* 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. [00:00:19] FIRST ITEM [a. Consider approving the minutes of the Baytown Redevelopment Authority and Tax Increment Reinvestment Zone Number One joint meeting held on April 5, 2022.] BUSINESS IS APPROVAL OF THE MINUTES FROM THE APRIL 5TH, 2022 MEETING LONG, LONG AGO, AND FAR, FAR AWAY. DO I HEAR A MOTION TO APPROVE MINUTES? A MEETING? I HAVE A MOTION. YES, SIR. ALRIGHT, WE HAVE A SECOND. ANY COMMENTS, ANY QUESTIONS ABOUT, UH, YES. YES, MA'AM. UM, THERE'S A TYPO ON THE SECOND PAGE IN PARAGRAPH PARAGRAPH C, UH, ABOUT MIDWAY DOWN ON THE LEFT HAND SIDE TALKING ABOUT AN ENGINEERING FIRM. IT'S PRACTICE. KIMBERLY HORN. OH YEAH, IT'S HELEY HORN. KIMLEY. SO IT'S K-I-M-L-E-Y. THANK YOU VERY MUCH. WHO MADE THE MO THE SECOND MOTION? THE SECOND. KYLE, YOU MAY SECONDED. YEAH. WHO MADE THE MOTION TO BREAK? ALRIGHT, THANK YOU. ALRIGHT, DID ANY OTHER CORRECTIONS OR DECISION BE MADE? ALRIGHT, ALL THOSE IN FAVOR? AYE. AYE. ALL THOSE OPPOSED LIKE SIGNED. ALRIGHT, I'M ABSTAINING. I'M I'M ABSTAINING. I WASN'T HERE. OKAY. I WASN'T HERE EITHER. ALRIGHT. I'M ABSTAINING. OKAY. WE'LL MOVE ON TO [b. Consider approving the minutes of the Baytown Redevelopment Authority and Tax Increment Reinvestment Zone Number One joint meeting held on September 13, 2022.] MEETING OF, UH, EXCUSE ME, APPROVAL OF THE SEPTEMBER 13TH, 2022 MINUTES. DO I HEAR A MOTION TO APPROVE? SO, ALRIGHT, MS. SMITH MOTION. SECOND DROP A SECOND. ANY COMMENTS? ANY CORRECTIONS ON THAT? I'LL BE ABSTAINING AS I WAS JUST GETTING OUT OF SURGERY FROM THAT MEETING. SO THERE WAS DISCUSSIONS AT THAT MEETING ABOUT PROVIDING, PROVIDING THE NEW MEMBERS WITH SOME NEW BUDGET UPSTATE INFORMATION. I DON'T SEE THAT IN THESE MINUTES. WE DID GET 'EM, OR I GOT IT. YEAH, WE GOT IT. BUT I DON'T SEE 'EM PARTING THEM AT THAT AHEAD. OKAY. REFLECT WHAT WAS THE, UH, REQUEST FOR INFORMATION, CLAIM, BUDGET, FINANCE FOR THE NEW MEMBERS. OKAY. JUST FOR THIS, THIS FOR THIRD? FOR THIS, UH, NEW YEAR? YEAH, THIS YEAR. LAST YEAR. OKAY. I DIDN'T KNOW IF YOU WERE TALKING ABOUT THE 20. I THINK THAT'S WHAT I GOT SENT ANYWAY. 23. ALRIGHT. OKAY. ALL THOSE IN FAVOR? AYE. AYE. ALL THOSE OPPOSED? NAY. ALRIGHT. OKAY, MOVING ON TO ITEM [a. Receive training on the Tax Increment Reinvestment Zones, provide an overview and discussion of Tax Increment Financing (TIF), and review the duties and responsibilities of the Board.] TWO EIGHT. WE WILL HAVE, UH, I GUESS A TRAINING FOR THE TURF AND BOARD AND REDEVELOP AUTHORITY MEMBERS YOURSELF FROM MY COMPUTER, OR, UM, IS IT CONNECTED TO YOURS? DO YOU HAVE A, DO YOU HAVE A-H-D-M-I. OKAY. I THOUGHT YOU WERE DOING THE TRAINING. YEAH. YEAH. OKAY. YEAH, . ALRIGHT. ANYBODY WANNA KNOW WHAT TUR STANDS FOR? ? UM, THIS IS ABD IN WITH UNICAP, WE, YOUR NEW TURS ADMINISTRATORS. SO, UH, WELL, WE, I MEAN, SPEAKING WITH, WITH VICTOR AND THEN, AND EMILIO PARTICULARLY, GIVEN THAT THERE ARE A FEW NEW BOARD MEMBERS, WE FELT IT WOULD BE HELPFUL TO TRY TO BASICALLY TALK ABOUT THE BASICS OF AURS. UH, ESSENTIALLY WHAT IT IS, WHAT PART OF THE TEXAS, YOU KNOW, UM, STATUTE GOVERNS, UH, AURS, UH, BUT MOST IMPORTANTLY, UH, WITH RESPECT TO THE BOARD ITSELF, YOU KNOW, YOU KNOW, TALK ABOUT SOME OF THE THINGS THAT THE BOARD IS REQUIRED TO, TO KNOW, TO, TO ACT ON, AND ALSO ADD A FEW KIND OF POINTERS AND THAT WOULD, YOU KNOW, ALLOW THE BOARD MEMBERS TO KIND OF, YOU KNOW, PROPERLY EVALUATE, YOU KNOW, REQUESTS THAT COME TO THEM. SO WE WANTED TO TO, TO TALK TO Y'ALL ABOUT A LITTLE BIT ABOUT THAT. SO WE PREPARED, UH, UH, PRESENTATION MATERIAL, UH, HOPEFULLY WON'T TAKE THAT LONG, BUT LIKE, LIKE I