[00:00:20]
SO WE CALLED AN ORDER, AND FIRST THING
[1. MINUTES]
ON THE AGENDA IS THE MINUTES.UM, APPROVE THE MINUTES OF THE INDUSTRIAL REVIEW PRESENT.
REVIEW BOARD MEETING HELD NOVEMBER 13TH, 2020 LAST YEAR.
UH, SECOND ON THERE IS BUSINESS ITEMS. CONDUCT
[a. Conduct the election of officers for the positions of Chairman and Vice Chairman of the Baytown Industrial Appraisal Review Board.]
ELECTION OF OFFICERS FOR POSITION CHAIR, VICE CHAIR, AND INDUSTRIAL REVIEW, INDUSTRIAL APPRAISAL REVIEW BOARD.I NOMINATED THESE AS CHAIRMAN
DO YOU HAVE A SECOND ON THAT? I SECOND.
DO I ALL IN FAVOR? ALL IN FAVOR.
[b. Consideration of the Industrial District Values for Industrial Districts 1, 2 and 3.]
DISTRICT VALUES FOR INDUSTRIAL DISTRICT 1, 2, 3.ON MY NAME IN THE MIDDLE, TWO PARAGRAPHS.
THOSE, THAT'S PART OF THE, UM, SHORT MEETINGS MINUTES RIGHT FROM THE LAST CORRECT.
IF WE COULD, UH, TAKE OFF THE DASH BARNER.
OH, SO THERE'S NOTHING, PLEASE, IN THOSE TWO PLACES.
AND I APOLOGIZE FOR NOT BRINGING THAT UP.
I HAVE A DASH SOMETHING ELSE BY THE END OF 2022.
SO, CHAIRMAN HUGH CAN PRESENT THE, UH, THE REPORT JUST BY WAY OF, UH, PREFACE, UH, BE USEFUL JUST TO THINK ABOUT WHAT, WHAT YOUR ROLE, WHAT THE ROLE OF THE, THE BOARD.
AND YOU, YOU'VE BOTH OBVIOUSLY GOT THE LATEST APPRAISAL, VALUES BASED, VALUES ACCEPTED FOR ALL OF THE INDUSTRIAL DISTRICTS.
TECHNICALLY SPEAKING, UM, YOUR ROLE, UH, IS ONLY AS TOBIN IN INDIVIDUAL AGREEMENT.
AND CURRENTLY THERE'S ONLY ONE THAT REQUIRES YOU ALL TO FORMALLY ACCEPT, UM, THE VALUE.
SO THAT'S JUST, JUST SO YOU KNOW.
BUT IF YOU CAN SPEAK TO THE, TO THE OVERALL VALUES, IF YOU WOULD FIND THAT HELPFUL, I'LL HAND OVER TO HIM AND I SUPER.
CAN I GET Y'ALL TO TURN UP, UH, THE VOLUME? I COULD BARELY HEAR Y'ALL.
IS THIS A, IS SPEAKER HERE? IS THAT, OH, SHE HAS THE NEXT ONE.
IS THAT BETTER? THE NEXT ONE? THERE IT IS.
CAN YOU HEAR US NOW? UM, IT, IT'S VERY WEAK, BUT I CAN, I CAN KEEP GOING.
I'VE GOT MY VOLUME TURNED UP AS LOUD AS IT'LL GO.
IS THAT, IS THAT BETTER? THAT'S, THAT'S BETTER.
I, SO I GUESS EACH OF YOU HAS THE, UH, THE TWO PAGES OF THE COMPARISONS IN FRONT OF YOU.
UM, AND FEEL FREE TO PERUSE THROUGH THOSE AS MUCH AS YOU WOULD LIKE.
UM, I WOULD LIKE TO POINT OUT EIGHT, EIGHT ACCOUNT.
UM, IF YOU LOOK DOWN MOST OF THE WAY DOWN THE FIRST PAGE, YOU'LL SEE AN EXETER 5 3 3 5 CEDAR PORT LP.
THESE ARE NEW COMPANIES THAT HAVE JUST MOVED INTO THE INDUSTRIAL DISTRICT AREA.
UM, A COUPLE OF LINES DOWN FROM THAT IS FLOOR AND DECOR OUTLETS OF AMERICA, A NEW ONE.
UM, THERE'S A ROIS LLC RIGHT IN THE EIGHTH FLOOR IN DECOR.
HUNT SOUTHWEST CEDAR FOR, IT'S A NEW COMPANY.
UM, WE CAN MOVE ON TO THE SECOND PAGE.
THERE IS THE NIAGARA BOTTLING.
