[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, FEBRUARY 3, 2022 5:00 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
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SO, AND I'LL CALL THIS, I'LL CALL THIS MEETING WITH THE BAYTOWN MUNICIPAL DE UM, DEVELOPMENT DISTRICT TO ORDER.
UH, WE ARE HERE IN BAYTOWN CITY HALL COUNCIL CHAMBERS.
[a. Consider approving the minutes of the Municipal Development District Regular Meeting held on November 4, 2021. ]
[b. Consider approving the minutes of the Municipal Development District Regular Meeting held on December 2, 2021. ]
HAVE APPROVAL OF THE MINUTES OF ITEM ONE, A AND B, WHICH IS APPROVAL OF THE NOVEMBER 4TH AND THE NOTE DECEMBER 2ND MEETINGS, UH, FOR THIS BODY, UH, TO ENTERTAIN A MOTION FOR BOTH OF THOSE ITEMS TO BE APPROVED TO APPROVE ITEMS ONE A AND B.SECOND, WE HAVE A MOTION, A SECOND.
ANY QUESTIONS, COMMENTS, OR ABSTENTIONS? IF NOT ALL THOSE IN FAVOR OF THE, OF THE MENACE IS WRITTEN, PLEASE SAY AYE.
[a. Recess into and conduct an executive session pursuant to Sections 551.071 of the Texas Government Code to seek the advice of the District's attorneys on legal matters related to the Baytown Hotel and Convention Center Project. ]
TWO, A RECESS INTO AN CONDUCT, AN EXECUTIVE SESSION.UH, SO WE WILL NOW RECESS INTO AN AND CONVENE AN EXECUTIVE SESSION PURSUANT TO SECTION 5 5 1 0.07, ONE OF THE TEXAS GOVERNMENT CODE TO SEEK THE ADVICE OF THE DISTRICT ATTORNEYS ON LEGAL MATTERS RELATED TO THE BAYTOWN HOTEL AND CONVENTION CENTER PROJECT.
SO I'LL NOW RECONVENE OUR OPEN MEETING OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AND ANNOUNCE THAT IN ACCORDANCE WITH SECTION 5 5 1 0.102 OF THE TEXAN GOVERNMENT CODE, NO ACTION WAS TAKEN IN EXECUTIVE SESSION.
[a. Consider a resolution approving an amendment to the Design Build Agreement, a revised budget, an Initial Guaranteed Maximum Price, and other matters related to the Baytown Hotel and Convention Center Project. ]
UH, GO TO ITEM THREE A, UH, CONSIDER RESOLUTION PROVEN AND AMENDMENT TO THE DESIGN BUILD AGREEMENT, A REVISED BUDGET, AND AN INITIAL GUARANTEED MAXIMUM PRICE AND OTHER MATTERS RELATED TO THE BAYTOWN HOTEL AND CONVENTION CENTER PROJECT.UM, AT THIS POINT, I BELIEVE WE SHOULD HAVE SOME INDIVIDUALS THAT ARE ON, UM, ZOOM.
IS THAT CORRECT? THAT IS CORRECT.
AND WHO DO WE HAVE, UH, IF YOU CAN IDENTIFY THEM FOR ME PLEASE.
WE HAVE MR. STEVEN BERT AND MR. HEY ANGELA, WE HAVE MR. UM, HOLD ON.
AND THEN IS IT ALSO CHRIS JENNY? YES, THAT'S HIM.
IS DAVID DAWSON ALSO ON THE LINE? YES.
AND IS THERE ANYONE ELSE? THAT'S IT.
JUST WANNA GET THAT CLARIFIED.
SO WE DO HAVE AN AN ITEM, UM, WITH THREE A.
SO IS THERE ANYBODY THAT, UH, NEEDS TO SPEAK ON THIS, EITHER FROM STAFF OR UM, FROM, UM, UH, DPR OR ANYONE ELSE? GARFIELD.
I MEAN, I HONESTLY, I WOULD LIKE TO HEAR FROM GARFIELD.
IS THERE ANY COMMENTS? UM, STEVE, CAN YOU STOP? HE'S MUTED.
UM, IT, IT'S, UM, IT'S BEEN A, IT'S BEEN A, UM, DIFFICULT PROCESS, UM, OVER THE, THE LAST, UH, FEW MONTHS WITH, WITH ESCALATIONS.
