Nov 02, 2023 Municipal Development Committee

SO

[00:00:01]

[ BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT NOTICE OF MEETING BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REGULAR MEETING THURSDAY, NOVEMBER 2, 2023 4:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]

TODAY IS THURSDAY, NOVEMBER 2ND.

UM, IT IS 4:45 PM UM, AND WE ARE AT OUR COUNCIL CHAMBER'S OFFICE.

SO, UM, I CALLED THIS MEETING IN ORDER AND ANNOUNCED THAT WE DO NOW HAVE A QUORUM.

SO THANK YOU FOR JOINING US.

UM, AT THIS

[a. Recess into and conduct an executive session pursuant to Section(s) 551.071 and/or 551.087 of the Texas Government Code to seek the advice of the City's attorneys and/or to discuss economic development negotiations.]

ALL RIGHT, LET'S GO.

SO I NOW RECONVENE OUR OPEN MEETINGS OF THE MUNICIPAL DEVELOPMENT DISTRICT AND ANNOUNCED THAT IN ACCORDANCE WITH SECTION 5 5 1 0.102 OF THE TEXAS GOVERNMENT CODE, NO ACTION WAS TAKEN IN EXECUTIVE SESSION.

UM, SO THE NEXT ITEM

[a. Consider approving the minutes of the Municipal Development District Regular Meeting held on September 14, 2023. ]

MOTION TO APPROVE.

SECOND.

OKAY.

ALL IN FAVOR? AYE.

AYE.

ANY NAYS? THE AYES HAVE IT.

UM, THE NEXT ITEM IS, UM, CITIZEN COMETS THREE.

DID WE HAVE ANYONE SIGN UP? OKAY, THANK YOU.

UM, SO WE'LL MOVE ON TO ITEM FOUR

[a. Receive the 2024 Fiscal Year Operating Budget for the Hyatt Regency Baytown-Houston.]

OH, MS. VICE PRESIDENT AND BOARD WOULD LIKE TO PRESENT TO YOU THE, UM, HYATT REGENCY BAYTOWN HOUSTON ANNUAL BUDGET FOR FY 24.

AND PLEASE KNOW THAT THE, THIS INFORMATION WILL BE EXTREMELY BRIEF DUE TO THE CONFIDENTIAL AND PROPRIETARY INFORMATION THAT IS INVOLVED WITH THE BUDGET, UM, WITH THAT VERY NICE PRETTY PICTURE.

AND MOVING ON TO THE, UM, LIMITED, UH, DETAILS THAT WE WERE ABLE TO PROVIDE FOR THE FISCAL YEAR OPERATING BUDGET FOR FY 2024.

AS YOU CAN SEE, THE REQUIRED WORKING CAPITAL, UH, TO INCLUDE THE INSURANCE, UH, FOR THE HYATT, UM, IS $5,077,202.

THE MDD CAPITAL CONTRIBUTION IS 1.782 MILLION, AND THE HYATT REVENUE TO THE CITY IS ROUGHLY 1.667 MILLION, UH, WITH A, UH, NEGATIVE BALANCE OF $1.6 MILLION.

IT IS IMPORTANT TO NOTE THAT'S WHAT'S NOT SHOWN ON HERE DUE TO PROPRIETARY INFORMATION, IS THERE IS A WORKING CAPITAL FUND, UH, THAT HAS A LARGE CAPITAL CONTRIBUTION OF THE CITY'S REVENUE THAT THEY GET FROM THE HYATTS, UH, ROOM SALES AND CONVENTION CENTER.

UH, THAT PAYS INTO THE 1.6 MILLION NEGATIVE, UH, BALANCE THAT IS ON THE BUDGET FOR FY 23.

THIS WAS KNOWN TO THE CITY COUNCIL OR TO THE MDD WHEN THE, UM, UH, EXCUSE ME, IT WAS KNOWN TO THE MDD OR TO THE BOARD WHEN THE PROP OR PROPOSAL FOR THE HOTEL WAS PUT IN PLACE, THAT WE WOULD HAVE A YEAR OR TWO OF, UH, OF RAMPING UP OF THE HOTEL AND THAT THERE WOULD BE A NEGATIVE BALANCE THAT WOULD HAVE TO BE TAKEN CARE OF.

