Apr 06, 2023 Municipal Development Committee

[00:00:20]

SO I'LL CALL THIS MEETING

[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, APRIL 6, 2023 3:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]

TODAY IS THURSDAY, AUGUST 6TH.

IT IS 3:30 PM UH, WE ARE IN BAYTOWN CITY HALL COUNCIL CHAMBERS.

WE DO HAVE A QUORUM OF MDD.

UH, FIRST WE

[1. MINUTES]

UH, ITEM ONE, A AND B.

THE FIRST IS TO APPROVE THE MINUTES FROM THE MEETING HELD ON FEBRUARY 2ND, AND THEN THE FOLLOWING MEETING WAS MARCH 2ND.

SO I'D ENTERTAIN A MOTION FOR APPROVAL OF ITEMS A AND B AS PRESENTED UNLESS THERE'S ANY, UH, CORRECTIONS OR UM, AMENDMENTS.

MOTION SECOND.

MOTION SECOND.

ANY QUESTIONS OR COMMENTS? IF NOT, ALL THOSE IN FAVOR OF ITEMS ONE, A AND B AS PRESENTED, PLEASE SAY AYE.

AYE.

ALL THOSE OPPOSED? THANK YOU.

NEXT WE

[a. Consider a resolution approving revisions to the Business Improvement Grant program policy and guidelines.]

AS YOU PROBABLY ARE AWARE, UM, I THINK WE HAD CONTINUED, UM, CONVERSATIONS THE PAST FEW MONTHS, AND IT WAS MY UNDERSTANDING THAT EVERYONE HAS PROVIDED INPUT AND AT THIS POINT, IT'S JUST TO GO AND CONSIDER THIS FOR APPROVAL OR DISAPPROVAL.

YES, SIR.

MAYOR, WHY, UH, WHILE MR. LLOYD IS GETTING EVERYTHING UP AND RUNNING FOR MARTIN TO GIVE THE PRESENTATION, PART OF, UH, SOMETHING I'D LIKE TO BRING TO THE BOARD AS I DON'T KNOW IF YOU WANT TO CONSIDER IT AS PART OF THIS BIG PROGRAM, UH, IS PART OF THE VACANT PROPERTIES, UH, THAT THE CITY OF BAYTOWN HOLDS, UM, AND PUTTING EITHER IN THE BIG PROGRAM OR A SEPARATE PROGRAM ON SELLING THE VACANT PROPERTIES, UH, THAT ARE SURPLUS PROPERTIES THAT ARE OF NOT, UH, OF PERTINENT USE FOR THE CITY.

AS THE CITY CONTINUES TO GROW, UM, WE HAVE STARTED TO RECEIVE CALLS ON THOSE VACANT PROPERTIES AND LOOKING AT DIFFERENT PROGRAMS, UH, THAT CAN BE USED.

AND WE, IF Y'ALL WOULD LIKE TO TALK MORE ABOUT THAT DURING THIS DISCUSSION, UH, UH, VICTOR AND I ARE HERE ALONG WITH, UH, MARTIN, TO DISCUSS THE VACANT PROPERTIES.

IT IS NOT FULLY VETTED, BUT IT IS OPEN TO DISCUSSION AT THIS TIME BECAUSE WE HAVE SOME PIECES THAT CAN TIE INTO THIS BIG PROGRAM OR JUST DIRECT STAFF TO BRING IT BACK AT A, AT A AT ANOTHER TIME.

I WOULD SUGGEST WE, WE, WE DISCUSS THAT AT A LATER DATE.

YEAH, I WOULD AGREE.

YEAH, I WOULD, I WOULD ALSO SAY THAT, UM, PROBABLY WHEN YOU DO THAT, PROVIDE US AN UPDATE OF WHAT HAS TRANSPIRED.

UM, I WILL SAY I'M, I WISH THE PROGRAM WAS EASIER TO IMPLEMENT.

IT'S A LITTLE BIT HARDER.

THERE'S A PARTICULAR PROPERTY, UM, IN DISTRICT THREE, UH, COUNCIL DISTRICT THREE THAT I WOULD LIKE TO SEE, UM, BASICALLY AN IMPROVEMENT ON.

UM, BUT SOMETIMES BUREAUCRACY GETS IN THE WAY SO WE CAN GO AND CAN FIND A WAY TO, TO HAVE A, A GOOD OUTCOME, UM, WITH THIS PROPERTY AND, AND OTHERS.

THAT'S REALLY WHAT I WANT TO SEE.

I KNOW SOMETIMES WE BECOME OUR MOST, OUR WORST ENEMY AND UH, THAT'S WHAT I'VE SEEN ON THIS PARTICULAR PROPERTY.

SO HOPEFULLY WE CAN GET THROUGH A LOT OF THAT.

OKAY.

UNDERSTOOD.

UNDERSTOOD.

THANK YOU.

ALRIGHT, SO, UH, YES SIR.

FLOOR'S, YOURS.

YEAH.

THANK YOU, MAYOR.

UM, MARTIN SCRIBNER PLANNING AND DEVELOPMENT SERVICES.

UM, SO WE HAVE KIND OF PUT THIS, THESE REVISIONS IN FRONT OF YOU GUYS A COUPLE OF TIMES NOW.

