Aug 03, 2021 BAYTOWN REDEVELOPMENT &amp; TAX INCREMENT REINVESTMENT ZONE NO 1

ALL THOSE OPPOSED LIKE SIGNED.

ALRIGHT.

MOVING ON TO ITEM

[a. Consider the Assignment of a Subdeveloper Agreement by and between Hercules-Bay, Ltd., Mambo Seafood #11, Inc., and Reinvestment Zone Number One, City of Baytown and the Baytown Redevelopment Authority.]

TWO A.

WE'LL CONSIDER A REDEVELOPMENT AGREEMENT BETWEEN HERCULES BAY AND REINVESTMENT ZONE NUMBER ONE AND BAYTOWN REDEVELOPMENT AUTHORITY.

MR. POLICY? MR. CHAIRMAN? OH, GO AHEAD NATHAN.

YOU WANNA DO IT OR NO? GO FOR IT.

I DIDN'T KNOW WHO'S GOING.

ALL.

MR. CHAIRMAN, MEMBERS OF BOARD, YOU HAVE BEFORE YOU AN ASSIGNMENT OF A SUB DEVELOPER AGREEMENT.

JUST TO REMIND EVERYBODY THAT'S BEEN ON THE BOARD FOR A WHILE.

THE ANCIENT ONES LIKE MIKE AND THE NEW ONES, UH, WHO ARE HERE, UH, THERE WAS A DEVELOPMENT AGREEMENT WITH THE, UM, GULF EQUITIES.

WITHIN THAT AGREEMENT WE HAD SUB AGREEMENTS.

AND ABOUT 2018 OR 19, I DON'T REMEMBER WHAT'S ON THAT DATE, I DON'T HAVE THE DOCUMENT IN FRONT OF ME.

THERE WAS A, A SUB AGREEMENT SIGNED WITH MAMBOS.

UH, WHAT YOU HAVE BEFORE YOU TODAY IS AN ASSIGNMENT OF THAT AGREEMENT TO THIS OTHER ORGANIZATION WHO ACTUALLY PURCHASED THE PROPERTY FROM GULF EQUITIES AND, AND, UH, FROM GULF EQUITIES.

AND THEIR DEAL WITH MAMBOS WAS THAT THEY GOT, 'CAUSE THEY WORKED OUT LAND DEAL ON THE COST THAT, THAT, THAT MIKE BAKER RECEIVES THE TS INCREMENT REVENUE, NOT MAMBOS.

SO THIS IS AN ASSIGNMENT BY MAMBOS TO MR. BAKER OF THE SUBJECT BELT AGREEMENT THAT THIS BOARD APPROVED SEVERAL YEARS AGO.

THAT'S BASICALLY IT.

TIM AUSTIN, YOUR ATTORNEY HAS REVIEWED IT AND HE SAYS IT'S IN PERFECT WORK.

ALRIGHT.

SO THIS IS JUST APPROVING, WE'RE JUST PUTTING OUR, THIS IS JUST APPROVING THE, SIGNING THE SUB DEVELOPER AGREEMENT FROM, UH, MAMBOS TO HERCULES BAY, WHICH IS MIKE BAKER.

SO IS IT, WOULD IT BE FAIR TO SAY THERE WAS MONETARY EXCHANGE FOR BETWEEN THEM FOR THIS? I, I, I WOULD THINK SO.

THAT THIS HAPPENS QUITE OFTEN.

UH, WHERE THEY WOULD, THEY MAY SELL THE LAND AT A CHEAPER PRICE OR PUT THEM ON IN A CHEAPER PRICE OR DO SOMETHING WITH THE LEASE.

AND THEN, AND THEN MR. BAKER, UH, WOULD RETAIN THE, UH, UH, AND THIS WAS FOR A DETENTION FACILITY IS WHAT THIS WAS FOR.

ALL RIGHT.

WE HAVE A ITEM FORCE HERE TO PROVE I MOVE THAT WE APPROVE.

ALL RIGHT.

WE HAVE A MOTION.

SECOND.

AND WHO IS THE SECOND? MR. WILSON.

MIKE.

WAS THAT BRENDA THAT MADE THE MOTION? YES.

THAT BRENDA MADE THE MOTION.

ALRIGHT, ANY, ANY COMMENTS, QUESTIONS, FURTHER DISCUSSION ON THIS MATTER? ALL THOSE, ALL THOSE IN FAVOR, LET SAY AYE.

TWO B, CONSIDERED INVEST INCREMENT REPORT REGARDING REPAYMENTS OWED BY HER BANK.

ALL THOSE OPPOSED LIKE SIGN WE HAD, UH, I HAVE A OSCAR.

SO, ALRIGHT, MOVING ON TO ITEM

[b. Consider the Increment Report regarding payments owed to Hercules-Bay, Ltd.]

SO, UH, YES SIR.

THERE'S TWO DOCUMENTS BEFORE YOU.

ONE HAS, IF, IF YOU, IF YOU GOT A COLOR VERSION, IT HAS HERCULES BAY MAMBO SEAFOOD NUMBER 11.

AND IT'S A, UM, SHOWS THAT THERE'S $83,019 AND 30 CENTS SPENT, UH, DOING THE DETENTION SAFETY.

IT WAS REALLY A, A VERY SIMPLE, STRAIGHTFORWARD INFRASTRUCTURE DEAL, UH, WORKING WITH THE CITY AND WITH THE AUDITORS.