[00:05:01]
AND IF YOU LOOK AT IT AND YOU LOOK ACROSS AT THE 2020 VALUE AND THE 2021 VALUE, ALL OF THE NEW COMPANIES, THE 2020 VALUES POINT, BECAUSE THEY WEREN'T THERE IN 2020, THIS ONE HAS A BLANK IN 2021 VALUE BECAUSE THEY HAVEN'T, HADN'T STARTED CONSTRUCTION YET, UH, BY JANUARY 1ST, 2021.BUT WE DO HAVE 'EM UNDER CONTRACT.
UM, MOVING ON DOWN, THERE'S A P EIGHT SLASH CPL ONE PROCO, THAT'S A NEW CONTRACT.
TWO LINES BELOW THAT IS PLASTIC EXPRESS.
AND THIS, THIS IS A NEW, ANOTHER NEW CONTRACT, AND THEY HAD NOT STARTED CONSTRUCTION PRIOR TO 2021.
AND THEN THE LAST ONE IS DOWN AT TGS CEDAR PORT PARTNERS LP.
AND THAT IS A NEW CONTRACT FOR 20, UH, 21.
WELL, AND GOING FORWARD, SO, UM, THE INDUSTRIAL DISTRICT IS GROWING AS YOU CAN SEE IT.
IT'S, UM, I REMEMBER WHEN THIS PRESENTATION WAS JUST A SINGLE PAGE PRESENTATION.
IT'S A LITTLE OVER A PAGE AND A HALF LONG BECAUSE YOU'VE GOT SO MUCH GROWTH OUT THERE, WHICH IS A GOOD THING.
UM, ANOTHER ONE THAT YOU MAY NOTICE IS COVESTRO.
AND YOU SEE THAT THERE'S NO BASE VALUE ON COVESTRO.
A COUPLE OF YEARS AGO, THE CITY DECIDED TO CHANGE COVESTRO FROM AN INDUSTRIAL DISTRICT AGREEMENT.
AND MR. BROWN, CORRECT ME IF I'M WRONG, TO AN ECONOMIC DEVELOPMENT AGREEMENT.
IS THAT CORRECT? NO, COVESTRO, UH, IS STILL CLASSIFIED AS AN INDUSTRIAL DISTRICT AGREEMENT, BUT, UH, RATHER THAN STIPULATING A BASE VALUE, UH, WHAT WAS STIPULATED WAS A DOLLAR AMOUNT PER YEAR, UH, OF THE AGREEMENT STEPPING UP OVER THE COURSE OF THE AGREEMENT.
SO THEY'RE NO LONGER LINKED TO, UH, TO A BASE VALUE, BUT THEY REMAIN AS A INDUSTRIAL DISTRICT.
UH, IT'S JUST A DIFFERENT, A LITTLE BIT DIFFERENT FORMAT.
UM, IS THAT LIKE A CONTRACT THAT THE CITY FINDS WITH THEM? YEAH, WE DO THE STEP, YEAH.
WE, US WITH THE OTHERS, WE HAVE INDIVIDUAL AGREEMENTS, BUT LET'S JUST SAY RATHER THAN STIPULATING A, A BASE VALUE MM-HMM
WE'VE ACTUALLY AGREED A DOLLAR AMOUNT, WHICH RELATES BACK TO, UH, AN APPRAISED VALUE.
OBVIOUSLY THERE'S A TIE THERE.
BUT, BUT THEY WANTED CLARITY OVER WHAT WE WERE ACTUALLY PAYING US.
UM, BETWEEN 20 AND 21, SOME OF THE VALUES WENT UP, SOME OF THE VALUES WENT DOWN.
UM, AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.
WE HAVE A LOT OF 'EM TO GO THROUGH.
UM, AND SO I WAS GONNA KINDA LET, LET Y'ALL ASK ME QUESTIONS ABOUT THESE, THESE THINGS.
IF YOU HAD ANY, UM, IF I RECALL, WHEN WE LOOKED AT 2019 AND 2020, WE WERE EXPECTING IT TO DECREASE, OR, AND IF, IF YOU WOULD PLEASE REMIND ME, DID A DECREASE FROM 2019 TO 2020 GIVEN COVID, OR ARE WE SEEING MORE LARGELY A DECREASE FROM 20 20, 20 21 BECAUSE OF COVID? THAT'S MY FIRST QUESTION.
AND THEN SECONDLY, DO WE HAVE ACCESS TO THE CONTRACTS, UM, THAT WE CAN JUST READ AND PERUSE SO WE DON'T JUST HAVE NUMBERS? IS THAT SOMETHING THAT WE HAVE ACCESS TO ALLOWABLE? IT IS.
UM, LET ME ADDRESS THE FIRST QUESTION.
I THINK IT WAS, UM, HOW DID COVID, BASICALLY, HOW DID COVID IMPACT THE INDUSTRIAL DISTRICT? YES.
UM, WHAT WE'VE HEARD FROM A LOT OF COMPANIES, AND NOW NOT ALL CHEMICAL PLANTS, NOT ALL MANUFACTURERS EXPERIENCE EXACTLY THE SAME THING BECAUSE THERE'S SO MANY DIFFERENT MARKETS.