SO THIS IS, WE FEEL WE'RE AT A POINT WHERE, UH, THE DETAIL IS THERE THAT WILL MAKE THIS A BETTER PROGRAM.

I'M GONNA JUST KIND OF GO THROUGH THESE REALLY QUICK.

IT'S NOT GONNA BE ANYTHING YOU HAVEN'T SEEN, UH, IN THE PAST.

UM, SO AGAIN, CHANGES TO THE, THE PROGRAM, THIS WOULD REFINE THE BOUNDARIES.

UM, AS YOU CAN SEE, THIS WOULD BE ON OUR MAJOR THOROUGH AFFAIRS WHERE THERE ARE SOME CORRIDORS THAT NEED TO, UM, WHERE WE NEED TO SORT OF MAXIMIZE THAT INVESTMENT AND REDEVELOPMENT OF THOSE DISTRESSED AREAS.

UM, SO WHEREAS THE PREVIOUS PROGRAM WAS BASICALLY THE ENTIRE CITY, UH, WE WOULD HAVE PROPOSED TIERS.

SO AGAIN, THERE'S A TIER ONE, TIER TWO, AND TIER THREE.

AND SO THE TIER ONE IS BASICALLY THE KIND OF SMALLER IMPACT TYPE ITEMS THAT WOULD HELP THOSE SMALL BUSINESS OWNERS, THE LOCAL BUSINESS OWNERS, TIER TWO, THESE WOULD ALL OBVIOUSLY BE AVAILABLE TO LOCAL BUSINESS OWNERS, BUT AGAIN, IN THE TIER ONE YOU'RE TALKING ABOUT SORT OF SMALLER ITEMS, SMALLER, UM, DOLLAR ITEMS, A TIER TWO, YOU WOULD HAVE THINGS THAT ARE OF A BIGGER IMPACT, NOT ONLY TO THAT PROPERTY, BUT TO PROPERTIES IN THE AREA, UM, AS WELL AS HIGHER COST.

AND THEN IN TIER THREE, WE GET INTO SOME OF THE REALLY HIGH DOLLAR STUFF.

UM, THE, THE BIG FACADE IMPROVEMENTS, UM, CODE COMPLIANCE STUFF LIKE SPRINKLERS.

UM, ANYTHING THAT HAS TO DO WITH ENERGY CODE COMPLIANCE, THINGS OF THAT NATURE.

UH, SO WHAT DOES THAT MEAN FOR THE REIMBURSEMENT? PREVIOUSLY THERE WAS JUST A $40,000 MAX.

AGAIN, THIS IS A MATCH.

SO IF SOMEONE WHO CAME IN AND SAID, I'VE ALREADY, I'VE SPENT 80, THEN WE WOULD REIMBURSE THEM FOR 40 AS LONG AS IT MET ALL THE CRITERIA.

SO WHAT WE'RE TALKING ABOUT HERE IS, AGAIN, THAT TIER ONE WOULD HAVE A LOWER

[00:05:01]

SO THAT WOULD BE A MAXIMUM OF $5,000 PER APPLICATION.

THEN THE TIER TWO WOULD'VE A MAXIMUM OF 25,000, AND THE TIER THREE WOULD'VE A MAXIMUM OF 50.

SO AGAIN, AT $50,000, THAT MEANS THEY'VE SPENT A HUNDRED AND WE'RE REIMBURSING THEM FOR 50.

BUT ALSO WHAT WE'RE PROPOSING IS THAT THEY COULD HAVE ONE FROM EACH CATEGORY FOR A MAXIMUM OF 80,000.

SO IF THEY'VE SPENT $160,000, THE CITY CAN REIMBURSE THEM FOR 80 IF THEY MEET ALL THE CRITERIA.

SO LET'S TALK ABOUT THE CRITERIA THEMSELVES.

THE OLD EVALUATION CRITERIA WERE A LITTLE BIT ON THE, UM, I DON'T WANNA SAY VAGUE SIDE, BUT THEY WERE PRETTY SUBJECTIVE.

SO WHAT WE HAVE PROPOSED IS A SCORING MATRIX THAT WOULD BASICALLY WEIGHT, YOU'D GIVE, UM, IN EACH TIER YOU'D GIVE A WEIGHT TO THESE DIFFERENT, UM, TYPES OF IMPROVEMENTS.

AND THEN WE WOULD GIVE THEM A SCORE BETWEEN ONE AND BETWEEN ZERO AND A HUNDRED.

SO WITHIN EACH TIER, AGAIN, LARGER PROJECT SCOPE OR THOSE, THOSE AMENITIES WOULD ENHANCE THEIR SCORE.

UM, AND SO THAT, THAT WOULD, AGAIN, FOR EACH ONE OF THE TIERS WOULD HAVE A SEPARATE SCORING SYSTEM AND WAITING.

UM, SO THAT SAID, ALL THAT INFORMATION IS IN YOUR PACKETS.

UM, STAFF DOES RECOMMEND APPROVAL OF THESE REVISIONS.

UH, WE ARE STILL EXPLORING THOSE, THE UPFRONT FUNDING OPTION THAT WE HAD DISCUSSED IN THE PAST, AND WE'VE ACTUALLY, OUR INITIAL MEETINGS, UM, WITH AN INTERESTED LOCAL LENDER HAVE BEEN PRETTY FRUITFUL.