SAID, I WANTED TO KIND OF, YOU KNOW, START IT OFF WITH, WITH SOME, SOME BASICS, UH, ABOUT IT. LET'S SEE IF WE CAN GET IT UP THERE. [00:05:02] IT SAYS HGI TWO. YOU PLUGGED IT INTO, THERE'S ONLY ONE PROBABLY . WHERE DO YOU GO? ALRIGHT, I FIGURED OUT BY THE TIME HE GETS BACK, NO. UM, JUST PLUGGED EMELIA'S LAPTOP INTO THE H TWO I. IF, IF NOT, WE DON'T HAVE IT. I THINK IT'S IN, IN YOUR, IN YOUR HONOR. I WAS GONNA SAY WE HAVE OFF, AND THEN IF WE PRINT OUT, SEE IF YOU WANNA JUST GO THROUGH THOSE AND JUST, YEAH, SURE. SO, UM, KIND OF FLIPPING THROUGH THE, THE, THE FIRST PAGE OR SECOND PAGE, AND IN THE DOCUMENT IT KIND OF GIVES YOU A LITTLE BIT ABOUT AN OVERVIEW AS TO, UH, YOU KNOW, THE, KIND OF THE STATUTORY FRAMEWORK FORTS. SO CHAPTER THREE 11 OF THE TEXAS PROPERTY CODE BASICALLY GOVERNS TURS, UM, YOU KNOW, THE PURPOSE FOR WHICH TURS CAN BE CREATED, YOU KNOW, THE PROCESS OF CREATING A TERRAS, AND THEN THE, THE ADMINISTRATION PROCESS ARE ALL OUTLINED IN THAT, IN THAT, YOU KNOW, CHAPTER THREE 11 OF THE TEXAS, UH, PROPERTY CODE. SO IT'S ALWAYS THAT REFERENCE. SO WHENEVER, YOU KNOW, YOU COME ACROSS SOMETHING ABOUT A TERRACE, YOUR, YOUR TRUE REFERENCE AS TO WHETHER OR NOT WHAT YOU ARE BEING ASKED TO DO IS, IS CONSISTENT WITH, WITH THE APPLICABLE STATUTORY FRAMEWORK. CHAPTER THREE 11, IS THAT KIND OF, THAT GO-TO, UH, YOU KNOW, UH, FRAMEWORK. UM, A TURS IS NOTHING BUT, UH, A PUBLIC, UH, INFRASTRUCTURE FINANCING MECHANISM. SO IT ALLOWS THE CITY TO BASICALLY, UH, USE FUTURE INCREMENTS, FUTURE ADDITIONAL TAXES THAT COME IN FROM A PARTICULAR AREA TO BASICALLY, UH, YOU KNOW, FINANCE, PUBLIC INFRASTRUCTURE OR INFRASTRUCTURE THAT ARE ALLOWED BY, BY THE THIRD STATUTE. SO IT IS JUST A MECHANISM FOR THE CITY TO FAST TRACK DEVELOPMENT, TO PROVIDE, YOU KNOW, INFRASTRUCTURE THAT IS LACKING, OR INFRASTRUCTURE THAT IS, THAT IS INSUFFICIENT. SO IF YOU ALL FLIP THROUGH THE SET, THE, THE THIRD PAGE OF THAT DOCUMENT, WE HAVE, UH, SO ONE, THERE YOU GO. SO THESE ARE THE, THE, THE TYPICAL BASICALLY, YOU KNOW, UH, APPLICATIONS OF A TOURS, UH, LATELY, LITERALLY, LIKE MAJORITY OF THE TOURS THAT ARE CREATED ACROSS THE STATE ARE, ARE CREATED WITH THE INTENTION OF, UH, YOU KNOW, BASICALLY HELPING A NEW DEVELOPMENT, ENCOURAGING A NEW DEVELOPMENT, UH, OR REDEVELOPING, UH, A A KIND OF, UH, LIGHTED AREAS TO TRY TO GIVE THEM A LITTLE BIT OF A FACE FACELIFT. THEY CAN ALSO BE RARELY, BUT CAN ALSO BE USED TO REBUILD INFRASTRUCTURE. SO A CITY CAN USE A TOUR TO REBUILD INFRASTRUCTURE LIKE ROADWAYS, WATER SEW OR DRAINAGE SYSTEMS, UH, PARKS AND THINGS LIKE THAT, THAT ARE LACKING IN A PARTICULAR AREA. SO A TOUR CAN BE USED. SO THE, LIKE I SAID, MAJORITY OF THE NEWER TUR THAT ARE COMING IN OR ABOUT, YOU KNOW, BRAND NEW DEVELOPMENT OR, UH, REDEVELOPING AN EXISTING AREA, BUT THEY CAN ALSO BE USED TO, TO REBUILD INFRASTRUCTURE. SO, UM, TYPICALLY ONE OF THE THINGS AS A TOUR BOARD MEMBER, YOU WANNA LOOK AT IT WHENEVER A PROJECT PROPOSAL IS, IS, IS PRESENTED BEFORE YOU, YOU WOULD WANT TO MAKE SURE THAT IT FALLS AT LEAST WITHIN ONE OF THESE THREE KIND OF BROAD CATEGORIES. UH, TERRA BASICALLY ALLOWS THE CITY TO REINVEST FUTURE FUTURE REVENUE. SO WHAT IT DOES IS IT WOULDN'T TAKE ANYTHING AWAY FROM WHAT THE CITY IS GETTING AT THE TIME THE TUR IS CREATED, BUT ALLOWS IT TO REUSE BASICALLY SOME OF THE INCREMENTS, THE ADDITIONAL TAXES THAT ARE COMING IN, IN THE FUTURE TO HELP BASICALLY ENHANCE A PARTICULAR AREA OR DEVELOPED PARTICULAR AREA. AND ONCE THE TERM OF THE TERM IS OUT ENTIRETY OF ALL TAXES THAT ARE COMING IN, WILL BE FLOWING INTO THE GENERAL FUND. SO ESSENTIALLY IT'S BASICALLY A, A SNAPSHOT IN A