[00:00:03]
TIME IS NOW 432. WE'LL BRING THE MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION TO ORDER AND DO ROLL CALL, PLEASE.
PRESENT. BOARD MEMBER VICTOR HENRY.
BOARD MEMBER MIKE SNYDER HERE.
BOARD MEMBER RANDALL CLARK HERE.
BOARD MEMBER. CHENEY. GAMBOA HERE.
PRESENT. MOVE ON TO THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG.
UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG.
CITY, TEXAS. ONE STATE UNDER GOD, ONE AND INDIVISIBLE.
PUBLIC COMMENT I DON'T KNOW IF THERE'S ANYBODY HERE PRESENT THAT WISHES TO SPEAK BEFORE THIS EDC BOARD.
THERE BEING NONE, COME FORWARD.
WE'LL NOW MOVE ON TO THE WORKSHOPS.
ITEM 5.1 CONDUCT A WORKSHOP TO RECEIVE PRESENTATIONS FOR FROM ECONOMIC DEVELOPMENT PROSPECTS SEEKING THE ASSIGNMENT OF LAND USE PURCHASE OPTION AGREEMENT HELD BY THE CORPORATION FOR THE ACQUISITION OF LAND IN ABOUT AROUND THE MEGASITE.
BOARD MEMBERS, I'VE ASKED THIS TO BE PUT ON THE AGENDA, AND WE STARTED EARLY SO WE CAN GET OUT OF HERE, BECAUSE I DO KNOW IT'S VALENTINE'S DAY, BUT WE'RE TO THE POINT NOW THAT WE NEED TO BEGIN TO START TAKING A LOOK PAST THE PROJECTS THAT WE'RE CURRENTLY LOOKING AT, ABOUT THE REST OF THE OPTIONS THAT WE HAVE AT THE MEGA SITE AND THAT TRACT OF LAND. I BELIEVE WE'VE GOT TWO PRESENT HERE TODAY.
IS THAT CORRECT, BOB? WE HAVE RECEIVED OTHERS THAT HAVE SHOWN INTEREST.
I THINK BOB IS WORKING TO POSSIBLY LOOK AT HAVING PRESENTATIONS DONE BY THEM ALSO.
SO THE PLAN IS TO HAVE ABOUT A WHAT DO WE DECIDE, A 20 MINUTE PRESENTATION AND TO BE ABLE TO ASK QUESTIONS AFTER THE FACT FOR THAT AND THEN MOVE ON TO THE NEXT PRESENTATION? SO I DON'T KNOW IF THERE'S ANY QUESTIONS AS TO THE PROCESS, THE AGENDA THAT WE'RE WORKING ON. THERE BEING NONE WE'LL GO AHEAD AND TURN IT OVER OR MR. BROWN, I DON'T KNOW IF. ARE YOU OR WHO'S GOING TO BE DOING THE PRESENTATION? OKAY, IF YOU DON'T MIND, JUST INTRODUCE YOURSELF FOR THE GOOD OF EVERYONE HERE.
DO YOU MIND TURNING THAT MICROPHONE AROUND SO THEY CAN SPEAK OUT THAT MICROPHONE OR ACTUALLY PUT IT ON THE DESK? THAT WORKS TO BE THE ONE. THAT WE CAN JUST CAPTURE EVERYBODY.
IF YOU DON'T MIND LETTING EVERYBODY KNOW WHO'S WITH YOU. AND KARAOKE, IF YOU'D LIKE. PARDON? AND A LITTLE BIT OF KARAOKE IF YOU WANT. ALL RIGHT. IT IS VALENTINE'S DAY. HAPPY VALENTINE'S DAY, EVERYBODY. SO MY NAME IS ZACH BROWN, AND I HAVE BEEN IN AUSTIN ALL MY LIFE.
AND, AND I'VE BEEN WORKING IN HUTTO FOR ABOUT THE LAST SEVEN YEARS ON A VARIETY OF DIFFERENT DEVELOPMENT PROJECTS.
HAVE GOTTEN TO KNOW CITY STAFF WELL, GOTTEN TO KNOW THE CITY WELL AND HAVE BEEN WORKING ON A VARIETY OF TYPES OF PROJECTS, FROM MULTIFAMILY TO LARGE SINGLE FAMILY DEVELOPMENTS THAT HAVE LARGE INFRASTRUCTURE OFF SITES AND THE LIKE.
AND I'D LIKE TO TALK ABOUT THIS PROJECT OF, OF WORKING WITH YOU GUYS ON THE LAND THAT YOU HAVE UNDER OPTION. BUT FIRST I WANT TO INTRODUCE MY FATHER, GARY BROWN AND LYNN WAN.
IF YOU GUYS CAN MAYBE GIVE YOURSELVES A INTRODUCTION AS TO WHO YOU ARE, WHAT YOU DO. MY NAME IS GARY BROWN.
I'VE BEEN BUYING AND SELLING LAND ON MY OWN ACCOUNT HERE IN WILLIAMSON COUNTY THIS MONTH, NOW FOR 45 YEARS. FIRST OF ALL, STARTING OFF IN THE NORTHWEST AUSTIN AREA, LAKELAND, LAKELAND VILLAGE RANCH, BRUSH CREEK, CEDAR PARK, LEANDER, OAK CREEK, LIBERTY HILL, ROUND ROCK, GEORGETOWN, AND IN THE MOST RECENT HERE IN HUTTO, DOING 2000 LOTS UP ON THE NORTH SIDE FOR EMORY CROSSING AND, AND MUSTANG CREEK, PROVIDING INFRASTRUCTURE FOR THE ENTIRE NORTH SIDE OF HUTTO, TWO LIFT STATIONS AND SEVERAL MILES OF FOREST MAINS.
SO VERY FAMILIAR WITH THE INFRASTRUCTURE SITUATION HERE IN HUTTO.
AND INDEED, WE WANT TO BRING MAJOR INFRASTRUCTURE TO THE TO THE MEGASITE AND TO THE LAND SURROUNDING IT.
AS YOU KNOW, THAT THAT HASN'T HAPPENED YET.
AND AND IT NEEDS TO, BUT THAT'S BEEN MY EXPERIENCE.
AND AGAIN, I'VE BEEN DOING IT ON MY OWN ACCOUNT WITH MY OWN OWNERSHIP AND FOR, FOR A VERY LONG TIME. HAPPY VALENTINE'S DAY, EVERYBODY.
[00:05:08]
THANK YOU FOR BEING HERE.MY NAME IS LING YUAN. I LIVE IN AUSTIN AREA FOR ALMOST 30 YEARS.
MOVED HERE IN 1993. I WORK AT AN ENGINEERING PLANT MATERIAL.
I WORKED THERE FOR NINE YEARS WORKING IN THE HIGH TECH INDUSTRY AT DELL COMPUTERS.
I STARTED MY REAL ESTATE COMPANY YEARS AGO IN AUSTIN.
WE MAINLY DO REAL ESTATE INVESTMENT IN AUSTIN, CENTRAL TEXAS. RECENTLY, I REPRESENT A COMPANY WHO RELOCATE THEIR HEADQUARTERS TO LEANDER, THE KNIFE COMPANY.
THEY SET UP THEIR US HEADQUARTER MANUFACTURING THERE.
BUILDING 700,000 SQUARE FOOTAGE OF SITE IN LEANDER.
YOU KNOW, GREAT CITY, LOTS OF GROWTH POTENTIAL.
SO RECENTLY, I HAD A 100 ACRES NOT TOO FAR FROM HERE.
WORK WITH A GREAT TEAM HERE AND WORK WITH A LOCAL BUILDER, DEVELOPER AND USERS. SO WANT TO BRING LOTS OF ENERGY AND YOU KNOW, LOTS OF GROWTH TO THIS.
I WANT TO BE CONTRIBUTE TO THAT.
MY GENERAL EXPERIENCE WITH REAL ESTATE, INCLUDING LAND LAND HOLDING, LAND DEVELOPMENT AND ALSO REAL ESTATE INVESTMENT.
SO THANK YOU FOR THE OPPORTUNITY.
THANK YOU. SO WHAT I WANTED TO START OFF WITH IS A BASIC DESCRIPTION OF KIND OF WHAT WE'RE PROPOSING TO DO AND WHAT WE'RE ASKING YOU FOR.
RIGHT NOW WE'RE ASKING FOR AN ASSIGNMENT OF THE CURRENT OPTION AGREEMENTS THAT YOU HAVE FOR THE 730 ACRES MINUS HOWEVER MUCH LAND IS IS ASSIGNED TO ANY OF THESE OTHER USERS THAT YOU'RE WORKING WITH TODAY.
AND WHAT WE'RE PROPOSING IS THAT WE WOULD PURCHASE THIS LAND ON TIME IN IN APRIL AT THE END OF APRIL UNDER A, UNDER A SINGLE OWNERSHIP.
AND THAT WOULD BE LED BY LYNN AND US WITH REAL INTERNATIONAL.
AND WHAT WE SEE IS ONE OF THE MAIN BENEFITS OF, OF WORKING WITH A SINGLE ENTITY IS THAT WE WOULD HAVE THE SPEED AND AGILITY TO MAKE DECISIONS QUICKLY. YOU KNOW, YOU'RE PICKING UP THE PHONE, YOU'VE GOT A NEW YOU KNOW CALM CLIENT, BUT PROSPECT, PROSPECT THAT YOU GUYS ARE WORKING WITH.
YOU KNOW, YOU'D BE ABLE TO CALL US DIRECTLY AND AND AND NOT HAVE TO, YOU KNOW, WORK WITH OUR ATTORNEYS TO WORK ON VERY SHORT TERM OPTIONS.
SO I THINK WHAT, WHAT WE'RE WHAT WE'RE FOCUSED ON IS REALLY KIND OF LOOKING AT THIS AS, AS A PARTNERSHIP WITH THE CITY WHERE WE CAN COME IN AND EXECUTE THIS OPTION THAT YOU GUYS HAVE HAVE DONE A GREAT JOB OF OF TAKING ON THIS LAND.
AND, AND REALLY WORKING WITH IT SOUNDS LIKE TWO FANTASTIC PROSPECTS, ACCORDING TO THE NEWS THAT ARE GOING TO REALLY BE ABLE TO MAXIMIZE THE INVESTMENT THAT Y'ALL MADE. I CAN'T RECALL WHETHER IT WAS TEN YEARS AGO OR SO ON THE 450 ACRES, AND THEN BE ABLE TO MAKE USE OF THE OPTION THAT YOU HAVE NOW ON 100, 130 ACRES OF, OF HOWEVER MUCH THAT OTHER GROUP IS LOOKING AT.
WE'RE ALL LOCAL. DAD CAME HERE AND 1970 SOMETHING.
AND AGAIN, ONE OF THE THINGS THAT'S MISSING FROM THE THING, WE ARE GOING TO PAY THE NEGOTIATED PRICE $78 MILLION CASH TO THE PEOPLE WITH THE OPTIONS, AND WE'LL PAY THAT TIMELY.
WE HAVE NO INTENTION OF RENEGOTIATING THOSE TERMS AND CONDITIONS FOR ANYTHING.
WE'RE PREPARED TO GO AHEAD AND PAY THAT.
AND WITH THAT IS ALSO THE RETURN OF THE OR REIMBURSEMENT, I SUPPOSE, OF THE $600,000 IN OPTION FEES THAT YOU GUYS HAVE OUT NOW.
SO THAT'LL BE REIMBURSED AT, AT CLOSING.
BUT YEAH, WE'VE WE'VE ALL BEEN WORKING IN REAL ESTATE FOR OVER 20 YEARS SOME LONGER AND SPECIFICALLY IN WILLIAMSON COUNTY, SPECIFICALLY IN HUTTO.
AND I THINK WITH, WITH THE AMOUNT OF EXPERIENCE THAT WE ALL HAVE IN MASTER PLAN, MASTER PLANNING OF LARGE SITES, YOU KNOW, COMING FROM LARGE SINGLE FAMILY TRACKS, LOOKING AT A AT A COMPREHENSIVE SITE OF REALLY, WHERE ARE YOU GETTING YOUR UTILITIES? WHAT ARE YOU GOING TO DO WITH THE OVERALL LAND? WHAT WE'LL TALK ABOUT HERE IN A LITTLE BIT IS JUST SOME OF THE IDEAS THAT WE'VE COME UP WITH ON, ON HOW WE COULD LAY THIS SITE OUT.
CERTAINLY NOT AT ALL. YOU KNOW, CONCRETE, BUT JUST WANTED TO WANTED TO KIND
[00:10:05]
OF GIVE SOME VISUALIZATION OF REALLY HOW MUCH LAND THIS REALLY HOW MUCH PRODUCT WOULD EVENTUALLY BE ON THIS AMOUNT OF ACREAGE? 700 AND SOME ODD ACRES DEPENDING ON SO ONE OF THE OTHER MAJOR BENEFITS THAT WE SEE AS WORKING WITH, AGAIN, A SINGLE GROUP IS THAT OUR GOALS ARE TO REALLY LOOK AT THIS AS A MASTER PLAN SITE, NOT TO LOOK AT THIS IN TERMS OF, YOU KNOW, PIECEMEAL DEVELOPMENT BY MULTIPLE DIFFERENT PARTIES.AND SO WE SEE THAT AS A MAJOR BENEFIT OF WORKING WITH A SINGLE ENTITY CITY THAT CAN GO ABOUT WORKING WITH THE WORKING WITH THE CITY STAFF, CITY COMMISSION AND COUNCIL.
MULTIPLE VERTICAL DEVELOPERS TOO, OF COURSE.
YEAH. I WAS THINKING WHEN WE GET INTO THE LAND PLAN SIDE, WE'LL TALK ABOUT THE INDIVIDUAL USES, BUT YEAH, WHAT WE WANTED TO ALSO JUST LOOK AT FROM, YOU KNOW, TO, TO JUXTAPOSE THE BENEFITS ARE, YOU KNOW, WHAT HAPPENS IF THESE OPTIONS EXPIRE.
AND SO WHAT WHAT WE SEE AS, AS, AS THIS AS JUST BEING A REAL OPPORTUNITY.
YOU GUYS HAVE HAVE PUT TOGETHER THESE OPTIONS.
YOU'RE MAKING USE AS AS MANY OF THEM AS YOU CAN OR AS MUCH OF THE LAND AS YOU CAN IN THIS PERIOD OF TIME. AND BUT EVENTUALLY THESE OPTIONS WILL EXPIRE AND YOU CAN CONTINUE TO FUND THEM, TO EXTEND THEM, PERHAPS.
BUT BUT, YOU KNOW, IF NOT, THEN THE OPTIONS WILL JUST EXPIRE.
AND, YOU KNOW, AND I THINK THE WORST THING THAT CAN HAPPEN, AT LEAST IN MY OPINION, AS A AS A DEVELOPER, IS THAT NOTHING HAPPENS ON THESE PROPERTIES AND THEY GO BACK OUT TO MARKET AND MAYBE THEY DON'T TRADE, MAYBE THEY TRADE PIECEMEAL, WHICH IS FINE.