UM, BUT WE'VE BEEN ABLE TO MAINTAIN THE QUALITY OF THE HOTEL AND THE AMENITIES OF THE HOTEL.
UM, THE, UH, DPR IS, IS MAKING GREAT PROGRESS ON THE SITE RIGHT NOW.
UM, AND I, AND I ENCOURAGE ANY OF YOU TO, UH, TO GO OUT AND SEE THE SITE IF YOU HAVE AN OPPORTUNITY, UM, AND SEE, UH, MOST OF, UH, OF THE ALMOST 50,000 CUBIC YARDS OF DIRT THAT WE'RE, THAT WE'RE PUTTING ON THE SITE, UM, ABOUT HALF OF THAT'S BEEN BEEN INSTALLED.
AND THERE, UH, THEY'RE, UH, IN THE MIDDLE OF DOING ALL THE AUGER CAST PILES NOW.
SO, UH, PROGRESS IS GOING WELL AND, UM, AND WE WORKED WITH THE CITY TO GET, UH, TO THIS RESOLUTION WITH DPR TO GET THIS, THIS, UH, GMP, UH, READY TO BE EXECUTED.
SO, AND IT IS MY UNDERSTANDING THERE IS A SIGNED IGMP, IS THAT CORRECT? THERE IS, YOU, YOU, YOU, WHAT YOU, WHAT YOU HAVE BEFORE YOU IS AN EXECUTED GMP, UH, EXECUTED BY, UH, DPR.
AND I'M, I'M ASSUMING THERE'LL BE CONTINUED EFFORTS TO GO AND, UH, IF THERE'S ANY ADDITIONAL, UM, COST REDUCTIONS THAT CAN BE MADE WITHOUT, WITHOUT UNDERMINING THE BUILD QUALITY OF THE HOTEL OR ANYTHING ELSE ASSOCIATED WITH THIS PROJECT, UM, UM, IF THE NUMBER GETS BETTER, THAT'S GREAT.
BUT, AND YOU CAN CONFIRM THAT, UH, FOR ME, CORRECT? A A, ABSOLUTELY, ABSOLUTELY.
ONCE THE IGMP IS, IS EXECUTED, THE FGMP, UM, CAN ONLY BE AT THE IGMP OR LOWER, UNLESS, UNLESS OWNERS,
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UM, ADD SCOPE THAT WASN'T INCLUDED.BUT WE, WE FULLY EXPECT THAT THE, THE FINAL GMP WILL BE, UM, AT OR LOWER THAN THIS NUMBER.
ANY QUESTIONS FROM OUR DISTRICT MEMBERS, UH, FOR MR. GALBRATH? I HAD A QUICK QUESTION.
MAYOR, DO WE, DO WE HAVE A SIGNED GUARANTEE FROM HYATT? I DON'T KNOW THAT I EVER SAW ANYTHING.
IS THERE, IS THERE ANYTHING THAT CAN SAY THAT HYATT CAN AT SOME POINT BACK OUT OR IS THAT SOMETHING THAT'S, I THINK COUNCIL WILL HAVE TO GUARANTEE THAT THEY ARE SIGNED INTO THE AGREEMENT THAT THERE'S, IT'S MORE COMPLICATED THAN THAT, BUT YES, THEY ARE LOCKED INTO THE AGREEMENT.
WE HAVE A HOTEL SERVICES AGREEMENT MM-HMM
AND WE HAVE A TECHNICAL SERVICES AGREEMENT.
I JUST WANNA MAKE SURE IN THAT SAME SPIRIT OF THAT QUESTION, WE'VE ACTUALLY MADE PAYMENT TO HYATT CORRECT.
THE TECHNICAL SERVICES AGREEMENT.
UH, ANY ADDITIONAL QUESTIONS OR COMMENTS? JUST A FINAL COMMENT, MAYOR.
I, I WOULD ASK THAT MOVING FORWARD, UM, IN THE SPIRIT OF IMPROVED, UH, TRANSPARENCY THAT WE HAVE A STANDING ITEM ON EVERY MDD MEETING GOING FORWARD TO WHERE WE'RE PROVIDED AN UPDATE, A FORMAL UPDATE FROM THE CONSTRUCTION MANAGER OF THE PROJECT BROUGHT US.
UH, YES, I, UM, I WOULD AGREE IT'S A GREAT IDEA.
UH, CERTAINLY CONSTRUCTION, UH, PROGRESS KIND OF WHERE WE'RE AT ON THAT.