UH, THEY BOTH, EVERYBODY AGREED THERE WAS NO POINT SPENDING A BUNCH OF MONEY ON AGREED UPON PROCEDURE REPORT WHEN, UH, AND, AND THE AUDITOR DID REVIEW, HAS ALL THE DOCUMENTATION, PUT THE, PUT THIS, UH, DOCUMENT TOGETHER.

UH, BUT HE DIDN'T, HE, HE, UH, HAD PITY ON US AND DID NOT CHARGE US SEVERAL

[00:05:01]

THOUSAND DOLLARS TO PUT UP A, TO, TO PUT TOGETHER A STANDARD AGREED UPON PROCEDURE REPORT.

UH, BUT HE DID REVIEW ALL IT ALL.

AND, UM, SO THIS IS, IT COST $83,019 AND 30 CENTS.

SO YOU GO TO THE NEXT PAGE, IT SHOWS YOU THAT BASED ON SINCE 2016 WHEN THEY STARTED CONSTRUCTION, UH, IN THE VALUE OF INCREASE AND ONLY THE CITY VALUES BEING CONSIDERED HERE BECAUSE ALL THE COUNTY VALUE GOES TO OTHER PROJECTS THAT IS NOT THIS.

AND SO UP TO UP THROUGH TAX YEAR 2020, UH, THEY HAVE ACCUMULATED FROM THE BASE YEAR, WHICH DIDN'T, WHICH BASE, WHICH WAS THE AG, AG VALUE, DIDN'T HAVE ANY REALLY, UH, DISCERNIBLE VALUE TO IT.

A REVENUE OF 76411.41.

NOW I JUST WANNA POINT OUT ONE THING, UH, IN THE, UH, SO THAT LEAVES 'EM 6,000 6 0 7 0.89 OF BEING SHORT, BEING PAID BACK FULLY.

NOW WHAT'S GOING TO HAPPEN IS THE TAX BILLS WILL GO OUT IN NOVEMBER, OCTOBER, NOVEMBER.

THEY'LL PAY THEIR TAXES AND THEN THE, UH, REVENUE WILL BE AVAILABLE FOR THE 6,000 6 0 7 0.89 ABOUT THIS TIME NEXT YEAR, YOU, AT YOUR OPTIONS IS COULD GO AHEAD AND DECIDE TO PAY THEM THE FULL $83,019 AND 30 CENTS KNOWING THAT THAT BUILDING IS SITTING THERE ON JANUARY 1ST, 2021 IS FULLY VALUED AND THERE'S NO CHANCE THAT YOU'RE NOT GOING TO HAVE THE, THE $6,000, BUT YOU CAN EITHER DO THAT OR YOU CAN JUST PAY THE, THE 76 4 11 0.41 AND WAIT TILL THIS TIME NEXT YEAR AND PAY THEM.

THE 6,000 6 0 7 89 IS YOUR CHOICE.

IS THERE ANY BENEFITS TO WAITING TO, I DON'T SEE THAT THERE'S ANY NO, THERE'S, THERE'S NO BENEFIT.

THERE'S NO INTEREST ACCRUING JUST YOU WANNA PAY IT OFF OR DO YOU WANT, WE'VE DONE THAT BEFORE, UH, IF YOU REMEMBER MR. CHAIRMAN, BUT, UH, KNOWING THAT WE HAD MONEY COMING IN, BUT IT'S REALLY UP TO THE CITY AND THE BOARD WHERE THEY WANT SPENT, YOU KNOW, DO THE 6,700, 6,600 NOW OR WAIT UNTIL NEXT YEAR.

I'M GIVING YOU YOUR OPTIONS.

YOU HAVE A THOUGHT? YOU'RE ON MUTE.

ANY COMMENTS FROM, IT'D BE MUCH CLEANER TO JUST DO IT NOW.

THAT'S WHAT I WANT TRANSACTIONS LOOKING AT WHICH TO, THAT'S THE REASON I WANTED TO JUST GET IT OUT FRONT, THAT THERE'S NO INCENTIVES.

I MEAN, THERE'S NO BENEFIT TO US, UH, FINANCIAL BENEFIT TO US TO HOLD OFF PAYING THE WHOLE, WHOLE AMOUNT.

I MEAN, IT'S MAYBE NOW OR PAY ME LATER.

SO IT'S JUST BEING DUE TO THE BOARD IS, IT'S PRETTY TYPICAL TO JUST GO AHEAD AND PAY IT.

WHAT HAVE WE DONE IN THE PAST? WELL, AS, AS MR. HALL SAID IN THE PAST, WE HAVE PAID THE FULL AMOUNT.

WE'VE JUST GONE AHEAD AND PAID THE FULL AMOUNT.

JUST GO AHEAD AND GET IT CLEANED UP AND THAT WAY WE CAN MOVE FORWARD.

I MEAN, WE'RE, BECAUSE THERE'RE SO FINANCIAL, WE'RE, WE'RE IN A FINANCIAL POSITION WHERE WE CAN, SO IT'S NOT GOING TO YEAH, BECAUSE THERE'S SO LITTLE LEFT AND THE BUILDING WAS ON THE GROUND JANUARY ONE OF 21, SO WE KNOW WE'RE GONNA GET THE TAXES WHEN THEY PAY 'EM LATER THIS YEAR.

SO IT'S NOT A MATTER OF IF THE MONEY'S COMING IN.

YEAH, IT'S PLENTY OF ROOM IN THE BUDGET TO, TO MAKE THE PAYMENT.