BUT I THINK JUST HAVING THAT, THAT MASTER PLAN APPROACH TO HOW TO CONDUCT ALL THE UTILITIES, ALL OF THE MAJOR ROAD INFRASTRUCTURE IS A BIG BENEFIT.
SO YOU KNOW, IF THESE OPTIONS EXPIRE IN THE, IN THE TRACK'S TRADE INDIVIDUALLY, IF THEY DO YOU'LL HAVE PIECEMEAL DEVELOPMENT.
YOU MAY NOT HAVE AN OVERALL MASTER PLAN COORDINATION OUTSIDE OF OF COURSE, THE THE CITY'S MASTER PLANNING.
BUT AND THEN SLOWER GROWTH OVER TIME.
AND I THINK THAT RIGHT NOW WITH, WITH THE, THE GROUPS YOU GUYS ARE WORKING WITH, I THINK THERE'S AND OBVIOUSLY WITH THE SAMSUNG DEAL AND WITH THE GROWTH IN THE SOUTHEAST QUADRANT HERE, WE SEE THIS AS A AS A REALLY OPPORTUNE TIME TO WORK WITH THE INERTIA THAT IS ALREADY OCCURRING.
SO OUR GOAL IS TO IS TO REALLY KICK THIS OFF IMMEDIATELY, WHICH WE'RE WORKING ON THAT NOW WITH THE WITH THE PLANNING.
SO IN TERMS OF TIMING, WE JUST KIND OF WANTED TO, YOU KNOW, TALK OPENLY ABOUT THE TIMING THAT THAT THAT YOU GUYS ARE UNDER THAT WE WOULD BE UNDER. RIGHT NOW THERE'S 730 ACRES OF OF LAND UNDER OPTION AT A TOTAL PURCHASE PRICE TODAY OF $78 MILLION.
THE OPTIONS NEED TO BE EXECUTED, I SUPPOSE WOULD BE THE TERM AT AT THE END OF MARCH. EXERCISED. EXERCISED.
WITH A DEADLINE TO CLOSE AT THE END OF APRIL.
AND SO, YOU KNOW, OUR, OUR GOAL IS NOT TO LIKE, LIKE A LOT OF, YOU KNOW, LARGE INVESTMENT COMPANIES THAT ARE LOOKING TO, YOU KNOW, JUST PLOP DOWN A BUNCH OF MONEY AND WAIT TILL THE NEXT GENERATION.
WE'RE NOT AT ALL LOOKING TO DO THAT. OUR PLANS ARE TO GET STARTED WORKING WITH YOU GUYS, WITH THE CITY IMMEDIATELY.
AND SPECIFICALLY WITH END USERS.
OH, I HAVE ON HERE AS AS AN EXAMPLE.
SO ONE OF THE PROPERTIES THAT THAT LYNN HAS BOUGHT HERE IN HUTTO IS UP ON EDGE SCHMIDT JUST NORTH OF LOOP. IT'S SOME OF RON AND LAURA HANSON'S PROPERTY, AND WE CLOSED ON THAT IN OCTOBER, OCTOBER 15TH OF LAST YEAR.
AND AS EARLY AS JUST EARLY DECEMBER, WE STARTED CONTRACT NEGOTIATIONS WITH END USERS FOR SMALLER PARTS OF THAT.
OBVIOUSLY THOSE END USERS STILL HAVE TO GO THROUGH THE PLANNING PROCESS WITH THE CITY, BUT WE HAVE GONE UNDER CONTRACT NOW WITH TWO END USERS, AND THEY'LL BE COMING TO TO SEE YOU GUYS HERE SHORTLY.
BUT TO, TO JUST SHOW THAT WE IMMEDIATELY GOT TO TO WORK ON, ON ACTIVATING THE PROPERTY AFTER AFTER BUYING IT.
SO THE PLAN HAS NOT BEEN TO AT ALL SIT ON IT.
AND I THINK THAT THAT'S IMPORTANT FOR YOU GUYS TO KNOW.
[00:15:04]
SO THIS IS THE SAME LAND PLAN THAT'S THERE.BUT I WANTED TO JUST LOOK AT THIS AS A, AS A EXAMPLE OF, OF HOW OF HOW THE LAND COULD BE LAID OUT.
ONE THING TO, TO TAKE INTO ACCOUNT IS THAT THE THAT THE ROAD NETWORK THERE IS, IS TAKEN FROM THE CITY THOROUGHFARE PLAN.
WE WORKED WITH SEC PLANNING MARK BAKER, WHO HAS BEEN WORKING ON A LOT OF PROJECTS THAT THAT I'VE BEEN A PART OF HERE IN HUTTO.
AND TO DO THIS PLAN AND THIS THE INSTRUCTIONS I GAVE THEM FOR FOR, YOU KNOW, HOW TO LOOK AT LAYING THIS OUT BECAUSE MOST OF THE LAND, WELL, IF NOT ALL OF THE LAND TO THE TO THE WEST OF THIS SITE IF IT'S NOT VACANT, IS EITHER ABOUT TO BE SOME NEW KIND OF MULTIFAMILY, HIGHER DENSITY SINGLE FAMILY SITES.
OR THERE'S THE LENNAR SUBDIVISION AND THEN THE THE MERITAGE HOMES SUBDIVISION.
AND SO MY INSTRUCTIONS WERE TO REALLY KIND OF LOOK AT THIS AS IF, YOU KNOW THAT THERE'S A MAJOR MANUFACTURER ON THE FAR EAST SIDE OF, OF THIS, THIS OVERALL YOU KNOW, 1200 ACRES.
HOW WOULD YOU LOOK AT, YOU KNOW, AS A, AS, AS A STEPPING DOWN AND USAGE OR, OR, YOU KNOW, LOOKING AT, AT COMPATIBLE USES TO BUILD UP TO A MORE LIGHT INDUSTRIAL AND THEN TO HEAVY INDUSTRIAL.
SO KIND OF STARTING WITH MORE RESIDENTIAL, RETAIL, MIXED USE, THOSE ARE THE, THE RETAIL MIXED USE ARE GOING TO BE THOSE KIND OF SALMON COLORS YELLOWS BEING MORE MULTIFAMILY.
AND THEN AND THEN KIND OF WORKING INTO A LIGHT INDUSTRIAL AND HEAVIER INDUSTRIAL USES AS YOU GO FURTHER EAST TOWARDS THE, THE LARGER MANUFACTURING.
AND SO AGAIN, NONE OF THIS IS, IS SET IN PLAN.
THIS WOULD LIKELY NOT BE WHAT WE COME STRAIGHT TO THE TABLE WITH.
BUT THE GOAL HERE IS TO REALLY KIND OF LOOK AT THIS AND AS AN OVERALL YIELD STUDY, SO TO SAY, ON THIS 730 ACRES, WHAT COULD FIT HERE.
AND SO, YOU KNOW, THE ACREAGE BREAKDOWNS.
MS. OH, I GOTTA, I GOTTA BEND DOWN TO SEE THIS.
HOLD ON. THESE ARE THE ACREAGE BREAKDOWNS HERE FOR FOR THE DIFFERENT USES.
SO 790 ACRES OF INDUSTRIAL AMONGST THOSE DIFFERENT PARCELS.
IN TOTAL, THERE'S THERE'S 32 PARCELS THERE, 141 ACRES OF MIXED USE, 18 ACRES OF STRAIGHT OFFICE COMMERCIAL 32 ACRES OF MULTIFAMILY RESIDENTIAL WITH 100 ACRES OF OPEN SPACE. AND SO PART OF OF KIND OF HOW WE'RE, WE'RE THINKING ABOUT THIS IS WHAT WOULD YOU KNOW, CLOSE TO 400 ACRES OF INDUSTRIAL REALLY YIELD FROM AN OVERALL SQUARE FOOTAGE.
AND, YOU KNOW, IN OUR IN OUR CALCULATIONS THAT COMES OUT TO ABOUT 7.5 MILLION SQUARE FEET OF INDUSTRIAL SPACE, WHICH IS OBVIOUSLY AN ENORMOUS AMOUNT OF LIGHT INDUSTRIAL. SO THAT'S WHERE WE REALLY THINK OF, OF THIS AS, AS, AS WE GET INTO THIS PROJECT, WORKING WITH YOU GUYS ON SOME OF THESE LARGER END USERS THAT CAN REALLY ABSORB LARGER ACREAGES BECAUSE, YOU KNOW, 7.5 MILLION OR MILLION SQUARE FEET OF INDUSTRIAL IS JUST, AGAIN, AN ENORMOUS AMOUNT.
BUT YOU KNOW, SAME WITH THE, YOU KNOW, MULTI-FAMILY ACREAGE AND AND MIXED USE ACREAGE. IT'S, IT'S IT'S IT'S AN AWFUL LOT OF LAND.
BUT I THINK THAT'S WHAT MAKES THIS ESPECIALLY EXCITING IS THAT YOU'RE ABLE TO WITH THAT MUCH LAND. LOOK AT THIS ON A MUCH MORE REGIONAL BASIS.
SO OUR ACTION ITEMS FOR FOR YOU GUYS THAT WERE, WERE REQUESTING OF Y'ALL IS TO TO THINK ABOUT OUR PROPOSAL AND TO AND TO MAKE A DECISION.
WE'RE REQUESTING BY BY THE END OF THIS WEEK.
AND, AND WITH THAT, WE'RE MAINLY FOCUSED ON BEING ABLE TO EXECUTE THIS AS, AS GARY WAS SAYING IN A TIMELY FASHION ON TIME WITH,
[00:20:01]
WITH WHAT YOU GUYS NOW HAVE THESE AGREEMENTS UNDER SO WE HAVE A LETTER OF INTENT THAT WE'VE SENT TO YOU GUYS.WE HAVE ASSIGNMENT AGREEMENTS PREPARED AND AND WE ARE PREPARED TO YOU KNOW, CONTINUE PLANNING THIS SITE.
REALLY? AS SOON AS YOU GUYS ARE, ARE ABLE TO TO GRANT US THE THE RIGHTS TO BEGIN MOVING FORWARD WITH THE ASSIGNMENT.
AND WITH THAT, AT THE END OF OF APRIL, YOU'LL HAVE YOUR ALL OF YOUR OPTION FEES PAID BACK AS WELL. SO. IS THERE ANYTHING ELSE ON MY.
NO, JUST THE IDEA THAT MAYBE NOT TO RENEGOTIATE THE OPTIONS THAT ARE IN PLACE.
WE'RE NOT GOING TO GO BACK TO THOSE THOSE PEOPLE AND ASK FOR ANY FAVORS OR.
AND THAT'S THE OTHER THING THE OPTION AGREEMENTS CALL FOR.
IN ADDITION TO THE OPTION AGREEMENTS OF PURCHASE AND SALE AGREEMENT YET TO BE DONE.
SO THAT'S WHY WE NEED THIS TIME TO MAKE SURE THAT REALLY DURING THE MONTH OF APRIL, WE GET A PURCHASE AND SALE AGREEMENT DONE WITH NO MONTH OF MARCH BECAUSE.
WELL, YEAH, BUT I MEAN, WE'VE GOT TO EXERCISE THE OPTION BEFORE THE END OF MARCH, BUT THEN WE STILL HAVE TO DO A PURCHASE AND SALE AGREEMENT AS OUTLINED IN THOSE AGREEMENTS. AND THAT HASN'T BEEN DONE RIGHT.
SO IT WILL TAKE ALL OF THOSE 30 DAYS OR MORE TO GET THAT DONE.
SO THAT'S THE DECISION THIS WEEK.
SOUNDS URGENT, BUT WE'RE RIGHT UP AGAINST THE DEADLINE.
WE'VE GOT 45 DAYS BEFORE THOSE OPTIONS EXPIRE.
AND SO AND WE HAVE TO NEGOTIATE A PURCHASE AND SALE AGREEMENT ALSO.
SO WE'RE READY FOR ANY QUESTIONS ANYBODY MIGHT ASK.
CHAIR I JUST HAVE ONE COMMENT REAL QUICK AS WE GET STARTED, BECAUSE OF THE PUBLIC OR THE TEXAS OPEN MEETINGS ACT, IF YOU'RE ASKING FOR AN ANSWER BY FRIDAY, THAT MEANS THAT YOU'RE ASKING JUST ABOUT FOR AN ANSWER TONIGHT BECAUSE THIS BOARD CAN'T MEET AGAIN FOR 72 HOURS AFTER A NEW MEETING IS POSTED. AND SO THAT WOULD BE LIKELY, YOU KNOW, IF WE POSTED SOMETHING EVEN TOMORROW, IT WOULDN'T BE UNTIL FRIDAY AFTER THAT TIME PERIOD THAT WE COULD LEGALLY MEET.
AND SO ARE YOU SAYING THAT LOGISTICALLY A MEETING COULD AFTER TONIGHT WOULDN'T BE UNTIL 72 HOURS AFTER A POSTING OF AN OPEN MEETINGS ACT AGENDA AND 70 FOR FOR THE PUBLIC TO KNOW THAT THEY COULD COME AND SEE THE TRANSACTION GO DOWN.
SO I JUST WANTED TO PUT THAT IN PLACE BECAUSE A LOT OF COMPANIES CAN WORK A LOT OF THINGS IN FIVE DAYS, BUT ECONOMIC DEVELOPMENT CORPORATIONS HAVE TO MEET AND HAVE TO FOLLOW THE MEETINGS ACT. YEAH. WE HAVE A 72 HOUR DEADLINE BEFORE, I MEAN, 72 HOUR TIME FRAME, WHICH WE CANNOT MEET.
WE HAVE TO POST IT AND THEN CAN'T MEET WITHIN THOSE 72 HOURS.
SO, I MEAN, THE PROVISIONS OF LAW ALLOWS US TO FOR EMERGENCY MEETINGS, BUT THIS IS NOT CONSIDERED AN EMERGENCY.
ANYTHING THAT WE DO WITH THE LAND IS NOT CONSIDERED AN EMERGENCY. SO ANY QUESTIONS? I HAD A COUPLE. YOU'VE GOT A LOT OF LAND TIED AS MIXED USE.
I WAS JUST KIND OF CURIOUS WHAT EXACTLY YOUR DEFINITION OF MIXED USE AND YOUR.
IF YOU CAN SHARE WHAT YOUR DEFINITION WOULD BE FOR THIS CONCEPT OF SOMETHING.
SO, YOU KNOW, I THINK IN MIXED USE IS, IS REALLY ANY USE AND IN THIS IT WOULD BE OUTSIDE OF STRAIGHT MULTIFAMILY JUST IN THIS LAND PLAN.
STRAIGHT. RIGHT. ANYTHING THAT'S OUTSIDE OF STRAIGHT MULTIFAMILY OR STRAIGHT INDUSTRIAL, JUST GIVEN KIND OF HOW WE'VE LAID THIS OUT.
