Jul 06, 2023 Municipal Development Committee

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SO

[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, JULY 6, 2023 4:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]

IT'S 4 31.

UH, WE DO HAVE A QUORUM, AND WE ARE IN BAYTOWN CITY HALL.

COUNCIL CHAMBERS, UH, WE

[a. Mr. Chris Presley has requested to appear before the Municipal Development District regarding a proposal for a new Economic Development Program.]

UH, COUNCILMAN YOU HAVE, UH, FIVE MINUTES FOR YOUR PRESENTATION.

THANK YOU.

SO I'M HERE TONIGHT TO SPEAK ON BEHALF OF THE GREEN APPLE SALON.

UM, THE OWNERS HERE, MR. SKOOG, THEY WERE PREVIOUSLY IN BAYTOWN FOR, I BELIEVE, A LITTLE OVER SEVEN YEARS.

UM, YOU MAY OR MAY NOT KNOW THEY WERE DISPLACED FROM THE LOCATION A COUPLE OF YEARS AGO, BUT THEY DO WANT TO RETURN TO THIS PART OF TOWN.

SO WE'RE HERE ASKING FOR MDD TO ADOPT A PROGRAM OR PUT A PROCESS IN PLACE THAT ALLOWS FOLKS TO ACQUIRE AND DO SOMETHING PRODUCTIVE WITH DOZENS OF CITY OWNED SURPLUS LOTS.

I FOLLOWED UP ON SOME INFORMATION EARLIER THIS YEAR FROM A LOCAL REAL ESTATE BROKER AND LEARNED THAT THERE ARE APPROXIMATELY 50 ODD, POSSIBLY MORE, UM, UNUSED IDLE SURPLUS LOTS, WHATEVER NAME YOU WANNA PUT ON 'EM.

UM, BJ SIMON TOLD ME THAT THEY'VE BEEN REFERRED TO AS ZOMBIE LOTS OVER THE YEARS AS WELL.

SO WHATEVER YOU WANNA CALL 'EM, I CALL 'EM SURPLUS LOTS.

UM, THE BOTTOM LINE IS THAT NONE OF THESE 50 ODD PROPERTIES ARE GENERATING ANY TAX REVENUE.

UM, ZERO.

IT ACTUALLY COSTS THE CITY MONEY BECAUSE THEY REQUIRE, UH, MOWING AND UPKEEP, ET CETERA.

SO IF THE ZOMBIE LOTS, OR THE, THE IDLE LOTS, SURPLUS LOTS WERE OFFERED AS AN INCENTIVE FOR COMMERCIAL DEVELOPMENT, OR EVEN TO INDIVIDUALS TO BUILD HOMES OR BUILDERS TO BUILD HOMES, THEY COULD BE BACK ON THE TAX ROLLS GENERATING TAX REVENUE.

UM, AND THAT WOULD BE NEW TAX REVENUE.

SO YOU HAVE A HANDOUT IN FRONT OF YOU.

I'M GONNA VERY GENEROUSLY CALL IT A FLOW CHART, WHICH IS PROBABLY A STRETCH, BUT A PROGRAM OR A PROCESS COULD BE FAIRLY SIMPLE.

AND STEP ONE WOULD BE TO ADVERTISE THE LOTS CITY WEBSITE, EDF WEBSITE, POSSIBLY BOTH, UH, WITH A CONTACT NAME AND INSTRUCTIONS FOR SUBMITTING A PROPOSAL.

THE PROPOSALS COULD BE SUBMITTED DIRECTLY TO MDD, AND A PROPOSAL COULD BE FOR A LOT ONLY, WHICH IN THIS CASE, UM, IT IS, OR IT COULD BE FOR A LOT, UM, LAYERED WITH THE BUSINESS IMPROVEMENT GRANT OR OTHER MONETARY INCENTIVES IF JUST THE LOT IS NOT QUITE ENOUGH TO MAKE A PROJECT WORK.

SO, UH, THE FIRST COUPLE OF YEARS OF THE PROGRAM COULD, MDD COULD CONSIDER PROPOSALS ON A CASE BY CASE BASIS FOR THE VALUE THAT THE CITY RECEIVES.

UH, ESSENTIALLY THE MERIT OF THE PROPOSAL OR THE PROJECT.

AND AT THE END OF A COUPLE OF YEARS, MDD COULD REVISIT, UM, THE, THE SUCCESS, UH, OF, OF THAT PROCESS.

AND, AND THEY COULD MODIFY OR ADJUST IT, DEPENDING ON HOW MANY OF THOSE LOTS REMAIN.

UM, AND THEY COULD EVEN LOWER THE BAR, SO TO SPEAK, IN ORDER TO GET RID OF ALL OF THEM IN A TIMELY FASHION.

UM, WHAT I CONSIDER TO BE AN ADVANTAGE OF THIS, AND I'M SPEAKING FROM EXPERIENCE, UM, ON ZONING CASES, FOR EXAMPLE, AND, AND OTHER TIMES, SOMETIMES THE CITY DOESN'T EXACTLY GET WHAT WAS ADVERTISED OR WHAT THEY BARGAINED FOR, BUT IN, IN A PROCESS LIKE THIS, CONDITIONS COULD BE PUT INTO A DEED, IS DEED RESTRICTIONS.

THERE COULD BE A SEPARATE THREE 80 AGREEMENT, AND IT COULD BE IRONCLAD AND THE CITY COULD GET EXACTLY WHAT WAS BARGAINED FOR.

SO IN MY OPINION, THAT WOULD BE A GOOD THING, .

OKAY.

AND THE WAY THE PROCESS WOULD WORK, THE WAY IT'S PITCHED IS THE LOTS COULD GO FROM THE CITY TO THE MDD AND FROM THE MDD TO THE PROSPECT, THE

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I MAY NEED 30 EXTRA SECONDS.

OKAY.

UM, SO EARLIER THIS YEAR, I BELIEVE IT WAS IN FEBRUARY, I MET WITH BJ SIMON ADMINISTRATION, AND I ASKED, AND I REQUESTED THAT ALL OF THESE SURPLUS LOTS BE LISTED ON THE WEBSITE AND MADE AVAILABLE TO ANYBODY AND EVERYBODY THAT WANTS TO DO SOMETHING PRODUCTIVE.

UM, NOT, CERTAINLY NOT JUST FOR, FOR ONE BUSINESS.

AND THE FEEDBACK WAS, WAS POSITIVE.

UM, I, I WOULD SAY IT WAS VERY POSITIVE FROM ADMINISTRATION, MR. BROWNLEES, EVEN A COUPLE OF THE FOLKS IN THE PLANNING DEPARTMENT THAT I SPOKE WITH.

SO BASED ON THAT, UM, BUT MORE SO TO KIND OF HELP ADVANCE A PROCESS.

WE SUBMITTED A PROPOSAL IN APRIL, UM, BECAUSE THERE'S AT LEAST ONE OF THESE IDLE LOTS, SURPLUS LOTS THAT WOULD BE SUITABLE FOR THE BUSINESS THAT WANTS TO RETURN.

UM, AND OF COURSE WE THINK IT, IT, IT'S A GREAT PLACE TO START BECAUSE IT'S ON THE, THE FAR LEFT SIDE OF THE COLUMN WHERE IT WOULD BE THE LOT ONLY, NO BUSINESS IMPROVEMENT GRANT, NO OTHER MONETARY INCENTIVES, JUST A SURPLUS LOT.

SO WE, WE THINK NEW CONSTRUCTION MAKES A BIG IMPACT.

THAT'S WHAT IT WOULD, WOULD, WOULD INCLUDE, UM, OF A VERY NICE BUILDING IN AN AREA THAT THE CITY HAS SAID FOR A LONG TIME.

THEY WANNA SEE NEW DEVELOPMENT THERE.

SO THAT'S THE GIST OF IT.

WE'RE JUST HERE TO ASK FOR A PROCESS, BE PUT IN PLACE FOR ANYBODY AND EVERYBODY SO THAT THESE SURPLUS LOTS, IDLE LOTS CAN BE PUT TO GOOD USE AND, AND TAKEN OFF THE BACKS OF THE TAXPAYERS, FRANKLY.