SO YEAH, JUST A THOUGHT.

MY ONLY THOUGHT IS I'M, FROM A BUSINESS POINT OF VIEW, I'M TOTALLY ON BOARD WITH DOING THAT.

MY ONLY CONCERN IS IF, IF THERE WOULD BE ANY SORT OF PUBLIC PERCEPTION THAT WE WERE, UH, INAPPROPRIATELY, YOU KNOW, PREPAY SOMETHING, MY MINE, I HAVE SIMILAR CONCERNS.

MY QUALMS WOULD, WOULD BE MUCH GREATER IF IT WAS, THERE WAS MORE MONEY OUT THERE.

BUT SAYING IT'S, IT'S SUCH A SMALL, SMALL AMOUNT THAT WE'RE NOT GOING TO BE IN ANY JEOPARDY.

I MEAN, THINK, THINK ABOUT THE COST OF, UH, WRITING TWO CHECKS, CITY HAVING TO PROCESS IT ALL, ALL THIS AND THAT.

I MEAN, YOU KNOW, IF IT WAS 20 OR 30,000, I WOULD SAY NO, THEY'D HAVE TO WAIT.

UH, THEY'RE PRODUCING ABOUT, UH, WHAT IS IT? THEY'RE PRODUCING ABOUT 20, $20,000 A YEAR.

SO, YOU KNOW, IF, IF IT WAS SOMETHING IN THAT NEIGHBORHOOD, I WAS, I WOULD NOT RECOMMEND THIS.

BUT WE'RE TALKING $6,000, THAT'S, YOU KNOW, YOU HAVE TO PROCESS THE WIRE TWICE OR PROCESS CHECKS TWICE OR KEEP UP WITH IT AND RE REMEMBER THAT WE HAVE TO PAY IT.

IT JUST, WE DID THIS WITH, UM, OH, UH, ACADEMY, THEY HAD JUST A LITTLE BIT LEFT AND WE JUST PAID THE WHOLE THING OFF TO, TO CLEAN UP THE BOOKS.

SO IT'S YOUR CHOICE.

OSCAR, DO

[00:10:01]

OSCAR, DO YOU HAVE A THOUGHT? I SAY PAYOFF.

ALL RIGHT.

I'D MAKE THAT MOTION.

ALRIGHT, WE HAVE A MOTION TO GO AHEAD AND MAKE FULL AMOUNT OF $83,019 AND 30 CENTS.

I'LL SECOND.

AND WE HAVE A SECOND BY CARRIER.

KYLE MADE THE SECOND.

WHO MADE THE SECOND? KYLE.

KYLE, YES.

ALRIGHT, THANK YOU.

ARE THERE ANY OTHER COMMENTS, UM, OR DISCUSSION FOR THIS MA'AM? ALRIGHT, ALL THOSE IN FAVOR SAY AYE.

MOVING ALONG TO ITEM THREE A, CONSIDER APPROVING THE TAX INVESTMENT TAX INCREMENT REINVESTMENTS ON ONE FISCAL YEAR 2021, 2022.

ALL THOSE OPPOSED LIKE SIGN.

ALRIGHT, VERY GOOD.

I THINK THIS, IT'LL GOT IT MR. CHAIRMAN'S BOARD.

UH, THAT MEANS WE DON'T HAVE TO PUT IT IN THE BUDGET FOR NEXT YEAR.

SO YEAH, THAT'S ANOTHER GOOD THING.

YEAH, IT'LL KEEP US FROM HAVING REVISIT THIS NEXT YEAR.

SO LET MAY SAVE US A MEETING THERE FOR THAT, THAT THE ONLY ONE.

SO.

ALRIGHT,

[a. Consider approving the Tax Increment Reinvestment Zone Number One Fiscal Year 2021-22 Budget.]

BUDGET , NO GUARANTEE.

SO I'M GONNA HIT SOME OF THE HIGH POINTS.

IF YOU HAVE ANY QUESTIONS ON ANY OF THE LINE ITEMS AT ALL, PLEASE DON'T HESITATE TO TO ASK.

UM, SO THE TURS BUDGET IS, IS PRETTY SIMPLE AS YOU CAN SEE.

IT'S, IT'S A, IT'S A ONE PAGE BUDGET.

UM, THE REVENUE COMES FROM THE INCREMENT.

WE GET THE CITY'S INCREMENT WITHIN THE ZONE AND THEN HARRIS COUNTY'S INCREMENT WITHIN THE ZONE.

UM, BASED ON THE AGREEMENT THAT WE'VE GOT WITH HARRIS COUNTY IN GENERAL, WE GET THE TURS RECEIVES 75% OF THE INCREMENT FROM HARRIS COUNTY AND 100% OF THE INCREMENT FROM THE CITY'S PROPERTY TAXES WITHIN THE ZONE.

SO IF YOU RECALL LAST YEAR, YOU ALL EXPANDED THE ZONE QUITE A BIT.

NOW MOST OF IT IS STILL GREEN SPACE.

UM, SO WE'RE NOT GONNA SEE, YOU KNOW, A HUGE INCREASE IN VALUATION AT THIS POINT IN THE FUTURE.

WE, WE CERTAINLY SHOULD.

UM, SO THAT'S WHERE THE REVENUE SIDE COMES FROM.

WE'RE SHOWING A, JUST A SLIGHT INCREASE FROM OUR ESTIMATE FOR 21, JUST BASED ON THE LEVEL OF DEVELOPMENT THAT WE'RE SEEING.