BUT, YOU KNOW, WHEN I LOOK AT THE SOUTHEAST SIDE OF THAT SOUTHEAST QUADRANT, IT'S REALLY I DON'T THINK THERE'S A SINGLE RETAIL LOCATION THAT I CAN THINK OF.
AND SO, YOU KNOW, I CAN DEFINITELY SEE THIS BEING A EMPLOYMENT CENTERS.
SURE, I CAN DEFINITELY SEE THIS BEING A RETAIL NODE.
SURE. CAMPUS EMPLOYERS PICK I MEAN, THERE'S ALL KINDS OF THINGS.
YEAH. YOU KNOW, WHAT I'M FOCUSED ON IS BEING ABLE TO USE THE PROPERTY, BRING SERVICES TO THE PROPERTY THAT, YOU KNOW, NOT REALLY. NOTHING'S HAPPENED.
WELL, AND SO IT HAS TO BE AND AGAIN, I WAS A LITTLE CONCERNED WITH PUTTING FORWARD A LAND PLAN THAT PEOPLE GET FOCUSED ON PARTICULAR USES.
BUT 800 ACRES IS IS A BIG CHUNK OF DIRT.
[00:25:03]
I MEAN, THAT'S INDUSTRIAL WISE.THAT'S 15,000,000FT² IF ALL OF IT'S INDUSTRIAL.
SO WE GOT TO PUT IT IN A MIX OF USES.
AUTOS HAD INQUIRIES FROM HOSPITALS, TEACHING HOSPITALS EMPLOYMENT CENTERS.
NOW, WITH THE NEW OVERPASS HAPPENING OVER AT 3349 EVENTUALLY 132, IT'LL MAKE THIS SITE HAPPEN.
AND SO THERE'S A LOT OF OPPORTUNITIES THERE.
I THINK IT'LL BE DEPENDENT UPON KIND OF WHICH WHICH END USERS COME TO YOU KNOW, THE LAND THAT YOU GUYS ARE WORKING WITH NOW TO TO SEE WHAT WOULD BE AS A, AS A SERVICE TO THOSE AREAS, BUT ALSO A SERVICE TO THE 2000 HOMES THAT ARE CURRENTLY BEING UNDER OR CURRENTLY UNDER CONSTRUCTION ACROSS THE STREET.
RIGHT. I MY BIG THOUGHT WAS, YOU KNOW, I SAW THE 32 ACRES FOR THE MIXED FAMILY OR MULTI FAMILY, WHICH MAKES SENSE BECAUSE OF WHAT WE KNOW IS EVEN GOING ACROSS THE WAY THAT'S ALREADY BEEN PUBLICLY ANNOUNCED.
OH WELL, WE'LL JUST MAKE THIS ALL APARTMENTS TO SUPPORT THAT DEVELOPMENT.
OUR OUR LAND PLAN WILL BE IN CONJUNCTION WITH THE THE PLANNING DEPARTMENT, PLANNING COMMISSION AND THE CITY COUNCIL.
WE'RE NOT HERE TO ASK FOR A LAND USE TONIGHT.
SO WE'RE WE'RE WE'RE TRUSTING THAT WE CAN GET BECAUSE WE VISITED WITH THE CITY NOW FOR THE LAST 5 OR 6, SEVEN YEARS.
AND I THINK WE HAVE AN IDEA OF WHAT EXACTLY WHAT YOU'RE SAYING, WHAT YOU'RE WHAT THE CITY'S GOALS ARE.
AND I THINK WE CAN MAKE THAT HAPPEN.
IT'S NOT GOING TO BE THAT DIFFICULT.
WILL YOU PUT THAT MAP BACK UP JUST SO WE CAN HAVE IT? BECAUSE WE'VE GOT THE ABILITY TO LOOK AT IT HERE CLOSELY? YEAH.
ANY OTHER QUESTIONS THAT ANYBODY CAN GO BACK.
RIGHT THERE. THANK YOU SIR. YOU GOT ANYTHING? OH, GO RIGHT AHEAD.
I'VE GOT I'VE GOT QUESTIONS, BUT GO RIGHT AHEAD. WELL, GUYS I GOT A FEW. WE'VE WE'VE TALKED BEFORE.
PREVIOUSLY ON SEVERAL DIFFERENT THINGS.
SO THE FIRST THING I THINK YOU GUYS OBVIOUSLY HAVE EXPERIENCE IN HOW TO NOT JUST RECENT DEVELOPMENTS, BUT I MEAN YOU GUYS HAVE KIND OF AT ONE POINT OR ANOTHER HAVE TALKED ALMOST EVERY LANDOWNER IN HUTTO AT SOME POINT AND DONE DIFFERENT DEALS.
SO I THINK YOU GUYS DEFINITELY HAVE THAT BETWEEN HUTTO AND AUSTIN.
THAT'S PRETTY BIG. FOR ME THERE'S SOMETHING YOU SAID, THOUGH, THAT I WOULD CAUTION AND THAT IS WORKING WITH THE CITY LATER ON LAND USES.
I THINK IT MIGHT BE IN ALL OF OUR BEST INTEREST TO MAKE SURE THAT MAYBE THAT WE DON'T HAVE IT DIALED DOWN. EXACTLY.
BUT WE HAVE A RANGE TO WHERE WE SAY, LIKE, OKAY, THERE WON'T BE ANY RESIDENTIAL USE.
WE WON'T HAVE MORE THAN, LIKE 20% OF THE LAND MASS WILL GO TO MULTIFAMILY, THINGS LIKE THAT.
BECAUSE WHAT I FIND, WHAT I LIVE BY DURING THE DAY IS STRONG CONTRACTS MAKE STRONG FRIENDS. AND SO IF WE CAN ENSURE THAT, THEN YOU GUYS CAN ALWAYS GO BACK TO THE PLANNING DEPARTMENT AND GO, HEY, WE ARE ALLOWED TO DO MORE INDUSTRIAL OR WE ARE ALLOWED TO DO SUCH AND SUCH BECAUSE I'D HATE TO HAVE HAPPEN IS ALL OF A SUDDEN CITY COUNCIL CHANGES, STAFF CHANGES, AND ALL OF A SUDDEN YOU GUYS ARE TRYING TO PLAN OUT 800 ACRES AND ALL OF A SUDDEN 400 OF IT'S CHANGED BECAUSE NOW FOR SOME REASON, WE WANT RESIDENTIAL, LET'S SAY, AND YOU'RE LIKE, THAT'S NOT GOING TO WORK. SO THAT WOULD BE SOMETHING I'D KIND OF ADVISE FOR.
I DIDN'T SEE ANYTHING ON THERE FOR SINGLE FAMILY.
WHICH I THINK IS GOOD BECAUSE RIGHT NOW I THINK YOU GUYS HAVE WORKED ON SOME SINGLE FAMILY. PLENTY. WE GOT ENOUGH OF THAT.
WE WOULD DO DEVELOPMENT AGREEMENT AFTER CLOSING.
THAT'D BE ONE OF THE FIRST THINGS WE WOULD BEGIN DOING IS A MASTER PLAN DEVELOPMENT AGREEMENT. OBVIOUSLY WE DON'T HAVE ENOUGH TIME IN THE NEXT SIX WEEKS TO DO WHAT? YES, WE'RE GOING TO BE TAKING THAT RISK.
AND YES, FOR EXACTLY THE REASONS YOU OUTLINED.
WE WANT IT IN WRITING WHAT WE CAN DO FOR THE NEXT FORESEEABLE FUTURE.
YEAH. I'D LIKE TO GET GEORGE'S THOUGHT. ON WHAT? THAT IF THERE'S A WAY TO DO THAT, LIKE, AS AN OPTION, PART OF THE THE CONSIDERATION FOR THE OPTION, SOME KIND OF BECAUSE HERE'S WHAT PEOPLE ARE GOING TO ASK BECAUSE, I MEAN, WHEN YOU WALK INTO THE CO-OP, YOU SEE A DEVELOPMENT THAT THE CITY GOT INVOLVED IN, HELPED SOMEONE OUT.
AND THEN FIVE YEARS LATER. AND SO I THINK A LOT OF PEOPLE, IF WE ASSIGN THESE OPTIONS TO WHATEVER COMPANY, PEOPLE ARE GOING TO SAY, WELL, HOW DO YOU KNOW THIS IS GOING TO HAPPEN? AND BECAUSE CONCEIVABLY IT MAY NOT HAPPEN, I ALSO THINK, I THINK A CHUNK OF THIS LAND IS STILL IN THE COUNTY, RIGHT? YEAH, I THINK THE MAJORITY OF IT IS.
[00:30:01]
YEAH. SO I THINK THINGS LIKE THAT WHERE WE SAY LIKE AN OPTION THAT, YOU KNOW, PART OF THE CONSIDERATION IS, IS SOME SORT OF ANNEXATION DEVELOPMENT AGREEMENT THAT YOU WILL ANNEX IN AND YOU WON'T BUILD MORE THAN, LIKE I SAID, BECAUSE EVERYBODY IN THE CITY IS STARTING TO FREAK OUT ON MULTIFAMILY SINGLE FAMILY. SO IF YOU SAY WE WON'T BUILD MORE THAN X AMOUNT, PERCENT OF THE LAND MASS WILL BE THAT THAT I THINK IS IS WE CAN BANG THAT OUT IN A WEEK OR TWO. AND THEN THE LAST THING IS SO THE 600, THE 600,000 I TRUST YOU ALL A LOT. MORE THAN OTHER PEOPLE MAY JUST BECAUSE OF TRACK RECORD.BUT IN SAYING THAT IF WE DON'T GET THE 600 GRAND UNTIL YOU PURCHASE THE LAND, THERE'S ALWAYS A CHANCE THAT THE EDC IS STILL OUT THE MONEY ON APRIL 28TH BECAUSE THE CONTRACT GETS DROPPED.
YEAH. SO I'D ALMOST LIKE TO SEE TO MAKE SURE, BECAUSE ONCE WE GIVE WE DID THIS A WHILE BACK.
I WANT TO SAY IN 2017, GEORGE, WE HAD AN OPTION DEAL.
WE GAVE IT IT TURNED INTO A WHOLE WHOLE ORDEAL BECAUSE WE ASSIGNED IT TO A DEVELOPER AND IT YOU KNOW, FIVE YEARS LATER, WE'RE FINALLY DEVELOPING A MEGA SITE.
SO IT ALMOST LIKE TO SEE SOMETHING TO WHERE SOME SORT OF CONSIDERATION THAT IS, ONCE YOU EXERCISE THE THE RIGHT TO TAKE ON THE OPTION AT THE END OF MARCH.
NO, I'M THINKING LIKE AT THE POINT WE, WE SAY, HEY, WE'RE NOT TAKING ANY MORE SUITORS IN.
I'M NOT SAYING THIS WHOLE 600 GRAND, BUT WHETHER IT BE 50,000 OR 100,000, YOU SAY? YEAH. UPON THE EXERCISING OF THE OPTION AGREEMENT, YOU GUYS ARE OUT 100 GRAND.
IF YOU DROP THAT WAY, AT LEAST IF YOU GUYS GET THROUGH AND SAY, YOU KNOW WHAT? FUNDING DRIED UP, MARKET CHANGED.
AT LEAST THEN WE CAN GO BACK TO PEOPLE BECAUSE THE CITY COUNCIL WILL BE ALL OVER US AND GO, HEY, WE DIDN'T GET THE FULL 600, BUT WE GOT SOMETHING AS OPPOSED TO POTENTIALLY NOTHING. AND IT WOULDN'T BE FAIR, I THINK, TO ASK FOR ALL 600 ON DAY ONE BECAUSE LIKE, LIKE GARY SAID, WE HAVEN'T EVEN TALKED TO LANDOWNERS.
THERE'S A MAD RUSH. YEAH. AND THEY MAY BE REALLY EASY TO WORK WITH.
AND AND SAY WE'LL SELL THE PROPERTY.
OR THEY MAY BE THE MOST DIFFICULT PEOPLE YOU'VE EVER DEALT WITH, AND YOU'VE GOT 45 DAYS TO FIGURE THAT OUT.
SO. YEP. THOSE ARE JUST SOME OF THE THINGS I HAVE.
AND I THINK THAT'S SOMETHING THAT, AGAIN, I DON'T WANT TO PIGEONHOLE YOU GUYS INTO. I DIDN'T FIGURE OUT THE PERCENTAGES, BUT I'M NOT SAYING YOU HAVE TO HAVE 18 ACRES OF COMMERCIAL. BUT IF YOU SAY LIKE IF THAT WAS, FOR INSTANCE, SAY 10%, WE JUST SAY, HEY, NO MORE THAN 15% OF COMMERCIAL, NO MORE THAN X OF INDUSTRIAL.
AND THEN TO RANDALL'S POINT COMMISSIONER POINT.
THEN WE GO THROUGH. WE CAN ALWAYS ADVISE THE CITY COUNCIL THAT, HEY, WE'RE NOT WE'RE LOOKING OUT FOR THE BEST INTEREST AND YOU WON'T HAVE A BUNCH OF APARTMENTS HERE, BUT YOU ARE GOING TO HAVE EMPLOYMENT CENTERS, POTENTIALLY HOSPITALS, AND WE'VE GIVEN YOU GUYS ENOUGH SLACK TO BUILD IT.
BUT GIVEN ALSO ENOUGH THE GOALPOST TIGHT ENOUGH TO WHERE WE CAN GO BACK BECAUSE OTHERWISE THEY'LL REMOVE ALL OF US OFF THE CITY OR OFF THE BOARD IF WE DO THIS.
MAYOR THOSE GOALPOSTS ARE GOOD FOR US TOO, BECAUSE JUST LIKE YOU SAID, THEN WE CAN GO. WE HAVE THE RIGHT TO DO THIS.
RIGHT. SO YEAH, THAT'S JUST ONE GUY'S THOUGHTS.
THERE MAY BE FOUR PEOPLE, AND I THINK WE WOULD ALSO NEED TO TALK ABOUT, YOU KNOW, HOW TO HOW TO CODIFY THAT FROM THE CITY'S PERSPECTIVE SO THAT THEY ARE RESPECTING THE THOSE GOALPOSTS, WHATEVER THEY MAY BE.
BUT AND ALSO, I WOULD LIKE TO NOT GET TOO, TOO HUNG UP IN LOCATION RIGHT NOW BECAUSE AS THESE NEW BYPASSES AND, AND OVERPASSES COME THROUGH, YOU KNOW, THAT WILL BE SHIFTING THE APPROACH OF A LOT OF THESE CORRIDORS IN THERE.
I MEAN, I THINK THAT ROBINSON RANCH DID THAT IN THEIR PUD WAS KIND OF HAVE THE ALLOWANCE TO DO, YOU KNOW, CERTAIN CERTAIN MIX OF USES.
