OUR GOAL RIGHT NOW IS ONLY TO ROLL OUT THE MICROLOAN PROGRAM TO HELP BUSINESSES GET STARTED OR HELP SOME OF THOSE THAT ARE ALREADY IN OPERATION TO BE ABLE TO, UM, HAVE SOME FINANCING TO TAKE CARE OF ADDITIONAL NEEDS, BUY ADDITIONAL PRODUCT, ET CETERA, UH, AND HELP THEIR BUSINESS TO MOVE FORWARD. SO THE, THAT'S WHERE WE'RE AT. THERE WERE TWO JUST VERY MINOR CHANGES TO EACH PROGRAM AND WE CERTAINLY, UH, RECOMMEND YOUR APPROVAL. WELL, REMIND ME, WHAT IS THE FUND THE FUNDING AMOUNT FOR ITEM TWO B? JUST, I KNOW THAT WAS SOME DISCUSSION LAST, I WANNA MAKE SURE WE'RE CLEAR. I I ALWAYS GET 'EM CONFUSED. WAS IT ONE WAS 50, ONE WAS A HUNDRED, NICK? WELL, WE HAVE $150,000 TOTAL FOR THE TWO PROGRAMS. OKAY. SO THE, THE COMMENTS LAST TIME IN THE BUDGET, WE HAD $50,000 FOR THE BUSINESS IMPROVEMENT GRANT AND $100,000 FOR THE REVOLVING LOAN FUND. OKAY. THE COMMENTS LAST TIME WERE THAT Y'ALL WANTED TO SWITCH THOSE, SO WANTED TO GET THESE GUIDELINES IN PLACE. IF THAT'S STILL THE INTENTION, THEN WE CAN BRING BACK A BUDGET AMENDMENT NEXT TIME. BUT, UM, WE WERE PROCEEDING FORWARD WITH THAT INTENTION THAT WE WOULD USE 100,000 FROM MDD FOR THE BUSINESS IMPROVEMENT GRANT. OKAY. AND, WE'LL, WE'LL SEE HOW IT GOES THIS YEAR. WE'RE WORKING ON THE BUDGET FOR NEXT FISCAL YEAR, SO IF THERE'S A LOT OF INTEREST, THEN WE MAY INCREASE THAT. WELL, LET'S GET SOMETHING GOING. I THINK THAT'S THE POINT FOR THIS YEAR TO GET SOMETHING INITIATED. CORRECT? ABSOLUTELY. YEAH. DO WE HAVE, I I'M MY UNDERSTANDING, SO YOU STARTED, UM, I GUESS AN APPLICATION TYPE PROCESS INTERNALLY. I'VE HAD CONVERSATIONS WITH A COUPLE OF BUSINESSES THAT ARE VERY INTERESTED IN, IN BEING A PART OF, UM, BOTH PROGRAMS. OKAY. WE ACTUALLY HAVEN'T BEEN ABLE TO START ANYTHING YET BECAUSE WE DON'T OFFICIALLY HAVE THE PROGRAMS. OKAY. WE'LL DO WHAT WE NEED TO DO THEN. ALRIGHT. SO WE HAVE ITEM TWO, BE ABLE TO ENTERTAIN A MOTION FOR TO BE AS WRITTEN. SECOND, A MOTION TO SECOND. ANY QUESTIONS OR COMMENTS? QUESTION? YES. HOW IS THIS GOING TO BE BROUGHT ABOUT TO ALLOW BUSINESS OWNERS TO KNOW THAT THIS IS NEW, TO BE AVAILABLE? UM, A A LOT OF, UH, STREET MARKETING. I'M GONNA HAVE TO GET OUT TO SOME OF THE BUSINESSES THAT HAVE ALREADY CHATTED WITH AND, AND CERTAINLY IF YOU GUYS HAVE ANY THAT YOU RECOMMEND, UM, IF YOU'VE SEEN ANYTHING, PLEASE