SO HAPPY TO ANSWER ANY QUESTIONS, BUT THAT'S ALL I HAVE.

ALRIGHT.

THANK YOU, SIR.

UH, BOARD, UH, YES, UH, MR. PRESLEY AND I, UH, ALONG WITH BJ SIMON AND, UH, A FEW OTHER STAFF MEMBERS, WE HAD EXTENSIVE CONVERSATIONS ON THESE PROPERTIES ON THESE PROJECTS.

UM, THE PROJECT THAT MR. PRESLEY IS DIRECTLY, UH, REFERRING TO OR REFERENCING HERE, UM, DOES SEEM LIKE A VIABLE PROJECT, UM, FOR, UM, FOR THE CITY.

AS WE JUMPED IN INTO THE PROCESS FLOW OF SELLING THE PROPERTIES, WE RAN INTO A FEW HICCUPS GOING, UM, WORKING WITH THE CITY ATTORNEY, WORKING WITH ECONOMIC DEVELOPMENT, UH, WORKING WITH THE A IN, UH, A PROPER PROCESS TO LEGITIMATELY SELL THESE PROPERTIES.

UH, WE RAN INTO A FEW BACK AND FORTHS THAT, UH, HAVE ONLY RECENTLY COME TO LIFE ON, ON A WAY TO MOVE FORWARD.

AND SO TO, TO MR. PRESLEY.

I DO APOLOGIZE ABOUT THE TIMELINE THAT IT'S TAKEN TO RUN THROUGH THAT PROCESS, BUT THIS HAS BEEN SOMETHING THAT WE DID.

I INITIALLY MEET IN FEBRUARY.

UM, IN ADDITION TO THAT, SOME OF THESE PIECES THAT HAVE BEEN DISCUSSED, UH, WITH PROPERTIES NEED TO BE BROUGHT TO COUNCIL FOR STRATEGIC HOLDING OF THE PROPERTIES, UH, WHICH HAS NOT BEEN DONE AND HAS BEEN A LOWER PRIORITY WITH THE OTHER THINGS THAT THE, THE COUNCIL HAS BEEN, UH, AND I KNOW THIS IS MDD BOARD, BUT BECAUSE THEY'RE OWNED BY THE CITY, THE COUNCIL HAS TO HAVE STRATEGIC DISCUSSIONS ON THESE PROPERTIES THAT HAS NOT HAPPENED AND THEREFORE THAT IT'S BEEN A LOWER PRIORITY TO BRING TO THE COUNCIL.

UM, THE PROJECT IN AND OF ITSELF SOUNDS, OR THE PROCESS TO DO THIS SOUNDS LIKE IT'S SOMETHING THAT'S AT LEAST WORTH CONSIDERATION FROM THE MDD.

UM, NOW IF THE COUNCIL WANTS TO LOOK AT SELLING PROPERTIES, THAT'S A TOTALLY DIFFERENT CONVERSATION THAT NEEDS TO BE HAD WITH THE COUNCIL.

UH, BUT THE MDD CURRENTLY IN, IN ITS WAY, IS NOT INVOLVED WITH THE CITY PROPERTY AT THIS POINT IN TIME.

AND SO WE WOULD HAVE TO GET BOTH TOGETHER TO REALLY HAVE A FRUITFUL DISCUSSION, UH, FROM THAT POINT.

AND IT'S A LITTLE BIT CONVOLUTED AND IT'S JUST CURRENTLY WHERE WE STAND.

OKAY.

IF, IF I CAN ADD TO THAT.

UM, SO, UH, I'M GONNA SAY ABOUT A YEAR AGO, THERE WAS SOME OTHER STAFF THAT, THEY'RE NO LONGER ON STAFF, BUT, UH, PREVIOUS CITY MANAGER, MYSELF, UH, THE SCHOOL, I DON'T WANNA SAY THE SCHOOL DISTRICT COLLEGE, UM, KIND OF IN AN INTERGOVERNMENTAL, UM, MEETING WE HAD, UH, BECAUSE THERE'S MULTIPLE LIEN HOLDERS ON SOME OF THESE PROPERTIES.

AND SO I WOULD AGREE CONCEPTUALLY WITH WHAT IT WAS PRESENTED THAT WAS A HIGH IDEA, WAS THERE WAS PROPERTIES IDENTIFIED, KIND OF WHAT'S THE, WHAT'S THE TAX STATUS OR LEGAL STATUS OF EACH OF THESE PROPERTIES, UH, SO THAT WE CAN, IN A SENSE GET 'EM OFF THE LIABILITY OF THE CITY.

'CAUSE WE HAVE TO MOW 'EM.

AND BELIEVE ME, I SIGN EVERY SINGLE, UH, LIEN THAT'S PLACED ON THEM FOR WHEN WE HAVE TO PROVIDE THE, THE LOAN MAINTENANCE.

AND SO, UM, I WOULD AGREE A WHOLE, I WOULD AGREE WHOLEHEARTEDLY, UM, IF THESE PROPERTIES WOULD BE MADE AVAILABLE.

'CAUSE THERE IS A PROCESS THAT THAT HAS TO STILL BE KIND OF THE FREE MARKET TO IT, UH,

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SO, UM, THERE'S, THERE'S A LOT OF THINGS THAT WOULD, UM, CONVOLUTE THAT PROCESS.

THERE'S ZONING ISSUES WITH SOME OF THE PROPERTIES WHERE, WHAT WAS THERE BEFORE VERSUS WHAT COULD GO THERE NOW.

BUT I THINK CONCEPTUALLY WHAT WAS PRESENTED IS SOMETHING, UM, THAT CITY COUNCIL AND, AND OUR MDD HOWEVER THAT WORKS OUT, IS SOMETHING THAT, UM, I WOULD BE INTERESTED IN PURSUING.

OKAY.

UM, THAT'S JUST MY TAKE, BUT I JUST WANTED TO, YOU KNOW, THERE'S A LOT OF PEOPLE THAT WERE NOT IN THE ROOM AT THE TIME, UM, BUT THAT WAS THE PROCESS BECAUSE THESE LIABILITY, THESE ARE JUST, THESE ARE LIABILITIES IN THE NEIGHBORHOODS AND WHAT HAPPENS, SOME OF 'EM ARE, MOST OF 'EM ARE VACANT PROPERTIES, BUT PEOPLE DUMP STUFF THERE.

THEY JUST, YOU KNOW, THEY, THEY GO AND THEY, THEY PUT DEBRIS, WHATEVER THE CASE MAY BE.

AND SO IT'S NOT JUST MOWING, IT'S, IT'S, YOU KNOW, THERE'S COUCHES, THERE'S OTHER THINGS THAT, THAT TAKE PLACE.

SO THAT'S JUST KIND OF WHERE THAT'S AT RIGHT NOW.

YES, MA'AM.

UM, I THINK FIRST AND FOREMOST, AND, AND I WENT THROUGH THIS EXERCISE WITH CAROL IN IDENTIFYING WHICH ONES ARE TRUE CITY OF BAYTOWN VERSUS THOSE THAT ARE LIENS, UM, WITH THE DIFFERENT ENTITIES.

AND SO I, I THINK WE DEFINITELY NEED TO SEPARATE THOSE THROUGHOUT THE CITY.

UM, SO SHE PROVIDED ME THOSE FOR MY DISTRICT, BUT WE NEED TO DO THE SAME THING FOR ALL OF THE OTHER ONES BECAUSE I FEEL THERE'S A DIFFERENT PROCESS, YOU KNOW, UH, BETWEEN THOSE THAT ARE ACTUAL CITY OWNED VERSUS THOSE THAT ARE, UM, ON A LIEN.

AND JUST BECAUSE IT'S CITY OWNED DOESN'T MEAN IT'S OPEN PROPERTY, BECAUSE IT COULD BE A PARK, IT COULD BE AN OLD FACILITY.

UM, AND SO IT JUST MAY SHOW UP AS PROPERTY, BUT NOT NECESSARILY A FACILITY.