AND I'VE SEEN THEIR PUT AND IT'S THIS BIG.
BUT YEAH, I DON'T LIKE THAT TO SAY YOU HAVE TO DO INDUSTRIAL ON THE VERY SOUTHERN BECAUSE FOR ALL YOU KNOW, THE WHAT IS THAT THE MIXED USE ALONG 79.
SURE. YOU MAY GET A RASH OF PEOPLE IN INDUSTRIAL AND YOU'RE LIKE, FOR SURE WE GOT ALL THIS, BUT HEY, AND THEN SOMEONE ON CITY COUNCIL SAYS, HEY, YOU SAID MIXED USE.
WELL, THAT MAY ACTUALLY PUSH FURTHER SOUTH AND SUBSTITUTE INDUSTRIAL.
AND SO AND CERTAINLY AS THAT AS THAT OVERPASS COMES THROUGH, WHEREVER THAT TERMINUS IS, THAT'S GOING TO, YOU KNOW, THAT MIGHT PUSH ALL RETAIL TO, YOU KNOW, THE YOU KNOW, MUCH FURTHER SOUTH THAN THAT.
SO ANYHOW, I DO WANT TO REMAIN FLEXIBLE ON IT, FOR SURE. BUT I DO LIKE YOUR IDEA.
ANY OTHER QUESTIONS? THANK YOU.
CHAIR, IF I MAY. YES. GO AHEAD.
WE'VE WE'VE DONE SOME CONDITIONS IN CONNECTION WITH OUR ASSUMPTION AND ASSIGNMENT. AND LET ME GET UP HERE.
[00:35:04]
SO CAN YOU HEAR ME NOW? WE'VE WE'VE INCLUDED SOME CONDITIONS IN OUR ASSUMPTION AND ASSIGNMENT.I JUST WANTED TO GO OVER THOSE CONDITIONS WITH YOU TO SEE WHETHER OR NOT YOU HAVE A PROBLEM WITH THEM OR NOT.
ONE IS TO THE EXTENT, IF THE PROPERTY IS NOT CURRENTLY ANNEXED INTO THE CITY, THAT YOU FILE A PETITION FOR ANNEXATION WITHIN 30 DAYS OF THE OF THE CLOSING THAT YOU'LL PROVIDE ALL NECESSARY TEMPORARY AND PERMANENT CONSTRUCTION AND UTILITY EASEMENTS FOR WATER, WASTEWATER EASEMENTS FOR THE CITY'S PROPERTY TO SO THAT THEY CAN, YOU KNOW, FUND OR DO THE WHOLE AREA WITHOUT COST.
YOU APPRECIATE THAT ONE SINCE YOU WENT ACQUIRED PROPERTY FOR A BUNCH OF TIME.
IN THE EVENT THAT THE PROPERTY IS PURCHASED, BUT NO DEVELOPMENT OCCURS WITHIN A SCHEDULE THAT WE WOULD CREATE. THEN IF THAT SCHEDULE IS BROKEN, THEN THE YOU WOULD GIVE US AN ASSIGNMENT FOR THE PROPERTY OR PORTION OF THAT PROPERTY, WHATEVER THAT HOW THAT SCALED IS DONE FOR YOU.
AND WE WOULD GET AN ASSIGNMENT FOR THAT PROPERTY, ALLOWING US TO SELL IT AT A DISCOUNTED RATE THAN FULL VALUE IN ORDER TO ENCOURAGE DEVELOPMENT TO OCCUR ON THE PROPERTY.
CAN YOU READ THAT ONE ONE MORE TIME? SURE. BECAUSE GO AHEAD.
I MEAN, YOURS IS A LITTLE BIT DIFFERENT BECAUSE YOUR PROJECT'S A LITTLE BIT LARGER.
AND SO THAT'S WHY I'M KIND OF FREELANCING IT.
BUT BUT BASICALLY WE WANT THE PROJECTS TO DEVELOP.
WE DON'T WANT THE PROPERTY TO BE PUT IN A HOLDING PLACE FOR GENERATIONS, SO TO SPEAK, LIKE YOU SAID EARLIER. SO WE'D LIKE TO CREATE AN INCENTIVE THAT SAYS, SAY, IF 10% OF THE PROPERTY IS NOT UNDER CONSTRUCTION WITHIN FIVE YEARS, THEN THAT 10% OF THE PROPERTY.
YOU CAN CONTINUE TO WORK ON IT, BUT YOU'RE GOING TO GIVE THE ECONOMIC DEVELOPMENT CORPORATION AN ASSIGNMENT THAT WE CAN USE AN OPTION SO WE CAN REPOSITION THE PROPERTY TO ANOTHER PURCHASER.
AND WE COULD DO IT AT A PRICE THAT'S LESS THAN, THAN ITS VALUE SO THAT WE CAN EAGERLY GET SOMEBODY IN THERE WORKING ON IT.
IT'S NOT THAT WE TAKE THE MONEY. WE YOU GET THE MONEY FOR IT, BUT IT MAY NOT BE THE SAME AMOUNT OF MONEY THAT IT'S TOTALLY WORTH.
AND THAT'S THAT'S A KIND OF A CLAWBACK THAT IS USED FOR THESE REAL ESTATE PERFORMANCE PROGRAMS. SEE, GARY IS MIND BLOWING WHAT THIS KIND OF IS LIKE IN THE WAY I'VE KIND OF TALKED ABOUT BEFORE, IS, AGAIN, NOT PICKING ON THE CO-OP, BUT YOU GOT A DEAL TO WHERE THE CITY GAVE CLOSE TO 30 ACRES, GAVE ALL THESE TAX INCENTIVES AND TAX BREAKS, AND THEN FIVE YEARS LATER, WE HIT THEM EVERY YEAR WITH A PENALTY.
AND IT'S A NOMINAL LIKE I THINK IT'S LIKE $38,000 FOR NOT BUILDING THE SQUARE FOOTAGE.
AND SO WE TALKED ABOUT ON PREVIOUS GUYS, THEY CAME IN, THEY SAID, HEY, WE WANT TO RUN, NOT WALK.
WE'RE REALLY EXCITED. WE'RE GOING TO BUILD X AND THEY'RE SO SURE ABOUT IT.
AND SO WE LOOK OUT THE WINDOWS AND WE GO, SO IT WON'T LOOK LIKE THIS IN FIVE YEARS.
NO SIR. SO WHAT WE KIND OF CAME UP WITH IN OUR MEETINGS IS OKAY, WELL THEN IN FIVE YEARS, IF YOU HAVEN'T BUILT SUCH AND SUCH.
MAYBE WE GET TO BUY THE LAND, OR HAVE THE OPTION TO BUY THE LAND TO ASSIGN TO SOMEBODY ELSE AT THE PRICE YOU PAID FOR IT BACK FIVE YEARS AGO, ASSUMING IT WENT UP IN VALUE.
AND IN THAT WAY YOU'RE LIKE, HEY, WE GOT TO GET MOVING BECAUSE WE GET OUT HERE AND THERE'S SO MANY BROKEN PROMISES NOW, WHAT THAT SCHEDULE LOOKS LIKE.
WE DON'T WANT I MEAN, THERE'S A LOT OF YOU'RE TALKING 800 ACRES, OBVIOUSLY, ON THIS MUCH LAND. IT'D BE A MUCH DIFFERENT SCHEDULE.
RIGHT? AND I THINK THAT THAT'S WHERE I WOULD PROBABLY ENCOURAGE YOU GUYS TO LOOK AT THIS MORE IN TERMS OF THOSE THOSE MDPS OR MASTER DEVELOPMENT PLANS, THOSE INFRASTRUCTURE PLANS, THOSE EASEMENTS YOU'RE REFERRING TO, UNLESS OF 8,000,000FT² OF INDUSTRIAL HAVE BEEN BUILT.
RIGHT? BECAUSE THAT'S JUST NOT A MARKET SQUARE FOOTAGE TO BE BUILT IN IN FIVE YEARS.
SO BUT I THINK THAT WORKING WITH YOU GUYS ON SOMETHING LIKE THAT, I MEAN, YOU KNOW, AGAIN, WE ARE ARE VERY MUCH IN LINE WITH YOU GUYS COMING TO US WITH SOME OTHER END USER WHO SAYS, I WANT TO BE NEXT TO APPLIED OR WHOMEVER ELSE IT IS, AND, AND YOU SAY, HEY, GUYS YOU KNOW, LET'S, LET'S TALK ABOUT HOW TO PLAN OUT A PORTION OF THAT.
SO YOU KNOW, THE OTHER THING I WOULD SAY IS THAT THE SCENARIO YOU OUTLINED, THE CITY WAS PAYING MONEY.
WE'RE NOT ASKING FOR ANYTHING.
IN FACT, WE'RE PAYING THE CITY $600,000.
NOW YOU'RE PAYING THE ECONOMIC DEVELOPMENT CORPORATION. I JUST WANT TO MAKE THAT VERY CLEAR. WE'RE SEPARATE. WE'RE SEPARATE PEOPLE. REIMBURSEMENT COMES FROM CITY SALES TAX.
NO, IT COMES FROM ECONOMIC DEVELOPMENT CORPORATION SALES TAX.
IT'S A SEPARATE ELECTION AND IT'S ACQUIRED SEPARATELY.
BUT WE'RE NO WE'RE PAYING WE'RE NOT ASKING FOR ANY FAVORS.
WE'RE NOT ASKING FOR TAX ABATEMENTS OR ANYTHING LIKE THAT.
YOU GOTTA REMEMBER ALSO, WE'VE GOT THE EDC IN DIRECT COMPETITION TO US NEXT DOOR. AND AT ANY TIME COULD JUST, YOU KNOW, PULL THE RUG OUT FROM US AND SELL TO WHOEVER BECAUSE WE ARE GOING TO BE IN DIRECT
[00:40:06]
COMPETITION FOR, FOR LAND USE BECAUSE THOSE LAND USES ARE SIMILAR.WE'VE GOT TO EXPECT, I WOULD EXPECT THAT THE CITY'S LAND IS GOING TO DEVELOP FIRST AND TO CONSIDER THAT WHEN, WHEN YOU'RE LOOKING FOR TYPES OF LAND USES ON OURS AT THE FIRST, YOU KNOW, 454 ACRES OR WHATEVER IT IS TODAY OF INDUSTRIAL LAND WOULD OCCUR ON THE CITY'S MEGASITE. WELL, AND GARY, I THINK IT IS IT DOES GET KIND OF CONFUSING BECAUSE WHILE WE'RE SITTING HERE IN CITY HALL AND WE HAVE THE SALES TAX THAT WE'RE RECEIVING, THE CITY DOESN'T OWN ANY PART OF THIS LAND.
WHEN THIS IS OWNED BY THE ECONOMIC DEVELOPMENT CORPORATION, WE'VE GOT THE BONDS OUTSTANDING FOR IT. SO ANY ANY EXCHANGE OF THE LAND WE'RE BUYING.
WELL THE WE HAVE IS AN OPTION.
THE EDC HAS THE OPTION THOUGH RIGHT.
SO IF YOU'RE LOOKING AT TAKING A ASSESSMENT OF THE OPTIONS THAT THE EDC PAID FOR.
CORRECT. OKAY. SO NOT THE CITY I JUST KIND OF WANT TO I JUST WANT TO HAVE A DISTINCTION BETWEEN THE CITY OF HUTTO AND THE HUTTO ECONOMIC CORPORATION.
AND TRUST ME, YOU KNOW, I'VE BEEN IN CITY BUSINESS FOR OVER 20 YEARS.
AND EVEN I GET CONFUSED SOMETIMES BECAUSE THERE'S IT'S KIND OF A QUASI CITY ENTITY, BUT IT'S STILL A SEPARATE CORPORATION IN THAT WE'RE STILL APPOINTED BY THE CITY, BY THE CITY COUNCIL. BUT THIS PROPERTY THAT YOU'RE TALKING ABOUT, THE OPTIONS WERE OBTAINED THROUGH THE ECONOMIC DEVELOPMENT CORPORATION, NOT THE CITY OF HUTTO.
I MEAN, YOU COULD WORK WITH THE CITY OF HUTTO. YEAH. FROM A BUSINESS, IF YOU THOUGHT ABOUT LIKE A WHOLLY OWNED SUBSIDIARY OR AN AFFILIATE, THAT'S THAT'S WHOLLY OWNED BY BY THE THE PARENT CORPORATION.
THEY CALL US AN INSTRUMENTALITY OF THE CITY IS THE TERM BECAUSE WE I ALWAYS CALL IT WE'RE A NONPROFIT CORPORATION WITH SUPER POWERS, WHICH IS THE ECONOMIC DEVELOPMENT LAWS THAT APPLY. AND IT CAN BE CONFUSING, AND I GET THAT BECAUSE WE'RE JUST STILL WE JUST WANT YOU JUST KIND OF WANT TO LET YOU KNOW THAT WHEN YOU'RE TALKING ABOUT THE PURCHASE OF THOSE OPTIONS AND THE MONEY GOING BACK, IT'S NOT GOING TO GO BACK TO THE CITY, OKAY? IT'S GOING TO GO BACK TO THE CORPORATION ITSELF.
SO A COUPLE OF QUESTIONS THAT I DID HAVE IS THAT IN LOOKING IN WHAT YOU HAD HERE, DO WE KNOW WHAT THE CURRENT ZONING IS FOR THIS AREA? SO THIS IS ALL THIS IS ALL ETJ LAND.
AND I THINK A VERY SMALL, VERY SMALL PORTION OF IT HAS ANY IN FACT, I DON'T I DON'T KNOW THAT ANY OF THIS LAND I COULD GO TO THE IT'S ALL ETJ.
RIGHT. BUT I WAS GOING TO SAY I DON'T I DON'T THINK THAT YOU GUYS HAVE A DEVELOPMENT AGREEMENT AND ANNEXATION DEVELOPMENT AGREEMENTS LIKE Y'ALL PUT OUT, NOT Y'ALL. THE CITY PUT OUT.
YOU KNOW, WHAT WAS THAT THREE YEARS BACK? SO, YOU KNOW, TODAY, THIS IS THIS IS ALL ETJ LAND WITHOUT FORCED ANNEXATION BUILT INTO IT.
SO YEAH, IN THE DEVELOPMENTS THAT YOU'VE HAD IN THE PAST, WHEN I'M TALKING STRICTLY FROM A COMMERCIAL STANDPOINT, I KNOW THAT SOME OF THE OTHERS THAT WE HAVE VISITED WITH, THEY HAD A CLIENT BASE BY WHICH THEY WERE ABLE TO COME IN AND SAY, YOU KNOW, THIS IS WHO WE WORKED WITH IN THE PAST. AND SO I DIDN'T SEE ANY OF THAT IN THE PRESENTATION THAT YOU HAD.