BRING THEM TO MY ATTENTION OR GIVE THEM MY NAME AND NUMBER AND WE'LL GET OUT AND START MARKETING THAT. WOULD IT BE POSSIBLE TO HAVE SOMETHING ON THE CITY'S WEBSITE UNDER A TAB WHERE PEOPLE THEY WANT TO SEARCH COME ACROSS IT? ABSOLUTELY, SIR. IN FACT, WHAT WE'RE DOING RIGHT NOW IS WE'RE WORKING ON AN ACTUAL ECONOMIC DEVELOPMENT PAGE FOR THE CITY BECAUSE WE HAVE NO REPRESENTATION FOR ECONOMIC DEVELOPMENT ON THE CITY'S WEBSITE AT ALL. SO WITH THESE PROGRAMS APPROVED, WHEN WE CAN CREATE THAT PAGE, THEN WE'LL HAVE THAT INFORMATION PUT ON THERE. SOCIAL MEDIA WILL BE USED ALSO. YES, SIR. GOOD DEAL. ALRIGHT, SO WE HAVE MAYOR, I HAVE A QUESTION. YES. UM, SO THE BUSINESS IMPROVEMENT, UH, MONIES THAT YOU'RE MENTIONING, UH, NICK, IS THAT FROM THE FACADE PROGRAM OR IS THAT SOMETHING SEPARATE? BECAUSE I KNOW WE HAD DISCUSSIONS ABOUT THE FACADE PROGRAM MONEY. NO, THIS IS ALL FUNDING FROM MDD. OKAY. SO THE FACADE PROGRAM IS STILL SEPARATE. CORRECT. THERE IS, WE, WE DID THE RESEARCH TO VERIFY THIS. THERE IS NO FUNDING REMAINING FOR THE FACADE PROGRAM. SO, SO WOULD IT BE FAIR TO SAY THE FACADE PROGRAM IS NO LONGER IN EFFECT AT THIS POINT WITH THERE, WITH THERE BEING NO FUNDING AND THE BUSINESS IMPROVEMENT GRANT DOING THE EXACT SAME THING. RIGHT. BUT BEING CORRECT. UH, BETTER IT'S NEGATED BY THIS. I MEAN IT'S, YEAH, THIS IS THE TOOL THAT WE USE MOVING FORWARD. YEAH. OKAY. IS THAT YOUR MAIN QUESTION? THANK YOU. THAT'S ALL, ROBERT. THANK YOU. ANYONE ELSE? UH, MR. ENGLER? ALRIGHT. SO THERE'S A MOTION ON THE TABLE FOR ITEM TWO B. ANY IF THERE'S NOT ANY ADDITIONAL [00:20:01] QUESTIONS, COMMENTS? ALL THOSE IN FAVOR OF ITEM TWO B AS PRESENTED, PLEASE SAY AYE. AYE. AYE. THOSE OPPOSED. AYE. THANK YOU. [c. Consider a resolution approving the guidelines for the Business Improvement Grant Program.] WE HAVE ITEM TWO C, WHICH IS CONSIDERED A RESOLUTION APPROVED IN THE GUIDELINES FOR THE BUSINESS IMPROVEMENT GRANT PROGRAM, WHICH I THINK WE PRETTY MUCH JUST DISCUSSED, BUT IF THERE'S ANY QUESTIONS WE HAVE NOT, I WOULD ENTERTAIN A MOTION FOR ITEM TWO C AS PRESENTED. MOTION TO APPROVE ITEM TWO C, SECOND SECOND. WE HAVE A MOTION TO SECOND ANY ADDITIONAL QUESTIONS? COMMENTS? YEAH, JUST A COMMENT, MAYOR. OKAY. SO I KNOW THAT SINCE COUNCILWOMAN ALVARADO ACTUALLY TALKED ABOUT DURING THE