WE DON'T SEE ANY HUGE GROWTH WITHIN THE ZONE OUTSIDE OF THE FRIENDSWOOD PIECE THAT WAS BROUGHT IN FROM THE COUNTY'S INCREMENT SIDE AND SOME OF THE DEVELOPMENT AT I 10 AND JOHN MARTIN, UM, THAT YOU'LL SEE OUT THERE.

UM, BUT MOST OF THE LAND AT THIS POINT IS, YOU KNOW, BASED ON JANUARY, 2021, THERE WASN'T A HUGE, HUGE LEVEL OF DEVELOPMENT.

SO, UM, THAT'S WHERE THAT REVENUE NUMBER COMES FROM.

ON THE EXPENDITURE SIDE, UH, EVERYTHING IS PRETTY MUCH THE SAME.

A COUPLE CHANGES THAT YOU'LL SEE.

SO LAND MAINTENANCE, UM, THAT WAS AN ITEM THAT WE'VE ADDED IN OVER THE PAST COUPLE YEARS.

THIS IS PRIMARILY THE MAINTENANCE OF SAN JACINTO BOULEVARD AND HUNT ROAD WITHIN THE ZONE.

UM, WE'VE INCREASED THAT GOING INTO NEXT YEAR.

IT IS A, OBVIOUSLY A VERY WELL-MAINTAINED AREA AND, UM, WE CONTRACT OUT ALL OF THAT MAINTENANCE AND SO WE'RE, WE'RE EXPECTING, UH, SOME INCREASES IN THOSE COSTS THIS YEAR.

UM, AND THEN THE CRUISE IMPROVEMENTS LINE IS GONNA JUMP OUT AT YOU A LITTLE BIT.

UM, THAT IS A LINE WE USE FOR, UH, TYPICALLY FOR GENERAL IMPROVEMENTS IN THE ZONE.

UM, WE HAVEN'T HAD, UH, A LOT OF EXPENDITURES IN THERE IN THE PAST.

THE, UH, LAND UM, PLANNING ANALYSIS THAT WE DID THIS PAST YEAR CAME OUT OF THAT LINE ITEM.

UM, IF WE HAD MAJOR PHYSICAL IMPROVEMENTS THAT WE WERE GONNA MAKE WITHIN THE ZONE, UM, IT COULD CERTAINLY COME OUT OF THAT LINE.

WE DON'T HAVE ANY, UM, THAT ARE NECESSARILY GUARANTEED TO BE SPIN OUT OF THAT, BUT WE KNOW BASED ON WORK BRETT IS DOING WITH DEVELOPERS IN THE AREA, THERE'S POTENTIAL FOR SOME REALLY GOOD DEVELOPMENT IN WITHIN THE ZONE.

AND WE WANT TO KEEP, WE WANT TO KEEP FLEXIBILITY IN THIS BUDGET THAT IF AN OPPORTUNITY COMES OPEN, THAT THE BOARD HAS GOT THE FLEXIBILITY WITHIN THE BUDGET TO MAKE SOME THINGS HAPPEN IF NEEDED.

SO THAT'S WHY THAT LINE ITEM IS SO MUCH HIGHER.

IT'S NOT THAT WE HAVE SOMETHING WE'RE GONNA SPEND THAT MONEY ON NECESSARILY.

IT GIVES THE FLEXIBILITY TO THE BOARD MOVING INTO THIS YEAR.

UM, AND THAT WOULD BE ALL PROBABLY PRIMARILY CITY INCREMENT THAT WOULD BE SPENT WITH, UH, WITH THAT LINE ITEM.

UM, AND THEN MOVING DOWN

[00:15:01]

THE ONLY OTHER, YEAH.

UM, COULD YOU GIVE US AN EXAMPLE OF SOMETHING THAT WE MIGHT, UH, SOME TANGIBLE THING THAT WE MIGHT USE THAT LINE ITEM TO PAY FOR? SO IF, IF FOR SOME WHI SURE.

IF, IF FOR SOME REASON A, A DEVELOPMENT CAME IN THIS NEXT YEAR AND WE DEC AND THE BOARD DECIDED, YOU KNOW WHAT, WE NEED TO GO GO AHEAD AND PUT IN LONE STAR, UM, BOTH EXTEND LONE STAR AND THE BOARD DIDN'T WANT TO DEBT FUND THAT PROJECT, UM, THAT RESOURCE WOULD BE THERE FOR THAT TYPE OF MORE OF A LARGE SCALE PHYSICAL INFRASTRUCTURE IMPROVEMENT.

THE OTHER LINE THAT THAT MIGHT LOOK A LITTLE DIFFERENT THIS YEAR IS THE CO DEBT.

SO THE CO DEBT IS FOR, UM, SAN JA SINO BOULEVARD AND HUNT ROAD.

UM, THOSE TWO PROJECTS THAT WERE DONE, THERE'S A, A SPLIT IN THOSE PROJECTS OF WHAT THE COUNTY PAYS FOR AND WHAT THE CITY PAYS FOR.

UM, THE REASON THAT WE'VE SHIFTED A HUNDRED PERCENT OF THE 2021 OR 2022 PAYMENT TO THE COUNTY IS TO SET US UP TO MOVE FORWARD WITH THE WEST CEDAR BY LYNCHBURG WIDENING PROJECT SOONER AS SOON AS POSSIBLE.

UM, SO WHAT THIS DOES IS AGAIN, THEY'RE GONNA PAY WHAT THEY ARE SUPPOSED TO PAY ON THAT CO DEBT OVER THE 20 YEARS.