WE FEEL VERY POSITIVE ABOUT THAT GOING FORWARD, BUT WE'RE STILL KIND OF FIGURING OUT EXACTLY WHAT THOSE OBLIGATIONS ARE, UM, HOW WE HAVE TO ESTABLISH THE PROCESS ITSELF IF WE HAVE TO GO THROUGH AN RFP AND, AND THINGS OF THAT NATURE.

SO WE'RE GETTING TO THAT.

WE HOPE TO HAVE THAT IN FRONT OF YOU IN THE NEXT COUPLE OF MONTHS TO ADD ONTO THE, TO THE, UH, PROPOSAL TODAY.

SO WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS.

OKAY.

ANY ADDITIONAL QUESTIONS ON THIS PROGRAM? WITH THE UPDATES? I THINK THERE'S A LOT OF FEEDBACK GIVEN IMPROVEMENTS MADE.

I THINK IT'S PRETTY MUCH CAPTURED WHAT WE'VE BEEN PROVIDING.

SO I GUESS MY ONLY COMMENT IS THAT HOW DO WE GET THE WORD OUT REALLY TO THE BUSINESSES? SO WHATEVER WE CAN DO AT THIS POINT NOW THAT IT'S, IF IT'S APPROVED, THEN GETTING THE WORD OUT TO THE RIGHT FOLKS.

OKAY.

YEP.

ALRIGHT.

I, I'M SORRY.

YES, SIR.

I DID HAVE A QUESTION REGARDING THAT.

UM, AS FAR AS GETTING THE WORD OUT, UM, AM I MISUNDERSTANDING OR IS THIS SOMETHING THAT IF THE BUSINESS OWNERS DON'T FALL INTO A CATEGORY OR INTO SPECIFICS ON THE, ON THE GUIDELINES, LIKE IF THEY ALREADY DID THEIR IMPROVEMENTS AND THEY WANNA GET REIMBURSED, BUT THEY DIDN'T FOLLOW ALL THE GUIDELINES THAT ARE THERE, THEY WON'T BE ABLE TO QUALIFY OR IT, IT DEPENDS ON THE TIMING.

SO THERE IS A, IN THE CURRENT PROGRAM, THERE IS A TIMING.

UM, THEY, I, I'M TRYING TO REMEMBER THE SPECIFICS OF IT.

I THINK IT'S, THEY HAD TO HAVE STARTED IN THE LAST 90 DAYS BEFORE THEY APPLY UHHUH.

UM, THIS ONE I THINK EXTENDS THAT, I'M TRYING TO REMEMBER, I THINK IT'S 180 DAYS.

I THINK WE, WE PUSHED IT WAY OUT.

OKAY.

UM, ORIGINALLY THE PROGRAM WAS THEY HAD TO APPLY FOR IT BEFORE THEY EVEN APPLIED FOR PERMITS.

AND WE FELT THAT THAT WAS TOO ONEROUS AND WE DID.

SO AGAIN, WE'RE SORT OF STRETCHING THAT TIME OUT.

THAT SAID, IF YOU COME TO ME TWO YEARS FROM NOW AND SAY, HEY, I MADE ALL THESE IMPROVEMENTS AND I'D LIKE TO HAVE REIMBURSEMENT, THAT DOESN'T REALLY FLY EITHER.

SO THERE HAS TO BE SOME, UM, SOME REASONABLE TIMELINE.

THAT MAKES SENSE.

I THINK WE, WE WENT WITH 180 DAYS ON THIS, BUT I SPECIFICALLY, I'D HAVE TO GO BACK INTO THE, INTO THE ORDINANCE AND SEE FOR SURE.

OR RESOLUTION.

EXCUSE ME.

OKAY.

THANK YOU.

ALRIGHT, THANK YOU.

ALRIGHT.

RIGHT.

WELL I ENTERTAIN A MOTION FOR APPROVAL FOR ITEM TWO A AS PRESENTED MOTION TO APPROVE THE MOTION AND A SECOND, ANY ADDITIONAL QUESTIONS OR COMMENTS? IF NOT ALL THOSE IN FAVOR OF TWO A IS PRESENTED, PLEASE SAY AYE.

AYE.

ALL THOSE OPPOSED.

NEXT WE HAVE ITEM TWO B.

CONSIDER RESOLUTION

[b. Consider a resolution approving the final adjusted Development Budget and approving the Final Guaranteed Maximum Price (FGMP) for the Hotel and Convention Center.]

THANK YOU MR. PRESIDENT.

I'D, UH, ASK FOR YOUR INDULGENCE AND ALLOW ME A FEW MOMENTS JUST TO TALK MORE GENERALLY ABOUT THE HOTEL AND CONVENTION CENTER PROJECT.

I TOLD YOU ABOUT A YEAR AND A HALF AGO THAT WE WOULD OPEN A HOTEL AND CONVENTION CENTER ON BAYLAND ISLAND AND WE WILL, IT WILL BE ONE OF THE PREMIER DESTINATIONS FOR BUSINESS TOURISM IN THE ENTIRE GREATER HOUSTON AREA.

HOWEVER, IT HAS BEEN ALONG AND WINDING ROADS.

SIR, I UNDERSTAND THAT THE PEOPLE IN BAYTOWN BEGAN TALKING ABOUT A HOTEL ABOUT 30 YEARS AGO.

