* 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. YEAH. [00:00:02] SO NOW CALL THIS WORK SESSION OF BAYTOWN CITY COUNCIL TO ORDER. UH, OUR FIRST ITEM IS OUR CITIZEN COMMENTS, AND DO WE HAVE ANYONE THAT HAS SIGNED UP TO SPEAK? OKAY, THANK YOU. ALRIGHT, SO WE'LL MOVE ON TO ITEM TWO A TO DISCUSS CITY COUNCIL GUIDELINES FOR, [b. Discussion regarding Tax Increment Reinvestment Zones (TIRZ) in the City of Baytown.] WE'RE GONNA MOVE ON TO ITEM TWO B, I THINK TWO A. WE'RE GOING TO REVISIT THAT IN THE FUTURE WORK SESSION. THAT'S CORRECT. OR MEETING. SO ITEM TWO B IS GONNA BE DISCUSSED, UM, REGARDING THE TAX OR THE TS IN THE CITY OF BAYTOWN. MR. LES, THANK YOU. THANK YOU, MR. RAM. MAYOR. UM, YES, WE WANTED TO SPEND A LITTLE BIT OF TIME WITH YOU TODAY TO DO A REFRESHER ON THE TAX INCREMENT REINVESTMENT ZONE. AND, AND FIRST OF ALL, I WOULD SAY, REMEMBER THIS IS PRIMARILY A FINANCING TOOL. IT'S A WAY OF PAYING FOR INFRASTRUCTURE AND FOR FACILITATING, UH, FUTURE DEVELOPMENT. THAT'S ITS PRIMARY PURPOSE. WE CURRENTLY HAVE ONE TOURS, UH, WITHIN THE CITY. UM, IT'S STARTED IN 2001, SO IT'S ABOUT 22 YEARS OLD NOW. IT'S TRIPLED IN SIZE IN THAT PERIOD, AND, UH, WENT UP BY SIXFOLD IN TERMS OF VALUE. AND, UH, OUR TOURS ADMINISTRATOR, ABDI FROM UNICAP CAN, UH, TALK A LITTLE BIT MORE GRANULARITY ABOUT THAT. SO, WE'LL, AS I SAY, WE'LL DO A REFRESHER ON TOURS AS A FINANCING TOOL. WE'LL TALK ABOUT TOURS. ONE, BECAUSE THERE IS A PROPOSAL TO RE-EXPAND THE TOURS TO REINCORPORATE THE, UH, LAND THAT WAS THE OLD SAN JACINTO MARKETPLACE MALL THAT WAS TAKEN OUT PREVIOUSLY HAVING BEEN INCLUDED ORIGINALLY IN THE TOURS. UH, AND THE SIMPLE REASON FOR THAT WAS IT WAS DECLINING IN VALUE, AND WHAT THE CITY DIDN'T WANT WAS FURTHER TO BE A NEGATIVE EFFECT ON, UH, THE TOURS AS DECLINING VALUES PULLED DOWN. AND SO YOU HAVE A NEGATIVE INCREMENT RATHER THAN THE POSITIVE ONE. UM, WE ARE NOW AT GROUND ZERO IN TERMS OF THE MALL DEVELOPMENT, AND IT MAKES SENSE TO BRING IT BACK INTO THE TOURS SO THAT GOING FORWARD, WE CAPTURE THE UPLIFT AND VALUE AS FIDELIS ACTUALLY STARTS PUTTING DEVELOPMENT ON THE GROUND THERE. AND THEN WE CAN USE THE FUNDING FROM THAT TO INVEST IN INFRASTRUCTURE ACROSS THE, UH, THE FOOTPRINT OF TOURS. ONE. UH, SO AGAIN, ABDI CAN TALK A LITTLE BIT ABOUT THAT. UH, THE OTHER THING WE WANTED TO JUST GIVE YOU A HEADS UP ON IS A SUGGESTION FOR A SECOND TOURS IN THE SOUTH OF THE CITY, AND THAT WOULD ENCOMPASS THE EVERGREEN AREA, UH, PLUS BALAND ISLAND. ARE WE GOING TO IT THERE? YOU'RE BALAND ISLAND FOR OBVIOUS REASONS, AND THIS DOESN'T SHOW UP, BUT I AM SUGGESTING VERY STRONGLY THAT WE PUT TEXAS AVENUE IN TO THE SECONDERS