LAST COUNCIL MEETING ABOUT THE STRATEGIES AND THAT WE, WE NEED TO EMPLOY IN OUR OLDER AREAS AND THINGS LIKE THAT. AND, YOU KNOW, THIS IS REALLY ANOTHER STRATEGY. YOU KNOW, WE CONTINUE TO MAKE SIGNIFICANT INVESTMENTS IN PUBLIC INFRASTRUCTURE, NOT ONLY IN OLD DOWNTOWN, BUT NOW MARKET STREET REVITALIZATION. WE'VE GOT A BAYWAY PLAN GOING. WE HOPE TO DO SOME THINGS OVER ON ALEXANDER. OF COURSE, WE JUST DISCUSSED THE $70 MILLION HOTEL CONFERENCE CENTER IN AN OLDER PART OF TOWN. AND OF COURSE WE HAVE THE, THE REDEVELOPMENT INCENTIVE ZONE, WHICH THESE PROGRAMS KIND OF MARRY INTO THAT VERY WELL ACTUALLY. SO IT, IT JUST, IN, IN MY OPINION, IT SEEMS LIKE WE'RE DOING A HECK OF A LOT AS FAR AS STRATEGIES GO IN THE OLDER AREAS IN PARTICULAR. AND WE JUST NEED TO, TO KEEP ON GOING. YES. ALRIGHT. THANK YOU FOR YOUR COMMENTS, MAYOR. YES. COMMENT. AND I'M GONNA TAG ON WITH, UH, I KNOW IF IT'S COUNCILPERSON OR CHAIR OR OR DIRECTOR. OR DIRECTOR, YES. UH, HAD INDICATED, UH, CHARLES JOHNSON, UH, YOU KNOW, WE NEED TO REALLY PUSH THIS OUT ON THE SOCIAL MEDIA SIDE. MM-HMM . UM, THERE'S A LOT OF SMALL BUSINESSES OUT THERE THAT CAN REALLY USE A LITTLE BIT OF THIS TO, TO DO SOME IMPROVEMENTS, MAYBE IMPROVE THE SIDE OR, YEAH. FOR SOME, UH, PARKING LOTS OR JUST SOME INTERNAL ISSUES WHERE THEY'VE GOTTEN A LITTLE CROSS WITH, UH, BUILDING SERVICES COMING UP TO CODE. UH, THIS IS A TREMENDOUS STEP FORWARD FOR 'EM. SO WE, WE NEED TO REALLY REACH OUT AND HOLD THEIR HANDS. YES, SIR. YEAH, AND I, I AGREE WITH THAT. JUST NOT TO BELABOR IT, MAYOR, BUT JUST WE, WE, WE REALLY NEED TO MARKET THIS TO THE MASSES AND, AND NOT, YOU KNOW, JUST WALKING THE STREET TALKING TO PEOPLE IS FINE, BUT THERE'S ONLY, YOU KNOW, THAT'S A VERY LIMITED RESOURCE THERE. WE REALLY NEED TO GET THIS OUT THERE. A GOOD PROBLEM TO HAVE IS THAT LOCK, STOCK AND BARREL DEMAND EXCEEDS THE SUPPLY. ABSOLUTELY. UH, I THINK, UH, WE REALLY DO WANT TO, UH, STOKE, ENCOURAGE OR, UH, ENTHUSIASM FOR THIS PROGRAM. YES SIR. YEAH. THE ONLY, THE ONLY THING I WOULD CAUTION ON MASS MARKETING IMMEDIATELY IS FUND OUR, OUR DIRECT MARKETING WILL BE IN THE OLDER AREAS. THE ONLY RISK YOU HAVE OF MASS MARKETING IS YEAH, WE COULD GET IT FROM REALLY ANYWHERE IN THE CITY. THAT'S NOT A BAD THING, BUT WE KNOW THERE'S SOME FOCUS AREAS. SO YEAH, I THINK, I THINK WE NEED TO DO BOTH. UM, BUT I KNOW WHEN WE HIT THE STREETS IT'S GONNA BE FOCUSED ON TEXAS AVENUE, ALEXANDER, AND YEAH, THAT'S A GOOD POINT. I WANNA MAKE SURE WE HIT THOSE FIRST. 