WHAT THIS DOES IS IT ACTUALLY LOWERS THEIR PAYMENTS IN THE OUT YEARS SO THAT WE CAN MATCH UP THE RIGHT PAYMENT LEVEL FOR THE CEDAR BY LYNCHBURG PROJECT.

UM, THE CITY HAS TO THIS POINT OVERPAID JUST A LITTLE BIT, UM, ON THIS CO DEBT.

SO IT'S JUST KIND OF EQUALIZING THINGS MOVING INTO THE FUTURE YEARS.

UM, AS WE'VE RUN THE ANALYSIS, WE ARE VERY CLOSE TO HAVING THE ABILITY TO FUND THE DEBT FOR CEDAR BIO LYNCHBURG WIDENING FROM GUARD JOHN MARTIN.

THAT'D BE A HUGE PROJECT IF YOU RECALL.

THAT'S IN THE PROJECT PLAN.

THE COUNTY'S AGREED TO PAY FOR 50% OF THAT.

UM, THEY'VE DEDICATED 75% OF THEIR INCREMENT TO IT.

SO WE'VE GOT EVERYTHING SET UP.

IT'S JUST ACTUALLY HAVING THE DOLLARS TO PAY FOR IT.

UM, THIS ARRANGEMENT WITH THE CO PAYMENTS FOR NEXT YEAR BASICALLY GETS US SET UP TO, TO DO THAT SUIT BY LYNCHBURG PROJECT IN 2023.

IT STOPS AT JOHN MARTIN, IT STOPS JUST WEST OF JOHN MARTIN.

I WAS GONNA SAY, IT GOES JUST A LITTLE PAST, NOT RIGHT DOWN TO GINGER CREEK.

YEAH, WE'LL TRY AND TAKE IT AS CLOSE TO GINGER CREEK AS WE CAN.

HOPEFULLY WE CAN GET IT ALL THE WAY THERE.

SO WELL JUST HAD A QUESTION.

I I WAS, WHEN I WAS LOOKING AT THAT, THE PROJECTS AND ONE OF THE THINGS I WAS THINKING ABOUT WAS ROAD IMPROVEMENTS AND I KNEW THAT LONE STAR, BUT I WASN'T SURE FOR THE TERRORIST IMPROVEMENTS IF THAT ANY OF THAT FUNDS COULD BE OBLIGATED DOWN ONTO THE CEDAR BALL.

CERTAINLY COULD.

THE THE THE IT ABSOLUTELY COULD.

THE, THE CHALLENGE IS THE CITY BRINGS IN MORE INCREMENT THAN THE COUNTY.

SO WHEN WE 50 50 COST SPLIT A PROJECT, WE HAVE, WE, THE, THE CITY INCREMENT IS BUILT UP ENOUGH TO DO THE CEDAR ROCK FOR PROJECT.

THE COUNTY INCREMENT IS NOT ENOUGH.

I WAS WONDER THEY WERE STILL SHOP.

SO WE, WE CERTAINLY COULD USE IT FOR THAT.

UM, BUT WITH THE 50 50 SPLIT, IT DOESN'T, DOESN'T NECESSARILY HELP TODAY.

UM, THIS ANY EXCESS CITY INCREMENT WOULD BE BETTER SAVED FOR, YOU KNOW, SOME POTENTIAL.

UM, I'LL BE HEADING OUT PROBABLY IN THE NEXT MONTH OR SO TO GO LOOK AT SOME PROJECTS THAT THEY'VE DONE, OTHER PLACES THAT WE CAN EMULATE HERE OR, UM, OR CERTAINLY TO CREATE A SISTER PROJECT HERE.

IN THAT HIGH LEVEL DEVELOPMENT PROJECTS THAT WE COULD SEE COUNTY WOULD NOT BE YEAH.

AND THOSE, THOSE ARE THE BIG ITEMS. UM, EVEN WITH THAT, THE COUNTY IS LEFT WITH, UH, 537,000 ENDING FUND BALANCE AND THE CITY WITH, WITH 1.4 MILLION.

SO THERE'S A LOT OF FLEXIBILITY HERE MOVING FORWARD, WHICH IS, IT'S A GOOD PLACE TO BE FOR THE TOURS BECAUSE AS BRETT DOES HIS WORK AND HE'S TALKING TO SOME, YOU KNOW, SOME REALLY HIGH LEVEL DEVELOPERS ABOUT SOME PROJECTS AS THOSE POTENTIALLY COME TO FRUITION, THE, THE BOARD HAVING SOME FLEXIBILITY IS, IS REALLY KEY.

IT PUTS US IN A, A GOOD POSITION.

AND BRETT CAN ADD ON TO THAT IF, IF, IF YOU'VE GOT ANYTHING RELATED TO KIND OF HAVING THE FINANCIAL FLEXIBILITY.

YEAH, WELL IT, IT, IT HELPS US, AS YOU ALL KNOW, BASED ON THE LAND PLAN THAT WE PRESENTED TO YOU GUYS, THAT, UM, THE ANALYSIS THAT WE DID, UM, THAT'S BEEN VERY WELL RECEIVED BY SOME NATIONAL DEVELOPERS WHO WANT TO BE A PART OF A HIGHER END FORWARD THINKING PROJECT.

AND, UM, SO WE'VE GOT SOME EXCITING OPPORTUNITIES.