AS WELL, UH, SO THAT WE HAVE AN INTEGRATED APPROACH TO DEVELOPMENT ACROSS EVERGREEN, TEXAS AVENUE AND BAYLAND ISLAND. UH, SO AGAIN, I, I'LL LET ABDI TALK ABOUT THAT IN A LITTLE BIT MORE DETAIL ANYWAY. SURE. THAT'S THE, THAT'S THE PURPOSE OF IT. UM, I'LL HAND OVER TO ABDI THERE AND AT THE END, HAPPILY ANSWER ANY QUESTIONS YOU HAVE. I, I HAVE A QUICK QUESTION FOR YOU. FOR THE FIRST TWO, I, I BELIEVE WE NEED TO DO THIS, UM, FAIRLY SOON. WHAT TIMELINE WOULD WE IT WOULD BE, IT WOULD BE HELPFUL, SIR, TO DO FIRST. FIRSTLY, WE NEED TO, WELL, I WOULD STRONGLY ADVISE YOU TO EXTEND TOURS ONE BEFORE THE END OF THIS YEAR SO THAT THE VALUES, UH, IN JANUARY ARE CAPTURED WITHIN THE TOURS. UH, AND ALSO FOR TOURS TWO, IT WOULD MAKE SENSE TO DO THAT IN THE SAME TIMELINE, SO BY THE END OF THIS CALENDAR YEAR. OKAY. AND I, AND I WOULD AGREE TO EXTEND THE, THE BOUNDARIES, UM, TO INCLUDE PORTIONS OF TEXAS AVENUE, RIGHT. AND OTHER, UM, AREAS, AND MAYBE EVEN ALEXANDER, MAYBE THAT, MAYBE EVEN ALEXANDER. YOU'RE ABSOLUTELY RIGHT. YES. YES. GREAT. ALRIGHT. OKAY. THANK YOU. I'LL HAND OVER TO ABDI. THANK YOU, VICTOR. UH, GOOD AFTERNOON, MAYOR AND COUNCIL. ABDI IS SEEN WITH MUNI CAP YOURT ADMINISTRATOR. UH, IT'S A PLEASURE TO KIND OF STAND IN FRONT OF YOU ALL AND THEN TALK A LITTLE BIT ABOUT, YOU KNOW, THESE, THESE MECHANISMS, PARTICULARLY THE TAX INCREMENT REINVESTMENT ZONE, UH, FINANCING MECHANISM. UM, TAX INCREMENT REINVESTMENT ZONES ARE GOVERNED BY CHAPTER THREE 11 OF TEXAS PROPERTY CODE. UM, THEY ARE ACTUALLY ONE OF THE MOST, UM, POWERFUL AND IN AND IN CREATIVE WAYS OF FINANCING INFRASTRUCTURE NEEDS. UM, WAYS OF, UM, YOU KNOW, UH, PROMOTING, UH, NEW DEVELOPMENT, REDEVELOPING BLIGHTED AREAS OR REBUILDING INFRASTRUCTURE. UH, YOU KNOW, THROUGH, UH, YOU KNOW, WW DOING ALL THOSE THINGS WITHOUT PUTTING ANY PRESSURE ON THE EXISTING TAX BASE AND THE GENERAL FUND, [00:05:01] BUT BANKING ON FUTURE REVENUES THAT CAN BE GENERATED FROM A PARTICULAR AREA. SO IT'S ONE OF THE MOST COMMONLY AND WIDELY USED FINANCING MECHANISM ACROSS THE STATE, NOT JUST ACROSS THE STATE, ACROSS THE, THE COUNTRY. IT'S ONE OF THE MOST POWERFUL, MOST DEVELOPED, UH, FINANCING MECHANISMS. SO CITIES ACROSS THE STATE, PARTICULARLY SINCE THE TEXAS, YOU KNOW, EXPERIENCE PERTAINS TO US. UM, THEY USE IT MOSTLY TO, TO, UH, DEVELOP, UH, UNDERDEVELOPED OR UNDEVELOPED AREAS, AND ALSO TO CHANGE LAND USE PLAN FOR BLIGHTED AREAS IN AN EXTREMELY, BASICALLY, AREAS WHERE INFRASTRUCTURE IS LACKING OR INFRASTRUCTURE IS, IS, IS DEGRADING. SO THESE ARE THE MOST COMMON USES OF A TAX INCREMENT REINVESTMENT ZONE. UM, A TAX INCREMENT REINVESTMENT ZONE BASICALLY IS BANKING ON