OVER THE LAST FEW YEARS, WE HAVE DEALT WITH A GLOBAL HEALTH PANDEMIC, A

[00:10:01]

AND I HAVE ONE LAST ASK OF YOU IN THAT REGARD, WHICH I'LL GET TO IN A MOMENT.

BEFORE I DO, I WANT TO SAY HOW GRATEFUL I AM TO THE SUPPORT WE HAVE HAD FROM THE TEAM OF GARFIELD TO RAY GARFIELD HIMSELF FOR HIS CONTRIBUTION TO OUR VISION AND FOR HIS CONTINUED SUPPORT TO THE CITY, TO MY COLLEAGUES.

AND NOW I HAVE TO ADMIT MY FRIENDS MARK AND ALSO STEVE, WHO HAVE BEEN ACTIVE IN THE ONGOING MANAGEMENT OF THIS PROJECT AND HAVE HELPED ME, UH, GET A FEW HOURS SLEEP HERE AND THERE ALONG THE WAY BECAUSE THEY HAVE DONE THE WORRYING FOR ME.

ALSO VERY GRATEFUL TO JEFF BENFORD, WHO WILL BE LOOKING AFTER OUR INTEREST GOING FORWARD.

AND GF WILL BE, UH, GOING WITH YOU ON THE TOUR TO THE HOTEL LATER TODAY.

SO THANK YOU TO THE GARFIELD TEAM FOR ALL THEY'VE DONE.

BUT THERE HAVE BEEN BUMPS ALONG THE WAY.

I'M NOT GONNA KID YOU ABOUT THAT.

AND TO FOLLOW THE MUSICAL THEME, REGRETS I'VE HAD A FEW, BUT THEN AGAIN, TOO FEW TO MENTION.

UM, IT'S FAIR TO SAY I HAVE BEEN INVOLVED IN SOME PARTICULARLY ROBUST CONVERSATIONS AND A FEW IN THE ROOM HAVE HEARD SOME OF MY STERS COME OUT AS I HAVE VENTED MY SPLEEN AND SOME PEOPLE WHO AREN'T IN THE ROOM, BUT TO THEIR CREDIT, THEY TOOK IT AND THEY HAVE PRODUCED A QUALITY PRODUCT, THE BAYTOWN HOTEL AND CONVENTION CENTER.

THANK YOU DPR FOR THAT.

HOWEVER, AS I SAID, I HAVE ONE LAST ASK OF YOU.

IT IS THE LAST ONE YOU WILL NOT HEAR FROM ME AGAIN.

ON THIS SUBJECT, I WOULD IMPLORE YOU TO APPROVE A FINAL ADJUSTMENT TO THE DEVELOPMENT BUDGET AND A FINAL MAXIMUM GUARANTEED PRICE.

I DID TELL YOU BEFORE CHRISTMAS THAT I WOULD LIKELY BE ASKING YOU FOR THIS, AND I DID AT THAT POINT INDICATE TO YOU THE LIKELY QUANTUM OF THAT.

AND I WAS RIGHT.

I WAS HOPING I WOULD BE PROVEN WRONG.

BUT I AM ASKING YOU FOR 1 MILLION AND $60,000 TO COME FROM UNCOMMITTED FUNDS IN THE MDD BUDGET SO THAT IN THE MIDDLE OF MAY, WE CAN CELEBRATE THE OPENING OF THE BAYTOWN HOTEL AND CONVENTION CENTER.

SIR, I'M HAPPY TO TAKE QUESTIONS MORE GENERALLY ON THE PROJECT.

I HAVE MARK BULLARD HERE FROM GARFIELD WHO CAN TALK TO SOME OF THE DETAILS IN TERMS OF THE BUDGET IF YOU'D, UH, LIKE TO, UH, TO PURSUE THAT.

BUT AS I SAY, SIR, THIS WOULD BE MY LAST ASK AND I WOULD IMPLORE YOU TO APPROVE THIS AMENDMENT ON THIS FGMP.

THANK YOU.

ALRIGHT, THANK YOU.

I DO APPRECIATE THE WORK.

OBVIOUSLY, UH, THERE WAS CERTAINLY LOTS OF DIFFERENT CHALLENGES THROUGHOUT THE PAST FEW YEARS, UH, TO GET THIS HOTEL FROM, I GUESS, CONCEPT TO TODAY.

AND SO, UM, THIS IS THE LAST ASK, MY UNDERSTANDING, UM, CAN YOU EXPLAIN REAL QUICK MAYBE FOR, FOR EVERY, FOR MDD, UM, THE MONEY, MY UNDERSTANDING THERE WAS MONEY SET ASIDE FOR THIS, IS THAT CORRECT? UH, SO WE HAD CONTINGENCIES ALREADY PROVIDED FOR WITHIN THE BOND TRUST, UH, THAT WERE NOT, UH, INITIALLY ALLOCATED TO THE, UH, THE DEVELOPMENT BUDGET THEY HAVE BEEN NOW, UH, WITH THIS AMENDMENT.

UH, AND UH, THE OTHER ADDITION, UH, AS I SAY, ARE THE UN UNCOMMITTED FUNDS IN THE MDD CURRENT YEAR BUDGET.

OKAY.

ALRIGHT.