UH, WE ARE SEEING PROGRESS WITH THE HOTEL AND SO THE WORKING CAPITAL RESERVE FUND THAT IS THERE TO PAY THIS 1.6 MILLION FOR FY 23 IS COVERING THIS BALANCE IN FULL.

THERE IS NO TRANSFER OF THE GENERAL FUND TO THIS $1.6 MILLION.

THERE IS NO TRANSFER OUTSIDE OF THE 1.782 FOR THE INSURANCE.

THERE'S NO TRANSFER FROM THE MDD TO ADDRESS THIS $1.6 MILLION DEFICIT OF WHY THE HYATT GETS UP AND GOING.

AND THE ROOM CELLS THAT ARE NE NECESSARY FOR FY 24.

UM, WHAT'S IN FRONT OF YOU IS IT'S GONNA COST $15 MILLION, $15.4 MILLION TO RUN THE OPERATIONS OF THE HYATT FOR FY 24.

WE HAVE BUDGETED $1.8 MILLION FOR THE INSURANCE COST, UM,

[00:05:01]

PLEASE NOTE THAT AT THIS TIME, STAFF IS WORKING DILIGENTLY WITH THE HYATT AND GARFIELD AND, UH, OUTSIDE ENTITIES TO GET A BETTER RATE ON INSURANCE.

UH, AND WE FORESEE THAT BEING A SUBSTANTIAL DECREASE OF WHAT WAS PRESENTED EARLIER THIS YEAR.

UH, AT $1.782 MILLION.

THE HYATT REVENUE THAT'S PROJECTED IN THE BUDGET IS $12.8 MILLION THAT THAT REVENUE WILL COME DIRECTLY TO THE CITY TO OFFSET THE REQUIRED WORKING CAPITAL.

UH, AS IT SITS RIGHT NOW, THERE IS A PROJECTED DEFICIT OF $788,000.

AGAIN, THAT WORKING CAPITAL FUND THAT WAS MENTIONED FOR THE FY 23 CARRIES FORWARD.

IT IS CURRENTLY PROJECTED THAT THAT WORKING CAPITAL FUND WILL HAVE ENOUGH REVENUE BUILT INTO IT TO COVER THAT, THAT $788,000 DEFICIT.

AGAIN, THERE IS NO PROJECTION TO USE THE GENERAL FUND AND THERE IS NO PROJECTION TO USE ANY ADDITIONAL CAPITAL CONTRIBUTION FROM THE MDD, UM, OUTSIDE OF THE MONEY THAT IS BUDGETED FOR THE INSURANCE AT THIS POINT IN TIME.

UH, IF SOMETHING DOES COME UP, THE MDD BOARD WILL BE UPDATED ON A QUARTERLY BASIS OF THE FINANCIALS OF THE HOTEL, UH, WITH THE POSSIBILITY THAT MONEY MAY HAVE TO BE USED FROM THE MDD, UH, TO COVER DEBT OR OPERATIONAL COSTS.

I JUST SAY THAT AS A CAVEAT JUST IN CASE THAT IS SOMETHING THAT HAS TO COME UP.

BUT RIGHT NOW IT LOOKS LIKE IT IS GONNA BE SELF-SUSTAINING WITH THE WORKING CAPITAL FUND THAT WAS BUILT, UH, WHEN THE HOTEL WAS ESTABLISHED.

AND, UM, UM, THE BOARD, THIS IS ALL I HAVE FOR THE BUDGET AT THIS TIME, SO I'M ALLOWED TO PRESENT PUBLICLY AND IT LOOKS LIKE WE HAVE A QUESTION FROM THE CITY ATTORNEY.

YES.

AND, UM, UH, BOARD AND MADAM VICE PRESIDENT, IF I MAY JUST MAKE, UH, FOR POINT OF CLARIFICATION, UH, I BELIEVE WHEN THE GENERAL MANAGER REFERS TO CONFIDENTIAL AND PROPRIETARY INFORMATION THAT HE'S REFERRING TO CONFIDENTIAL AND PROPRIETARY INFORMATION BELONGING TO THE HYATT REGENCY.