FUTURE REVENUE AND THEN RELIEVING PRESSURE ON THE EXISTING TAX BASE AND GENERAL FUND. SO, UH, THE WAY IT WORKS IS THAT THE CITY WILL CONTINUE TO GET THEIR TAX TAXES FROM THE PROPERTY THAT'S DESIGNATED AS TAX INCREMENT REINVESTMENT ZONE. AND THOSE FUNDS WILL ALWAYS FLOW TO THE GENERAL FUND, BUT FUTURE INCREASES IN, IN, IN VALUE FROM, YOU KNOW, THAT THAT TAX INCREMENT REINVESTMENT ZONE AND IN RELATED TAX REVENUE WILL BE USED TO PROMOTE, UH, AND, AND THEN PAY FOR INFRASTRUCTURE. SO NEW DEVELOPMENT CAN COME INTO AN AREA, OR AN AREA CAN BE REDEVELOPED OR OBLIGED AREA CAN BASICALLY HAVE A LITTLE BIT OF A FACE SL. SO CITY IS ABLE TO, TO, TO, TO, TO GAIN INCREASE, UH, IN, IN VALUE. UH, THE OTHER THING IS, UH, ONCE THE, THE TERM OF THE TURS RUNS OUT, THEN THE, THAT ENTIRETY OF, YOU KNOW, THE, THE DEVELOPED AREA WILL BE ROLLING BACK TO GENERAL FUND. THAT MEANS THE INCREMENTS THAT WE'RE GOING THROUGH THE, THE TS FOR REDEVELOPMENT PURPOSES WILL ACTUALLY START FLOWING BACK TO THE GENERAL FUND. SO IN THE END, THAT ENTIRE AREA WILL, WILL FALL BACK TO THE GENERAL FUND. UH, A TYPICAL TS PROCESS STARTS WITH, UH, YOU KNOW, THE, THE DOCUMENTATION WE, WE WE'RE JUST TALKING ABOUT TS NUMBER TWO. SO WHAT WOULD HA WHAT WOULD, WHAT'S TYPICALLY NEEDED IS TO HAVE A PLAN. SO ANYTHING, YOU KNOW, EVERYTHING STARTS WITH A PLAN. AND THEN THAT, THAT, YOU KNOW, THAT INITIAL PLAN WILL GO THROUGH SOME, SOME APPROVAL PROCESSES. THERE WILL BE SOME FORMAL AND INFORMAL REVIEWS AND NEGOTIATIONS WITH SIT BETWEEN CITY STAFF COUNCIL AND OTHER STAKEHOLDERS, PARTICULARLY IF WE'RE TARGETING UHT FOR SPECIFIC DEVELOPMENT. AND THEN WE'LL HAVE TO GO THROUGH THE STATUTORY REQUIREMENTS OF, UH, YOU KNOW, UH, CONDUCTING A PUBLIC HEARING AND, UH, APPROVING AN ORDINANCE THAT, THAT CREATES AN AREA. AND THEN ONCE THAT TS IS, IS CREATED, THEN THE NEXT STEP WILL BE TO BASICALLY IMPLEMENT THAT TS AND THAT IMPLEMENTATION CAN TAKE A FORM OF, UM, ISSUING DEBT THROUGH THE TURS, AND THEN, YOU KNOW, PAYING FOR INFRASTRUCTURE DIRECTLY THROUGH THE TS OR ENTERING INTO DEVELOPMENT AGREEMENTS WITH, WITH VARIOUS DEVELOPERS TO BASICALLY BANK ON FUTURE REVENUES THAT THEIR DEVELOPMENTS ARE GONNA BRING IN TO HELP PAY FOR INFRASTRUCTURE NEEDS IN, IN, IN, IN, IN, IN, IN THE DISTRICT. UH, A TS UH, AGAIN, THREE 11, CHAPTER THREE, THE PROPERTY CODE HAS KIND OF, UH, AN EXHAUSTIVE LIST OF ITEMS THAT THE TURS CAN PAY FOR. WE KIND OF OUTLINED, UH, THE MOST COMMON ONES THAT ARE IN HERE. UH, THE, THE, THE MOST COMMON, YOU KNOW, USE OF A TURT, UH, DOLLARS IS TO PAY FOR CAPITAL COST, ACQUIRING AND CONSTRUCTING PUBLIC IMPROVEMENTS AND, AND SOME OTHER COSTS LIKE FINANCING COSTS, YOU