TIME, IN A TIME, KIND OF WITHIN A TIMEFRAME. IT WILL ALLOW THE CITY TO REAPPLY FUNDS ADDITIONAL TAXES THAT ARE GENERATED TO FUND INFRASTRUCTURE. AND ONCE THAT BASICALLY THE, THE PURPOSE FOR EITHER TERMS ESTABLISHED IS SERVED, THEN THE ENTIRETY OF TAXES WILL START FLOWING BACK TO THE GENERAL FUND. SO IT'S ALWAYS ABOUT THAT NEW ADDITIONAL REVENUE THAT'S COMING IN FROM THE AREA WITHIN THE TS. UH, A TYPICAL TS PROCESS, FIRST AND FOREMOST IS ABOUT, UH, YOU KNOW, PREPARING THE, THE PROJECT PLAN. SO ONE THING AGAIN, UH, IF THERE'S ANYTHING CARDINAL ABOUT A TS, IT'S THE TS PROJECT AND FINANCE PLAN. SO ANYTHING AND EVERYTHING THAT, UH, YOU KNOW, THE BOARD AND ULTIMATELY COUNSEL IS ALLOWED TO DO UNDER THREE 11, CHAPTER THREE 11 OF THE, THE PROPERTY CODE IS SPELLED IN THET PROJECT AND FINANCE PLAN. THAT MEANS THAT, YOU KNOW, THE BOARD HAS TO MAKE SURE THAT ANYTHING AND EVERYTHING THAT IS PRESENTED FOR ITS CONSIDERATION FALLS WITHIN THE ESTABLISHED TRT PROJECT AND FINANCE PLAN. SO IF A NEW PROJECT IDEA COMES TO YOU THAT'S NOT CAPTURED IN THE PROJECT PLAN, THE FIRST THING THAT NEEDS TO HAPPEN IS THE PROJECT PLAN HAS TO BE UPDATED TO INCLUDE THAT PROJECT, THEN YOU CAN BASICALLY, YOU KNOW, CONSIDER THOSE, THOSE PLANS. SO THE PROJECT PLAN IS ESSENTIALLY THE BIBLE WHEN IT COMES TO THE, THE, THE TURS AND WHAT IT CAN DO, UH, ONCE, SO TYPICALLY IN, IN A BRAND NEW PROCESS, UH, YOU KNOW, THE, THE, THE, THE BIGGEST, UH, YOU KNOW, UH, WORK IS, IS, IS IS PART OF THAT BUILDING THAT THE ORIGINAL PLAN, ONCE THE PLAN IS BUILT, AND WE GO INTO THE, THE, [00:10:01] THE ADMINISTRATIVE PROCESS, WHICH IS, UH, YOU KNOW, THE NEGOTIATIONS, UH, AND THEN ALSO GOING THROUGH THE REQUIRED PUBLIC HEARINGS TO CREATE THE THIRD, AND THEN COMES THE IMPLEMENTATION. SO HAVING A PLAN, CREATING THE DISTRICT IN ACCORDANCE WITH THE STATUTE, AND THEN IMPLEMENTING IT TO MAKE SURE THAT WHATEVER IS DONE IS CONSISTENT WITH THE PLAN THAT WAS PUT IN PLACE. IF AND WHEN NEW THINGS THAT ARE PLANNED TO BE DONE ARE NOT CONSISTENT WITH THE PLAN, FIRST THING THAT NEEDS TO HAPPEN IS THE PLAN HAS TO BE UPDATED TO REFLECT THE NEW PLAN. IT'S A LITTLE DELAY NOW. SO THE, THE NEXT TWO SLIDES, THIS SLIDE, AND THE NEXT ONE ARE TO BE HONEST WITH YOU, THE KIND OF THE TRUE, UH, ESSENCE OF THE, MY PRESENTATION IS ABOUT THESE TWO SLIDES. ESSENTIALLY, AS A TERRAS BOARD, WHAT ARE THE THINGS THAT YOU NEED TO LOOK FOR WHENEVER YOU'RE PRESENTED WITH AN IDEA ABOUT, WITH A, A PROJECT IDEA TO BE CONSIDERED, UH, AS YOU KNOW, FORT FINANCING. SO YOU'LL HAVE TO LOOK AT, YOU KNOW, UH, FIRST AND FOREMOST, IT, IT DOES THE TTS HAVE THE ABILITY TO FINANCE A PROJECT? YOU'LL HAVE TO BE CONVINCED THAT, YOU KNOW, BEFORE YOU TAKE ON ANY NEW, NEW PROJECT, YOU'LL HAVE TO MAKE SURE THET HAS THE ABILITY TO, TO FUND THAT PROJECT IF IT CAN. THE NEXT THING IS, IS IT APPROPRIATE? DOES, DOES THE, IS THE ASSISTANCE NEEDED EVEN THOUGH THE TURS CAN AFFORD TO, TO, TO FUND A PROJECT? SHOULD IT FUND A PROJECT? IS IT, IS IT, IS IT, IS IT, IS IT NECESSARY? IF IT IS NECESSARY, HOW MUCH IS NECESSARY? HOW MUCH CAN BE FUNDED? AND FINALLY, UH, IS, AND WE, WE, WE, WE'LL TALK ABOUT IT IN THE, IN THE NEXT SLIDE, WHATEVER IS PRESENTED FOR YOU, FOR YOUR CONSIDERATION HAS TO BE CONSISTENT WITH THE PROJECT PLAN. AND THEN, UH, OTHER REGULATIONS LIKE IRS REGULATIONS, THE OTHER, OTHER, OTHER APPLICABLE, UH, STATE AND, AND, AND, AND ALSO PUBLIC POLICY. BUT THE KEY HERE IS, AND WE CAN LOOK AT IT IN THE NEXT SLIDE, IT'S ABOUT THESE FOUR, WE CALL 'EM THE METRICS OR THE TS METRICS. IT'S ABOUT THESE FOUR THINGS. FIRST AND FOREMOST, IS THERE A NEED FOR PUBLIC ASSISTANCE WHENEVER A TS