AND THEN, UM, I GUESS I'M ASSUMING FROM STAFF ARE, ARE APPROPRIATE PARTIES TO ALSO PROVIDE KIND OF FINANCIALLY WHERE ARE WE AT AND, AND, AND, UH, HOW THINGS ARE, ARE SHAPING UP WITH THAT.
SO I WOULD ASK, I'LL, I'LL ASK, UH, ANGIE, IF WE COULD JUST MAKE SURE ON EVERY MDD AGENDA, WE HAVE A, UH, A CONSTRUCTION UPDATE AND FINANCIAL UPDATE.
UH, THE CONSTRUCTION UPDATE WILL BE PROVIDED BY BROADUS, B-R-O-A-D-U-S.
AND THE FINANCIAL UPDATE WILL BE, UH, DELIVERED I, I WOULD GUESS BY, BY VICTOR.
SO I WOULD ENTERTAIN A MOTION OR UNLESS THERE'S ANY ADDITIONAL QUESTIONS OR COMMENTS, IF NOT, ENTER MOTION FOR ITEM THREE A WITH THE ADDITION OF, UH, THE, THE PROJECT UPDATE AND FINANCIAL UPDATE, I GUESS, OF THE PROJECT ITSELF.
SO MOVE TO APPROVE ITEM THREE A, UM, WHICH WILL INCLUDE MONTHLY UPDATES FROM BROUGHT US AS WELL AS FINANCIAL UPDATES MOVING FORWARD.
ANY ADDITIONAL QUESTIONS OR COMMENTS? IF NOT ALL THOSE IN FAVOR OF ITEM THREE, THREE A AS AS MOTIONED, UM, PLEASE SAY AYE.
[a. Receive the Baytown Municipal Development District’s Quarterly Financial and Investment Reports for the Quarter Ending December 31, 2021.]
TO ITEM FOUR A, RECEIVE THE BAYTOWN MISSAL DEVELOPMENT DISTRICT'S QUARTERLY FINANCIAL AND INVESTMENT REPORT FOR QUARTER ENDING DECEMBER 31ST, 2021.I'LL NOT DELAY YOU LONG WITH THIS ONE.
AS YOU CAN SEE, SALES TAX CONTINUES TO BE REMARKABLY ROBUST.
UH, WE ARE 14% UP YEAR OVER YEAR AND ABOUT 18% OVER BUDGETED EXPECTATIONS IN SALES TAX.
SO IN THE FIRST QUARTER ALONE, WE'VE, UH, TURNED IN ALMOST A QUARTER OF A MILLION ADDITIONAL RECEIPTS.
ON THE EXPENDITURE SIDE, UH, WE KNOW THAT SOME OF ECONOMIC DEVELOPMENT BUDGET LINES HAVE NOT BEEN ALLOCATED.
UH, THAT IS WHY THAT'S LOOKING, UH, FAIRLY LOW IN TERMS OF SPEND IN THE FIRST QUARTER.
UH, ALL OTHER EXPENDITURES ARE ON TRACK, YOU KNOW, THE EXPENDITURES ON PREDICT THE PARKS PROJECTS CONTINUE.
UH, OVERALL THE, UH, DISTRICT'S POSITION IS LOOKING HEALTHY.
ONCE AGAIN, UH, AS I SAID BEFORE, YOU SPENT SOME MONEY TO GET THE HOTEL PROJECT UNDERWAY AND HAVE ALLOCATED SOME MORE FUNDING THAT WAS ALREADY, UH, ALLOCATED TO THE HOTEL.
AND NOT WITHIN THIS BUDGET, BUT THE, UH, THE FUND BALANCE IS GROWING.
I'M CONFIDENT IF SALES TAX CONTINUES LIKE THIS, THAT WE WILL BE ABLE TO RECOVER UPWARDS OF THREE QUARTERS OF A MILLION ADDITIONAL REVENUES IN THE CURRENT YEAR.
ANY QUESTIONS OR COMMENTS ON THE REPORT AS WRITTEN? OKAY.
AND SO WE'LL CONSIDER THAT RECEIVED.
WE'LL NOW MOVE TO OUR MANAGER'S REPORT.
I MEAN, UH, MBD BOARD,
UM, SO BEING THAT MBD HAS, UH, ADDRESSED ALL POSTED AGENDA ITEMS, THIS MEETING IS NOW ADJOURNED.