KNOW, PAYING INTEREST ON, UH, UH, ON THE, FOR, FOR THOSE CONSTRUCTION COSTS, UH, LAND PURCHASE COSTS FOR INFRASTRUCTURE PURPOSES AND OTHER, OTHER SOFT COSTS. NOW, AS I MENTIONED EARLIER, THESE COSTS CAN BE, SOT CAN USE THIS TO EITHER, YOU KNOW, UH, PAY FOR NEW DEVELOPMENTS. SO IT CAN BE A BRAND NEW DEVELOPMENT, A, A, A GREENFIELD DEVELOPMENT OR A REDEVELOPMENT OF AN EXISTING AREA, OR A BASICALLY A REDEVELOPMENT OR FACELIFT FOR A BLIGHTED AREA, OR FOR THAT MATTER, EVEN REBUILDING INADEQUATE OR OBSOLETE, UH, INFRASTRUCTURE. UH, ASIDE FROM THE, THE STATUTORY KIND OF PROVISIONS, THERE ARE A FEW THINGS THAT COUNCIL AND AS A GOVERNING BODY FOR, FOR, YOU KNOW, SPECIAL DISTRICTS LIKE AURS, UH, NEEDS TO, TO LOOK INTO. UH, FIRST AND KIND OF OBVIOUS THING IS, UH, BEFORE DECIDING ON, YOU KNOW, BANKING ONTO THIS, THIS, THIS, THIS, THIS AVENUE, THE FUNDAMENTAL QUESTION THAT NEEDS TO BE ANSWERED IS, IS ASSISTANCE NEEDED? IS THATT NEEDED? SO THAT'S SOMETHING THAT, YOU KNOW, COUNCIL WILL HAVE TO LOOK INTO WITH. AND IS IT, IS THE TS IS ITTS THE MOST, THE MOST FEASIBLE WAY OF, YOU KNOW, PROVIDING THOSE, THOSE ASSISTANCE THAT ARE NEEDED? AND IF IT IS DETERMINED TO BE THAT, THAT, YOU KNOW, THAT FEASIBLE WAY, HOW MUCH OF IT IS, IS NEEDED? AND, AND THEN, UH, IS IT JUSTIFIED? BUT ULTIMATELY, AND THEN AT THE, AT THE END OF THE DAY, PARTICULARLY IF YOU'RE USING A TUR TO, TO, TO PROMOTE, YOU KNOW, UH, PRIVATE DEVELOPMENT, WHAT ARE, ARE THE OTHER, YOU KNOW, THE PRIVATE DEVELOPERS THAT ARE, ARE THEY BRINGING IN SOMETHING INTO THE GAME? ARE THEY ENTIRELY RELYING ON THE TURS OR ARE THEY BRINGING IN SOME PRIVATE EQUITY PRIVATE GUY? SO THESE ARE SOME OF THE THINGS THAT COUNCIL AND IN THET BOARD ULTIMATELY WILL HAVE TO, TO, TO LOOK INTO. THESE ARE NOT AS SUCH PRESCRIBED IN THE, IN THE, IN THE, IN THE, IN THE, IN THE, IN THE PROPERTY CODE CHAPTER THREE 11. BUT THESE ARE HIGHLY ADVISABLE, KIND OF COURSE OF ACTION FOR COUNCIL AND BOARD TO, TO LOOK INTO WHENEVER, YOU KNOW, YOU, YOU EVALUATE, YOU KNOW, CREATING AND THEN IMPLEMENTING A A TS PROCESS. SO THE CITY CURRENTLY HAS, UH, [00:10:01] ONE TSTS, NUMBER ONE. AND AS VICTOR, UH, UH, MENTIONED EARLIER, IT WAS CREATED BACK IN 2001. AND WHEN IT WAS CREATED, IT WAS CREATED FOR ABOUT 350 ACRES. AND THEN BACK THEN THE VALUE WAS ABOUT $52.8 MILLION. AS YOU CAN SEE OVER THE PAST 22 YEARS, THAT TURS HAS GONE THROUGH ABOUT SEVEN AMENDMENTS. SO PROPERTY HAS BEEN ADDED IN, TAKEN OUT OVER THE YEARS. AND THEN, AS YOU CAN SEE, AS OF THE LAST AMENDMENT THAT WAS APPROVED BACK IN DECEMBER OF 2020, THAT THE TOTAL ACREAGE WITHIN THE TERRA WAS 800, 833 ACRES, WHICH IS ABOUT 150%, YOU