PLAN IS PRESENTED FOR, FOR YOU, THE FIRST THING YOU NEED TO LOOK FOR IS, IS IT NEEDED? IS IT, IS IT, IS IT APPROPRIATE? AND THEN SECOND THING YOU'LL ALSO HAVE TO CONSIDER IS, WILL THE PUBLIC SUPPORT IT? IS THAT SOMETHING THAT IS IN THE BEST INTEREST OF THE CITY? IS THAT SOMETHING THAT THE, YOU KNOW, THE CITY CAN EXPECT THE PUBLIC TO SUPPORT? IF THE ANSWER TO BOTH OF THESE IS NO, THEN THAT PROJECT SHOULD NOT BE CONSIDERED AS A TERRACE. IF THE ANSWER TO ONE OF THESE TWO IS YES, THEN YOU CAN KIND OF GO INTO ADDITIONAL, ADDITIONAL, YOU KNOW, ANALYSIS. THE SECOND THING IS ALSO, UM, FACT THAT YOU HAVE THE REVENUE BASE DOES NOT GUARANTEED, DOES NOT, YOU KNOW, ASSURE THAT YOU HAVE TO BASICALLY ACCEPT EVERY, EVERY PROJECT PROPOSAL. YOU HAVE TO MAKE SURE THAT THAT PROJECT CANNOT MOVE FORWARD WITHOUT THAT ASSISTANCE. THAT'S WHAT WE CALL THE BUFFER ANALYSIS. SO THE KEY HERE IS THE, YOU KNOW, FOR, FOR THET BOARD TO RECOMMEND ACCEPTING A PROJECT, ADAPTING A PROJECT, YOU'LL HAVE TO BE CONVINCED THAT THAT PROJECT CANNOT EXIST, CANNOT MOVE FORWARD WITHOUT THAT ASSISTANCE. THAT IS A VERY, VERY IMPORTANT, VERY CRITICAL COMPONENT OF KIND OF, YOU KNOW, THIS, THIS PROCESS. AND THEN ONCE YOU DETERMINE THAT, YOU KNOW, THE TURS CANNOT MOVE FORWARD WITHOUT THE ASSISTANCE, THEN YOU LOOK AT HOW MUCH ASSISTANCE CAN THE TURS AFFORD TO GIVE? HOW MUCH ASSISTANCE IS NEEDED? HOW MUCH CAN THE TURS AFFORD TO GIVE? AND THEN FINALLY, THE OTHER EQUALLY IMPORTANT THING IS, PARTICULARLY IF YOU'RE LOOKING AT, UH, UH, A KIND OF, OF PRIVATE DEVELOPMENT WHERE THE TURS, YOU KNOW, IS, IS, IS, IS HELPING, YOU KNOW, OR ENCOURAGING THAT DEVELOPMENT, YOU'LL HAVE TO MAKE SURE THAT THE PRIVATE PARTY ALSO HAS A STAKE IN THE GAME. THAT THE TS IS NOT THE ONLY PARTY THAT'S PROVIDING FUNDING FOR THE INFRASTRUCTURE. THE, THE, THE PRIVATE DEVELOPER ALSO HAS TO HAVE BASICALLY SOME SKIN IN THE GAME. THOSE ARE THE FOUR THINGS THAT YOU WOULD ALWAYS WANT TO CONSIDER WHEN, WHENEVER A TS PROJECT PROPOSAL OR A T FUNDING REQUEST, YOU KNOW, IS PRESENTED TO YOU. SO TO ME, I THINK THESE ARE THE, THE, THESE TWO SLIDES ARE THE MOST IMPORTANT PARTS OF EVERYTHING THAT, THAT KIND OF, THAT I WANTED TO COVER TODAY. UM, I HAVE A LIST OF SOME OF THE, YOU KNOW, PROJECTS THAT ARE APPRO THAT ARE ALLOWED PER THREE 11 TO BE FUNDED THROUGH . UH, THE MOST COMMON ONES ARE CAPITAL ACQUISITION COSTS FOR PUBLIC INFRASTRUCTURE, FINANCING COSTS, REAL, YOU KNOW, REAL PROPERTY ASSEMBLY COST, UH, AND PROFESSIONAL SERVICES, ENGINEERING, PLANNING, LEGAL AND THINGS LIKE THAT. ADMINISTRATIVE COSTS, RELOCATION COSTS, ORGANIZATIONAL COSTS, CONSTRUCTION PERIOD INTEREST, UH, COST FOR OPERATING THE, UH, REINVESTMENT ZONE REIMBURSEMENT CONTRIBUTION FROM A GENERAL FUND AND OTHER PAYMENTS OF GOVERNING BODIES. SO THESE ARE BA THIS IS BASICALLY KIND OF A FRAMEWORK FOR Y'ALL TO LOOK INTO, TO, TO SEE WHETHER OR NOT THE PARTICULAR SET OF PROJECT THAT THAT IS BEING ASKED TO BE FUNDED THROUGH THE TURS IS ELIGIBLE TO TRULY BE FUNDED THROUGH THE TURS. SO THAT'S PART OF THAT COMPLIANCE WITH, WITH THE APPLICABLE STATUTORY FRAMEWORK. UM, AND THESE, THESE ARE CONTENTS OF THE, THE PROJECT PLAN. UH, IN FACT, THIS PROJECT PLAN THAT IS PREPARED FOR A, UH, INITIALLY, THE, SO THE CREATION PROCESS, UH, FIRST REQUIRES THE A PRELIMINARY PLAN TO BE PREPARED, AND THAT PLAN WILL BE APPROVED BY COUNCIL THROUGH AURS ORDINANCE. AND THAT [00:15:01] ORDINANCE IS REQUIRED TO COVER THESE, THESE SEVEN, SEVEN THINGS. FIRST IS THE BOUNDARY OF THE DISTRICT. SO DISTRICT HAS TO BE COMPLETELY DEFINED. UH, A BOARD HAS TO BE CREATED, AN EFFECTIVE DATE AND A TERMINATION DATE, AND THEN A