SO I THINK WE HAVE TO IDENTIFY THAT AND THEN START GOING INTO THE FLOW OF, OF HOW TO HANDLE EACH OF THE PROPERTIES.

AND IF MEMORY SERVES ME RIGHT, I THINK THAT WE'VE IDENTIFIED PROPERTIES THAT ARE OWNED EITHER BY THE CITY IN SOME WAY, AND THEN THERE'S SOME THAT ARE OTHER ENTITIES.

AND SO WE WANNA WORK TOGETHER BECAUSE A LOT OF US, WE ALL HAVE A LIEN IN SOME CASE.

SO, UM, I GUESS MORE DISCUSSION, UH, AT WHAT, AT WHICHEVER BODY, IF IT'S CITY COUNCIL OR MDD, BUT CONCEPTUALLY, UM, I WOULD AGREE WITH, WITH, WITH THIS.

YES, MA'AM.

YES.

UH, I JUST WANNA SAY, AS A MEMBER OF MDD, I DO APPRECIATE MR. PRESLEY COMING IN AND AT LEAST STARTING A FLOW CHART FOR US.

UM, I DO THINK THAT WE NEED TO PRIORITIZE THIS, UM, MAYBE NOT AN MDD, BUT ALSO BRING IT TO COUNSEL.

I AGREE WITH BOTH OF YOU.

UM, BUT AS MDD AND COUNSEL, I THINK IT'S IMPORTANT THAT WE KNOW THAT WE CAN HANDLE A LOT OF THINGS AT ONCE, AND WE DO NEED TO MAKE THIS A PRIORITY.

I MEAN, WE COULD ESSENTIALLY BE MAKING A LOT MORE MONEY FOR OUR TOWN IF WE ARE, UM, YOU KNOW, BUILDING UP NEW BUSINESS.

AND WE, IF WE HAVE PEOPLE THAT ARE COMING TO US ALREADY WITH PLANS AND PUTTING TOGETHER TIME TO MAKE FLOW CHARTS, EVEN IF THERE'S THINGS THAT WE'RE GONNA HAVE TO, YOU KNOW, OBVIOUSLY LOOK THROUGH.

I THINK ONE OF THE DISCUSSIONS I'VE HEARD IS THAT NOT, SOME OF THE PROPERTIES DON'T NECESSARILY HAVE TO GO UP FOR BID.

SOME CAN GO THROUGH A BROKER DIRECTLY, UM, AND IF I'M MISSPEAKING, YOU KNOW, CORRECT ME, BUT WHEN WE HAVE CITIZENS AND BUSINESS OWNERS TAKING TIME TO COME SEE US AND PUT TOGETHER CHARTS LIKE THIS AND TRY TO HELP US SEE WAYS TO MAKE MONEY, AND THAT'S IMPORTANT RIGHT NOW IN THIS CLIMATE, I WOULD SAY LET'S PRIORITIZE IT.

I WANT TO ECHO, UH, THE SENTIMENTS OF BOTH MY COLLEAGUES AND, AND, UH, MR. PRESIDENT WITH GETTING THE, UM, GET EVERYTHING SET SEPARATED.

I UNDERSTAND THE LIENS AND THINGS LIKE THAT.

UM, I, I AGREE THAT, UM, WITH, UH, MY COLLEAGUE ABOUT GETTING THINGS SET UP.

AND, UM, I GUESS MY QUESTION I WANT TO ASK IS, UM, HOW SOON CAN WE GET THIS, UH, ON, ON AN AGENDA ITEM? SO MY QUESTION TO THE BOARD, MY QUESTION TO THE BOARD WOULD BE, UM, IS IT OKAY TO MOVE FORWARD WITH THIS ONE SPECIFIC PROPERTY AND THEN COME BACK WITH THE OTHER PIECES OF THE PIE? UH, BECAUSE THAT CAN BE HANDLED, UH, BY ITSELF.

UH, PART OF THIS IS THAT THIS SPECIFIC PROPERTY WAS A STRATEGIC HOLD FOR THE CITY, AND THAT IS SOMETHING THAT IS PROBABLY NO LONGER RELEVANT, BUT AT THE TIME OF THE DISCUSSION, IT WAS A STRATEGIC HOLD AND THEREFORE NOT MOVING, UM, SPECIFICALLY FOR THIS PROPERTY, IF, IF THERE IS SOMETHING THAT THE BOARD IS OKAY WITH, WE CAN MOVE FORWARD WITH THIS ONE AND SEE HOW WELL THIS ONE WORKS OR HOW IT'S SET UP, AND THE, THE, THE PROCESS CAN BE SET UP FROM, FROM THERE OR YOU CAN GO THROUGH THE PROCESS, SET THE PROCESS UP, TAKE ABOUT PROBABLY TWO TO THREE MONTHS TO SET THAT PROCESS UP AND THEN COME BACK AND CONSIDER THE PROPERTY AT THAT TIME.

SIR, MY PERSONAL PREFERENCE WOULD BE TO HAVE A PROCESS FIRST.

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SO I GUESS MY VOTE WOULD BE DEVELOP THE PROCESS FIRST, HAVE THAT READY, BUT MAKE THE PROCESS A PRIORITY.

AND THEN MAKE SURE THAT WE KEEP MR. PRESLEY IN THE GREEN APPLE IN THE LOOP, UM, ALONG THE WAY SO THAT THEY DON'T FEEL LIKE WE'VE JUST DISCARDED ALL THE WORK THAT THEY'RE PUTTING IN TRYING TO COME BACK TO TOWN.

YES, MA'AM.

MY OPINION IS TO DO IT HOLISTICALLY AND NOT PIECEMEAL IT.

CAN I JUST ADD ONE? YES, MA'AM.

AND THIS IS JUST OUTSIDE OPINION.

I JUST REMEMBER WHEN I FIRST GOT ON, WE WERE DEALING WITH THE OTHER BUSINESSES, TRYING THE GRANTS THAT WE WERE GIVING BUSINESSES AND HOW WE KEPT GOING BACK AND FORTH AND CHANGING AND ADDING TO THAT.

SO MY FIRST THOUGHT WAS, YEAH, I DON'T WANT A PIECEMEAL, LET'S GET IT ALL IN PLACE, BUT THIS COULD BE A GOOD, THEY'VE BEEN WAITING A LONG TIME.

THIS COULD BE A GOOD WAY TO WORK THROUGH SOME KINKS WITH ONE PERSON FIRST TO MAKE SURE THAT WE DON'T HAVE TO KEEP GOING BACK AND CHANGING A PROCESS.

KINDA LIKE A PILOT WHEN WE, WHEN WE PUT IT OUT TO ALL, TO, TO THE ENTIRE PUBLIC.

SO THEN IT LOOKS NICE AND ORGANIZED.

THAT'S JUST MY POINT.

WELL, I GUESS THE QUESTION I WOULD HAVE EITHER THROUGH THE, FOR THE CITY ATTORNEY OR CITY MANAGERS, IS IT BEST THAT COUNCIL VISIT THIS FIRST, OR IS IT MBD? I MEAN, WHICH IS, IT WOULD BE THE PROPERTY.

IT'S A COUNCIL PROPERTY.

IT, IT'S OWNED BY THE CITY COUNCIL.

OKAY.

SO, ALRIGHT, I TAKE IT.

YEP.

YES, MA'AM.

UM, MY APOLOGY FOR BEING LATE AND MY APOLOGY IF I MISSED THIS.

WHAT, HOW MANY PROPERTIES ARE WE TALKING ABOUT? HOW MANY PARCELS DO WE HAVE A PLUS OR MINUS NUMBER? I, I WOULD SUGGEST THIS JUST FOR THE BEST OF KNOWLEDGE, SO WE DON'T MISSPEAK WOULD BE, UM, THAT I THINK BRIAN MORAN AND, AND OTHERS, THEY WERE INVOLVED WITH THIS PRETTY HEAVILY LAST YEAR.

SO, UM, CAN THEY GET THAT INFORMATION IN SOME FORMAT TO MDD EVEN? IT'S JUST FOR THE INFORMATION SINCE THEY WERE STILL PART OF THIS INITIAL DISCUSSION.