UM, AS YOU KNOW, WITH THE ECONOMIC DEVELOPMENT MATTERS, WE OFTEN RECEIVE INFORMATION FROM OUTSIDE OF THE CITY THAT BELONGS TO ANOTHER ENTITY THAT WE CANNOT DISCUSS OR DISCLOSE PUBLICLY.

SO I JUST WANTED TO MAKE SURE THAT THERE WAS NO CONFUSION, UH, IN THAT REGARD.

THANK YOU, SIR.

THANK YOU.

IS THERE ANYTHING I CAN ANSWER OR CLARIFY? ARE THERE ANY QUESTIONS FROM THE BOARD? NO.

OKAY.

I SHOW HERE THAT WE'RE SUPPOSED TO ACCEPT, UM, THIS REPORT SAYS, DO I HAVE A MOTION, MOTION TO ACCEPT ITEM FOUR, A SECOND, AND ONCE AGAIN, ANY QUESTIONS OR COMMENTS? ALRIGHT, THANK YOU.

UM, WE'RE GONNA MOVE ON TO ITEM MOTION.

MOTION PASSED.

WE DIDN'T VOTE.

I MOTION PASSED.

OKAY, SORRY.

UM, SO WE HAVE A, UH, MOTION AND A SECOND.

UM, CAN I HEAR ALL OF THE YAYS ? YAY NAYS.

ALL RIGHT.

MOTION PASSES.

UM, OUR NEXT ITEM IS,

[a. Consider a resolution adopting the 2024 Fiscal Year Operating Budget for the Hyatt Regency Baytown-Houston.]

IS THAT YOU MR. CITY MANAGER OR? YES MA'AM.

UH, IT IS GONNA BE OFF THE NUMBERS THAT WERE PRESENTED FOR THE BUDGET, UM, AS DISCUSSED.

OKAY.

ANY FURTHER QUESTIONS? MOTION TO APPROVE ITEM FIVE.

A SECOND.

ALL IN FAVOR? AYE.

AYE NATE? AYE.

UM, ALRIGHT.

SO THE NEXT ITEM, UM, IS FIVE

[b. Consider a resolution approving a Business Improvement Grant application not to exceed $25,000.00.]

UM, SO BEFORE WE GET TO ITEM FIVE B, UM, I'D LIKE TO HEAR FROM OUR PERSON WHO SIGNED UP TO SPEAK, UNLESS HE'S JUST HERE TO ANSWER ANY QUESTIONS.

UH, MR. DEDO? DAMIAN? YES MA'AM.

I'M JUST HERE TO QUESTION.

OKAY, GREAT.

ALL RIGHT.

AND I'M SORRY.

OH, OH YEAH.

SO, UM, FIVE B, CONSIDER A RESOLUTION IMPROVING A BUSINESS IMPROVEMENT GRANT NOT TO EXCEED $25,000.

UH, THANK YOU.

UM, MADAM VICE PRESIDENT, UH, DIRECTORS EMILIO LAVAR WITH UH, PLANNING DEVELOPMENT SERVICES.

UH, THIS IS A ITEM TO, UH, CONSIDER A BUSINESS IMPROVEMENT GRANT, A TIER TWO GRANT, UH, FOR PROPERTY LOCATED AT 6,300 BAYWAY DRIVE.

UM, WE CAN ORIENT

[00:10:01]

THIS IS A LITTLE NORTH OF WHERE BAY, UM, BAYWAY KIND OF TAKES A CURVE FROM GOING WESTBOUND AND NORTHBOUND.

UH, THIS IS CURRENT AERIAL OF THE PROPERTY.

UM, IT IS IN USE AS AN EXISTING STORAGE, UM, SELF STORAGE BUSINESS.

THE PROPERTY OWNER CONTINUES TO, UM, CONTINUE THAT USE AND MAKE SOME UPGRADES.

THIS IS SOME PROPOSED RENDERINGS, UH, WITH SOME OF THE ELIGIBLE IMPROVEMENTS AS PART OF THE BUSINESS IMPROVEMENT GRANT AND THAT THE APPLICANT PROVIDED.