UH, ANY QUESTIONS FOR FROM MDD? YES, UM, VICTOR, UH, IF NOT USED HERE, WHERE WOULD THOSE FUNDS NORMALLY GO TOWARDS? SO, UH, ABOUT 720,000 OF THE FUNDS ARE COMPLETELY UNCOMMITTED, UH, WITHIN THE MDD.

UH, SO THEY WOULD JUST ROLLED OVER INTO NEXT YEAR'S BUDGET.

UH, THE REMAINDER OF ABOUT 350,000 WILL COME FROM, UH, MONIES THAT WERE BUDGET IN THE CURRENT YEAR FOR PROJECTS WHICH HAVE NOT YET STARTED.

SO WE ARE NOT TALKING ABOUT, UM, DELETING ANY PROJECT FROM THE MDD.

ALL I'M ASKING YOU TO ALLOW ME TO DO IS TO USE THE MONEY WE HAVEN'T SPENT THIS YEAR TO GET THE HOTEL COMPLETED AND OPENED, AND WE WILL ROLL THE BUDGETS FORWARD INTO NEXT YEAR FOR THE PROJECTS THAT WERE, UH, ON THE LIST FOR, FOR THIS.

OKAY, THANK YOU.

YES, SIR.

I, I'VE GOT A CLOSING ALSO, VICTOR, I DON'T HAVE A MICROPHONE.

SO I'M CARRIE.

UM, THIS 1.6 MILLION THAT YOU'RE ASKING FOR ONE 1.0 6 0 6, 1 0.06 MILLION THAT YOU'RE ASKING FOR, UH, WHAT

[00:15:01]

, I DOUBT THAT WE CAN, UH, BE SURE THAT WE WILL OPEN A HOTEL IN THE MIDDLE OF MAY.

WE WILL OPEN IT OR WE WON'T OPEN IT.

UH, I WOULD NOT BE ABLE TO TELL YOU WITH CONFIDENCE THAT WE WOULD OPEN A HOTEL IN THE MIDDLE OF MAY.

OKAY, BECAUSE JUST MY FEELING ON AN EXTRA MILLION DOLLARS, I'M, I'M STILL HAVING TROUBLE SWALLOWING AND SLEEPING AT NIGHT FROM THAT EXTRA $6 MILLION THAT WE GAVE GIVEN HIM LAST YEAR.

AND NOW YOU'RE ASKING FOR JUST ONE, ONE MORE MILLION.

UM, I, I STILL HAVE A PROBLEM WITH THAT.

I SHARE THAT, AND I THINK YOU AND I HAVE TALKED ABOUT THIS OFFLINE.

UM, THIS COMES AS A RESULT OF SOME INCREDIBLY ROBUST CONVERSATIONS AND SLAMMING DOORS.

THE ALTERNATIVE IS TO GO TO LITIGATION.

I WOULD NOT ADVISE THAT.

MAY I ASK EXCUSE? HOW CAN WE BE SURE THAT THIS IS THE LAST TIME YOU SAID THIS IS THE LAST REQUEST? HOW CAN WE BE SURE OF THAT? BECAUSE ONCE YOU AGREE THE FINAL GUARANTEED MAXIMUM PRICE, THAT'S IT.

THERE IS NO WAY BACK FOR ANYBODY AFTER THIS.

AND SO WE'RE GUARANTEED THE PROJECT WILL BE FINISHED WITH THIS FINAL INJECTION, CORRECT? 1,000,060 QUESTION MR. RINGER.

NO, I I WAS JUST GONNA KIND OF ECHO THAT SAME THING.

IT SEEMED LIKE WE ALREADY HAD A FINAL GUARANTEED MAXIMUM PRICE AND NOW WE HAVE A FINAL, FINAL GUARANTEED MAXIMUM PRICE OR WHAT WE HAD INITIAL AN INITIAL GUARANTEED MAXIMUM PRICE.

AND IN FAIRNESS, UH, WE, THE OWNER HAVE REQUIRED SOME ADDITIONAL WORKS.

MARK CAN EXPLAIN SOME OF THOSE.

AND THERE ARE OTHER ALLIANCES WITHIN THE CONTRACT, UH, THAT WE HAVE ACCEPTED THAT WE OWE TO THE CONTRACTOR UNDER THE TERMS OF THE CONTRACT.

I WANNA BE CLEAR WITH YOU, WE ARE NOT PAYING ONE PENNY MORE TO ANYONE WHO DOES NOT MERIT IT BASED ON THE CONTRACTS WE HAVE IN PLACE WITH THEM.

I AM NOT ASKING YOU TO BUY ANYONE OFF BY DOING THIS.

THIS WILL PAY PEOPLE WHAT THEY ARE DUE AND NO MORE.

SO EVEN IF THERE'S AN ADDITIONAL WEATHER DELAYS, WE, WE WON'T, WE WON'T PAY ANOTHER DONE AFTER THIS.

WE'RE DONE, SIR.

DONE AFTER THIS, WE'RE DONE.

IS IT, IS IT, ARE THESE FUNDS ALLOCATED, UM, IN ARREARS OR ARE THEY PAID UP FRONT OR A AF AS THE WORK IS DONE OR? YES.

YES.

THEY, THEY'RE PAID AS THE WORK IS DONE THROUGH, UH, MONTHLY PAY APPS.