NAME HAS TO BE DESIGNATED AS WELL. AND THEN A TAX INCREMENT FUND WILL HAVE TO BE ESTABLISHED. AND FINALLY, THE COUNCIL HAS TO DETERMINE THAT THERE IS AN ECONOMIC BENEFIT TO CREATING THE TUR. SO THESE, THESE SEVEN THINGS ARE REQUIREMENTS OF THAT ORIGINAL TUR CREATION. SO IF ANY ONE OF 'EM ARE, ARE MISSING, THEN THAT CREATION PROCESS IS CONSIDERED EFFECTIVE. UH, THIRD BOARD OF DIRECTORS, UH, MEMBER BY, BY STATUTE, THE CHAPTER THREE 11, UH, ALLOWS FORT MEMBERS TO BE ANYTHING BETWEEN FIVE AND 15. SO COUNCIL CAN DESIGNATE FROM ANYTHING BETWEEN FIVE AND 15 AS THIRD BOARD MEMBERS. NOW, UM, ONE THING THAT'S REQUIRED HERE IS IF THERE ARE OTHER PARTICIPATING PARTIES, LIKE FOR EXAMPLE, IN TERRA NUMBER ONE, WE HAVE THE COUNTY AS A PARTICIPATING PARTY. SO THEY'RE ALLOWED TO HAVE AT LEAST ONE, UH, REPRESENTATIVE IN THAT TERRA STRUCTURE. SO THAT, THAT, THAT IS, THAT IS A REQUIREMENT. UH, THE BOARD MEMBERS ARE, UH, BASICALLY, UH, APPOINTED BY COUNSEL FOR A TERM OF TWO YEARS. AND IN ANY VACANCY WILL BE BASICALLY FILLED BY THE APPLICABLE GOVERNING BODY. UH, ELIGIBILITY TYPICALLY IS BEING A RESIDENT OF THE COUNTY AND BEING OF 18 YEARS, UH, TYPICALLY THOSE ARE THE TWO REQUIREMENTS. BUT AGAIN, UH, BEST PRACTICE CALLS FOR PEOPLE WHO ARE, WHO HAVE ACTUALLY KIND, ARE CONNECTED WITH THE AREA THAT IS DESIGNATED, THAT IS BEING DESIGNATED AS THE TS TO BE PART OF THE, YOU KNOW, THE BOARD. BECAUSE THAT WILL ALLOW THEM TO HAVE FIRSTHAND INFORMATION OF WHAT'S GOING ON, EVEN THOUGH IT'S NOT A LEGAL REQUIREMENT. A LOT OF TIMES BEST PRACTICE CALLS FOR PEOPLE THAT ARE CLOSE TO THE AREA THAT IS BEING DESIGNATED TO SERVE IN, IN, IN THE BOARD, UH, TETS BOARD RESPONSIBILITY. SO A TOUR BOARD IS ACTUALLY ALLOWED TO DO EVERYTHING ABOUT THE TOUR, EXCEPT FOR THESE FOUR THINGS THAT A BOARD CANNOT DO. FIRST THING IS A BOARD CANNOT ISSUE BONDS. SO BOND ISSUANCE OR DEBT ISSUANCE IN GENERAL IS RESERVED FOR THE GOVERNING BODY. SECOND, UH, THE BOARD CANNOT IMPOSE FEES OR TAXES, CANNOT EXERCISE BO IMMINENT DOMAIN, AND THEN, UH, CANNOT ALSO GIVE A FINAL APPROVAL TO THE FINAL PLAN. SO THESE FOUR THINGS ARE RESERVED FOR COUNCIL. ANYTHING SHORT OF THAT IS BASICALLY FALLS ON THE BOARD TO ADVISE AND THEN RECOMMEND TO, TO THE COUNCIL ON, ON WHAT NEEDS TO HAPPEN WITH, WITH RESPECT TO THE BOARD. SO IT LITERALLY COVERS EVERYTHING EXCEPT THESE FOUR, FOUR THINGS. SO IF ANYTHING PRESENTED TO YOU FALLS WITHIN THOSE FOUR THINGS, YOU SAY, NO, THAT'S NOT, YOU'RE NOT ALLOWED, AUTHORIZED TO DO THAT. ANYTHING OUTSIDE OF THAT, YOU HAVE THE POWER TO CONSIDER. UH, SO THESE ARE CONTENTS OF THE PROJECT, UH, AND PROJECT PLAN AND FINANCE PLAN. SO THERE IS THE PROJECT PLAN COMPONENT IN THE FINANCE PLAN COMPONENT. UH, AND I THINK, UH, AS YOU CAN SEE, UH, SOME OF THE THINGS THAT ARE, THAT ARE INCLUDED IN THE TERRORIST ORDINANCE ARE ACTUALLY ELABORATING IN THE TERRORIST PLAN. THIS PLAN, THE PRELIMINARY, PRELIMINARY PLAN IS ACTUALLY, UH, AN, AN ATTACHMENT TO THE TERRORIST ORDINANCE. SO THAT ORDINANCE WILL NOT ONLY SHOW THOSE SEVEN THINGS THAT WE TALKED ABOUT EARLIER. ALL THESE ITEMS THAT YOU SEE HERE ARE INCLUDED IN THAT TERRACE PLAN. SO FOR EXAMPLE, IF YOU WANT TO KNOW ABOUT WHAT WERE THE PROJECTS THAT WERE INITIALLY CONTEMPLATED IN THESE TERRACE, YOU LOOK FOR THE PROJECT FINANCE PLAN, YOU LOOK FOR THE PROJECT PLAN SECTION AND SEE WHAT THE PROJECT, THE PROPOSED PROJECTS WERE. AND YOU LOOK AT ALSO THE BUDGET AND THEN SEE WHETHER OR NOT WHATEVER IS PRESENTED TO YOU AS FOR CONSIDERATION AS INDIVIDUAL PROJECT FALLS WITHIN, WITHIN THAT CATEGORY. SO THESE ARE BASICALLY THE ITEMS THAT ARE, THAT ARE REQUIRED TO BE IN THAT PROJECT