AND SO AS PART OF THIS, UM, GRANT, UM, THE APPLICANT, UM, PROPOSES TO DO SOME TIER TWO THINGS, UM, IMPROVEMENTS CONSISTING OF CONCRETE WORK, UH, MAINLY FOR THE, UH, THE DRIVE VIALS THERE, FIRE LANE, UH, AND NEW DRIVEWAY APRON, AS WELL AS SOME LANDSCAPING IMPROVEMENTS, SOME PLANTING, SOME IRRIGATION, EDGING, GROUND COVER.

UM, ALL OF THAT COMPRISING ABOUT 77,000, UH, $600 WORTH OF ELIGIBLE TIER TWO, UH, IMPROVEMENTS.

UM, ALTOGETHER SOME IMPROVEMENTS OUTSIDE OF THIS TIER TWO GRANT.

UH, KIND OF BRINGING THE WHOLE PROJECT TO ABOUT $145,000 WORTH OF IMPROVEMENTS, UH, FOR THIS PROPERTY.

UM, BUT AS FAR AS THE TIER TWO GRANT, ABOUT 77,000, UM, OF THAT, OBVIOUSLY THE, UM, UH, THE MATCH, UH, OR THE MAXIMUM PARTICIPATION FOR TIER TWO IS GONNA BE 25,000 AND THAT'S WHAT STAFF IS RECOMMENDING APPROVAL OF.

SO.

ALRIGHT.

THANK YOU SO MUCH.

ALL RIGHT.

UM, ANY QUESTIONS OR COMMENTS? I KNOW THIS IS IN YOUR DISTRICT.

MR. CAN, UH, I JUST HAVE A COMMENT.

I, UM, I, I THINK THAT THAT, UH, UPGRADE WILL ACTUALLY LOOK WELL IN THAT AREA IN BAYWAY THAT, UH, THAT THAT AREA KIND OF NEEDS SOME REVITALIZATION AND ACTUALLY KIND OF CLEAN THINGS UP OVER THERE.

SO, SO IT IS WELL NEEDED IN THAT AREA.

SO I'M IN SUPPORT OF THAT.

MM-HMM .

UM, ANY OTHER COMMENTS OR QUESTIONS? SO I WOULD LIKE TO THANK YOU FOR CONTINUING TO IMPROVE THAT AREA.

I KNOW THAT AREA USED TO BE IN MY DISTRICT AND I'VE SEEN THAT FOR A LONG, LONG TIME.

UM, SO THANK YOU SO MUCH FOR CONTINUING TO BE THERE AND OF COURSE RAISING THE STANDARDS FOR THE AREA, SO THANK YOU.

UM, SO WITH THAT, CAN I GET A MOTION FOR APPROVAL? MOVE TO APPROVE.

SECOND.

OKAY.

ALL IN FAVOR? AYE.

AYE.

AYE.

AYE, NAYS.

SO WITH THAT, WE MOVE FORWARD

[6. MANAGER'S REPORT Notice is hereby given in accordance with Section 551.0415 of the Texas Government Code, the City Council of the City of Baytown may receive a report about items of community interest from City staff and/or a member of the City Council, but no action or possible action shall be taken or discussed concerning the subject of such report, except as provided by Section 551.042 of the Texas Government Code.]

I HAVE NOTHING TO REPORT AT THIS TIME.

THANK YOU.

OKAY.

I'LL TAKE A POINT OF PRIVILEGE AND SAY THAT WE HAVE A, UH, JV GANDER GAME GOING ON THIS EVENING.

UM, SO WE WISH THEM WELL AND HOPE THAT THEY WIN.

AND OF COURSE, THIS IS WHAT LEE STERLING WEEK, IT'S, IT'S LEE STERLING WEEK AND I APOLOGIZE TO THE PUBLIC FOR BEING LATE.

I GOT A LITTLE EXCITED AND DROVE TOWARDS THE GAME NOT REALIZING IT WAS MDD.

SO, UM, BUT IF LEE WINS, UM, THE VARSITY GAME TOMORROW, THEN WE'RE CITY CHAMPS THREE YEARS IN A ROW.

SO GO GANDER ALL WELL, WE WISH THEM WELL.

THANK YOU.

ALL RIGHT, SO WITH THAT, UM, WE'RE AT ITEM SEVEN TO ADJOURN, SO THANK YOU SO MUCH.