UH, AND I RECEIVE THOSE FROM THE TEAM AT GARFIELD ONCE THEY HAVE GONE THROUGH THEM AND THEY GO THROUGH EVERY SINGLE LINE ITEM AND, AND I'VE SEEN SOME OF THE, UH, EXPENDITURES THEY'VE REJECTED.

UM, SO THAT IS DONE ON A MONTHLY BASIS.

OKAY.

QUESTION PRESIDENT, UM, ONE 1.0 6,300,000 ARE GONNA IMPACT CURRENT YOUR BUDGETED PROJECTS.

DO WE KNOW WHAT THOSE PROJECTS ARE? UH, YES.

AND THEY ARE .

I ANTICIPATE THAT THE MAJORITY OF THIS WILL COME FROM THE DISC GOLF COURSE PROJECT, WHICH IS UNDERWAY, BUT WE HAVE NOT FULLY COMMITTED ALL OF THOSE FUNDS.

AS I MADE CLEAR AT THE OUTSET, THIS WILL NOT STOP ANY PROJECT THAT IS ON THE LIST.

I AM MERELY USING THE FUNDS ON UNCOMMITTED IN THE CURRENT YEAR TO GET US OVER THIS ONE LAST BUMP IN THE ROAD.

AND THOSE PROJECTS WILL APPEAR ON THE LIST FOR NEXT YEAR IN THE MDD BUDGET BEFORE WE ALLOCATE ANY OTHER FUNDS.

IS NEXT YEAR A CALENDAR YEAR OR FISCAL YEAR? WHAT? FISCAL YEAR.

FISCAL YEAR.

FISCAL YEAR.

AND WHAT, WHEN IS THAT? 1ST OF OCTOBER.

OKAY, THANK YOU.

FOLLOW UP TO THAT, THE 700,000 THAT WAS UNCOMMITTED THAT WAS GONNA ROLL OVER IS NOW WE'RE COMMITTING THAT.

SO AGAIN, ALL OF OUR BUDGETS, ESPECIALLY MDD IS A LONG-TERM LOOKOUT.

SO WE'RE TAKING A MILLION, A HALF OR MILLION DOLLARS ROUGHLY.

SO FUTURE PROJECTS THAT WE WERE THINKING THAT, THAT WOULD COVER, THAT'S NOT GONNA BE THERE ANYMORE.

DO WE HAVE AN IDEA WHAT PROJECTS THOSE ARE GONNA IMPACT? NO.

WE, I, I CAN'T SAY AT THIS STAGE THAT WE HAVE ANY PROJECTS THAT, UH, WE WILL NOT DO AS A RESULT OF, UH, MAKING THIS COMMITMENT.

AND ONE OF THE REASONS I'M SAYING THAT IS BECAUSE THE CURRENT YEAR BUDGET INCLUDES 1.4 MILLION FOR THE CITIZENS BANK RENOVATION.

[00:20:01]

THAT'S 1.4 MILLION THAT DROPS BACK INTO, UH, THE BOTTOM LINE FOR NEXT YEAR.

SO WE'RE, WE'RE COMING IN UNDER BUDGET ON THAT PROJECT.

WE, WE'LL BE CLOSE TO BUDGET ON THAT PROJECT.

ANTICIPATE WITHIN BUDGET.

SO THE 1.4 IS NOT PULLING BACK IN IS SPENDING.

SO, UH, MY POINT BEING THAT YOU'RE NOT CONTINUING TO BUDGET THAT IN LATER YEARS, AS YOU KNOW, THAT MEANS GOING INTO NEXT YEAR, WE WILL HAVE GREATER FLEXIBILITY IN THE BASE BECAUSE OF THAT DROPPING NIGHT.

OKAY? YES, MA'AM.

UM, AFTER LISTENING TO EVERYONE THAT SITS UP HERE WITH MDD, IT'S VERY FRUSTRATING.

UM, MY FIRST YEAR UP HERE, IT FEELS LIKE I'VE BEEN PUT BETWEEN A ROCK AND A HARD PLACE.

NORMALLY I WOULD NOT COME IN AND APPROVE THIS KIND OF MONEY, BUT I MEAN, WHAT DO WE DO? LOOK AT AN EMPTY BUILDING THAT WE'VE BEEN ANTICIPATING OPENING.

UM, AND I'M JUST HIGHLY DISAPPOINTED AND DISGUSTED THAT WE'RE GONNA HAVE OTHER PROJECTS THAT ARE GONNA BE PUT ON HOLD OR SLOWED DOWN.

AND I HOPE THE NEXT TIME WE DO BETTER, MUCH BETTER.

I COULDN'T AGREE MORE, UH, WITH THAT SENTIMENT.

AND I HAVE EXPRESSED THAT IN A VERY BLUNT AND FORTHRIGHT OR MANNER.

YES, YOU HAVE.

YEAH.

THANK YOU.

MAY I ASK ONE LAST QUESTION? AND SO WHEN THE BUDGET GETS REPLENISHED, WHAT AMOUNT DOES IT GET REPLENISHED AT? SO, UH, WHEN WE LOOK AT NEXT YEAR'S BUDGET, WE WILL MAKE ESTIMATES OF THE OVERALL SALES TAX FUNDS THAT WILL BE AVAILABLE TO THE MDD.

UH, AND THEN THERE ARE SOME COMMITMENTS THAT WE ALREADY KNOW ABOUT.