LAND. SO WHENEVER YOU HAVE ANY, ANY QUESTIONS, ANY, ANY, ANY INFORMATION ABOUT THE PROJECT OR THE, YOU KNOW, THE INTENT AND IN THE PURPOSE OF THE TURS, YOU ALWAYS GO BACK TO THAT PROJECT AND FINANCE PLAN. AND LIKE I SAID, THE KEY HERE IS 1, 1, 1 STIPULATION FOR YOU ALL IS ANYTHING THAT YOU CAN APPROVE HAS TO FIRST BE REFLECTED IN THE PROJECT PLAN. IF IT IS NOT, IT HAS TO BE FIRST, THE PLAN HAS TO BE AMENDED TO REFLECT THAT, AND THEN YOU CAN CONSIDER IT. UH, ANOTHER KEY COMPONENT IS THE STATUTE ACTUALLY REQUIRES, ONCE A GOVERNING BODY DESIGNATES AN AREA AS ITTS, A, A TIF FUND HAS TO BE ESTABLISHED. TAX INCREMENT FUND HAS TO BE ESTABLISHED. THAT FUND IS, UH, SEPARATED APART FROM ALL OTHER FUNDS BY, BY, BY CITIES. SO THE FUNDS IN THE, IN THE TIF FUND ARE NOT ACTUALLY AVAILABLE TO THE CITY FOR ANY USE OTHER THAN THE DETER RELATED PROJECTS. SO THOSE FUNDS ARE, ARE EARMARKED ONLY FOR DETER PROJECTS. UM, AND THEN THERE ARE SOME PROCESSES IN THERE, LIKE FOR EXAMPLE, IN THE, IN, IN, IN OUR CASE, WE HAVE THE COUNTY PARTICIPATING. SO THERE IS SOME, YOU KNOW, UH, THE CITY IS, UH, ALLOWED AND REQUIRED TO BUILD A COUNTY WITHIN, WITHIN, UH, UH, 90 DAYS. UH, ACTUALLY CAN BILL AT ANY TIME. BUT ONCE THE BILL IS, BILL IS OUT WITHIN 90, IT HAS TO BE PAID WITHIN 90 DAYS OR DELINQUENCY. DELINQUENCY STARTS. UM, AND THEN THE KEY HERE IS, UH, AS YOU CAN SEE, THE T THE TIF FUND CAN ONLY BE USED FOR THINGS THAT ARE TIED TO THE TURS. IT CANNOT BE USED FOR ANOTHER PURPOSE. SO THE CITY HAS NO RIGHT TO GO INTO THE TIF FUND TO, YOU KNOW, FILL A BUDGET GAP OR ANYTHING LIKE THAT. IT CAN ONLY BE USED FOR THINGS THAT ARE ALLOWED WITHIN THE PROJECT PLAN. SO THAT'S, THAT'S THE KEY HERE. THE OTHER THING IS THE TIF FUND HAS TO BE OPEN AS LONG AS THE TERMS IS OUT THERE. SO THE TIF BEFORE THE CITY DECIDES TO, YOU KNOW, DETERMINES THAT THERE ARE NO MORE PROJECTS TO BE FUNDED [00:20:01] BY THE TURS. THE TURS HAS TO BE FOLDED, AND THEN THE FUNDS IN THE TIFF FUND WILL BE MOVED INTO THE GENERAL FUND. SO THOSE ARE SOME MECHANICAL, BUT VERY, VERY IMPORTANT ASPECTS OF HOW THE DAY-TO-DAY OPERATION GOES FOR, FOR THE TIFF. AND THIS IS ALSO KIND OF A LITTLE BIT OF, UH, UH, LITTLE BIT OF KIND OF, NOT A WARNING, BUT A LITTLE BIT OF A CAUTION SIGN FOR MUNICIPALITIES TO MAKE SURE THAT, YOU KNOW, THE FUNDS IN THE TIFF ARE FOR THE TIFF AND ONLY FOR THE TIFF. MOVING THEM OUT OF THE TIF FUND INTO THE GENERAL FUND REQUIRES A LOT OF KEY STEPS, UHT BONDS. SO UHT, UH, TYPICALLY, IN FACT, ONE OF THE, THE MOST COMMON USES OF, UH, YOU KNOW, OR MEANS OF, YOU KNOW, FINANCING INFRASTRUCTURE UPFRONT IS TO USE UHT BONDS. S BONDS CAN BE ISSUED LATER ON OR UPFRONT AS MUCH AS POSSIBLE. A LOT OF TIMES, UM, YOU KNOW, THE INVESTORS THAT TYPICALLY BUY TERRAS BONDS REQUIRE SOME SORT OF INCREMENTS TO BE GENERATED BEFORE THEY, THEY BUY THE BONDS, BUT ONCE INCREMENTS ARE GENERATED, BONDS CAN BE ISSUED. SO, YOU KNOW, THE BOND MONEY CAN BE USED TO FUND THE PROJECTS RATHER THAN THE CITY HAVING TO WAIT EVERY YEAR TO USE THE, THE FUNDS AS THEY COME IN. SO THAT, THAT IS ALLOWED. AND THESE BONDS ARE ACTUALLY VERY CLOSE TO MUNICIPAL BONDS. THEY'RE CONSIDERED, YOU KNOW, LESS RISKY BECAUSE THEY'RE PAID FROM VALOREM TAXES, BUT THEIR INTEREST RATES ARE SLIGHTLY HIGHER THAN A TYPICAL MUNICIPAL, UH, DEBT. SO THEY FALL IN BETWEEN MUNICIPAL AND SPECIAL DISTRICT DEBTS. UH, A TYPICAL BOND ISSUANCE AS, AS WITH ANY OTHER, UH, MUNICIPAL JURISDICTION BOND, IT HAS TO BE APPROVED BY THE ATTORNEY GENERAL. SO THAT MEANS, UH, THAT'S ACTUALLY WHERE, YOU KNOW, THIS, THESE PROCEDURES COME IN, YOU KNOW, MAKING SURE THAT THE TERRORIST BOARD HAS DONE ITS