THANK YOU.

KIND OF GO FROM THERE AND THEN, UM, YOU KNOW, IT, IT HAS TO BE A, A PUBLIC PROCESS OBVIOUSLY.

UM, THAT MAY BE IN SOME CASES MAY BE THROUGH BID, THROUGH AUCTION, WHATEVER THE CASE MAY BE.

UM, BUT I WOULD ALSO SAY THAT IF THE PROCESS ALLOWS, IF SOMEBODY SAYS, HEY, I KNOW YOU HAVE THIS PROPERTY AND I'D LIKE TO GO AND PRESENT A, YOU KNOW, ECONOMIC DEVELOPMENT OR PROPOSAL, THEN I THINK WE, WE, WE HAVE A PROCESS FOR THAT, FOR WHEN SOMEBODY'S INTERESTED IN THAT PARTICULAR PROPERTY.

OKAY.

BUT OKAY, LET'S, LET'S MOVE FORWARD.

ANY QUESTIONS OR ANYTHING? OKAY, THANK YOU.

WE'LL MOVE ON TO ITEM TWO

[a. Conduct a public hearing concerning the Baytown Municipal Development District's Fiscal Year 2023-24 Proposed Budget.]

UH, SO WITH THAT, THIS PUBLIC HEARING TODAY IS BEING HELD FOR THE PURPOSE OF GIVING ALL PERSONS THE RIGHT TO EXPRESS THEIR VIEWS REGARDING THE SUBJECT OF THIS PUBLIC HEARING.

EVERYONE DESIRING TO BE A PART OF TODAY'S HEARING SHOULD HAVE EITHER ASSIGNED THE APPROPRIATE LIST IN THE FOYER OR EMAILED THE CITY CLERK PRIOR TO THE POST, UH, TIME OF THIS MEETING.

EACH PARTICIPANT SHALL GIVE HIS OR HER NAME AND ADDRESS AN ORDER, PROVIDE A PROPER RECORD OF THIS HEARING.

THE RULES ALLOW EACH PERSON THREE MINUTES TO PRESENT INFORMATION.

HOWEVER, I ENCOURAGE EVERYONE TO BE AS BRIEF AND TO THE POINT AS POSSIBLE.

IF YOU'RE A GROUP OF PERSONS WISHING TO ADDRESS THE BAYTOWN MDD DISTRICT ON THE SAME SUBJECT, PLEASE SELECT A SPOKESPERSON TO PRESENT THE INFORMATION.

AND IF ANYONE HAS ANY QUESTIONS, PLEASE DIRECT 'EM TO ME.

SO IT IS NOW 4:49 PM AND I CALL THE, I'LL CALL TO ORDER THIS PUBLIC HEARING CONCERNING THE BAYTOWN MD D'S FISCAL YEAR 2324 PROPOSED BUDGET.

AND I'LL ASK STAFF TO SUMMARIZE THE SUBJECT MATTER OF THIS PUBLIC HEARING BOARD.

UM, TODAY THE PUBLIC HEARING IS GONNA BE, UH, GOING OVER THE FISCAL YEAR 2324 PROPOSED BUDGET FOR THE, UH, MUNICIPAL DEVELOPMENT DISTRICT.

UH, AT THIS TIME, UH, UH, THIS IS THE, THE BUDGET THAT WE'RE GONNA BE LOOKING AT FOR FY 24.

IT, UH, HAS REVENUES OF 8.8 MILLION, UH, TOTAL EXPENSES OF EIGHT, UH, 8.3 MILLION, UH, AND AN ENDING WORK CAPITAL OF 409,000.

UM, AND AT THAT POINT, UH, I'LL GO INTO DETAIL WITH THE NEXT PRESENTATION.

I, SO THIS HANDOUT THAT WE HAVE AT THE DIOCESE IS NOT CORRECT.

I, I'M GONNA GET INTO THAT MR. LEER IN JUST ONE SECOND.

I'M, I'LL GET INTO IT IN JUST ONE SECOND.

OKAY.

THERE'S TWO THINGS THAT WE'LL GO OVER TO CONSIDER, BUT, UM,

[00:20:02]

OH, NO, SORRY, I, I MEAN, I, IF THAT WAS YOUR SUMMARY.

OKAY.

UM, SO NO ONE HAS, UM, SIGNED UP TO SPEAK.

SO NOW CLOSE THIS PUBLIC HEARING CONCERNING THE BAYTOWN MED'S FISCAL YEAR 2324 PROPOSED BUDGET.

WE'LL MOVE ON TO THE NEXT ITEM, WHICH WILL BE TO CONSIDER

[b. Consider a resolution adopting the Baytown Municipal Development District Fiscal Year 2022-23 Budget.]

AND THERE IS A TYPO ON THE POSTING OF THIS MEETING.

UH, IT IS, IT IS, UH, POSTED AS THE 2223 BUDGET.

UH, HOWEVER, THIS IS, THE ACTUAL ITEM IS 2324 BUDGET, SO JUST CORRECT.

WANTED TO MAKE A NOTE FOR THAT.

UM, BUT WITH THAT, UH, MR. CITY MANAGER, IF YOU CAN GO AHEAD AND DO A PRESENTATION, UM, BOARD, WE CAME HERE TODAY TO, ACTUALLY, YOU HAVE TWO PACKETS IN FRONT OF YOU.

YOU HAVE ONE THAT ACTUALLY HAS THE, UH, REVISED BUDGET SUMMARY FOR THE MDD, AND THEN YOU HAVE A PACKET, UH, AS MR. LESTER WAS ASKING ABOUT IS SOME MINUTE AGO THAT HAS MULTIPLE OPTIONS ON HOW THE BUDGET IS BROKEN DOWN.

AT THE LAST MEETING, WHEN WE DISCUSSED THE BUDGET WE WERE GOING OVER, UH, THERE WERE QUESTIONS AROUND WHICH, HOW MUCH MONEY IS ALLOCATED TOWARDS ECONOMIC DEVELOPMENT, HOW MUCH IS ALLOCATED TO OTHER PROJECTS WITHIN THE, THE CITY OF BAYTOWN AND WHERE THIS MONEY SHOULD GO.

AT THAT POINT, WE HAD AN UNDERSTANDING THAT WE WOULD BRING BACK DIFFERENT OPTIONS FOR THE BOARD TO CONSIDER, UM, IN THAT PACKAGE.

UM, IF YOU TURN TO THE VERY LAST PAGE, IT, IT GOES THROUGH FOUR DIFFERENT OPTIONS, AND I'M NOT GONNA GO THROUGH THE OPTIONS COMPLETELY.

UH, BUT IT WAS IMPORTANT TO NOTE THAT THE, THE ORIGINAL BUDGET AS IT BEFORE IT WAS REVISED, UH, AND WHICH I'LL JUMP TO IN JUST A SECOND.

THE, THE MDD BUDGET BROKE DOWN INTO 34% FOR ECONOMIC DEVELOPMENT, 25% FOR INFRASTRUCTURE, 31% FOR PARKS, AND 10% FOR, UH, ADMIN AND CONTINGENCY.

THERE WERE MULTIPLE OPTIONS THAT THE, THE BOARD WAS ABLE TO GO THROUGH TO SEE A, A PHILOSOPHICAL STANCE ON HOW YOU WANTED TO, UH, LOOK AT THAT MONEY OR HOW YOU WANTED TO BREAK DOWN THAT SPEND, UH, FOR THE MDD, UH, FOR THE MDD.

UM, AFTER THAT WAS READY AND GETTING TO, TO BRING TO THE BOARD TO HAVE A DISCUSSION ABOUT, UH, A CHANGE TO THE BUDGET HAPPENED, UH, FOR THE, UH, FOR THE MDD BUDGET.

AND THAT DEALT WITH THE INSURANCE PAYMENT, UH, FOR OUR LOVELY HYATT REGENCY AND THE HYATT REGENCY INSURANCE CAME IN AT A NUMBER THAT WAS, UH, NOT EXPECTED AND HAS FORCED A CHANGE IN THE ENTIRE, UH, MAKEUP OF THE MDD BUDGET.