KNOW, INCREASE FROM THE ORIGINAL 350 ACRES. AND THE VALUE HAS GROWN OVER THOSE 20, 20 OR SO YEARS FROM ABOUT 52.8 MILLION UP TO 300 MILLION. AND, UM, IF COUNCIL ULTIMATELY GIVES THE GREEN LIGHT TO, UH, INTEGRATE THE, THE, THE, THIS AMENDMENT THAT SAN JACINTO PROPERTY, THE TOTAL ACREAGE IN THE TUR WILL GROW TO A 1022. AND THEN THAT WILL, UM, BRING THE CURRENT VALUE TO ABOUT 315 MILLION. AND, UM, IF EVERYTHING GO, YOU KNOW, WORKS THE WAY IT'S ANTICIPATED, WHEN IT'S ALL SAID AND DONE, UH, AT THE END OF THE TERM, THE, THE PROPERTY VALUE WITHIN THE TUR WILL BE ABOUT A $1.1 BILLION. SO THE TURS IS, IS, IS, IS SET TO HAVE A, A, A SIGNIFICANT IMPACT ON, ON WHAT HAPPENS IN, IN, IN, IN, IN THIS ENTIRE AREA. UH, ONE OF THE OTHER ADVANTAGES OF A TURS, AS OPPOSED TO SOME OTHER, YOU KNOW, FINANCING MECHANISMS, IS THE FACT THAT IT ALLOWS OTHER JURISDICTIONS TO PARTICIPATE AND NOT, YOU KNOW, BASICALLY GIVE THE CITY SOME ASSISTANCE FROM OTHER JURISDICTIONS THAT ARE GOING TO BENEFIT FROM THE, YOU KNOW, PROPERTY GROWTH WITHIN THIS AREA. AND IN THIS PARTICULAR INSTANCE, IN, IN, IN TERRA ONE, UH, BOTH HARRIS COUNTY AND CHAMBERS COUNTY ARE PARTICIPATING, AND HARRIS COUNTY HAS PLACED 75% OF THEIR TAX RATE, AND CHAMBERS COUNTY HAS PLACED 60%. AND THOSE, UH, AGAIN, BOTH COUNTIES HAVE STIPULATED SPECIFIC SETS OF PROJECTS THAT, THAT THEY'RE, THEY'RE WILLING TO PARTICIPATE IN. BUT THE, THE KIND OF THE BIGGEST ADVANTAGES IS THAT TERRORIST IS A MECHANISM THAT ALLOWS THE CITY TO COLLABORATE WITH OTHER TAXING JURISDICTION. SO THEY'RE ALSO ABLE TO BASICALLY, UH, YOU KNOW, ASSIST IN, IN, IN REDEVELOPING THE, THE, THE AREA. SO, UM, THIS, THE TURT NUMBER ONE CURRENTLY IS SET TO FUND ABOUT $144.5 MILLION IN, IN, IN TOTAL PROJECT COSTS, OF WHICH ABOUT 32.9 MILLION HAVE BEEN, HAVE BEEN CONSTRUCTED AND SPENT SO FAR. SO IF EVERYTHING GOES WELL, I THINK ANOTHER 111.5, UH, MILLION IN, IN COSTS ARE ANTICIPATED TO BE FUNDED OVER THE REMAINDER TERM OF THET. SO THIS, UH, EIGHTH AMENDMENT THAT VICTOR, UH, MENTIONED EARLIER IS ABOUT REINTEGRATING THE, THE SAN JACINTO AREA BACK TO THE TURS. UH, AND FOR REASONS THAT VICTOR MENTIONED EARLIER, THAT THAT PROPERTY WAS TAKEN OUT, NOW THAT, YOU KNOW, THERE'S A DEVELOPER THAT'S COMING IN TO BRING IN ABOUT, I THINK ABOUT 196,000 SQUARE FEET OF, UH, GENERAL COMMERCIAL AND ABOUT 320 OR SO A THOUSAND SQUARE FEET OF BIG BOX COMMERCIAL INTO THE DEVELOPMENT, WHICH WILL BRING, I BELIEVE ABOUT 117 OR SO MILLION DOLLARS IN NEW, IN NEW VALUE. SO, UM, AT STAFF DIRECTION, WE WENT AHEAD AND, UH, AMENDED THE, THE, UH, PROJECT AND FINANCE PLAN TO REINTEGRATE THAT, THAT, UH, UH, ANCHORAGE BACK INTO THE TOURS. AND