FOR INSTANCE, UH, DEBT REPAYMENTS ON PIRATES BAY, UH, ON SOME DRAINAGE PROJECTS.

AND INDEED ON THE HOTEL, UH, GOING INTO NEXT YEAR, UH, THERE ARE SOME COMMITMENTS TO, FOR INSTANCE, THE ECONOMIC DEVELOPMENT FOUNDATION THAT WILL BE TAKEN ACCOUNT OF AND SOME ONGOING PARKS OR RECREATION PROJECTS.

THE REMAINDER THEN WOULD BE AVAILABLE TO COMMIT TO OTHER PROJECTS IN THE NEW YEAR.

AND I CAN'T TELL YOU AT THIS STAGE EXACTLY HOW MUCH THAT IS, BUT I DON'T ANTICIPATE THAT BEING MORE THAN SAY, 2 MILLION.

OKAY.

ANY ADDITIONAL QUESTIONS? COMMENTS? SO AT THIS POINT, WE DO HAVE AN ITEM TO CONSIDERED, THERE'S NO DOUBT THAT THIS HAS BEEN DIFFICULT, UM, AND A VERY DIFFICULT, I GUESS, ENVIRONMENT WITH ANY CONSTRUCTION PROJECT FOR ANYONE REGARDLESS OF WHAT YOU'RE BUILDING.

AND SO, UM, I KNOW WE'VE HEARD, YOU KNOW, THIS IS IT, UH, AS MR. ENGLER POINTED OUT.

AND, AND THERE'S NO DOUBT AT THE END OF THE DAY, AS MS. GRAHAM POINTED OUT, WE'RE ALMOST THERE.

AND, AND THIS IS WHERE WE HAVE TO MAKE A DIFFICULT DECISION TO PROCEED.

I DIDN'T DO THE MATH, BUT THIS IS LIKE 1% OF THE ENTIRE EXPECTED BUDGET OF AN ADJUSTMENT.

UM, A LOT OF IT IS BECAUSE, YOU KNOW, WE CHOSE A HIGHER BRAND AND A HIGHER BRAND.

THEY, THERE WAS SOME, SOME EXPECTATIONS THAT WE HAD TO DO, RIGHT? SO AT THAT POINT, I WOULD JUST ASK YOU TO, TO CONSIDER THIS, UH, YOUR COMMENTS WERE CERTAINLY NOTED.

UM, I DON'T THINK WE'LL BUILD BE BUILDING IN ANOTHER HIRING REGENCY ANYTIME SOON.

MM-HMM.

.

UH, BUT CERTAINLY I KNOW THAT, UH, FINANCE, THE ENTIRE DEPARTMENT AND THE TEAM, WE WA WE LOOKED AT EVERYTHING WE POSSIBLY CAN, UH, THROUGHOUT THE PROCESS TO, TO ENSURE THAT WE GET TO THIS POINT.

AND SO NEVER DID WE THINK IT WOULD BE EASY.

UH, BUT CERTAINLY IT'S DIFFICULT CERTAINLY IN, IN A ROUGH FINANCIAL CONSTRUCTION MARKET.

UM, AND I KNOW A VERY SIMILAR PROJECT IN OTHER COMMUNITY, WE PROBABLY ACTUALLY DID A LOT BETTER THAN THAN OTHERS.

SO WITH THAT, UM, I WILL ENTERTAIN A MOTION FOR APPROVAL OF ITEM TWO B AS PRESENTED FOR THE AMOUNT, UH, AS PRESENTED, UH, BY OUR FINANCE DIRECTOR.

SO WITH THAT, ALTHOUGH I WOULD ENTERTAIN A MOTION FOR ITEM TWO B, REQUEST A MOTION, MAYOR.

OKAY, GIMME A SECOND.

I'M REQUESTING A MOTION.

YEAH, SECOND.

A SECOND.

GOT A MOTION TO SECOND.

ANY ADDITIONAL QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR? ITEM TWO B AS PRESENTED, PLEASE SAY AYE.

AYE.

ALL THOSE OPPOSED? NA AYE.

SO WE HAVE NOTED, WE HAVE TWO.

OKAY.

AND THEN NEXT WE HAVE, UM, THE ITEM DOES CARRY.

THANK YOU FOR THAT, FOR YOUR CONSIDERATION AND YOUR MIND, YOUR MINDFULNESS OF WHAT'S BEST FOR EVERYONE.

[c. Consider a resolution approving the operating and asset management budget for the Hotel and Convention Center.]

THANK YOU, SIR.

SO, UH, IT FALLS TO YOU THE MDD AS THE OWNER OF THE HOTEL TO APPROVE THE BUDGET THAT'S PRESENTED BY, UH, JEFF BENFORD AS OUR ASSET MANAGER AND HYATT THEMSELVES.

UM, I HAVE GONE THROUGH THIS IN DETAIL WITH, UH, WITH BOTH PARTIES.

I'M CONFIDENT THAT, UH, THOSE REPRESENT THE FAIR AND TRUE COST OF OPERATING THE HOTEL.

UH, I DON'T HAVE ANY DIRECT EXPERIENCE IN OPERATING HOTELS.

I DON'T INTEND TO DEVELOP THAT AS A LINE IN MY RESUME.

UH, SO I'LL BE RELYING ON JEFF AND ALSO ALEX DANTE WHO IS HERE TODAY, THE GENERAL MANAGER OF, UH, OF OUR HOTEL.