DO YOU HAVE THE ABILITY TO KIND OF SIMPLY TELL US SOME OF THE ENTITIES THAT YOU WORKED WITH AND IN THE PAST THAT SOME OF THE DEVELOPMENTS THAT YOU'VE DONE, NOT THAT WE'RE DOING ANY LARGE SINGLE FAMILY SUBDIVISIONS ON HERE, BUT OR 400 ACRE RETAIL, YOU CAN LOOK AT ALL THE USERS INSIDE LAKELINE, RIGHT. AND LAKELAND VILLAGE, THAT'S A PROPERTY THAT I DID.
SURE. AND AND I AND AND I KNOW THAT THAT THAT IS ONE OF THE THINGS I THINK WE'VE HAD THIS CONVERSATION IN THE PAST. BUT FOR THE PURPOSES OF EVERYONE HERE AND ALSO THE PEOPLE LISTENING, WHAT I'M LOOKING AT IS PRIMARILY FROM AN INDUSTRIAL STANDPOINT, COMMERCIAL BUSINESS THAT YOU WORK WITH. BECAUSE, I MEAN, I THINK IT'S FAIR TO SAY THAT YOU'VE DONE A LOT OF RESIDENTIAL PROPERTY DEVELOPMENT AND YOU'VE DONE RETAIL. YOU KNOW, LIKE YOU SAID, LAKELINE MALL, THE RETAIL ESTABLISHMENT, THOSE HAVE BEEN DONE.
SO AND THAT'S AND THAT'S WHAT PEOPLE NEED TO KNOW. YOU'VE DONE THAT. BUT WHAT I'M LOOKING AT IS FOR MORE FROM AN INDUSTRIAL, COMMERCIAL STANDPOINT, WHAT BUSINESSES YOU'VE WORKED WITH. YEAH.
SO LIVE OAK IS A IS A INDUSTRIAL KIND OF OFFICE INDUSTRIAL COMPANY OUT OF AUSTIN.
THEY DO LARGE LOGISTICS DISTRIBUTION SPACES.
IRONWOOD PROPERTIES IS OUT OF DALLAS.
THEY DO LARGE THEY'RE BUILDING 1,000,000FT² FEET IN PFLUGERVILLE RIGHT NOW.
OUT OF THAT LAKESIDE MEADOWS MASTER PLAN.
THEY'RE ON PECAN AND WEISS LANE AND LIVE OAK.
DID THE YOU KNOW, HEATHER WALDEN, 45? YES. THE FURNITURE PLACE.
[00:45:01]
YEAH. LIVING SPACES. SO THEY BUILT THE THAT THE HAMBURGER PLACE AND THEN ALL THAT STUFF ON THE EAST SIDE OF HEATHER.SO I JUST DID A PROJECT THROUGH.
NOT YOU GUYS. THE CITY ASPEN HEIGHTS.
THEY'RE THEY BUILT THE INDEPENDENT TOWER DOWNTOWN.
THE JENGA TOWER. THEY DO TONS OF DETACHED, SINGLE FAMILY STUDENT MULTIFAMILY COMPLEXES.
AND HERE SO IF YOU WERE TO TAKE LIVE OAK STRAIGHT OUT TO ED SCHMIDT YOU CAN'T DO THAT RIGHT NOW, BUT YOU WILL HEAR SHORTLY.
ONE OF WHICH IS BECAUSE OF THIS PROJECT.
SO IT'S A 280 UNIT TOWNHOME AND DETACHED SINGLE FAMILY RENTAL COMMUNITY WITH A MAJOR ROAD EXPANSION AND THEN THREE ACRES OF GENERAL MIXED USE COMMERCIAL.
OF COURSE, WE'VE DONE THE LARGE SINGLE FAMILY DEALS HERE, SO I DID THE OTHER ONES.
THEY'RE NOT RETAIL, BUT EMPLOYMENT CENTERS ALONG PECAN PARK, THE LARGE OFFICE BUILDINGS ALONG THERE, THEIR EMPLOYMENT CENTERS. THEN OVER WHERE THE HOG FARM IS, NORWOOD, THERE ARE INDUSTRIAL SITES, ACTUALLY TEXAS DEPARTMENT OF TRANSPORTATION'S OVER THERE.
AND THEN YOU'VE GOT THE LONGEST LIST.
I JUST DID A BINDER FOR THE 700,000 SQUARE FOOT MANUFACTURING AND DISTRIBUTION CENTER ON HERITAGE. BOTH. NEXT DOOR.
IT'S IT'S ONE OF THE LOCAL INDUSTRIAL, YOU KNOW, BUILDING SOMETHING EVEN BIGGER THAN ITS INDUSTRIAL USE.
CLASS A WAREHOUSE NEXT TO JOHNSON KNIFE COMPANY SITE.
CLOSE TO NEXT DOOR IS KB HOME.
SO THAT'S A THAT'S A GOOD INDUSTRIAL CORRIDOR I NEGOTIATED WITH.
THE OTHER QUESTION I HAD IS UNDERSTANDING THAT AT THIS POINT IN TIME, THE INFRASTRUCTURE IS STILL BEING DEVELOPED AND TRYING TO WORK WITH.
I KNOW YOU SAID THAT YOU'RE NOT LOOKING FOR ANYTHING FROM THE CITY OR THE EDC, BUT I THINK YOU'RE STILL EXPECTING US TO STUB OUT, AT LEAST BE ABLE TO PROVIDE THE FUNDING FOR INFRASTRUCTURE.
OR HAVE YOU LOOKED AT THAT AS FAR AS UTILITY INFRASTRUCTURE, LOOKING FOR THE EDC TO EITHER EDC, THE CITY? SO YOU'RE GOING TO DRAG THE UTILITIES TO AND THROUGH. WELL, ON A DIFFERENT PROJECT TO THE SOUTH, WE PLAN ON BRINGING THE WASTEWATER SYSTEM FROM THE TREATMENT PLANT UP TO THE SOUTHEAST LOOP.
I THINK IT'S IMPORTANT TO THINK, BECAUSE I CAN HEAR SOME OF THE SOME OF Y'ALL'S QUESTIONS KIND OF COMING IN A, IN A, IN A CERTAIN LIGHT. AND I THINK IT'S IMPORTANT TO, AGAIN, KIND OF TAKE A STEP BACK AND LOOK AT THIS AS THIS IS A AN OVERALL LAND PLANNING, LAND ENTITLEMENT, LAND DEVELOPMENT DEVELOPMENT AS OPPOSED TO WE'RE BUILDING 05,000,000FT² OF, OF A BUILDING AND WE'RE PULLING AND WE'RE PULLING A GIANT WASTEWATER LINE TO SERVICE THAT BUILDING.
WHAT I'D LIKE FOR YOU ALL TO TO THINK OF THIS AS IS AS THIS LAND WHICH IS IN THE ETJ HAS NO SERVICES, HAS NO LAND USE, HAS NO END USERS, IS GOING TO ACHIEVE THOSE THROUGH A VISION OF LAND PLANNING UTILITY AGREEMENTS, NOT DRAGGING UTILITIES AND THEN WAITING.
BUT THROUGH UTILITY AGREEMENTS THAT WHEN WE HAVE THAT SITE MARKETED AND WHEN WE HAVE THAT END USER, WE WILL THEN WORK WITH THAT END USER ON GETTING THOSE UTILITIES TO THE SITE.
SO I THINK IT'S JUST I JUST WANT TO MAKE SURE THAT WE'RE WE'RE LOOKING AT IT THE WAY THAT WE'RE LOOKING AT IT. WHICH IS ON A, ON A MORE MACRO LEVEL, AGAIN, BECAUSE OF THE AMOUNT OF LAND THAT IT IS.
WE DON'T KNOW WHAT THE, WHAT THE DEMAND IS GOING TO BE FOR, FOR THE SITE. SO PULLING A WASTEWATER LINE UP THERE TODAY WOULD REALLY NOT HAVE ANY PURPOSE. WELL, AND THE REASON I ASK THAT QUESTION, ZACH, IS BECAUSE THAT'S A CONVERSATION PIECE THAT WE'VE HAD ALONG WITH THE CITY IS TRYING TO OBTAIN AND FIGURE OUT HOW WE GET THE UTILITIES TO THIS PLACE AND DRAGGING UTILITIES THERE. AND SO THE QUESTION I HAVE IS THAT IF IF IT'S BROUGHT UP JUST TO THE CORNER OF THE LOT, WHAT IS IT? YOUR PLAN TO BUILD IT OUT FROM THERE? WOULD YOU BE WANTING THE EDC TO BE ABLE TO PROVIDE INFRASTRUCTURE MONIES IN ORDER TO OR OR LAY THE INFRASTRUCTURE OURSELF TO BE ABLE TO GET THERE? THAT'S THE QUESTION I'M ASKING.
AND I UNDERSTAND THAT IT'S MORE OF A MACRO LEVEL, BUT THE DEVIL'S IN THE DETAIL SOMETIMES WHEN WE'RE TALKING ABOUT THESE THINGS.
BECAUSE WHAT THIS AND I DON'T WANT TO I DON'T WANT TO BE DISMISSIVE AT ALL.
BUT SO MUCH OF IT IS REACTIONARY TO WHAT THOSE END USERS ARE.
SO FOR INSTANCE, IF IF IT'S NOT APPLIED MATERIALS,
[00:50:02]
BUT IT'S SOME OTHER END USER THAT HAS SOME MASSIVE USE OF WATER AND WASTEWATER UTILITIES, LIKE THAT'S GOING TO DRASTICALLY SHIFT THE THE WASTEWATER PLANNING AND WATER PLANNING THAT YOU CAN HAVE THERE. BUT IF IT'S A USER THAT HAS LIMITED USES, THEN AGAIN YOU'RE GOING TO THINK OF IT COMPLETELY DIFFERENT. AND THAT'S ALSO GOING TO BE THE SAME HERE. SO AS WE'RE TALKING ABOUT WHAT SORTS OF, YOU KNOW, GOALPOSTS THAT WE'RE THINKING OF THAT'S GOING TO REALLY SHIFT WHAT THE OVERALL DEMAND IS GOING TO BE FOR THIS SYSTEM.AND BECAUSE OF THIS AMOUNT OF LAND, YOU'RE GOING TO HAVE PART OF THE SITE DRAINED THAT WAY. PART OF THE SITE PROBABLY COMING BACK HERE TO THE COTTONWOOD SYSTEM.
THERE'S JUST WHO KNOWS WHAT THE FUTURE IS RIGHT HERE.
SO I THINK IT IT WILL BE A, A REACTIONARY, EVOLVING PROCESS THAT STARTS WITH KIND OF THAT MACRO PLANNING AND STARTS WITH WHAT THESE END USERS MAY END UP BEING.
OKAY, SO WHAT I'M HEARING FROM A QUESTION IS, AT ANY POINT, IF I'M HEARING IT RIGHT AT ANY POINT, DO DO THEY THINK WE'RE GOING TO HELP OUT WITH UTILITIES? AND WHAT I'M HEARING THEM SAY IS, IS THE ANSWER IS NO.
BUT THEY DON'T KNOW WHAT THEY NEED FOR UTILITY NECESSARILY TODAY.
BUT WHEN THAT TIME COMES, THEY'RE GOING TO WORK WITH THE END USER ON THAT ON THEIR OWN AND WORK WITH THE WORK WITH CITY ENGINEERING ON THAT.
AND I THINK THAT IF LIKE, FOR INSTANCE, IF Y'ALL WERE SAYING, OKAY, WE'RE WE'RE BUILDING THIS SIZE LINE TO, YOU KNOW? STRAIGHT UP THE 3340? YEAH, STRAIGHT UP 33. 49.
HOW MUCH? YOU KNOW, UNTIL YOU KNOW WHAT WHAT CAPACITY DO YOU GUYS NEED? AND THEN WE WOULD WORK WITH YOU ALL ON WHAT SORT OF COST PARTICIPATION WE COULD PROBABLY CONTRIBUTE TO HAVE A LINE THAT'S SIZED APPROPRIATELY.
I THINK THAT WOULD BE SOMETHING THAT WOULD FIT INTO THAT.
BUT I THINK BY AND LARGE, SIMILAR TO WHAT HE WAS SAYING EARLIER ABOUT WORKING WITH YOU GUYS OR YOU GUYS BEING ABLE TO HAVE THE RECIPROCAL EASEMENTS TO BE ABLE TO WORK THROUGH THIS SITE.
WE WOULD WANT TO BE ABLE TO WORK WITH YOU GUYS ON ON GETTING EASEMENTS TO FOR, FOR ANY UTILITIES THAT MAY BE NEEDED.
I KNOW WHAT YOUR QUESTION WAS, BUT I DON'T WANT THE ANSWER TO BE THAT WE'RE PROVIDING YOUR WASTEWATER SERVICE AT OUR EXPENSE.
THAT'S MY QUESTION. SO YOU'RE ASKING US TO PAY FOR YOU? I'M ASKING, ARE YOU GOING TO WANT THE EDC TO PROVIDE THE UTILITY INFRASTRUCTURE WITHIN THIS TRACT OF LAND OR.
RIGHT? RIGHT. OKAY. SO YOU ARE YOU ASKING, ARE WE GOING TO PAY FOR YOU? ARE YOU ASKING US TO BE ABLE TO BRING IT UP TO THIS TRACT OF LAND? AND YOU TAKE IT FROM THERE? EXACTLY WHAT HE SAID. IF IF IT SERVICES BOTH OF US THAT WE SHARE IN THE COST.
AND IF THE CITY WANTED TO SAY, HERE'S WHAT I'M HEARING IS IF THE CITY SAID, THAT'S GREAT, GUYS. WE ALSO WANT YOU TO STUB IT OUT ON THE NORTH SIDE OF 79 AND UPSIZE IT.
12IN. I'M HEARING YOU GUYS SAY YOU'LL DO IT, BUT THAT'S WHERE THE COST SHARING COMES IN THAT THE CITY OR THE EDC WILL HAVE TO PAY FOR THE UPSIZING THE EXTRA 500FT, BECAUSE THEY'RE JUST GOING TO COMMIT TO THEIR PROPERTY AND TO THEIR USES.
BUT YOU KNOW HOW THE CITY ALWAYS WANTS TO UPSIZE EVERYTHING.
AND THE REASON I'M ASKING FOR UPSIZING, THE REASON I'M ASKING THIS QUESTION IS BECAUSE WE'VE HAD DISCUSSION WITH FINANCIAL ADVISOR ABOUT BONDING CAPACITY, BECAUSE OF THE FACT THAT ONE OF THE THINGS THAT WE'RE LOOKING AT IS WHAT'S WHAT IS IT GOING TO TAKE TO PROVIDE UTILITIES WITHIN THIS TRACT OF LAND WITHIN THE 1400 ACRES.