THAT, UH, AMENDED PROJECT AND FINANCE PLAN WAS ALSO REVIEWED AND APPROVED BY THE, THE BOARD AND RECOMMENDED FOR, FOR COUNCIL CONSIDERATION. SO, UM, IF, IF, IF COUNCIL GIVES THE GREEN LIGHT TO, TO AMEND THAT, THEN WE'LL BE ABLE TO INTEGRATE THAT, YOU KNOW, THIS AREA BACK INTO THE TURS AND ALLOW THAT, YOU KNOW, THAT AREA TO BENEFIT FROM, YOU KNOW, FUTURE REVENUE TO BE GENERATED FROM, FROM, FROM, UH, UH, THAT DEVELOPMENT. UH, SO THIS IS BASICALLY, UH, YOU KNOW, THE PLAN FOR THE SAN JACINTO AREA. UH, IT'S, IT'S INTENDED TO BE DEVELOPED OVER TWO PHASES. UH, AND LIKE I SAID EARLIER, BETWEEN THE TWO PHASES, UH, ABOUT 196,000 SQUARE FEET OF, UH, REGULAR COMMERCIAL AND ABOUT 350 OR SO THOUSAND SQUARE FEET OF, UH, BIG BUCKS COMMERCIAL, ABOUT 320,000 SQUARE FEET OF BIG BUCKS COMMERCIAL, UH, IS INTENDED TO BE, TO BE DEVELOPED IN THAT, ON, ON THAT AREA. UH, SO THIS BASICALLY IS, UH, WHAT WE PROJECTED THE, UH, YOU KNOW, THE FUTURE BASICALLY, UH, VALUATION OF THAT AREA TO BE ABOUT $174.6 MILLION IS THE ADDITIONAL VALUE EXPECTED TO BE BASICALLY, UH, UH, YOU KNOW, INTEGRATED INTO THE TURS BY, BY ADDING THAT INTO AREA INTO THE TURS. UH, THE, THE CURRENT VALUE OF THAT PROPERTY IS ABOUT 45 MILLION. SO THAT, THAT, YOU KNOW, THE, OVER THE REMAINDER TERM OF THE TERRAS, THAT LAND WILL, UH, GENERATE AN ADDITIONAL 129,000, 129 MILLION IN ADDITIONAL INCREMENTAL VALUE, WHICH IS EXPECTED TO GENERATE ABOUT $19 MILLION IN, UH, IN, IN, IN PROPERTY TAXES OVER THE TERM OF, OF WHICH ABOUT 17 AND A HALF MILLION IS AVAILABLE TO BE REINVESTED BACK INTO, INTO THE, THE DEVELOPMENT. AND ABOUT 1.4 MILLION WILL BE GOING TO, UH, THE COUNTY SINCE THE COUNTY HAS NOT PLEDGED THEIR TAX RATE IN FULL. UM, THAT'S WHAT I HAVE SO FAR ON TERMS, NUMBER ONE. IF Y'ALL HAVE ANY QUESTIONS, I'M HAPPY TO ASK. I DO HAVE A QUESTION. YES, MR. [00:15:01] MAYOR, UM, UH, I DO APPRECIATE THE OPPORTUNITY TO EXPAND THIS. I THINK WHAT I'M GETTING HEARTBURN ABOUT IS THIS IS SAN JACINTO MALL AREA, WHICH IS SOMETHING THAT WE'VE BEEN WAITING ON FOR A LONG TIME, AND NOW WE'RE DANGLING ANOTHER INCENTIVE TO THEM WHEN THEY SHOULD HAVE ALREADY STARTED SOMETHING. I KNOW THAT THERE'S BEEN SOME SETBACKS WITH EASEMENTS, AND I COMPLETELY UNDERSTAND THAT, BUT SO I JUST NEED TO BE, I NEED TO CLARIFY. I SEE SOMETHING HAPPENING, BUT I NEED TO CLARIFY FOR EVERYBODY HERE THAT THE USE OF THE TOUR AND THE EXPANSION TO INCLUDE THE SAN CENTER MARKETPLACE IS NOT AN INCENTIVE TO THAT PARTICULAR DEVELOPER. IT IS A FINANCING TOOL TO PAY FOR INFRASTRUCTURE. IT WILL ACTUALLY GIVE US GREATER CONTROL OVER DEVELOPMENT ON THE SITE BECAUSE ALL THE ROADWAYS WILL BE PUBLIC ROADWAYS, AND WE WILL