PART, COUNSEL HAS DONE ITS PART, EVERYTHING THAT IS BEING DONE IS CONSISTENT WITH THE PLANS COMES OUT BECAUSE WHAT THE ATTORNEY GENERAL'S OFFICE DOES IS THEY CHECK, YOU KNOW, COMPLIANCE WITH THE CHAPTER THREE 11 BEFORE THEY APPROVE DIFFERENCE OF BOND. SO THAT'S WHERE THESE KIND OF LITTLE THINGS ABOUT MAKING SURE THE PROCEDURES ARE FOLLOWED TO THE LETTER COME IN, BECAUSE WITHOUT THAT, THE AG CAN REFUSE, BASICALLY CAN DENY ISSUING THOSE BONDS. SO IT IS, IT IS VERY CRITICAL. HOWEVER, KIND OF MINUTE AND THEN INSIGNIFICANT, THEY SEEM PROCESSES MATTER, PARTICULARLY IF BOND ISSUANCE IS INVOLVED. AND, AND THESE BONDS ARE, ARE TYPICALLY TAX EXEMPT BECAUSE THEY'RE, THEY'RE, THEY'RE TYPICALLY USED FOR PUBLIC INFRASTRUCTURE PURPOSES. SO THEY'RE TAX EXEMPT FROM, THEY'RE EXEMPT FROM FEDERAL TAXES. UM, TYPICAL, TYPICALLY THEY'RE THROUGH, YOU KNOW, UH, IN-HOUSE ADMINISTRATION OR A THIRD PARTY ADMINISTRATOR LIKE UNICAP, UH, HELPS THE CITY OR JURISDICTION THAT CREATE THE TURS BY UNDERTAKING THESE, YOU KNOW, TYPICALLY, YOU KNOW, TYPICAL TURS ADMINISTRATION, UH, TASKS. UH, THE FIRST, THE FIRST AND MOST IMPORTANT TASK IN THET ADMINISTRATION IS MAKING SURE THAT THE CORRECT AMOUNT OF FUNDS ARE DEPOSITED INTO THE TIF FUND. THAT MEANS REVENUES ARE CALCULATED PROPERLY, EXPENSES ARE, YOU KNOW, BASICALLY TRACKED PROPERLY. AND THEN THAT THE, ANYTHING AND EVERYTHING THAT IS HAPPENING IN AND OUT OF THE, THE TIF FUND IS CONSISTENT WITH THE APPLICABLE AND, AND CURRENT PROJECT THAT PLAN. SO THAT'S, THAT'S THE BIGGEST PART. AND THEN COME THE, THE REPORTINGS. SO THERE, THERE IS A STATUTORY REQUIREMENT THAT, YOU KNOW, EVERY YEAR DETER HAS TO PREPARE A REPORT WITH THE, WITH THE COMPTROLLER'S OFFICE, BUT WE ALSO HAVE, UH, PARTICIPATING JURISDICTION. SO THE CITY IS ALSO REQUIRED TO PREPARE AND, AND SUBMIT A REPORT TO THE COUNTY WITHIN 150 DAYS OF, OF THE END OF THE FISCAL YEAR. SO THOSE ARE THE THINGS THAT, THAT, THAT NEED TO HAPPEN, THAT THAT'S WHERE AN ADMINISTRATOR COMES IN AND HELPS THE CITY BASICALLY HANDLE THESE, THESE ONGOING REGULAR MORE MECHANICAL ADMINISTRATION TASKS. AND, UH, I KNOW I'VE KIND OF BREEZE THROUGH IT, IF Y'ALL HAVE ANY QUESTIONS, NEXT COMES MY CONTACT. I, I HAVE A QUESTION. YES, SIR. AND THE FIFTH FUND ITSELF, WHO, WHERE DOES THAT FUND ACTUALLY RESIDE? UNDER WHOSE CONTROLS? THE CITY ULTIMATELY HAVE CONTROL OF THAT. YES SIR. SO YOU WRITE THE CHECKS, BRING THEM IN. SO THE CITY ULTIMATELY HAS CONTROL, BUT IT IS A SEPARATE PHONE, BUT IT'S UNDER THE CITY CONTROL. CITY OVERSEE. YES. IS THAT PART OF THE ANNUAL BUDGET? YES. YES. AND IS DOES IT BUILD OR IS IT JUST FUNDED AS NEEDED IF, IF THE FUNDS AREN'T USED ONE YEAR OR TWO YEAR THEY ACCUMULATE IN THE FUND? THEY ACCUMULATE, YES THEY DO. YES. THEY STAY IN THE FUND UNTIL SUCH TIME AS DE CHURCH. THERE'S NO MORE, ALL STAYS THERE. YEAH. AND YOU'VE HAD HEALTHY BALANCES OVER THE LAST FEW YEARS, SO, SO WE HAVE A, AN ABUNDANCE OF MONEY NET FUND, RIGHT. AND THE OVER AND ABOVE WHAT PROJECT COSTS WE HAVE GOING OUT, IS THAT WHAT YOU'RE SAYING? DO YOU KNOW WHAT THAT NUMBER IS? HOW MUCH IS IN THE FUNDS DO YOU MEAN BALANCES RIGHT NOW? OFF THE TOP OF MY HEAD, 4.7. HOW MUCH? 4.7. 