UM, THEY'VE BEEN, I'VE HAD THREE DEVELOPERS HERE ALREADY, UH, TO BE ON GROUND TO LOOK AT THE AREA AND THEY'RE VERY EXCITED ABOUT WHAT WE CAN CREATE ON SAN JACINTO.

[00:20:01]

SO IT ALL RELIES ON WHAT WE WANT TO DO ON THAT SAN JATO BOULEVARD AREA AND CREATING THIS REALLY ICONIC ATMOSPHERE, UH, LONE STAR GOING THROUGH IS GONNA BE A HUGE PART OF IT.

UM, AND THEN OF COURSE I DON'T WANT TO IGNORE HARRIS COUNTY TRANSIT SERVICES AND WORKING WITH THEM BECAUSE THAT'S A VERY IMPORTANT PART OF THIS PROJECT FOR THEM, WHICH STRENGTHENS OUR, UH, OUR PARTNERSHIP AND OUR RELATIONSHIP WITH THEM.

SO YEAH.

GOOD, GOOD OPPORTUNITIES.

AND AS NICK HAS SAID, I THINK THERE ARE OPPORTUNITIES THAT WE CAN STRIKE, UM, FAIRLY QUICKLY ON, YOU KNOW, FAIRLY QUICKLY, MEANING IN THE NEXT SIX MONTHS WE CAN PROBABLY HAVE SOME PEOPLE ON BOARD WITH CREATING SOME PROJECTS HERE.

NOW DEVELOPMENT TAKES A LITTLE LONGER THAN THAT, BUT AT LEAST HAVING THE, UH, OUR, OUR DANCE PARTNERS WITH US IS GONNA BE A LOT MORE BENEFICIAL.

IS THERE ANY, ANY RELIANCE BRETT ON THE MALLS OR THE, WHAT WAS THE MALL ON THAT DEVELOPMENT? NO, WE, SO IT'S KIND OF INDEPENDENT OF THE, THE, WE'VE LEFT THEM MALL TO SIT INDEPENDENT OF, UM, WHAT WE'RE DOING OVER HERE.

NOT THAT WE HAVE ANY CON CONFLICTING VISIONS.

THEY CERTAINLY HAVE THEIRS.

WE HAVE OURS.

I BELIEVE THAT WE'RE IN A POSITION, UH, BECAUSE OF THE TOURS AND HOW STRONG THE TOURS IS THAT WE CAN ACTUALLY ACT QUICKER THAN, UM, THE PRIVATE DEVELOPER CAN.

SO THE, THE OTHER THING IN THE, IN THE BACKGROUND THAT'S, OR NOT IN THE BACKGROUND, BUT CITY COUNCIL'S HAD DISCUSSIONS AND, AND WE'VE CERTAINLY DISCUSSED IT WITH, WITH FIDELIS AS WELL.

UM, YOU KNOW, THEY USED TO BE WITHIN THE TURS, WE PULLED 'EM OUT BECAUSE THEY WERE BRINGING IN NEGATIVE INCREMENT, SO THEY WERE COSTING THE TURFS.

UM, AND SO WE'VE, WE'VE LOOKED AT AND HAD CONVERSATIONS OF WOULD IT MAKE SENSE IN THE FUTURE TO BRING 'EM BACK IN? AND THE PRIMARY BENEFIT WOULD BE WE COULD SPEED UP THE RECONSTRUCTION OF GARTH ROAD POTENTIALLY, UM, GARTH ROAD ALL THE WAY DOWN TO, UM, OH, I'M TRYING TO REMEMBER THE ROAD QUITE A WAYS DOWN IS WITHIN THE TURF BOUNDARIES.

ONE TIME IT WAS DOWN TO, DOWN TO ARCH MAYBE, UH, IT GOES, IT'S, IT'S JUST NORTH OF BAKER.

UM, NOT MANNER, BUT WHATEVER IT'S CALLED THERE.

UM, OH, THE, THAT INTERSECTION, RIGHT? YEAH, THE BROAD INTERSECTION.

YES.

THE BAYTOWN EAST FREEWAY INTERSECTION AND EAST OR BAYTOWN FREEWAY AND CORRECT.

SO, YEAH.

SO THAT, THAT'S, NONE OF THAT IS BUILT TO THIS BECAUSE WE WOULDN'T EVEN LOOK AT DOING THAT UNTIL THEY HAD THE LEAST AMOUNT OF VALUE ON THE GROUND.

SO BASICALLY WHEN THEY'VE DEMOLISHED EVERYTHING, WHATEVER POINT THAT IS IS THE BEST TIME TO BRING 'EM BACK INTO THE TURS WHEN THEY HAVE LITTLE VALUE THERE.

UM, BUT THAT'S SOMETHING THAT'S ALSO KIND OF GOING ON, UM, WITH COUNCIL AND, AND WITH FIDELIS TO FIGURE OUT IF, IF THAT MAKES SENSE.

OBVIOUSLY THERE'S A BENEFIT TO THEM TO SPEED UP THAT PROJECT.

SO ANYWAY, WHAT, WHAT KIND OF DEVELOPMENT ARE YOU TALKING COMMERCIAL, RESIDENTIAL OR MIXED USE THAT YOU WERE TALKING ABOUT A WHILE AGO? YES.

WHAT WHAT, UH, WHAT WE'RE ABLE TO CREATE IS GOING TO BE, UM, REALLY BASED UPON THAT LAND PLAN OF HOW WE CAN BRING IN BOTH SOME RESIDENTIAL COMPONENT, UH, TO A COMMERCIAL SETTING.