AND SO WE'RE ALREADY HAVING THE DISCUSSION INTERNALLY. BUT IF I'M HEARING THE DEVELOPER COMING IN SAYING, DON'T WORRY ABOUT IT, WE'LL TAKE CARE OF IT, THAT LESSENS THE BURDEN OF US HAVING TO LOOK AT THE BONDING CAPACITY THAT WE HAVE.
SURE. NOW, I UNDERSTAND YOUR QUESTION. WE CAN SPEND OUR MONEY ON CAPACITY, NOT ON DISTRIBUTION. SO IT CHANGES OUR CONVERSATION INTERNALLY.
BECOME YOUR BONDING SO WE CAN BE YOUR FINANCIAL PARTNER.
WE DON'T HAVE TO GET IT ALL UPFRONT AND WE WILL ACCEPT ZERO INTEREST JUST SO YOU KNOW.
THANK YOU. .01 WOULD BE FINE I GUESS.
SO ANY OTHER QUESTIONS BECAUSE I KNOW WE'VE GOT ANOTHER PRESENTATION.
OH SORRY. THANK YOU GUYS FOR YOUR TIME. THANK YOU.
I APPRECIATE YOU COMING IN. AWESOME.
SO HOW DO WE LEAVE? WE WILL BE IN TOUCH WITH YOU.
PROBABLY THROUGH BOB RIGHT THERE.
WE HAVE AN EXECUTIVE SESSION TO DISCUSS THIS, AND YOU'LL BE ABLE TO DISCUSS IT OUTSIDE THE MEMBERS OF THE PUBLIC.
SO THAT MAY BE SOMETHING THAT BOB OR I WOULD THANK YOU FOR COMING IN.
SO THANK YOU. WE'VE HAD A NUMBER OF DIFFERENT ORGANIZATIONS APPROACH US.
THE ONLY OTHER GROUP THAT WOULD BE TODAY IS APPROVED BY KANSAS CITY AFFILIATION HERE IN THE SAME SORT OF GENERAL BUSINESS OF LARGE SCALE LAND DEVELOPMENT.
AND I THINK THEY KIND OF REPRESENT A LITTLE BIT LARGER GROUP OF NATIONAL OUTREACH
[00:55:01]
CLIENTS. SO JUST A DIFFERENT PERSPECTIVE, SAME SET OF PROBLEMS. THEY KIND OF WHAT WE'RE TRYING TO DO.I THOUGHT IT'D BE HELPFUL FOR YOU TO HEAR A DIFFERENT APPROACH.
THANK YOU ALL. I THINK THEY'RE DIALING IN OR.
WE'RE TRYING TO GET THESE GUYS POSTED.
OH, THERE YOU GO. WHAT'S THE NAME OF THE COMPANY? IT'S CALLED FLINT DEVELOPMENT.
AND THEY ARE A THEY ARE A PARTNER WITH CBRE AND AGAIN, WORK, YOU KNOW, ACROSS THE COUNTRY DEVELOPING BUILD TO SUIT OPPORTUNITIES AND MASTER DEVELOPMENTS, THE ONES WE'VE HEARD FROM.
JUST SO YOU KNOW, AND I'LL BE SENDING OUT THE ACTUAL PACKAGES THAT WE RECEIVED IN TERMS OF CALLS AND STUFF. A GROUP OUT IN NEW YORK, NEW JERSEY CALLED KENNEDY INTERNATIONAL, WHICH REALLY BUILDS PRETTY MUCH STANDARD DISTRIBUTION TYPE FACILITIES.
THEY'VE BEEN LOOKING PRIMARILY JUST AT THE WEST SIDE OF THE PROPERTY OVER ON 132 CLOSEST TO COVERT AND WOULD BE HAPPY TO TAKE 150 ACRES AND, YOU KNOW, DEVELOP IT OUT RELATIVELY QUICKLY AND SO ON.
WE'VE WE'VE SEEN A GROUP THE MAYOR AND MIKE AND I HAD AN OPPORTUNITY TO TALK TO A GROUP THAT JUST HAPPENED TO BE IN TOWN LAST WEEK, WHICH WAS A LITTLE BIT MORE OF A MASTER PLANNING GROUP, BUT WITH A TECH FOCUS, AND SO WE SPENT A LITTLE TIME WITH THEM TRYING TO UNDERSTAND WHAT WHAT THEY WERE ALL ABOUT.
I WAS VERY IMPRESSED BY WHAT THEY'RE DOING, WHO THEY'RE DOING IT FOR, AND I THOUGHT THEY'D BE A NICE COUNTERPOINT JUST TO HAVING A LOCAL OPTION IF WE WANTED TO CONSIDER MORE THAN THAT.
SO THEY WERE GRACIOUS ENOUGH TO INTRODUCE THEIR TEAM, AND WE'RE GOING TO TURN IT OVER TO THEM HERE IN JUST A MINUTE IF THEY'RE CONNECTED.
LOOKS LIKE IT. WHAT WAS THE NAME OF THE COMPANY WE MET WITH, MIKE? I DON'T KNOW THAT YOU SHOULD SAY THAT NOW.
YEAH. PUBLIC SESSION. A LITTLE FURTHER BACK.
GENTLEMEN, I THINK THIS IS THE ENTITY FROM FLINT TECH.
CORRECT. CAN YOU HEAR ME? MIGHT BE MUTED.
CAN YOU HEAR US? I THINK THERE'S STILL MUTED.
I SEE NODS HEADING. NO I DON'T SEE NODS.
ALL RIGHT, I HEAR US. I CAN HEAR US NOW.
I GOT THUMBS UP. OKAY, PERFECT.
CAN WE HEAR YOU? CAN Y'ALL TALK? JUMP UP AND DOWN AND SCREAM.
IS THERE CALL IN NUMBER OR SOMETHING? AS AN ALTERNATIVE. WHAT DOES THE BUTTON SAYS? MUTE. ALL THAT'S CLICKED.
NO, IT SHOWS THEM THAT THEY'RE NOT MUTED OVER HERE.
THE TOP. THEIR MICROPHONES ARE GOING UP AND DOWN. IT'LL SAY THAT'LL AUTOMATICALLY HIT THE ALLOWED TO UNMUTE PARTICIPANTS TO UNMUTE.
YEAH. CLICK ON THAT AND LET'S SEE.
NO I'M SORRY. I'LL PUT IT BACK.
YES, YES. MUTE ALL CURRENT AND NEW PARTICIPANTS BUT ALLOW PARTICIPANTS TO UNMUTE THEMSELVES. OKAY. YOU SHOULD BE ABLE TO UNMUTE YOURSELF NOW.
OH LOOK, I THINK I CAN HEAR HIM.
WILL YOU UNMUTE YOURSELF? UNMUTE. I JUST UNMUTED YOUR END.
CAN YOU HEAR US? CAN YOU UNMUTE YOURSELF? THERE YOU GO. NOW TRY IT AGAIN.
SOMETHING? OH. HOLD ON, MAYBE I NEED TO TURN IT UP HERE.
HOW MANY BOARD MEMBERS DOES IT TAKE TO OPERATE? WHY DON'T YOU TRY SAYING SOMETHING AGAIN? SEE IF WE CAN HEAR YOU. NOPE.
NOPE. I THINK I KNOW THE PROBLEM.
HOLD ON. I CAN'T HEAR YOU. JUST A MOMENT.
YOU GOT A COMPUTER WHIZ HERE? OKAY. USE THE CHAT TO.
I THINK IT'S THE SAME. IT'S THE RIGHT SPEAKER, RIGHT? I MEAN, YOU COULD HEAR. THE SOUND VOLUME WHEN SHE MESSED WITH IT.
THAT'S HOW MOST OF MY CONFERENCE CALLS AT WORK START. YEAH.
TEN MINUTES OF HERE. CAN SOMEONE COME IN AND GET THIS? HELLO? HELLO? YEAH, WE SEE YOU.
THERE YOU GO. LET ME STOP THAT.
[01:00:03]
OKAY. YEAH, I KNOW, WE'RE GOOD.HEY, HEY. I TOLD YOU WE HAD ACCOMPLISHMENTS, RANDALL.
I DIDN'T HAVE MUCH FAITH IN YOU, BUT THAT THAT YOU PULLED IT OFF.
CONGRATULATIONS. GUY OVER THERE. IT MIGHT NOT HAPPEN, BUT. OKAY.
GENTLEMEN, I APPRECIATE YOU BEING HERE. MY NAME IS MIKE. I'M WITH THE ECONOMIC DEVELOPMENT CORPORATION. I'M THE CHAIRMAN. WE DO HAVE OUR BOARD MEMBERS PRESENT. JUST TO LET YOU KNOW, YOU ARE IN THE MIDDLE OF OUR ECONOMIC DEVELOPMENT BOARD MEETING.
SO I BELIEVE YOU HAVE A PRESENTATION TO US THAT WE CAN FULFILL OUR AGENDA ITEM 5.1, WHICH IS CONDUCT A WORKSHOP TO RECEIVE PRESENTATIONS FROM ECONOMIC DEVELOPMENT PROSPECTS SEEKING THE ASSIGNMENT OF LAND USE PURCHASE OPTIONS AGREEMENTS HELD BY THE CORPORATION FOR THE ACQUISITION OF LAND IN AND ABOUT THE MEGA SITE.
SO I'M GOING TO TURN IT OVER TO YOU AND LET YOU GO AHEAD AND DO YOUR PRESENTATION.
GOOD EVENING EVERYBODY. THIS IS FROM KANSAS CITY.
YOU HAVE THE FLINT DEVELOPMENT TEAM AND OUR ASSOCIATED PARTNERS HERE WITH YOU.
THANKS FOR ALLOWING US TO DO A BRIEF PRESENTATION FOR YOU ABOUT OUR ABILITIES AND OUR INTEREST IN THIS SITE.
TWO OF OUR PRINCIPAL ARCHITECTURAL PARTNERS WITH DAVIDSON.
THEY THEY WORK ON ALL OF OUR PROJECTS THROUGHOUT THE COUNTRY.
COURT MAXWELL WITH THE LAW FIRM, A NATIONAL LAW FIRM THAT HANDLES ALL OF OUR WORK IS ERIC BREWER WITH BURNS AND MCDONALD.
THEY ARE OUR CAPITAL PARTNER ON ALL OF FLYNN'S PROJECTS THROUGHOUT THE LOWER 48 STATES HERE. MY BUSINESS PARTNER, DEVIN SCHUSTER AND KALE JOYCE, ALSO WITH FLINT HERE AS WELL.
WE ARE TRYING TO IS THERE ABILITY FOR US TO SHARE OUR SCREEN OR COULD THAT BE ALLOWED? YES. SHOULD BE ABLE TO MAKE THEM A CO-HOST, I THINK.
YEAH. I THINK YOU HAVE TO ASSIGN CO-HOST PRIVILEGES TO THEM.
RANDALL, DO YOU KNOW HOW TO DO THAT? RANDALL, GET ON THAT. BY THE TIME OUR COMPUTER GURU GO THERE AGAIN.
RANDALL, COULD YOU JUST SIT THERE? YEAH. COULD YOU JUST TAKE OVER THAT? NOW THEY ALL KNOW WHO RANDALL IS, RIGHT? SORRY FOR THE DIFFICULTIES HERE.
WE'RE ALL GOOD. I THINK IT'S A SHORT BETWEEN THE INSTRUMENT AND THE OPERATOR.
OH, WE'VE NOW MADE YOU ALL THE HOSTS, SO YOU CAN THEN SHARE.
SHOULD BE ABLE TO SHARE NOW, AND THEN WE'LL GO AHEAD AND GO TO SPEAKER.
SO THE ONLY PERSON TALKING WILL BE FULL SCREEN.
OKAY. CAN YOU SEE OUR SCREEN WITH THE LOGO? YES. NOW WE'RE SEEING YOU KNOW, WE'RE SEEING OURSELVES.
WHAT WE'RE SEEING KIND OF FREAKING US OUT A LITTLE BIT.
NO. IT'S THEM. THEY'RE SHARING THE WRONG SCREEN THERE.
OH, I THINK THEY WERE JUST LIKE YOU WERE SHARING THE WRONG SCREEN, IS WHAT IT WAS. OKAY, GO AHEAD AND TRY.
GIVE IT A SECOND. YOU SEE, YOU STILL TRYING TO LOAD UP? THERE YOU GO. ALL RIGHT.
OKAY. WE'LL JUST KIND OF BLOW THROUGH THIS.
SO AGAIN, WE ARE A KANSAS CITY BASED ORGANIZATION DOING CLASS A INDUSTRIAL SPECULATIVE DEVELOPMENT THROUGHOUT THE COUNTRY.
WE'RE A SMALL TEAM. WE PRIDE OURSELVES ON BEING FAST, FRIENDLY, FLEXIBLE WHEN IT COMES TO TAKING ON NEW SITES.
WE WERE ON SITE TWO WEEKS AGO TO REVIEW THIS WITH OUR ENTIRE TEAM.
ONCE WE LEARNED OF ITS POTENTIAL AVAILABILITY TO THE MARKET TO, TO BE CANDID, WE LOVED IT.
WE'VE IDENTIFIED THIS AS A TOP OPPORTUNITY FOR OUR TEAM AND WOULD LOOK FORWARD TO A PARTNERSHIP HERE WITH YOU.
YES. THERE YOU GO. A LITTLE BIT ABOUT US.
AT PRESENT, WE HAVE JUST UNDER 8,000,000FT² UNDER CONSTRUCTION IN OUR DEVELOPMENT PIPELINE. SO THOSE ARE PROJECTS THAT THE LAND IS UNDER CONTRACT WHERE WE'RE IN DESIGN OR VARIOUS STAGES OF ENTITLEMENT IS A LITTLE OVER 18,000,000FT².
[01:05:05]
A FEW OF THE TENANTS THAT WE'RE WERE PRESENTLY WORKING WITH THROUGHOUT OUR, THROUGHOUT THE MARKET.THIS IS PROBABLY THE OLDEST PORTION HERE.
RIGHT NOW WE FOCUS ON EMERGING MARKETS FOR CLASS A INDUSTRIAL DEVELOPMENT.
AND IN DOING SO, WHAT WE HAVE CUSTOMARILY DONE HAS BEEN BUILDING ONE OF THE LARGER SPEC BUILDINGS THAT THE MARKET IS SEEING.
WE DO THAT IN ORDER TO DIFFERENTIATE OURSELVES AND OUR, OUR PRODUCT FROM THE COMPETITION.
WE HAVE ENGAGED WITH CBRE TO HELP US WITH THIS PROJECT.
THEY ARE HELPING US WITH A PROJECT IN EL PASO.
A GOOD EXAMPLE THERE WHERE, YOU KNOW, HISTORICALLY, 2 TO 300,000 SQUARE FOOT BUILDINGS ARE THE LARGEST THAT HAVE BEEN EVER BUILT BY THE LOCAL DEVELOPERS. WE ENTERED THAT MARKET THIS YEAR AND ARE UNDER CONSTRUCTION ON A 800,000 SQUARE FOOT BUILDING AND COMPANION 211,000 SQUARE FOOT BUILDING.