'CAUSE THOSE REALLY ARE KEY FOCUS AREAS. SO THAT'S A GOOD POINT. SO POINT TEXAS AVENUE, ALEXANDER AND BAYWAY. YEAH. ALL, ALL THE AREAS. CHARLES'S IN HERE. BAYWAY. SO YOU BETTER SAY BAYWAY. YEAH. AND MARKET. AND MARKET MARKET. YEAH. THE AREAS THAT COUNCIL MEMBER PRESLEY MENTIONED AND MEANS BAYWAY WAS THE LAST ON THAT LIST, BUT, BUT THEY DID SAY BAYWAY. ALRIGHT. . OKAY, MAYOR, I HAVE A QUICK QUESTION. YES MA'AM. UM, SO DURING THE RETREAT WE DECIDED TO, THAT WE WANTED TO ALLOCATE ADDITIONAL FUNDS TO THE NEIGHBORHOOD EMPOWERMENT OR THE NEIGHBORHOOD EMPOWERMENT GRANT. SO WILL THERE BE THE SAME OPPORTUNITY WHERE IF WE SEE THIS IS GOING REALLY WELL AND THE DEMAND IS HIGH, BE ABLE TO ALLOCATE ADDITIONAL FUNDING TO THIS PARTICULAR LOAN PROGRAM? MS. ALVARADO? I BELIEVE, I THINK I CAN ANSWER THAT. I WOULD SAY WE NEED TO RUN, WE NEED TO WALK BEFORE WE RUN. I THINK WE'RE TRYING TO SET UP THE, THE STRUCTURE FOR THIS PROGRAM. SO LET'S, LET'S GET THAT GOING FIRST. BUT I WOULD AGREE IF IT'S SUCCESSFUL IF WE DEPLETE THESE FUNDS A LOT QUICKER THAN WE, UH, ANTICIPATE THEN I'M ASSUMING ADDITIONAL FUNDING ACROSS THE BOARD WOULD BE ADEQUATE AND OBVIOUSLY SUPPORTED. OKAY. ABSOLUTELY. YEP. THAT MAKE SENSE. GREAT, THANK YOU. ALRIGHT, THANK YOU MA'AM. ALRIGHT, SO WE DO HAVE A MOTION, UH, FOR ITEM TWO C, UH, TO ENTER AT THIS POINT. ALL THOSE IN FAVOR, PLEASE SAY AYE A THOSE OPPOSED AYE. THANK YOU MA'AM. [3. MANAGER'S REPORT] UH, WE HAVE ITEM THREE A, WHICH IS CITY THE MANAGER'S REPORT. WELL I HAVE AN EXTENSIVE REPORT FOR YOU TONIGHT. UM, NO I DON'T, BUT UH, IT WILL, UH, NORMALLY WE'D, UH, LOOK TO MEET AGAIN ON MAY THE SIXTH. HOWEVER, IT IS VERY, VERY LIKELY THAT, UH, WE WILL NEED TO MOVE, UH, QUICKER THAN THAT. SO JUST BE PREPARED, UH, FOR AN A, UM, AN ODDLY TIME MEETING. UH, BUT IF THAT DOESN'T HAPPEN, IT WILL BE MAY 6TH, FOUR 30 RIGHT HERE. BUT WE'LL LET YOU KNOW IN PLENTY OF TIME IF WE NEED TO CALL A SPECIAL MEETING. OKAY? ALRIGHT. THANK YOU SIR. SO, BEING THAT THIS MDD BOARD HAS ADDRESSED ALL POST AGENDA ITEMS IS MEETING IS NOW ADJOURNED. * 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.