UM, AND CERTAINLY TAKING ADVANTAGE OF SOME POTENTIAL FOR SOME CLASS A OFFICE SPACE, UH, CLASS, A RESEARCH SPACE, SOMETHING LIKE THAT.

UH, AND THEN ENTERTAINMENT CONCEPTS.

INVOLVED IN ANYTHING THAT WE'RE DOING OVER HERE.

SO WE LOOKED AT, WE LOOKED AT ALL THAT AT THE BAWA VISIONING.

DID WE? NOT RECENTLY.

NO, MAYBE NOT.

IT WAS IN HERE.

IT WAS HERE WAS IN HERE.

YEAH, IT WAS IT WAS IN HERE.

YEAH, WE SAW IT.

WE IN THE, WE DID IT IN THE COUNCIL, COUNCIL, COUNCIL CHAMBERS.

THAT LAND PLAN THAT WAS, THAT WAS PRESENTED.

BRETT'S NOW WORKING WITH, WITH DEVELOPERS REALLY ACROSS THE COUNTRY TO, TO TRY AND GET IN PEOPLE WHO ARE GONNA DO SOMETHING REALLY HIGH QUALITY AND SOMETHING WE DON'T HAVE AT BAYTOWN.

SOMETHING THAT WILL REALLY ELEVATE, ELEVATE THE GAME HERE.

UH, THE TOURS IS REALLY THE, THE ORGANIZATION TO HELP MAKE THAT HAPPEN.

GET, MAKE SURE YOU GET TOPPED OFF.

WHY NOW? TOP, TOP, TOP OFF.

I'M TIRED OF DRIVING TO WEBSTER FOR THAT.

AGREE.

I'M ACTUALLY SERIOUS.

UH, WOULD, IT WOULD BE BETTER ON I 10, BUT NO, I, I UNDERSTAND THAT WE PROBABLY WOULDN'T PUT TOPGOLF ON SAN JACINTO, UM, JUST BASED ON THE LAND PLAN BECAUSE THEY'D WANT TO BE UP ON I 10 AND THE 10 ACRES THAT SITS AT THE NORTH END OF OUR PROJECT THAT THERE HAS TO BE SOMETHING A LITTLE BIT MORE ICONIC THAN TOPGOLF, JUST MY OPINION AND, AND THE DEVELOPERS I'M TALKING TO.

SURE.

SO TAKES UP A LOT OF SPACE TO PUT IT NEXT TO, LET'S PUT IT NEXT TO THE SEVEN 11 THEN .

YEAH, WE, WE'VE LOOK, WE'VE TALKED TO 'EM BUT NOT

[00:25:01]

SO DALLAS ISN'T USING ALL THEIR LAND, SO THAT'S IT'S OPPORTUNITY THERE.

THEY'VE GOT THAT WOULD BE A GREAT AMENITY.

YEAH, FOR SURE.

SO YEAH, ESPECIALLY FOR KYLE, OBVIOUSLY.

THANKS, APPRECIATE THAT FIRM GOLF COURSE.

NOT ONLY THIS AGENDA, SO ALRIGHT.

UH, YOU, ANYTHING ELSE YOU NEED TO GO THROUGH BREAK AMORTIZATION? NO, UH, NO, THAT'S JUST THE CHART THAT Y'ALL HAVE.

UM, LOOKING AT THE, YEAH, THAT THE AMORTIZATION ON THE BACK, UM, THE WAY IT WAS STRUCTURED, IT'S, IT'S GONNA LOOK A LITTLE FUNNY.

IT GOES UP IN 2025 AND THEN BACK DOWN.

THAT'S JUST HOW THE DEBT WAS STRUCTURED.

BUT THAT'S ALL FOR SAN JATO AND, AND HUNT ROAD.

SO, UM, AND THAT'S THE, WHEN WE LOOKED EARLIER AT THE COUNTY AND CITY CO PAYMENTS, THAT'S, THAT'S WHAT THAT IS.

SO ALL THE OTHER DEBT, IF YOU REMEMBER LAST YEAR THERE WAS SOME EXISTING DEBT THAT THE TUR HAD TOURS HAD THAT WAS ALL PAID OFF LAST YEAR.

SO THIS IS ALL THAT'S LEFT.

SO, UM, LIKE I SAID, THIS, THIS BUILDS IN FLEXIBILITY TO NOT ONLY CAPTURE SOME GOOD DEVELOPMENT BUT GET THE IMPORTANT INFRASTRUCTURE PROJECTS DONE AND STAFF RECOMMENDS APPROVAL TO BOARD.

VERY GOOD.

ALRIGHT, I MAKE A MOTION TO APPROVE THE FISCAL YEAR 20 21, 22 BUDGET.

ALRIGHT, WE HAVE A MOTION BY MS. BRADLEY SMITH.

WE HEAR SECOND.

I'LL SECOND.

I HAVE A SECOND BY MS. RAMIREZ.

ANY FURTHER DISCUSSION? COMMENTS? ALL THOSE IN FAVOR SAY AYE.

OF THOSE, WE WILL KEEP THE BOARD UPDATED.

ALL THOSE DISAPPROVING SAY NO.

ALL.

ALRIGHT, WE'LL MOVE ON TO ITEM

[a. Receive updates from the Executive Director and TIRZ Consultant.]

FOUR, EIGHT.