RIGHT OFF THE INTERSTATE THUS FAR IN EVERY SCENARIO.
OUR THESIS HAS PROVEN CORRECT THAT THESE USERS AND THESE OCCUPIERS REQUEST SIZES FOR SPACE ARE INCREASING ON A DAILY BASIS.
AND WE'RE SEEING A MIX OF TENANTS INTERESTED IN IN THE DEVELOPMENTS THAT WE DO.
PROBABLY HALF IN THE MANUFACTURING SECTOR AND THE OTHER HALF IN DISTRIBUTION AND LOGISTICS.
THAT'S IN LARGE PART DUE TO THE RISE OF E-COMMERCE AND ALSO THE ONSHORING AND RESHORING OF AMERICAN MANUFACTURING.
SO A TEAM HERE WHO IS ABOUT THE COUNTRY NOTICING STUDYING MARKET DYNAMICS AND HOW THOSE PARALLEL TO EACH OF THESE INDIVIDUAL PROJECTS AND AS SUCH, ARE VERY EXCITED ABOUT THE THE OPPORTUNITY HERE WITH YOU.
AND WE HAVE WHAT WE'RE GOING TO SHARE WITH YOU THIS EVENING ARE SOME INSPIRATIONAL IMAGES THAT WE'VE PUT TOGETHER FOR OUR CONCEPTUAL BUILDING DESIGN, BASED ON OUR DESIGN PARTNERS HERE.
SO WE'LL BRIEFLY KIND OF WALK THROUGH THAT.
OF THE TYPE AND STYLE OF QUALITY OF ARCHITECTURE THAT WE'VE BEEN WORKING WITH.
AND THEN LASTLY WE HAVE PREPARED WHAT WAS A CONCEPT SITE PLAN HERE THAT WE'RE GOING TO SHARE WITH YOU. THIS IS JUST OUR OUR FIRST BITE AT THE APPLE, SO TO SPEAK, PERHAPS A LITTLE BIT LARGER BUILDING SIZE THAN WHAT WE WOULD BUILD IN FULL FRUITION AFTER ENGAGING WITH CBRE OVER THE WEEKEND INTO MONDAY ABOUT WHAT THEY SEE AS A SUITABLE MIX OF BUILDING SIZES AND TENANTS.
ONE OF THE KEY ISSUES THAT WE'VE IDENTIFIED THUS FAR IS THE AT GRADE RAIL CROSSING THAT YOU CAN SEE HERE, RIGHT ON THE PRIMARY ARTERIAL THAT WILL NEED TO BE IMPROVED.
PERSONALLY, WE FEEL LIKE WE NEED TO FIND A SOLUTION FOR THAT.
WE HAVE WE HAVE CONCEPTED ONE SUCH, WHICH IS CHRIS.
PERHAPS YOU WANT TO EXPLAIN THAT? SURE. YEAH. WHAT THIS CONCEPT KIND OF ENTAILS IS A SINGLE RAMP THAT WOULD GO OVER THE HIGHWAY, AS WELL AS THE RAIL CROSSING TO REALLY CONSOLIDATE COSTS AND NOT NEED MULTIPLE RAMPS TO GET TO THE LOGISTICS SIDE OF THIS SITE OVER THAT RAIL.
SO REALLY, WHAT YOU'RE LOOKING AT HERE IS THE ABILITY TO, WHETHER YOU'RE HEADING EAST OR WEST TO GET OFF THE HIGHWAY, COME TO THAT INTERSECTION AT THE SIGNAL, TRAVEL NORTH, COME BACK TO THE MAIN ROAD AND THEN BE ABLE TO TRAVEL NORTH OR SOUTH AND GO OVER THE RAMP AT THAT POINT TO ACCESS THIS SITE, AS WELL AS THE REST OF THE MEGA SITE AS IT CONTINUES TO THE EAST.
YOU KNOW, FROM OUR PERSPECTIVE, WE THINK THE TIME IS NIGH FOR SPECULATIVE PROJECTS AT THIS SITE.
SHOULD WE BE ABLE TO WORK THROUGH SOME OF THESE DETAILS? AND IT FEELS VERY ANALOGOUS TO A CURRENT PROJECT THAT WE HAVE THAT YOU WOULD SEE ON THAT MAP IF YOU COULD BRING UP THAT BROCHURE.
WHAT WE'LL SHARE WITH YOU HERE IS A PROJECT THAT WE'RE DOING IN DE SOTO, KANSAS. DE SOTO IS A SMALL BEDROOM COMMUNITY TO KANSAS CITY.
AND THAT'S NOT TO DRAW AN ANALOGY WITH HUTTO, BUT JUST WHERE THEY ARE IN THE DEVELOPMENT CYCLE.
WE WERE AWARDED THIS PROJECT FROM THE OPTION HOLDER, WHO HAPPENED TO BE THE DESOTO CHAMBER OF COMMERCE.
THEY HAD SEEN A LOT OF INTEREST IN THIS SITE OVER THE YEARS, BUT NEVER GOT BITES BECAUSE THERE WAS INFRASTRUCTURE THAT NEEDED TO BE COMPLETED.
[01:10:03]
PARTICULARLY THERE WERE NO SEWER ACCESS TO THE SITE.THE ROADS WERE INSUFFICIENT ABUTTING THE SITE FOR MAJOR TRUCKS AND HEAVY CAR TRAFFIC FOR TYPES OF USERS. AND THE SITE IS UNGRADED, SO IT'S IT'S GREAT IN CONCEPT.
BUT WHAT WE HAVE FOUND IS THESE USERS, WHEN THEY APPROACH A SITE, THEY'RE LOOKING FOR SHOVEL READY OPPORTUNITIES.
SO WE WORKED WITH THE CITY, THE CHAMBER IN THEIR COUNCIL ON THIS PROJECT WERE RECENTLY AWARDED REZONING.
WE ARE NOW LOOKING TO CLOSE ON THIS PROJECT IN THE NEXT MONTH OR TWO.
AND WHAT WHAT IS DOING IS TAKING OVER THE PURCHASE CONTRACT WORKING THROUGH A DEVELOPMENT AGREEMENT WITH THE CITY WE ARE GOING TO PROVIDE.
JUST PAUSE THERE. PROVIDE INFRASTRUCTURE IMPROVEMENTS TO THE SITE.
A NEW THOROUGHFARE, STREET ABUTTING BUILDINGS A, B AND C THAT YOU CAN SEE HERE BRINGING SEWER TO THE SITE WITH THE CITY UNDER A DESIGN BUILD APPROACH. HEY, GUYS.
SO THAT WE I DON'T MEAN TO MAKE THIS.
SORRY. I DON'T MEAN TO CUT YOU OFF. SORRY.
I DON'T MEAN TO CUT YOU OFF. IS THERE A DIFFERENT PRESENTATION THAT YOU'RE PUTTING? ALL WE SEE IS THE HUTTO, TEXAS PITCH DECK.
GO BACK. THEY LOST EVERYTHING.
HAVE YOU SEEN ANYTHING? YEAH, THEY THEY STOPPED THE SWITCH.
OKAY. GO TO YOUR MEETING AT THE TOP.
DIDN'T WANT TO THROW A WRENCH IN Y'ALL'S PRESENTATION, BUT YOU GUYS ARE DESCRIBING BUILDING AS A AND B, AND WE WEREN'T SEEING THAT.
SO SORRY ABOUT THAT. THAT'S FINE.
YOU KNOW, YOU'D THINK WE'D HAVE IT BY NOW, RIGHT? AT LEAST NOBODY'S. YOU THINK YOU DO? WELL, RIGHT? RIGHT. CAN YOU SEE THIS NOW? LIKE IT'S COMING OUT SLOWLY.
HERE. NOW WE SEE THREE ITEMS. ONE FOLDER AND TWO PDFS.
WELL, WE PROMISE IT'S A SUPER COOL PROJECT.
YOU'LL LOVE IT. SO. THAT'S ALL WE NEED TO KNOW.
NO. IN ALL SINCERITY, IT'S A 370 ACRE TRACT THAT IS CURRENTLY JUST FARM FIELDS. AND MAJOR USERS AND OCCUPIERS HAVE WANTED TO WORK ON THIS SITE, BUT YOU'VE GOT AN ABSENCE OF UTILITIES AND INFRASTRUCTURE UPGRADES THAT NEED TO HAPPEN.
WE'RE COMING IN. WE'RE FUNDING THAT.
WE'RE CLOSING THE SITE IN CASH, AND WE'RE GOING TO SPEND APPROXIMATELY $25 MILLION, ALL TOLD, TO GET THIS THING READY AT THE END OF THE DAY.
OUR BUSINESS PLAN, FROM FLINT'S PERSPECTIVE, IS TRULY FLEXIBLE.
WE'RE GOING TO BE ABLE TO DELIVER PAD SITES TO USERS.
IF SOMEBODY WANTS TO COME IN AND BUY LAND.
THEY MUTED. I'M SORRY YOU'RE MUTED.
YEAH WE SEE WHAT YOU WERE TRYING TO SHOW US. BUT NOW YOU'RE MUTED. SEE WHAT YOU'RE TALKING ABOUT. NOW YOU'RE MUTED.
THIS IS WHY REMOTE WILL NOT LAST FOREVER.
YOU'RE YOU'RE MUTED. IT'S TRUE.
YOU'RE MUTED. THERE'S THE BUTTON.
PUSH IT. THIS IS I GOT IT FIGURED OUT.
THERE'S AN UPDATE. AND THEN IT CHANGES HOW YOU DO IT.
AND I'M LIKE. YOU'RE UNMUTED NOW. YOU'RE UNMUTED. THAT'S FINE. IT'S ONE OR THE OTHER, APPARENTLY. YEAH.
OH, OKAY. IT'S A MONDAY EVEN FOR TECHNOLOGY.
I'M LIKE, NO. WE'LL SEND YOU THAT BROCHURE AS A FOLLOW UP.
IT'S IT'S A IT'S A VERY ANALOGOUS PROJECT TO WHAT WE THINK YOU'RE PROBABLY HOPING TO ACCOMPLISH HERE. LONG STORY SHORT WE'RE VERY INTERESTED IN THIS OPPORTUNITY.
WE CAN REACT QUICKLY. WE HAVE A DEDICATED CAPITAL PARTNER HERE WHO'S SITTING IN THE ROOM. ALL OF THE DECISION MAKERS ARE HERE.
WE MOVE FAST. WHEN WE IDENTIFY A SITE THAT WE'RE INTERESTED IN, OUR DESIGN TEAM PRODUCES CONCEPT PLANS WITHIN THE SAME BUSINESS DAY, BUT SOMETHING WE'RE INTERESTED IN. WE GET LOI OUT IN 24 HOURS.
[01:15:03]
OUR ENTIRE LEGAL TEAM IS INTEGRATED WITH US SO THAT WE TURN PURCHASE AGREEMENTS IN 24 HOURS, LEASES 24 HOURS.SPEED WINS DEALS, AND TIME KILLS THEM IN OUR IN OUR WORLD.
WE THINK THAT'S LIKELY THE CASE HERE.
AND WE'D BE VERY PLEASED TO CONTINUE DISCUSSIONS ABOUT HOW WE COULDN'T HELP YOU WITH THIS SITE. AGAIN, WE HAVE AN INTEREST IN BUILDING SPECULATIVELY HERE, AND WE THINK WITH THE PROPER GRADING AND INFRASTRUCTURE IN PLACE, IT'LL ALSO GET A LOT OF ATTRACTION FROM OTHER USERS WHO MIGHT WANT TO BUY LAND FOR US FOR THEIR OWN FACILITIES, SHOULD THEY HAVE THE NEED TO OWN THEM AND NOT WANT TO LEASE FROM US. SO WE'RE ULTIMATELY FLEXIBLE.
GOOD GROUP OF PEOPLE TO WORK WITH, AND WE CAN BE DOWN THERE TO SEE US AS SOON AS ABLE. OKAY. I THINK WE MAY HAVE SOME QUESTIONS FOR YOU FROM OUR BOARD MEMBERS.
BOARD. ANY QUESTIONS? DO YOU HAVE SOMETHING? GO AHEAD. WELL, I WAS GOING TO SAY I'M SURE YOU PROBABLY WANT TO ASK ABOUT THE CLAWBACK, RIGHT? WELL, I WAS GOING TO SAY, I SEE IN YOUR PRESENTATION YOU HAD A BRIDGE WITH LIKE, KIND OF A, A LOOP OVER 79 IS THAT, YOU KNOW, BECAUSE WHEN WE LOOK AT THE LONG TERM DEVELOPMENT PLAN, THAT'S GOING TO BE A MAJOR ARTERIAL ROAD FOR HUTTO.
BUT IT LOOKS LIKE IN YOUR DESIGN YOU WERE LOOKING AT MAINLY JUST TO BE TO YOUR SITE.
SO HAVE YOU. ARE YOU LOOKING AT SIZING THAT SO THAT IT WORKS ACROSS THE CITY OF HUTTO AND ALL OUR RESIDENTS, OR JUST TO YOUR SITE? BECAUSE THAT'S A COMPLETELY DIFFERENT DISCUSSION. AND THEN THAT PUTS IN A COST MODEL FOR US AS WELL.
I THINK WHAT WE WANT TO POINT OUT IS SO THIS IS THE THE PRELIMINARY THOUGHT.
THE FACT OF THE MATTER IS AN AT GRADE RAIL CROSSING FOR FOR A BUSINESS, AN INDUSTRIAL PARK LIKE, YOU KNOW, WANTS TO BE CREATED HERE IS A MAJOR PROBLEM A HUGE RED FLAG FROM A SITE SELECTORS PERSPECTIVE.
AND WE'VE SEEN IT TIME AND TIME AGAIN WITH OCCUPIERS.
SO WHETHER THAT YOU KNOW, THAT'S THE PRECISE FIX FOR THE PROBLEM IS, YOU KNOW, CAN BE DEBATED AND STUDIED WITH, YOU KNOW, ENGINEERS AND INTEGRATED WITHIN YOUR TRANSPORTATION INFRASTRUCTURE PLAN.
WE JUST KNOW SOMETHING NEEDS TO HAPPEN THERE IN SOME FORM OR FASHION FOR THIS TO BE SUCCESSFUL LONG TERM. BUT THERE'S NO INTENTION FOR THAT, ONLY TO SERVE US, NO SERVE A MUCH WIDER AREA OF THE CITY BESIDES TO THE RIGHT, APPROPRIATE WAY, WE WORK WITH, IN PARTNERSHIP WITH THE ECONOMIC DEVELOPMENT BOARD AND THE CITY TO MAKE SURE IT'S A WIN WIN FOR THE WHOLE ENTIRE COMMUNITY.
IT WAS NOT INTENDED IN ANY WAY TO SHOW THIS VERY QUICK SOLUTION WE CAME UP WITH TO BE SOLELY DEDICATED TO THIS PROJECT.