AND I'D WELCOME HIM AND INTRODUCE

[00:25:01]

YOU WILL GET TO KNOW HIM UH, AS YOU DO THE TOUR LATER.

UH, JEFF IS HERE TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THE DETAIL THAT'S CONTAINED IN THE OPERATING AND ASSET MANAGEMENT BUDGETS.

OKAY.

SO WITH THAT I WILL SAY, IS THERE ANY QUESTIONS I GUESS, REGARDING THIS BUDGET FROM MDD? YES MA'AM.

I DO HAVE A QUESTION.

YES.

UM, VICTOR OR UM, HYATT, CONSIDERING WHAT WE JUST WENT THROUGH IN TERMS OF INCREASING COST, UM, WHAT INCREASES DO YOU FORESEE? OR IS THIS GOING TO BE IT? SO THIS IS FOR THE OPERATING BUDGET.

MM-HMM .

TO RUN THE HOTEL HAS NOTHING TO DO WITH THE CONSTRUCTION.

SO WE BELIEVE THAT MANY OF THE OPERATING COSTS ARE NOW COMING BACK INTO LINE.

THE GOOD NEWS ABOUT THE BUDGET BEFORE YOU TODAY IS IT IN EARLY YEARS OF HOTEL OPERATIONS, WE ANTICIPATE LOSSES.

SO MUCH SO THAT WE PROVIDED, UH, FUNDS IN THE BOND SALE TO COVER EARLY YEARS AND SUCH AS THE CASE TODAY.

WE'RE NOT ASKING FOR MONEY TODAY, WE'RE JUST ASKING FOR APPROVAL OF THE BUDGET GOING THROUGH THIS FISCAL YEAR, ENDING SEPTEMBER 30.

ALRIGHT.

ANY ADDITIONAL QUESTIONS I GUESS, REGARDING THIS BUDGET? IF NOT ALL THOSE ARE, I WOULD ENTERTAIN A MOTION FOR ITEM TWO C FOR APPROVAL OF THIS OPERATING BUDGET.

MOTION TO APPROVE.

MOTION? GIMME A SECOND.

SECOND.

THE MOTION IS SECOND.

ANY QUESTIONS, COMMENTS? NOT ALL IN FAVOR.

TWO C IS PRESENTED.

PLEASE SAY AYE.

AYE.

ALL THOSE OPPOSED? NEXT WE HAVE REPORTS.

JUST

[a. Receive the Monthly Construction Status Report for the Baytown Hotel and Convention Center Project.]

I WOULD ASSUME THIS COULD BE FAIRLY SHORT THERE.

I WOULD SUGGEST, SIR, WE'VE TALKED ENOUGH ABOUT THE HOTEL.

I WOULD JUST IMPLORE YOU ALL TO GO AND HAVE A LOOK AT IT IN THE EARLIER, I THINK WE KIND OF KNOW THE STATUS, BUT, ALRIGHT.

SO

[a. The next Baytown Municipal Development District meeting is scheduled for Thursday, May 4, 2023, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas, 77520. ]

ALRIGHT, SO JUST AS NOTED, OUR NEXT SCHEDULED MDD MEETING IS MAY 4TH, UH, AGAIN AT FOUR 30 COUNCIL CHAMBERS.

THAT'S AT LEAST THE CURRENT EXPECTATION.

SO WITH THAT, UH,

[a. The Baytown Municipal Development District will tour the new facility of the Hyatt Regency Baytown - Houston located at 100 Convention Center Way, Baytown, Texas.]

SO WITH THAT, WE, THIS BOARD WILL RECESS AND WE WILL, I BELIEVE THERE IS SOME SHUTTLES FOR US TO USE IF WE'D LIKE, UH, TO GO TO, UH, BAYLEN ISLAND.

I'M NOT SURE FOR YOU MR. ISAAC, BUT, BUT ANYWAY, UM, YES, I WOULD SAY THAT, UH, YOU, YOU CAN UTILIZE WHATEVER TRANSPORTATION YOU NEED AND WE'LL GO AND WE'LL HAVE TO REOPEN OUR MEETING, UH, THERE ONCE WE GET TO EVERYBODY'S GATHERED AND WE HAVE A QUORUM.

OKAY.

SEE YOU THERE.

ALRIGHT, SO I'LL NOW RECONVENE OUR MEDIUM, THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT.

WE ARE AT, UH, WHAT IS IT, 100, 100, 100 CONVENTION AWAY.

WE DO HAVE A QUORUM.

AND SO WE WILL BEGIN OUR TOUR.

I WANNA SAY JUST THANK YOU TO HYATT AND, AND, UH, ALEX HERE FOR SHOWING US AROUND.

I MEAN, THERE'S A LOT OF WORK TO DO.

UH, HOPEFULLY YOU ENJOYED IT.

NOW YOU KNOW WHAT WE JUST APPROVED, SO THAT MAY BE WHY.

BUT, UH, WITH THAT, UH, THIS DOES INCLUDE OUR MBD MEETING.

SO WE'LL RECESS OR WE'LL ASSUMING WE WILL ADJOURN, UH, WE'LL AJOUR THIS MEETING AND THANK YOU.

AND, UH, WE, WE LOOK FORWARD TO COMING BACK HERE SOON.

RIGHT? YEAH.