WE HAVE A LOVELY HOTEL, WE HAVE A VERY PROFITABLE MODEL, UH, OVER THE LIFESPAN OF THE HOTEL.

UH, AT THE VERY BEGINNING OF THIS PROCESS, IT WAS IDENTIFIED THAT THERE WOULD BE A FEW YEARS OF, UH, OF A NEGATIVE BALANCE OR, UH, AN OPERATING, UM, DEFICIENCY, SO TO SPEAK, UH, WHERE THE, THE MONEY THAT WAS COMING IN TO HELP GET THE HYATT UP AND GOING WAS GOING TO HA NEED MORE SUPPORT, UH, FROM THE MDD.

AND ONE OF THE THINGS THAT CAME IN WAS THE INSURANCE BILL FOR, FOR THE HOTEL THAT BILL IS ROUGHLY $1.8 MILLION AND THAT HAS FORCED A COMPLETE RESTRUCTURE OF THE PROJECTS, UM, FOR THE MDD.

IN ADDITION TO THAT, AS WE GO FORWARD AND START THINKING ABOUT WHAT WE NEED TO DO WITH THE, UM, WITH THE MAKEUP OF THE MDD, WE HAVE TO CONSIDER THAT WE NEED TO BE VIABLE AS A BOARD TO PAY FOR ANY KIND OF OTHER HICCUPS THAT MAY COME ALONG THE WAY, WHICH MEANS THAT WE NEED TO START FOCUSING ON BUILDING A, A HEALTHIER RESERVE, SHOULD MORE THINGS COME UP.

IN MY OPINION, I THINK THAT THE, I WOULD ADVISE THE BOARD ON MOVING TO A RESERVE BALANCE OF ROUGHLY FOUR TO $5 MILLION, UM, WHICH WILL TAKE A FEW YEARS TO GET TO.

IF YOU LOOK AT THE SCREEN THAT'S, THAT'S IN FRONT OF YOU, YOU'LL SEE THAT THE FY 23 BUDGET IS PROJECTED TO END IN A NEGATIVE $107,000 BALANCE.

UM, WE WILL ENSURE THAT THAT DOESN'T HAPPEN BY WORKING WITH OUR, OUR NUMBERS, BUT AS IT'S CURRENTLY WRITTEN DOWN, IT HAS A NEGATIVE ENDING BALANCE OF $107,000.

SO WHEN YOU LOOK AT THE PROPOSED EXPENDITURES FOR THE FY 24 BUDGET, UM, YOU HAVE 8.8 MILLION IN REVENUE, YOU HAVE ROUGHLY 8.3 MILLION IN EXPENSES, WHICH MEANS THAT THE REVENUES ARE MORE IN

[00:25:01]

BUT WE DID START OFF THE YEAR A HUNDRED THOUSAND DOLLARS IN THE WHOLE, UH, SO THE ENDING FUND BALANCE OR THE BEGINNING FUND BALANCE PAYS FOR THAT DEFICIT, TAKING THE ENDING FUND BALANCE DOWN TO 400,000.

SO WITH ALL THAT SAID, TO GET THE $5 MILLION, IT'S GONNA TAKE QUITE A FEW YEARS AND LESS SPENDING IN THE MDD TO BUILD UP THAT, UH, TO BUILD THAT BACK UP.

SO QUESTIONS THAT MAY ARISE IS ONE, THEY $1.8 MILLION HAS TO BE PAID THIS YEAR, RIGHT? SO HOW ARE WE GONNA DO THAT? WE HAVE TO MOVE SOME OF THE PROJECTS THAT WERE ALREADY ADOPTED BY THE MDD TO THE GENERAL FUND TO TO ENSURE THAT THOSE ARE PAID FOR.

UM, THOSE ARE MOSTLY THE PARK PROJECTS.

OKAY.

AND, UM, IN ADDITION TO THAT, BECAUSE OF THE CHANGE WITH THE FY 24, WHAT WAS ORIGINALLY PROPOSED TO THIS BOARD HAD MULTIPLE PARK PROJECTS, UH, ROUGHLY, UH, ART IN THE PARK, BAYTOWN SPORTS LEAGUE TOWN SQUARE, GREEN SPACE IMPROVEMENTS, THOMPSON AREA PARK, ALLEN BROOK, OR BASKETBALL COURT ENHANCEMENTS, THE DISC GOLF COURSE, AND THE LAKEWOOD COMMUNITY, UH, DOG PARK.

UM, MY SUGGESTION WOULD THAT BEFORE WE ADOPT THE BUDGET, I DO NOT WANNA CONSIDER ADOPTION OF THE BUDGET TODAY, IS THAT THOSE PROJECTS ARE CONSIDERED IN THE, UM, IN THE F OR IN THE FY 24 GENERAL FUND BUDGET, SO THAT WE CAN ENSURE THAT THEY WILL BE FUNDED BECAUSE THAT WAS THE INTENT OF THIS BOARD.

ONCE WE CAN ENSURE THAT THOSE PROJECTS ARE FUNDED BY THE GENERAL FUND, WE COME BACK AND ADOPT THIS BUDGET WITH THE INSURANCE PAYMENT THEN ALLOCATED IN THIS BUDGET AS WELL.

THAT IS A VERY QUICK SUMMARY.

SUMMARY.

I'M SURE THERE ARE TONS OF QUESTIONS THAT I'M HERE TO ANSWER THEM THE BEST THAT I CAN.

I JUST HAVE ONE ON ON.

SO WITH THAT IN MIND, WILL THERE BE ANY TYPE OF CASH RESERVE LINE ITEM FOR THE PROPOSED BUDGET? SO DO WE BEGIN THAT THIS BUDGET OR DO, OR ARE WE TRYING TO GO, WE BEGIN THAT, THIS BUDGET.

OKAY.

WE BEGIN THAT THIS BUDGET, WE CURRENTLY HAVE IT SITTING AT 409,000 AS THE BUDGET IS LAID OUT.

THE, THE BUDGET IN FRONT OF YOU THAT'S ON THE SCREEN INCLUDES THE INSURANCE PAYMENT.

OKAY.

IT ALSO INCLUDES TWO PROJECTS FOR, UH, WATER FOR THE UTILITY DEPARTMENT, UM, WITH, UM, THE I 10 LIFT STATION DEBT SERVICE AND UPSIZE NEW UTILITIES.

UH, IT'S IMPERATIVE THAT THE MDD SUPPORT THE WATER AND SEWER FUND WITH THINGS THAT, THAT ARE HAPPENING WITH THE WATER AND SEWER FUND.

AND SO WE'RE LEAVING THOSE IN HERE.

UM, WITH THAT SAID, UH, MAYOR, TO YOUR QUESTION, WHILE THE BUDGET ON PAPER LOOKS AT 409,000, WE BELIEVE THAT THE MONEY THAT'S IN THERE, THAT IS IN LAID OUT ON THE LINE ITEMS WILL NOT BE SPENT IN THEIR ENTIRETY.

RIGHT.

WHICH WILL ULTIMATELY LEAD TO ROUGHLY A MILLION DOLLAR ENDING WORKING CAPITAL BY THE END OF FY 24.

THAT'S JUST, THAT'S HOW IT WORKS.

UH, UH, AN OPERATIONAL BELIEF, UH, BASED OFF HISTORICAL DATA, RIGHT? YES, MA'AM.

HOW MUCH WAS THE INSURANCE PAYMENT ORIGINALLY SUPPOSED TO BE FOR THE HYATT? THE ORIGINAL BUDGET AMOUNT WAS AROUND 139,000 AND NOW IT'S 1.8 MILLION.

YES, MA'AM.

OKAY.

UM, MY FRUSTRATION AND MY VOICE IS NOT TOWARDS YOU OR ANYTHING.

YES, MA'AM.

I, I AM EXTREMELY FRUSTRATED, UM, AS AN MDD BOARD MEMBER BECAUSE I DO NOT UNDERSTAND HOW A HOTEL WAS BUILT AND HOW WE COULD NOT PROJECT $1.8 MILLION FOR THE INSURANCE BILL THAT WAS DUE TODAY ON A DAY-TO-DAY BASIS FOR ME AND MY NEIGHBORS.