HAVE MORE OPPORTUNITY TO DEMAND OFF THE DEVELOPER CERTAIN STANDARDS. SO THIS IS NOT AN INCENTIVE, THIS IS NOT A GIFT TO FIDELIS AND BE CLEAR. I APPRECIATE THAT CLARIFICATION. THANK YOU. THANK YOU SO MUCH. I'M ASSUMING THAT'S END OF YOUR COMMENT, RIGHT? THAT'S THE END OF MY COMMENT. OKAY. SO ANY OTHER QUESTIONS OR COMMENTS? I GUESS I THINK HE WAS ASKING FOR A PAUSE TO MAKE SURE THAT WE WE'RE ALL UNDERSTAND. OKAY. RIGHT. UM, AS AGAIN, VICTOR ALLUDED TO EARLIER, UH, THERE IS A RECOMMENDATION, UH, UH, TO CREATE ANOTHER TURS, UH, UH, ON SOUTH PART OF THE CITY. AND THEN THAT, THAT, THAT'S THE BOUNDARY THAT, THAT WERE SHOWN EARLIER. UM, UH, KIMLEY HORSE HAS DONE, UH, AN ANALYSIS ON WHAT WOULD IT WOULD TAKE FOR THAT AREA TO BE REDEVELOPED, PARTICULARLY THE KIND OF THE REALLY CRITICAL INFRASTRUCTURE, UH, UH, NEEDS FOR THAT AREA. AND THEY CAME UP WITH ABOUT $242.2 MILLION WORTH OF INFRASTRUCTURE IS NEEDED TO BASICALLY, YOU KNOW, ALLOW THAT AREA TO, TO GROW TO ITS, ITS POTENTIAL. UM, AND AS YOU CAN SEE, UH, UH, THE, THE, THE BIGGEST CHUNK OF THAT IS CREATING IN A PARKS, RECREATION, RECREATION AREAS, TRAILS AND OPEN SPACE, ABOUT $126 MILLION OF THAT, YOU KNOW, THAT, THAT, THAT INFRASTRUCTURE COST IS, IS, IS GOING FOR THOSE ITEMS. AND ANOTHER ABOUT ALMOST $90 MILLION FOR TRANSPORTATION. UH, AND THEN ABOUT $16.2 MILLION FOR DRAINAGE AND ANOTHER $10.2 MILLION FOR WATER DISTRIBUTION. SO THAT ENTIRE AREA, WHICH IS ABOUT A THREE POINT, UH, 3000, 300 ACRES, YOU KNOW, CAN USE, UH, REALLY, YOU KNOW, ASSISTANCE. AND AS TERRA ONE WAS ABLE TO DO OVER THE PAST, UH, 20 OR SO YEARS, 22 YEARS, UH, WHERE IT SIZE GREW BY ABOUT A HUNDRED, 150%, BUT THE VALUE WAS ABLE TO GROW BY ABOUT 600, YOU KNOW, SIX FOLD. SO I THINK THIS, THIS IS AN AREA THAT IS RIPE FOR, FOR, FOR DEVELOPMENT. UH, BUT YOU KNOW, THERE ARE, THERE IS A HUGE, UH, UH, UH, KIND OF CHALLENGE IN, IN, IN PROVIDING THE INFRASTRUCTURE. SO A TOURS, UH, CAN BE A, AN EXCELLENT MECHANISM TO, TO BE ABLE TO KIND OF JUMPSTART DEVELOPMENT IN THAT AREA AND THEN, AND, AND THEN BE ABLE TO, TO ALLOW THAT AREA TO GROW AS, AS, AS, AS GOOD AS IT, IT IT CAN, IT CAN GROW. UM, AB I JUST WANTED TO TAKE A SECOND. UH, MRS. GRAHAM HAD STEPPED OUT AND YOU HAD MENTIONED, UH, IF YOU GO BACK TO THE T TWO MAP THAT YOU WOULD, THAT Y'ALL RECOMMEND THAT WE EXTEND THIS UP TO TEXAS AVENUE. IT'S IN HER DISTRICT, SO I WANTED TO MAKE SURE THAT THAT WAS NOTED WHILE SHE WAS IN HERE, SO THAT SHE DID HEAR THAT. RIGHT. SO, UH, THIS IS AN OPPORTUNITY TO BASICALLY, UH, ALLOW THE CITY TO HAVE, UH, YOU KNOW, A, A A BROADER PLAN FOR WHAT GOES ON DOWN THERE. SO, UH, MY AS WELL, YOU KNOW, ADD THAT AREA AND