BUT THE OVERALL, UM, STORY THAT WE HEARD WAS THAT THE FIRST HALF OF 2020 WAS ABSOLUTELY BORING.
UM, COVID HIT IN, I THINK MARCH OF 2020, AND EVERYBODY SENT THEIR EMPLOYEES HOME.
UM, EVERYBODY ORDERS STARTED, UH, FALLING OFF.
UH, PEOPLE WERE NOT BUYING THINGS.
UH, A LOT OF THINGS STARTED SHUTTING DOWN.
AND A LOT OF THE MANUFACTURING CHEMICAL COMPANIES OUT THERE SAID IT WAS THE WORST TWO QUARTERS THAT THEY'VE EVER HAD IN THEIR COMPANY'S HISTORY.
BUT THEN SOMETHING HAPPENED ABOUT MIDWAY THROUGH 2020 AND IN, IT'S MY BELIEF THAT WE KIND OF LEARNED HOW TO LIVE WITH COVID.
[00:10:01]
PEOPLE OUT.WE STARTED PUTTING PLEXIGLASS WALLS UP BETWEEN PEOPLE THAT HAD TO BE THERE.
UH, WE HAD PEOPLE THAT WEREN'T NECESSARY TO THE OPERATION OF THE PLANT WORKING FROM HOME.
AND THINGS STARTED COMING BACK, AND A LOT OF COMPANIES EVEN TOLD ME IT WAS LIKE THEY WERE MAKING UP FOR LOST TIME.
AND THEY SAID THE SECOND TWO QUARTERS OF 2020 WERE TWO OF THE BEST QUARTERS THEY'VE EVER HAD IN THEIR COMPANY'S HISTORY.
AND SO THEY DID NOT, MOST COMPANIES DID NOT GET THEIR PROFIT PROJECTIONS FOR 2020, BUT THEY GOT BACK TO BREAK EVEN.
AND SO IT WASN'T QUITE AS BAD A YEAR AS THEY THOUGHT IT WAS GOING TO BE.
UM, MANY PEOPLE IN THE INDUSTRY THOUGHT THAT, UM, IT WAS, IT WAS GONNA COMPLETELY DEVASTATE THE MANUFACTURING, BUT IT, IT REALLY DIDN'T.
AND TODAY THINGS ARE RUNNING PRETTY WELL.
SO WE HAVEN'T SEEN THE VALUE FALL OFF, UM, LIKE WE HAD EXPECTED IT TO AT ONE TIME.
SO DOES THAT ANSWER YOUR QUESTION? YES, SIR, IT DOES.
ACCESS TO THE CONTRACTS, IS THAT SOMETHING THAT'S, SO THEY'RE ALL ONLINE.
I CAN SHOW YOU HOW TO ACCESS THEM AND YOU CAN GO TO ALL OF THEM.
SO ANYBODY CAN GO TO 'EM ANYTIME.
THE CONTRACTS STATE WHERE THESE NEW INDUSTRIALS ARE LOCATED, THEY'LL STATE WHETHER THEY'RE IN INDUSTRIAL DISTRICT ONE, TWO, OR THREE.
UM, THEY'LL HAVE A MEETS AND BALANCE DESCRIPTION OF THE PROPERTY, BUT THEY WON'T NECESSARILY HAVE MAPS ATTACHED TO THEM.
SOME MIGHT HAVE SOME SURVEYS, BUT IT'LL BE HARD TO SEE EXACTLY WHERE IT IS.
SO AS I WAS SAYING AT, AT THE BEGINNING, YOU MAY HAVE MISSED IT.
TECHNICALLY, THE, THE, THE ONE THAT, UH, YOU'RE RESPONSIBLE FOR AGREEING IS THAT TRINITY BAY, UH, WHICH IS ONE SEVEN UP FROM THE, FROM THE VERY BOTTOM.
UM, AND THEN THAT WOULD, YOU WILL NOTE THAT THE BASE VALUE, WHICH IS WHAT THE IS, IS BASED UPON OBVIOUSLY.
HENCE IT'S THE TURE IS, UH, SIGNIFICANTLY HIGHER THAN THE ASSESSED VALUE.
THAT 26,256,007 14 IS THE VALUE THAT IS USED TO CALCULATE.
SO IS THAT OR ACTUALLY AGREE, MAKE A MOTION TO ACCEPT? YES.
THAT SORT YOUR, WELL CONTEMPT YOUR COURT BACK.
HOPEFULLY HE'LL BE RIGHT BACK.
AND WHILE HE'S OUT, AND I KNOW THIS IS NOT OUR BODY'S BUSINESS, BUT HOW, HOW IS THE PAYMENT CALCULATED? WHAT IS THE IT'S OKAY.