IT'S THE PARKS AND THE RECREATION THAT IMPACT ME THE MOST IN A POSITIVE MANNER.

AND, UM, I DO UNDERSTAND THAT WE'RE GONNA HAVE TO FIGURE OUT A PLAN.

IT IS WHAT IT IS, THE HOTEL IS OURS, BUT I DO FEEL LIKE IT IS MY DUTY TO EXPRESS TO EVERYONE IN THIS MDD BOARD MY EXTREME FRUSTRATION.

IT IS A SAD DAY WHEN I FEEL LIKE WE HAVE TO SCRAP ALL OUR PARKS AND REC, UM, ITEMS THAT ARE GONNA BE ON THIS BUDGET AND MOVING FORWARD TO FY 24 IN ORDER TO PAY AN INSURANCE BILL THAT WE DIDN'T EVEN KNOW WAS COMING.

TYPICALLY IN THE PRIVATE SECTOR, WHEN WE WANNA BUILD SOMETHING, WE LOOK AND SEE IF THINGS ARE INSURABLE.

WE LOOK AND WE, UM, WE FIND OUT BEFORE ANYBODY WOULD BACK US, UM, ALL THE THINGS THAT COULD POSSIBLY HAPPEN.

AND THAT'S NOT EVEN WHEN WE'RE PLAYING WITH OTHER PEOPLE'S TAX DOLLARS.

SO I JUST WANTED TO MAKE SURE AND VOICE THAT OUT TO EVERYONE HERE.

UM, AND I JUST HOPE MOVING FORWARD AS, UM, AS A, AS AN MDD BOARD THAT WE DO LOOK TO THE FUTURE AND, AND MAKE SURE THAT WE HAVE MONEY, UH, PUT AWAY FOR THESE UNFORESEEABLE ITEMS. YEAH.

MY ONLY, WELL, I WANNA MAKE SURE WE ANSWER ANY OTHER QUESTIONS BEFORE WE GET TO THE INSURANCE ITSELF.

THAT'S ITSELF.

YES.

ALSO, WANNA MAKE SURE I HEARD SOMETHING RIGHT.

THIS, DOES THAT MEAN THE, THE BUDGET FOR THE DOG PARK IS SCRAPPED AS WELL? IT'S NOT SCRAPPED.

I WANT, I WANNA BE VERY CLEAR.

THE, THE, THE PROJECTS THAT ARE, THAT WERE ORIGINALLY BUDGETED

[00:30:01]

THEY WERE BEING MOVED TO THE GENERAL FUND FOR THE GENERAL, THE, THE, THE CITY OF BAY TOWN'S GENERAL FUND FOR THE, FOR THAT TO FUND THESE PROJECTS.

SO THEY'RE NOT BEING SCRAPPED IN THEY ENTIRETY, THEY'RE BEING MOVED TO A DIFFERENT BUDGET SO THAT THEY CAN BE FUNDED OUT OF THAT BUDGET.

NOW WITH THAT SAID, I WANNA BE VERY CLEAR THAT DOES MAKE THEM START TO COMPETE WITH OTHER PROJECTS THAT, AND I THINK THAT'S WHERE MS. GRAHAM OR MRS. GRAHAM IS COMING FROM, FROM HER POINT OF VIEW, THAT THEY'RE NOW COMPETING WITH INFRASTRUCTURE PROJECTS AND OTHER, UM, NECESSITIES THAT THE GENERAL FUND WAS ALREADY ADDRESSING.

AND IF I'M MISCHARACTERIZING THAT MS. GRAHAM, I'M, I'M NOT MEANING TO, THAT'S WHAT I TOOK FROM THAT YOU WERE, PARDON ME.

SO THAT'S OKAY.

OKAY.

, I USED SCRAP.

I'M SORRY.

IT WAS WHAT CAME TO MY MIND IN THE MOMENT.

SO YEAH, I, IT WAS A LACK FOR A BETTER WORD.

I USE WORD SCRAP.

I WANNA ECHO HER SENTIMENTS THAT I, I'M, YOU KNOW, IT'S DISAPPOINTING TO SEE THAT SUCH A DISCREPANCY BETWEEN, UM, WHAT WE EXPECTED AND WHERE WE'RE AT NOW WITH THE INSURANCE.

UM, LAKEWOOD WANTS THEIR DOG PARK , SO, UH, I WANT TO SEE THAT BREAK GROUND REALLY SOON.

YES, SIR.

UM, SO, UH, I, I, THAT, THAT'S KIND OF WHERE I'M AT WITH, WITH THAT.

BELIEVE ME, I'M, I'M NOT ENJOYING THIS, Y'ALL, I'M, I'M SWEATING BULLETS.

I UNDERSTAND, UNDERSTAND I'M UP HERE TO TRY TO UNDERSTAND, PRESENT SOMETHING THAT, UH, THAT, UH, WAS NOT PLANNED FOR YEARS AGO AT THIS POINT.

SO, YOU KNOW, THE ONLY ONLY QUESTION I REALLY HAVE ON THAT, ON THE INSURANCE ITSELF, AND, AND I DON'T WANNA BELABOR IT, BUT YOU KNOW, I UNDERSTAND WE, YOU KNOW, WE, WE, WE ESTIMATE SOMETHING AND, AND, AND DIFFERENT MARKETS, CERTAINLY EVEN I'M TOLD COMMERCIAL INSURANCE RIGHT NOW IS ASTRONOMICAL, BUT THIS IS, YOU KNOW, 10 TIMES, LET'S SAY 10 TIMES OF WHAT WAS, WAS EXPECTED.

SO IS THERE A REASON BEHIND IT? IS, IS MY QUESTION.

SO, UM, JUST WONDERING, I MEAN, IT'S NOT SOMETHING LIKE, HEY, THE VALUE CHANGED OR SOMETHING CHANGED IN COVERAGE THERE, YOU KNOW, A LOT OF US UP HERE, WE, YOU KNOW, WE UNDERSTAND AUTO INSURANCE AND HOME INSURANCE AND, AND THAT'S ABOUT IT.

SO IF YOU CAN KIND OF DESCRIBE IN, IN, IN, FOR THE HOTEL ITSELF, WHAT WAS THE BIGGEST COST DRIVER OF THE INCREASE IF, IF WE'RE MADE AWARE ANYWAY? YEAH, SO IF I CAN BE CLEAR, THE ANTICIPATED EXPENDITURES FOR INSURANCE WERE IN EXCESS OF 300,000 WAS THE ORIGINAL ESTIMATE.

MY NUMBER'S COMING FROM THE ACTUAL BUDGET DOCUMENT THAT THAT'S RIGHT.

AND, AND JASON'S TAKEN IT FROM, FROM THE BUDGET DOCUMENT THAT HYATT PRESENTED.

HOWEVER, I HAD ANTICIPATED AROUND 300,000 AND THAT WAS BASED ON THE ADVICE THAT I HAD RECEIVED FROM THE PEOPLE WHO WERE ADVISING US ON THE HOTEL.

AND EVERYONE I CAN TELL YOU WAS ABSOLUTELY AND UTTERLY ASTOUNDED.

NOW, THE GOOD NEWS, IF IT'S GOOD NEWS AT ALL, IT ISN'T TO ME IS THAT WE ARE IT NOT ALONE.

THIS HAS HAPPENED IN CONROE, THIS HAS HAPPENED IN ABILENE, AND THIS HAS HAPPENED TO OTHER HOTELS THROUGHOUT THE STATE.

UH, IT IS A FACTOR OF THE INSURANCE INDUSTRY.

IT IS ALSO A FACTOR OF THE LOCATION OF THE HOTEL.

AND DESPITE THE FACT THAT IT IS THE SAFEST BUILDING BY FAR, IF ANYTHING WERE TO HIT THE BAY, UH, THAT FACTORS INTO THE INSURANCE COSTS.

SO IT'S ALL OF THOSE FACTORS TOGETHER.