4.7 MILLION. IS THAT FOR ALL T ONE AND TWO OR IS THERE SEPARATE TIFFS FOR EACH? WELL, THERE IS ONLY, THERE IS ONLY TIER ONE, RIGHT? JUROR TWO HAS NOT BEEN CONSTITUTED YET. OH, I GOTCHA. BUT IF THERE WERE TO BE, IF THERE WERE, THEN WE WOULD HAVE A SEPARATE FUND FOR, FOR THAT ONE, A SEPARATE TIFF. OKAY. THAT'S CORRECT. TIF, I WAS JUST LOOKING AT. OKAY. HOPEFULLY THAT WAS [00:25:01] A LITTLE MORE HELPFUL. IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO TRY TO ANSWER THEM. THANK YOU. THANK YOU. ALRIGHT, THERE ARE ANY QUESTIONS? ANY POINT OUTTA THOSE AND GET BACK WITH THIS THEN? ABSOLUTELY. OKAY. ALRIGHT. MOVING ON [a. Consider approving the Tax Increment Reinvestment Zone Number One Annual Report for FY22. ] TO ITEM THREE EIGHT. WE WILL CONSIDER THE APPROVAL OF THE TAX INCREMENTS ZONE ONE COURT FOR FISCAL YEAR 22. WE'VE, UH, WE'VE ACTUALLY BEEN WORKING ON THAT ONE. WE WERE HOPING THAT WE WOULD GET SOME OF THE, THE CRITICAL INFORMATION THAT WE DID FROM THE TAXING THE TAXING JURISDICTION, PARTICULARLY THE, THE, THE COUNTY TAX COLLECTORS AND THE UH, THE CITY TAX COLLECTORS. WE HAVE, UH, MANAGED TO GET MOST OF THE INFORMATION, BUT WE'RE STILL, UH, YOU KNOW, YOU KNOW, WAITING TO GET, UH, PARTICULARLY THE COUNTY TAXABLE VALUE INFORMATION, WHICH IS ONE OF THE CRITICAL COMPONENTS OF THAT REPORT. SO OUR HOPE IS TO BE ABLE TO HAVE EVERYTHING, UH, READY BY THE END OF THIS WEEK AND THEN EMAIL THAT OVER TO EVERYONE SO YOU WILL HAVE A CHANCE TO LOOK AT IT. NOW, UH, YOU'RE NOT REQUIRED TO APPROVE IT BECAUSE THAT REPORT DOES NOT REQUIRE TO BE APPROVED FOR CIRCULATION TO THE, TO PARTICIPATING ENTITY OR TO FILE TO THE COMPTROLLER'S OFFICE. BUT BEST PRACTICE ALWAYS IS TO GET THAT TO THE BOARD MEMBERS AND GIVE 'EM A CHANCE TO LOOK AT IT BEFORE IT'S FILED WITH THE RESPECTIVE JURISDICTION. SO, UH, WE WILL MAKE SURE EVERYBODY GETS A COPY OF THAT REPORT AND WE'LL ALSO MAKE OURSELVES AVAILABLE IF YOU HAVE ANY QUESTIONS BEFORE WE FILE IT AT THE END OF THIS MONTH. OKAY. SO AT THIS TIME THERE IS NO ACTION THEN, MR. YES, SIR. OKAY. SO THE ONLY CURRENT PROJECTS WE HAVE GOING, GOING ON RIGHT NOW ARE THE DRAINAGE IMPROVEMENTS AND THE SAN CENTER PLANNING ACTIVITIES GOING ON AND THE CONCLUSION OF THE MARKETPLACE. THAT'S THE ONLY THREE BIG BACK. WELL, , WE HAVE THE INFORMATION THAT'S PROVIDED IN THAT, UM, BOARD UPDATE, BUT THOSE ITEMS AREN'T REALLY ON THE AGENDA FOR DISCUSSION. I'M SORRY, THEY'RE WHAT? THOSE ITEMS AREN'T REALLY ON THE AGENDA FOR DISCUSSION. BUT MY QUESTION TO THE REPORT IS WHAT PROJECTS ARE CURRENTLY THERE? THAT'S THE QUESTION AND THAT IS AN AGENDA ITEM IF YOU'RE WANT TO GET THIS PROJECT UP. WELL, WE'RE NOT APPROVING ANYTHING THOUGH. WE'RE JUST OKAY. SO IT'S NOT EVEN OPEN FOR DISCUSSION. RIGHT, EXACTLY. IF IT'S NOT ON THE AGENDA, WE DON'T HAVE TO VOTE ON IT, BUT WE CAN'T DISCUSS IT. WELL THAT'S WHAT I SAID THERE. THERE'S NO ACTION ITEM. DON'T RIGHT NOW. YEAH, WE CAN, WE CAN BASICALLY COME BACK MEETING MAY BE, WE CAN HAVE AN AGENDA AND WE'LL GIVE YOU BASICALLY A FULL DETAIL. I DON'T REMEMBER, BUT I THINK AT THE LAST MEETING I ASKED FOR A LIST OF THOSE PROJECTS AND I DON'T REMEMBER GETTING IT. AND I, I I, WE WILL MAKE SURE YOU, YOU, YOU'LL GET THAT ONE AT THE NEXT MEETING. IF YOU COULD FOLLOW UP ON THAT. I, I'M, IT WOULD BE HELPFUL YOUR NEXT MEETING TO GO THROUGH ALL THE PROJECTS AND TALK ABOUT PROGRESS AND THOSE WOULD BE HELPFUL TO START THINKING ABOUT THE NEXT PROJECT 'CAUSE WE HAVE SOME THOUGHTS WE'D LIKE TO SHARE WITH YOU WHAT I MADE FROM THE LAST MEETING AND I'M WITH YOU. THAT WAS THE REASON WHY I MADE THE REQUEST. AND SIR, YOU'RE LOOKING FOR PROJECTS THAT ARE CURRENTLY UNDERWAY, RIGHT? NOT EVERYTHING THAT THE BOARD, I'D LIKE TO KNOW WHERE WE'RE SPENDING MONEY. DOES THAT MAKE IT EASY? IT DOES. YES, YOUR HONOR. WELL, WELL PART OF THAT WOULD, WOULD BE IN THE, UH, IN THE APPROVAL FOR THE 22. WELL, OKAY. ALRIGHT. SEEING AS HOW THERE'S NO FURTHER BUSINESS, UH, HEAR A MOTION TO ADJOURN. ALRIGHT, SO MOVE. HAVE A MOTION. SECOND, MR. CARRIER. ALL ALRIGHT. * 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.