SO IT IS THE VALUE TIMES THE TAX RATE, WHICH IS CURRENTLY 78.55 CENTS HAVING BEEN REDUCED FOR THE FOURTH YEAR IN A ROW.
SO IT'S BASICALLY TWO THIRDS OF THE TAX RATE IN THE YEAR.
AND IS THAT PAID QUARTERLY? IS THAT HOW THEY, DO THEY PAY ANNUALLY? ANNUALLY? ACTUALLY, YES.
THEY, THEY, THEY, MOST OF THEM PAY RIGHT AT THE BEGINNING OR END OF THE YEAR.
SO MONEY WILL START COMING IN BETWEEN NOW TO MORE CURIOUS.
AT THE END OF JANUARY, I WOULD RECKON WILL HAVE PROBABLY 99% OF THE PAID.
AND THIS YEAR, HUGH AND HIS TEAM WILL BE RESPONSIBLE FOR DOING ALL THE BILLINGS.
WE CHANGED HOW WE DO SOME THINGS.
SO THAT'S A MUCH MORE EFFECTIVE WAY TO, TO GET IT DONE.
SO SAY HUGS TEAM WILL BE SENDING THOSE BILLS OUT AFTER THIS MEETING.
[00:15:04]
YEAH.I DUNNO IF WE HAD A PHONE CALL.
HAD A LITTLE BLOOD PRESSURE PROBLEM AND KIND OF WEIRD.
LEFT IT DISRUPT THIS STUFF GOING.
WELL, WE'RE GONNA WRAP UP HERE.
SO WE, YOU JUST NEED AN ENDORSEMENT FROM US OR A MOTION FROM US.
AN AGREE OF THIS AGREEMENT THAT HE HAS.
I JUST WANNA MAKE SURE I GET MY VERDICT.
SO, UH, THAT YOU ARE CONTENT WITH THE MISS, WITH THE, UH, BA AS DESCRIBED FOR TRINITY BAY EQUIPMENT HOLDING THAT, PLEASE ACCEPT THE AGREEMENT ITSELF.
UM, WHAT, WHAT YOU ARE AGREEING, ACCEPTING IS THAT THE BASE VALUE OF TWENTY SIX THOUSAND TWO HUNDRED TWENTY SIX MILLION TWO HUNDRED FIFTY SIX THOUSAND SEVEN HUNDRED FOURTEEN IS THE ESTABLISHED BASE, WHICH IS USED FOR THE CALCULATION OF THE IDA PAYMENT.
IS THAT CONTRACT? UH, THAT'S JUST, THAT'S JUST A, THAT'S JUST AN EXCERPT.
SO YOU CHAIR, YOU CAN ENTERTAIN A MOTION JUST TO ACCEPT THE VALUES, THE, SO SHE CAN, I WANT, I WANT LET HER LOOK OVER THAT.
YEAH, JUST WANTS TO SEE THE VERBIAGE.
UM, BECAUSE IT ACTUALLY SAYS WITHIN THE AFFECTED AREA OF JANUARY, ON JANUARY 1ST, 2002.
DO I HAVE A MOTION TO ACCEPT DISAGREEMENT AS, AS PRESENTED? YOU, YOU'RE NOT ACCEPTING THE AGREEMENT.
AND WE'LL HEAR BACK FROM YOU GUYS THIS TIME NEXT YEAR.
YOU, HOW, HOW ARE THINGS LOOKING AS FAR, AND I KNOW THIS ISN'T FAIR TO ASK YOU TO LOOK INTO A CRYSTAL BALL, BUT WHAT DO YOU SEE COMING UP FOR THIS NEXT YEAR AS MUCH BAY TIME AS A WHOLE? I THINK THAT THE MOST IMPORTANT THING IS THAT THERE'S GONNA BE MORE NEW GROWTH IN THE DISTRICT.
UM, SINCE 99 HAS BEEN BUILT OUT THERE, UM, THINGS ARE HAPPENING.
THAT AREA IS BECOMING SOMETHING OF A HOTSPOT FOR WAREHOUSES, FOR MANUFACTURING, FOR CHEMICAL PLANTS.
AND IT'S ATTRACTING A LOT OF INTEREST IN A LOT OF BUSINESS.
AND SO I THINK THAT WE'LL, WE'RE GONNA BE STRUGGLING TO KEEP UP WITH ALL OF THE, UH, THE NEW CONTRACTS AND THE NEW BUSINESSES THAT ARE MOVING INTO THAT AREA.
I THINK THERE'S A LOT OF GOOD THINGS COMING, COMING OUR WAY WITH THIS.
MAN, THAT WE'RE THE WHOLE WORLD.
DO WE HAVE A MOTION TO ADJOURN? SO MOVED.
HAPPY HOLIDAYS TO YOU AND YOUR FAMILY.