ANY ANY UPDATES? UH, OVER A LITTLE BIT? I, I WAS GONNA LET TALK A LITTLE BIT ABOUT THE WORK HE'S DOING, BUT HE DID A LOT OF IT HERE ON THE LAST ITEM.

SO YEAH, I DON'T THINK, I MEAN IT LOOKS PROMISING, BUT IT'S LIKE ANYTHING ELSE THAT WE DO, IT ALL DEPENDS ON HOW QUICKLY WE CAN ACT BECAUSE A LOT OF THE DEVELOPERS RIGHT NOW REALIZE THAT WE'RE A HOT MARKET AND UM, THEY WANT TO COME IN AND DO WHAT WE, WHAT WE'RE HOPING TO GET DONE.

UM, I KNOW THAT WE'RE WORKING, WE'RE GETTING READY TO MOVE FORWARD ON, UH, SOME PRELIMINARY ENGINEERING FOR PHASE ONE OF THIS PROJECT.

SO THAT'S EXCITING THAT WE'RE REALLY NOT LOSING TRACTION ON THIS AFTER MAKING A PRESENTATION TO Y'ALL AND HAVING YOU ACCEPT IT AND, UH, COUNCIL HAS ACCEPTED WHAT WE WANT TO DO UP THERE.

SO, UM, NICK HAS BEEN ABLE TO GET US TO AT LEAST MOVE FORWARD ON THAT AND THAT WOULD INCORPORATE THE EXTENSION OF LONE STAR ALL THE WAY OVER BEHIND BUCKY'S.

UM, I'M CURRENTLY WORKING WITH THE, UH, OWNERSHIP GROUP OF THE AUTOMOTIVE DEALERSHIPS IN THERE AND THEY ALSO OWN THE CALIBER COLLISION BUILDING ABOUT GETTING THEM TO GIVE US APPROVAL TO EITHER, UH, MOVE THE CALIBER BUILDING OR FIGURE OUT DISTANCES IN BETWEEN THE, UM, DEALERSHIPS AND CALIBER SO WE CAN MAKE SURE THE LONE STAR IS A STRAIGHT SHOT THROUGH.

UM, THEY'VE SEEN THE LAND PLAN AND LIKE IT AND THEY KNOW THAT THEY WILL ABSOLUTELY MAKE MORE MONEY IN THE FUTURE BY HAVING IN ESSENCE TWO FRONTS FOR THE DEALERSHIPS TO PARK VEHICLES ON.

UM, ONCE THE LONE STAR GOES THROUGH, IT'S GONNA BE A LOT MORE EXCITING FOR THEM ON THE BACK END TOO.

SO A LOT OF POSITIVE DEVELOPMENTS, UH, HOPEFULLY THE MAJORITY PROPERTY OWNERS ARE GONNA BE WILLING TO WORK WITH US.

UM, WE KNOW THAT THEY'VE NOT BEEN AS AGGRESSIVE FOR THE LAST 50 YEARS IN TRYING TO SELL PROPERTY, SO HOPEFULLY NOW WE CAN GET THEM IN A POSITION WHERE THEY WILL BE AND UH, THEY CAN MAKE A LITTLE MONEY.

THE DEVELOPERS CAN, UM, BUY IT FOR THE RIGHT PRICE, SAVE A LITTLE MONEY IN THAT.

OF COURSE WE USE THE CITY AND, AND TOUR CAN INVEST IN THE PROPER INFRASTRUCTURE TO MAKE IT HAPPEN.

VERY TWO OF THE OTHER AREAS THAT WERE BROUGHT IN TO THE BOUNDARIES LAST YEAR, UM, AND WE CALL, WE CALL 'EM THE WONG TRACK AND THE, THE COX TRACK WAY TO LOOK AT IT.

BUT ONE IS THAT, UH, JOHN MARTIN AND CEDAR BALL LYNCHBURG, UM, WEST OF JOHN MARTIN AND THE OTHERS WEST OF JOHN MARTIN, NORTH OF I 10, UH, NEAR VILLE, BOTH ARE LOOKING AT RESIDENTIAL PROJECTS.

UM, NOTHING, NO FIRM PLANS AT THIS POINT, BUT WE'VE BEEN IN DISCUSSIONS WITH, WITH BOTH OF THOSE PROPERTY OWNERS AND POTENTIAL DEVELOPERS.

AND, UM, THE CITY COUNCIL CONTINUES TO PUSH FOR REALLY HIGH QUALITY RESIDENTIAL.

SO, YOU KNOW, THERE'S SOME PROJECTS THAT COME IN AND THEY LOOK AT OUR STANDARDS AND SAY MAYBE IT'S NOT THE RIGHT FIT.

AND TYPICALLY ANOTHER ONE WALKS IN THE DOOR THE NEXT DAY.

I MEAN THE HOME BUILDERS DO WANT TO BE HERE RIGHT NOW.

SO, UM, WE'RE LOOKING AT BOTH OF THOSE TRACKS AND BOTH OF THAT WOULD, BOTH OF THOSE WOULD BRING IN INCREMENT INTO THE TOURISM EVENTUALLY TOO.

SO AS WE GET ANY FURTHER DEVELOPMENTS ON ANY

[00:30:01]

THAT'S ALL GOOD.

EXCITING STUFF.

ALRIGHT, WELL SAYING THAT IS THE, WE CALL ITEMS ON THE MOVEMENT.

ADJOURN, HAVE MOTION TO ADJOURN? I THINK WE HAVE A SECOND BY MS. RAMIREZ.

ALL IN FAVOR? AYE.