SO THERE'S NO EASY ANSWER TO IT.

UH, UNFORTUNATELY IT IS ABOUT SIX TIMES MORE THAN WE ANTICIPATE IT.

IF IT HAD COME IN AT ABOUT THE FIGURE THAT I HAD ORIGINALLY ASSUMED IT WOULD'VE BEEN PAID FOR FROM THE PROCEEDS WITHIN THE BOND TRUST, THAT'S NOT ENOUGH ANYMORE TO COVER THE 1.8 MILLION.

NO.

ALRIGHT, THANK YOU.

IS THERE ANY QUESTIONS, I GUESS, REGARDING THE, AT LEAST WHAT WAS PRESENTED IN THE SUMMARY ITSELF? UM, I DO HAVE, YES MA'AM.

QUESTION MR. PRESIDENT.

UM, SO MOVING FORWARD, UM, BECAUSE INSURANCE, I KNOW FOR MY HOME I PAY EVERY YEAR.

SO WHAT, WHAT ARE FUTURE INSURANCE POLICIES GOING TO LOOK LIKE? THE THE GOOD NEWS IS, IS THAT VICTOR BRANT AND PROBABLY THREE OR FOUR OTHERS AT THIS POINT ARE TRYING TO FIND A WAY, UH, UH, VICTOR HAS REACHED OUT TO THE OTHER ENTITIES THAT ARE ALSO HAVING HIGH, UH, INSURANCE COSTS WITH THESE, UH, WITH THE HOTELS.

UH, BRAND IS REACHING OUT TO, UH, OUR CURRENT, THE CITY'S, UH, INSURANCE PROVIDER TO FIND A WAY IF THEY CAN UNDERWRITE A SPECIAL, UM, INSURANCE POLICY THAT IS A COLLECTIVE PIECE SO THAT WE'RE ALL SHARING THE BRUNT OF THIS.

BUT IT'S SOMETHING THAT IS NEW BECAUSE THE, UH, THE, THE HARD ANSWER TO GIVE THE BOARD IS THAT THIS, WE WERE ORIGINALLY TOLD THAT IT'S UNINSURABLE BY THE PEOPLE THAT INSURE US, UH, ORIGINALLY.

OKAY.

THAT HAS BEEN MODIFIED.

IT'S, UH, A LADDER APPROACH ON THE INSURANCE TO HELP SHARE THE COST OR THE, THE RISK, UH, OF THE INSURANCE.

AND SO, UH, BRANCH AND VICTOR AND, AND, UH, PHILIP WITH HR AND UH, A FEW OTHERS ARE WORKING ON A WAY TO BUILD OUR OWN INSURANCE PACKAGE, UH, THAT HOPEFULLY HAS A LESS, UH, UH, UH, THE PREMIUM IS A LITTLE BIT

[00:35:01]

I DON'T KNOW WHAT ELSE YOU HAVE TO ADD.

UH, YES, AND IF I COULD ADD SOMETHING, UM, IT IS ANTICIPATED IN THE NEXT FISCAL YEAR THAT WE WILL RECEIVE APPROXIMATELY 1.3 MILLION IN ADDITIONAL REVENUES FROM REBATED HOTEL OCCUPANCY AND SALES TAXES, AND ALSO FROM INCREASED CITY HOT TAXES AND SALES TAXES.

I TOOK THE VIEW WHEN WE COULD PUT TOGETHER THE FINANCIAL MODEL FOR THE HOTEL, THAT WE WOULD NOT ASSUME THOSE, AND THEREFORE WE WOULD NOT BUILD THOSE INTO THAT MODEL.

UH, BUT I'M TELLING YOU NOW, IT IS LIKELY THAT THAT MONEY WILL FLOW INTO THE BOND TRUST, WHICH CONTROLS THE HOTEL PLUS THE MDD AND THE HOT FUND.

THEREFORE, YOU WILL SEE IN THE PROPOSED REVISED MDD BUDGET A CONTRIBUTION FROM THE HOT FUND $350,000.

THAT IS TO REFLECT THAT ADDITIONAL MONEY'S FLOWING DIRECTLY TO OUR CITY HOT FUND.

THE REBATE AT SALES AND HOT TAXES FROM THE STATE, AS I SAY, WILL FLOW THROUGH TO THE HOTEL OPERATING BUDGET.

UH, IT'S THE BEST NEWS I HAVE FOR YOU AT THIS STAGE.

I HOPE IT GETS BETTER THAN THIS.

THANK YOU.

AND, AND I KNOW THAT, AND, AND WE ALL KNEW GOING IN THAT IT WAS GONNA TAKE A COUPLE OF YEARS TO REALLY GET THAT INVESTMENT BACK FROM THE HOTEL, AND WE KNEW THAT WE WERE GONNA START GETTING, UM, REVENUES BACK, BUT I, I THINK IT'S JUST THE STICKER SHOCK OF WHAT WE ANTICIPATED VERSUS WHAT WE'RE GETTING.

AND, UM, IT'S A VERY BIG STICKER SHOCK.

SO YES, MA'AM.

I, I THINK RIGHT NOW I'M JUST AT A LOSS FOR WORDS.

AND SO ONE THING THAT Y'ALL DON'T HAVE IN FRONT OF YOU RIGHT NOW, I, I'M NOT SURE IF Y'ALL ACTUALLY HAVE THE, THE LINE ITEM BUDGET FOR THE MDD IN YOUR PACKET OR NOT.

UM, WE HAVE THIS, YEAH, IF YOU LOOK AT THE REVENUE AT THE VERY TOP, ONE OF THE THINGS, UH, THAT THERESA, UM, OUR, OUR CFO IS WORKING ON WITH, WITH THIS, IS THAT YOU'LL SEE A NEW TRANSFER IN FROM THE HOTEL OCCUPANCY TAX.

AND SO THE HOTEL TAXES, ITS OWN FUND, UM, THAT HELPS DO WORK ON TOURISM.

HOWEVER, UH, BECAUSE THIS IS FUNDING PART OF THE HOTEL, WE'RE ACTUALLY USING THAT HOTEL MONEY AS A SUPPLEMENTAL PIECE TO PAY PART OF THE INSURANCE AS WELL.

AND SO WE WILL CONSIDER HOW THAT FACTORS IN GOING FORWARD TO HELP REDUCE THE LIABILITIES HERE, UH, THAT THE MDD IS, UH, IS WORKING WITH.

SO PLEASE KNOW THAT YOU HAVE A STAFF BEHIND YOU THAT IS WORKING EVERYTHING THAT WE CAN TO TRY TO REDUCE THIS SO THAT THIS IS A, A VIABLE, UM, UH, BOARD THAT CAN ACTUALLY HELP BAYTOWN CONTINUE TO GROW.

ALRIGHT, THANK YOU.

ANY ADDITIONAL QUESTIONS REGARDING THE SUMMARY THAT WAS IN FRONT OF YOU? YES.

YES SIR.

I WANT TO MAKE A COMMENT AND, AND I APOLOGIZE.

I'VE GOT AN EAR INFECTION, SO I'M EITHER GONNA TALK TOO LOUD OR TOO SOFT.

UM, I WAS PLEASED TO HEAR YOU SAY THAT YOU WERE GONNA TRY TO ROLL THE PARKS ISSUES THAT HAVE BEEN TAKEN OUT OF THIS PROPOSAL BACK INTO THE GENERAL FUND.

AND, AND I'VE BEEN PUSHING THAT FOR A WHILE.

MDD IS, HAS GOT A SPECIFIC TARGET MUNICIPAL DEVELOPMENT.

A LOT OF TIMES THE PARKS PROGRAMS THAT WE HAVE IN MDD REALLY AREN'T BENEFICIAL TO MUNICIPAL DEVELOPMENT, BUT I DON'T WANNA LOSE THOSE PROGRAMS. I WANT TO PUSH THEM INTO THE GENERAL FUND, REALLY, IN MY OPINION, WHERE THEY SHOULD BE.

SO I APPRECIATE THAT.

UM, AND AGAIN, THEN THEY COMPETE WITH ALL THE OTHER PROJECTS AND I, I KNOW WE HAVE SP DISTRICT SPECIFIC NEEDS AND WANTS.