THEN BE ABLE TO, YOU KNOW, ALLOW CITY AND STAFF AND, AND THEN THE THIRD BOARD, YOU KNOW, EVERYBODY THAT'S INVOLVED IN IT TO BE ABLE TO HAVE A, A, A PLAN THAT WILL INTEGRATE THAT WILL, UH, YOU KNOW, CREATE SOME SORT OF SYNERGY, YOU KNOW, FOR THE AREAS THAT ARE IN, IN, IN, IN, IN SOUTH OF THAT, THAT, THAT LAND. SO I THINK IF THERE IS A NEED FOR IT, AND I THINK THERE IS A NEED FOR IT, THIS IS AN EXCELLENT OPPORTUNITY TO ADD THAT IN AND INTEGRATE IT INTO THE OVERALL PLAN AND, AND THEN BE ABLE TO PLAN FOR THE INFRASTRUCTURE NEEDS FOR THAT, FOR, FOR THAT, FOR THAT, FOR THAT ROAD, AS WELL AS THE REMAINDER OF THAT, THAT AREA. AND THAT'S ALL WE HAVE. HOPEFULLY, UH, THIS WAS A LITTLE BIT INFORMATIVE. IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO ANSWER. UM, SHORT OF THAT, UM, WE, WE RECOMMEND FOR COUNCIL TO, TO APPROVE THAT EIGHTH AMENDMENT TO THE PROJECT AND FINANCE PLAN FOR T NUMBER ONE, SO WE'RE ABLE TO INTER REINTEGRATE THE, THE SAN JACINTO, UH, PROPERTY BACK INTO THE TURS. THANK YOU. I THANK SIR FOR ME, MAYOR, I, I WOULD JUST MAYBE HEAD NODS IF, IF COUNSEL'S OKAY WITH MOVING FORWARD WITH THE TURS TOO, SO THAT WE CAN START THE PROCESS, UH, GETTING THAT AND GIVING ABDI THE DIRECTION TO, TO MOVE FORWARD WITH THE, THE PAPERWORK OR THE ADMINISTRATION PROCESSES THAT NEEDS BEFORE WE COME BACK TO COUNCIL. YES. I, I'D LIKE TO HAVE IT DONE BY THE END OF THE YEAR. OKAY. THAT'S ALL WE HAVE, MAYOR. WE JUST DIDN'T KNOW IF THERE WERE GONNA BE A LOT OF QUESTIONS OR, UH, FIRST TIME FOR SOME MEMBERS GOING OVER THE TURS AND WE JUST WANTED TO DEDICATE THE FULL HOUR TO IT. NO, I, I DO APPRECIATE [00:20:01] IT. UM, IT'S ALWAYS GOOD TO HAVE A REMINDER WHEN YOU HAVEN'T SEEN IT IN A WHILE. RIGHT. AND, AND CERTAINLY WITH I GUESS NUMBERS WITH THEM ALL TAKEN OUT AND THEN WITH THE POSSIBILITY OF IT BEING PUT BACK IN AND THE REASONS WHY. SO THAT'S GOOD QUESTION. WHEN WE'RE TALKING ABOUT EXPANDING UP TECH AVENUE, WE'RE TALKING ABOUT GOING UP ALEXANDER AND THEN TEXAS AVENUE TO THE WEST. YEAH, I WOULD, MY, MY TAKE WOULD BE WE, WE KIND OF DO THE ALEXANDER CORRIDOR AREA IN A SENSE. MM-HMM . OR WHATEVER ELSE NEEDS TO BE NEEDED OR ANY GREEN SPACE THAT IS CLOSE BY TO THAT. AND SAME THING, UM, THE TEXAS AVENUE COURT GOING WEST ALL, ALL THE WAY. I AGREE WITH THAT. TWO SPIDER ON PIPE. PUT THAT IN THE OKAY. THAT WOULD HELP WITH SOME OF THE INFRASTRUCTURE ISSUES WE'RE LOOKING AT. YES. ANY OTHER QUESTIONS OR COMMENTS? SO BE IT THAT BAYTOWN CITY COUNCIL HAS ADDRESSED ALL POSTED AGENDA ITEMS FOR THIS WORK SESSION. THIS MEETING'S NOW ADJOURNED. WE'LL RECONVENE AT SIX 30. * 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.