LET'S, LET'S ARGUE IT OUT AND, AND GET 'EM, UH, IF WE CAN.

BUT, UH, YOU KNOW, THE, THE MDD IS SUPPOSED TO BE SPURRING ECONOMIC OR MUNICIPAL DEVELOPMENT, AND SO I APPRECIATE THAT.

UM, ONE POINT IN MILLION THAT'S KIND OF LIKE, WOW, THAT'S, THAT'S A JUMP.

BUT I UNDERSTAND THE DIFFICULTIES AND THE ISSUES THAT ARE INVOLVED IN THAT.

SO AGAIN, I WAS JUST PLEASED TO HEAR THAT STAFF IS WORKING TO PUT THOSE PROJECTS, PARKS, PROJECTS BACK INTO THE GENERAL FUND.

THERE'S TWO OR THREE OF THEM, THE DOG PARK, THE, UM, THOMPSON PARK, THE MATCH FUND.

IT'S HARD TO TO TO PASS UP ON THOSE.

SO WE JUST NEED TO FIGURE OUT A WAY TO FUND IT MORE APPROPRIATELY IN THE GENERAL FUND THAN IN MDD.

YES, SIR.

YEAH, I, AND COUNCILMAN, I THINK THAT WAS KIND OF PART OF OUR LAST DISCUSSION WAS SOME OF THE SMALLER PROJECTS IN A SENSE, THOSE, THOSE, WOULD THEY MAKE MORE SENSE TO ROLL OVER TO THE GENERAL FUND? YEP.

AND, UH, THE, THE OTHER POWERPOINT THAT Y'ALL HAVE WITH THE BREAKDOWN OF THE OPTIONS, THAT WILL BE A FUTURE POLICY DISCUSSION FOR THE BOARD RIGHT NOW.

UH, THIS HAS FORCED A DELAY IN IN THAT DISCUSSION, BUT THIS WILL BE SOMETHING THAT WE BRING BACK IN FY 24 TO, FOR THE BOARD TO, TO FINALIZE.

OKAY.

ANY ADDITIONAL QUESTIONS ON ITEM TWO B QUESTIONS, COMMENTS? IF NOT, WE'RE GONNA MOVE TO ITEM THREE A

[a. Consider a resolution approving a Business Improvement Grant application not to exceed $60,000.00.]

[00:40:01]

I'LL BE QUICK.

UM, HERE WE GO HERE.

WELL, YOU MAY RECALL, UH, UH, DIRECTORS BACK IN, UH, APRIL OF THIS YEAR, THE BOARD ADOPTED REVISIONS TO THE BUSINESS IMPROVEMENT GRANT PROGRAM POLICY AND GUIDELINES.

AND I'M HAPPY TO REPORT THAT THIS IS THE FIRST, UM, APPLICATION OR PROJECT, UH, TO BE PROCESSED UNDER THOSE NEW GUIDELINES.

SO, UH, JUST TO GET AN IDEA ABOUT THE SUBJECT PROPERTY, 28 17 NORTH MAIN STREET, UM, CAT CATTY CORNER, UH, ACROSS NORTH MAIN STREET, ACROSS FROM THE, UM, MUNICIPAL COURT AND POLICE STATION COMPLEX, UH, BETWEEN BOB SMITH AND, AND MIDWAY AND, AND HAROLD STREET THERE, JUST SOUTH OF THE NEW NEWISH VALERO STATION THERE.

AND GET A SENSE FOR IT ON THE STREET VIEW OF THE EXISTING CONDITIONS OF THE BUILDING.

SOME MORE ON THE EXTERIOR EXISTING CONDITIONS OF THE BUILDING.

AND THE INTERIOR, OF COURSE IT IS, IT'S ALREADY BEING GUTTED OUT AND GET A SENSE FOR WHAT THE APPLICANT IS PROPOSING TO DO.

IT'S CURRENTLY, UH, OR PREVIOUSLY HAD BEEN IN AN OFFICE BUILDING.

THIS WOULD JUST BE A REWORK OF THAT.

BUT OFF, UM, PRESENT SOME NEW LIFE TO THE BUILDING.

HERE'S SOME INTERIOR, UM, KIND OF ELEVATIONS OF WHAT THEY'RE PROPOSING TO DO WITH THIS APPLICATION.

UH, IN ADDITION TO WHAT WAS PICTURED THERE, THERE'S A NUMBER OF EXTERIOR, UM, IMPROVEMENTS THAT THEY'RE PROPOSING WITH THIS APPLICATION.

PARKING LOT, RESURFACING, SIDEWALK IMPROVEMENTS, UH, DUMPSTER ENCLOSURE, UH, LANDSCAPING, UH, ROOF, PARAPET WALLS, WINDOWS, STOREFRONTS, UM, SIDING, TRIM, EXTERIOR, UH, FACADE STONE, UH, UTILITY WORK, HVAC WORK.

SO IN TOTAL, ALL OF THAT WORK, UM, UH, TOTALS TO ABOUT 134 PLUS A THOUSAND DOLLARS.

UM, BUT BETWEEN THE, THE TIERS, UM, THAT ARE WITHIN THE PROGRAM GUIDELINES THAT WOULD YIELD AN ESTIMATED REIMBURSEMENT FOR ELIGIBLE EXPENSES OF ABOUT, UM, JUST UNDER $60,000.

SO WITH THAT, UH, THE APPLICATION MET ALL THE MINIMUM SCORING CRITERIA AND OTHER CRITERIA OF THE PROGRAM AND STAFF IS RECOMMENDING APPROVAL.

SO IF YOU HAVE ANY QUESTIONS APPLICANT'S HERE AS WELL TO ANSWER ANY QUESTIONS.

ALRIGHT.

FIRST, I MEAN, UM, I'M ASSUMING AS, AS APPLICANT, BUT, UH, LETICIA SANDOVAL OF YOU COME AND SPEAK, BUT I BELIEVE YOU HAVE THREE MINUTES, IS THAT CORRECT? HI, GOOD AFTERNOON.

SO I WANTED TO MAKE MYSELF AVAILABLE, EXCUSE ME, IN CASE THERE WERE ANY QUESTIONS FOR ME.

OKAY, MS. SANDWELL, ANY QUESTIONS FOR MS. SANDOVAL OR HER BUSINESS OR HER INTENTIONS? NO, UM, I READ THROUGH THE APPLICATION AND THE IMPROVEMENTS THAT YOU'RE GONNA BE MAKING, SO, UM, WE WELCOME YOU TO THE AREA.

THANK YOU.

YES, MA'AM.

FOR STAFF? YES MA'AM.

CONSIDERING THE REPORT WE JUST RECEIVED AND THAT WE'RE GONNA RUN A DEFICIT OF $107,000 THIS YEAR, IS IT PRUDENT TO STILL BE SPENDING MONEY ON THESE OTHER PROGRAMS? I GUESS I'M KIND OF CONFUSED ON.

YES, MA'AM.

THIS, THIS WAS BUDGETED, UH, THE 250,000 WAS BUDGETED WITH THE BIG GRANT.

THERE ARE OTHER SAVINGS THAT HAVE NOT BEEN SPENT WITHIN THE MDD.

THAT'S WHY I'M SAYING THAT IT WON'T ACTUALLY GET TO THE 107 SEVEN NEGATIVE, UH, BALANCE.

MM-HMM .

UM, BUT, UH, THERESA, IF YOU'D LIKE TO SPEAK TO THAT, UH, I, I, I FEEL THE MONEY'S THERE BASED ON THE, THE DATA THAT I HAVE.

SO, UM, WE'RE CURRENTLY WORKING TO GO THROUGH ALL THE PROJECTS AND LOOK TO SEE IF ANY MONEY HAS BEEN SPENT SINCE WE'RE GONNA MOVE MAJORITY OF THOSE PROJECTS TO 24 ANYWAY.

UM, OR TO IN 24 TO GENERAL FUND.

SO WE SHOULD BE ABLE TO HAVE SOME OF THE MONEY THAT WE HAD.