OKAY. AND I THINK THAT PROBABLY IT'S JUST A MATTER OF NOT UNDERSTANDING AND HAVING THE OR BEING PRIVY TO THE INFORMATION THAT'S OUT THERE ABOUT THE, THE WAY THAT EVERYTHING'S GOING TO BE DEVELOPED OUT AS FAR AS A MAJOR ARTERIAL AND OVERPASS GOING TO BE ON THE EAST SIDE OF THAT PROPERTY.
SO I THINK ONCE YOU'RE ABLE TO SEE THAT, THEN IT'LL PROBABLY DEFINITELY CHANGE YOUR SCOPE OF IT. BUT WHAT I'M LOOKING FOR IS MORE KIND OF JUST IN THE INTERIOR BASIS OF THE TRACT ITSELF. ANY OTHER QUESTIONS ANYBODY WANTS TO PASS ON OR ASK? GOOD. WELL, TO FOLLOW UP ON COMMISSIONER CLARK, SO THAT BRIDGE, AS IT'S KIND OF OUTLINED FOR THE CITY, WAS TO HAVE A JUGHANDLE, JUST LIKE YOU GUYS HAVE COMING BACK TO 79.
AND SO MAYBE I DON'T KNOW WHAT YOU GUYS HAVE IN YOUR PROFORMA FOR BUILDING A BRIDGE OUT HERE. WE HAVE SOME PRELIMINARY COSTS, BUT MAYBE, MAYBE IF THERE'S AN LOI OR SOMETHING YOU GUYS CAN PUT IN THERE THAT YOU'LL PAY UP TO, YOU KNOW, X AMOUNT TOWARDS THAT BRIDGE.
MAYBE WE CAN DO A 380 TO REIMBURSE YOU FOR THAT.
AND YOU GUYS ARE DOING A 224 ACRE IS YOUR IDEA? IS THAT RIGHT? YEAH. I THINK WE HAVE SOME FLEXIBILITY THERE, SO WE HAVE TO START SOMEWHERE.
OBVIOUSLY, WE'RE NOT GOING TO BUILD ALL THIS AT ONCE.
YOU KNOW, AN IDEA IS, YOU KNOW, IS IS BUILDINGS BECOME LEASED AND BECOME SUCCESSFUL. YOU KNOW, PERHAPS WE COULD TAKE ON ADDITIONAL PHASES OF DEVELOPMENT AS WELL ON KIND OF A, YOU KNOW, A MUST TAKE SORT OF SCENARIO.
WE WE OBVIOUSLY DON'T WANT TO FLOOD THE MARKET EITHER WITH PRODUCT THAT'S GOING TO SIT THERE VACANT. IT'S NOT A GOOD LOOK FOR A PROJECT.
SO WE WANT TO BE MINDFUL OF THAT AS WELL.
SO THE WAY I UNDERSTAND OUR OPTION AGREEMENTS ARE THAT WE'RE EITHER GOING TO HAVE TO BUY, LIKE WHAT IS IT, 700 ACRES AT ONCE COMING UP, OR WE DON'T BUY ANY. NO, NO, WE HAVE SOME FLEXIBILITY.
SO THE PIECE THEY'RE LOOKING AT ON THAT SIDE IS 200 AND ROUGHLY 224 THAT CAN BE PURCHASED IN PARTS OR IN TOTAL. OKAY.
SO WE CAN BUY THAT AND NOT DO THE REST OF THE DEAL ALSO.
[01:20:04]
OKAY. OKAY. HOW SOON CAN YOU GUYS CLOSE ON PROPERTY, LIKE ON THIS 224 ACRES? WE UNDERSTAND THAT YOUR CONTRACT DATE IS APRIL 30TH.CAN YOU SAY IT AGAIN? THAT'S THE DEADLINE. APRIL 30TH IS THE DEADLINE FOR CLOSING UNDER THE ASSIGNMENTS. I THINK IF, YOU KNOW, WE WERE SELECTED FOR US MOVING FORWARD WITH YOU, THAT'S ATTAINABLE.
THAT'S REALLY QUICK. BUT WE WOULD HAVE TO REDEDICATE SOME RESOURCES TO MAKE SURE THAT WE. GET ALL OF OUR DUE DILIGENCE DONE AND IN VERY SHORT ORDER HERE.
IT'S ALMOST LIKE A BUILT IN TEST TO SEE HOW MUCH CAPITAL YOU HAVE AND HOW QUICKLY YOU CAN ACCESS IT. ANY OTHER QUESTIONS? NO. I'M SORRY. GO AHEAD.
I KNOW IT'S ALWAYS A QUESTION FOR THE LAND SELLERS OR OPTIONS.
WE'VE GOT FOR 300 MILLION IN COMMITMENTS THROUGHOUT OUR INVESTMENT PORTFOLIO AND ROOM TO GROW. SO 2025 MILLION IN THE LAND PURCHASE IS NOT OUTSIDE OF OUR REALM.
WE'VE GONE AS SMALL AS 5 MILLION.
AND I'VE GOT ONE PROJECT WHERE WE'VE GOT UPWARDS OF 55 MILLION IN A SINGLE INVESTMENT.
OKAY. AND ON THE SIDE OF REDEDICATING RESOURCES LIKE THIS IS THAT'S NOT SOMETHING THAT'S. WE HAVE DONE THAT BEFORE.
THIS TEAM HAS BEEN ABLE TO EXECUTE DEALS IN 90 DAYS OR LESS THAT WE'VE LOOKED AT, WORKED WITH OPTIONS, WORKED WITH CONTRACT PURCHASERS, TAKEN OVER CONTRACTS AND SUCCESSFULLY GOT TO THE FINISH LINE.
QUESTION I WANT TO ASK YOU, WHICH I'VE ASKED THE OTHER DEVELOPERS HERE, WAS CURRENTLY IN THAT PARTICULAR TRACT OF LAND, THE 1400 ACRES THAT WE HAVE.
WE'RE LOOKING ALSO AT HAVING TO BE ABLE TO PROVIDE UTILITY INFRASTRUCTURE AT THIS POINT IN TIME. THERE IS NO WATER WASTEWATER THERE.
AND MY QUESTION THAT I HAVE FOR YOU IN THE SECTION THAT YOU'RE LOOKING AT IN THE DEVELOPMENT OF THAT, IS THAT GOING TO INCLUDE THE INFRASTRUCTURE LAYOUT ON YOUR PART? ARE YOU LOOKING FOR THE EDC TO BE ABLE TO TO PROVIDE IT ALL OR PARTNER WITH EDC? HAVE YOU PUT ANY THOUGHT AS TO WHAT THAT WOULD ENTAIL FROM YOUR END, FROM A UTILITY INFRASTRUCTURE STANDPOINT? IF YOU DON'T HAVE AN ANSWER, THAT'S FINE. I JUST DIDN'T KNOW IF THAT WAS SOMETHING THAT YOU MIGHT HAVE CONSIDERED AND THOUGHT ABOUT. YEAH, I MEAN, TYPICALLY WE WOULD WORK JUST LIKE WITH THE CITY TO UNDERSTAND WHERE THESE CONNECTION POINTS ARE, WHERE THE TIE INS ARE AT, AND COME UP WITH AN EFFECTIVE UTILITY PLAN.
TYPICALLY, WE WOULD WORK IN PARTNERSHIP.
WHETHER IT'S A DESIGN BUILD CONTRACT TO EXTEND THOSE TO THE SITE.
AND THEN OF COURSE, ON OUR SITE, WE WOULD BE, YOU KNOW, RESPONSIBLE FOR GETTING THESE TO THE VARIOUS PATHS TO SET THEM UP FOR SUCCESS.
FOR QUICK TURNS ON VERTICAL CONSTRUCTION.
DID YOU SAY IT WAS SANITARY AND WATER THAT NEEDED TO BE EXTENDED? CORRECT. THERE IS NO THERE'S NO INFRASTRUCTURE THERE AT ALL.
I MEAN, NO UTILITY INFRASTRUCTURE, NO ROADS, NO ANYTHING THERE. THAT'S A PART OF THE DEVELOPMENT THAT WE'RE TAKING A LOOK AT. AND WE'VE TALKED TO OUR FINANCIAL ADVISOR ABOUT FROM A BONDING CAPACITY.
BUT THAT'S THAT WAS THE OTHER THING I WAS LOOKING TO FIND OUT IS THAT IS WE LOOKING AT THIS BEING A SHARED COST WOULD BE JUST THE COST THE DEVELOPER PASSED ON? OR WOULD YOU BE LOOKING FOR THE EDC, THE CORPORATION, TO BE ABLE TO DO THAT? I MEAN, THAT'S JUST SOME OF THE THINGS TO CONSIDER THAT IF YOU GOT ANY ANSWER FOR THAT.
WELL, I THINK WHAT WE CAN SAY IS WE'RE FLEXIBLE ON THAT.
YOU KNOW, WE'RE ACCUSTOMED TO TYPICALLY PAYING OUR SHARE FOR THAT WORK.
OBVIOUSLY, THERE'S A LOT OF GROUND THAT'S GOING TO BE BENEFITED BY THAT.
YOU KNOW, US BEING FIRST IN THE EARLY INFRASTRUCTURE THERE SOMETHING TO BE CONSIDERED. THERE IS PART OF IT.
WE'RE CREATIVE WHEN IT COMES TO FINANCING.
AND, YOU KNOW, AT THE END OF THE DAY, WHAT WE HOPE TO DO HERE IS PUT UP BUILDINGS THAT ARE GOING TO BE WELL RECEIVED IN THE MARKET. THEY'RE GOING TO CREATE A SUBSTANTIAL AMOUNT OF TAX BASE, AND THAT AN AWFUL LOT OF JOBS TO THE COMMUNITY, ALONG WITH ALL OF THOSE BENEFITS THAT COME ALONG IN BETWEEN, LIKE CONSTRUCTION, EMPLOYMENT AND ALL OF THE ANCILLARY BENEFITS SUCH AS THE RETAIL SALES AND OTHERWISE FROM, YOU KNOW, PUTTING UP A PROJECT LIKE THIS, THAT'S THAT'S WHAT WE'RE OUT TO DO.
REGARDLESS OF THE COMMUNITY THAT WE'RE DEVELOPING IN.
RIGHT. OKAY. MY LAST QUESTION IS BASED ON THE DEVELOPMENT THAT YOU'RE LOOKING AT, AND SOME OF THE INFORMATION YOU RECEIVED FROM OTHER ENTITIES IS DO YOU HAVE KIND OF A CLIENT BASE BY WHICH YOU'RE WORKING WITH AND SOME OF THE NAMES THAT YOU HAVE THAT YOU'VE WORKED WITH THROUGHOUT THE NATION? AND I'M NOT SAYING THAT YOU'LL BRING THEM HERE.
I JUST KIND OF WANT TO KNOW KIND OF A LIST OF CLIENTS THAT YOU CURRENTLY HAVE WORKED WITH
[01:25:03]
IN THE PAST OR WORKING WITH CURRENTLY.YEAH, WE'VE GOT A WHOLE PORTFOLIO ACROSS OUR NETWORK OF 25 PLUS MILLION SQUARE FEET.
WE HAVE A LOT OF REPEAT CLIENTS, BUT WE'VE GOT EVERYONE FROM UNLESS YOU SAW ON THEIR WEBSITE AND THEIR BROCHURE TO WILLIAMS-SONOMA, AMAZON IN THE PAST ALL KINDS OF LARGE PUBLIC ENTITIES AND SMALLER REGIONAL COMPANIES AS WELL. OKAY. AND MY QUESTION IS YOU HAVE THIS PRELIMINARY DESIGN AND OBVIOUSLY THE CUSTOMERS MAY CHANGE WHAT IT WOULD BE.
BUT AT FINAL BUILD OUT, DO YOU HAVE AN IDEA OF WHAT THE ESTIMATED TAXABLE VALUE WOULD BE OF YOUR OF YOUR DEVELOPMENT? DO YOU HAVE BALLPARK OF THAT? THE TOTAL ESTIMATE OF THE TAXABLE VALUE OF WHAT WE CREATE HERE? YES. PROJECT. RIGHT. 3 MILLION TO 500 MILLION DEPENDS ON WHAT KIND OF INFRASTRUCTURE THE INDIVIDUAL TENANTS WILL PUT IN PLACE, WHETHER THEY DO AUTOMATED FULFILLMENT OR THEY HAVE LIGHT MANUFACTURING.
IT CAN VARY WIDELY. HAVE THEY SUBMITTED AN LOI YET? OKAY. OKAY. IT'S A HUGE PROJECT.
WE THINK THIS IS SOMETHING THAT'S YOU KNOW, GOING TO HAVE A BIG STAR ON IT AS IT RELATES TO THE LEASING COMMUNITY AND HOW THIS PROJECTS RECEIVED IN THE MARKET.
AND WE THINK IT'LL BE SUCCESSFUL.
OKAY. SO, CHAIRMAN, OBVIOUSLY, WE'RE A PRETTY SIGNIFICANT WAGER IN ORDER TO DO SO. OKAY. I THINK WE DO HAVE ANOTHER QUESTION.
WE GOT ONE OTHER QUESTION FOR YOU GUYS. OKAY. SO IT'S 224 ACRES.
LET'S SAY WE DECIDE TO ASSIGN YOU AN OPTION FOR THE 224 ACRES, AND YOU GUYS PURCHASE THE LAND.
HOW DO WE PROTECT OURSELVES THAT IN 5 OR 6 YEARS, IT'S STILL NOT HAVING COTTON GROWN ON IT, AND YOU GUYS HAVE ACTUALLY DEVELOPED IT.
WHAT ASSURANCES OR HOW CAN YOU MAKE BECAUSE WE HAVE TO ANSWER TO THE CITY COUNCIL.
SO HOW HOW DO WE HOW DO WE BRING I GUESS, A LEVEL OF COMFORT THAT YOU GUYS WILL DEVELOP THIS. WHAT HAVE YOU DONE IN THE PAST ON DEALS LIKE THIS? YEAH. SO FIRST, A REALLY PRACTICAL POINT.
WE ONLY EVER USE DEBT AND FINANCIAL RESOURCES LIKE THAT ONCE WE'RE ACTUALLY BUILDING A BUILDING. SO THIS LAND WILL ALL BE PURCHASED IN CASH.
AND THEN WITH EVERY TIME WE'VE ENTERED IN WITH A PUBLIC PARTNER BEING A CITY OR A CHAMBER OF COMMERCE, WE EXPECT IN THAT PROCESS OR IN EDC, WE EXPECT THAT THERE'S GOING TO BE A DEVELOPMENT AGREEMENT THAT CLEARLY OUTLINES THE RESPONSIBILITIES BETWEEN THE PARTIES.
SO YOU KNOW, WHAT WE'RE GOING TO SAY ON THIS IS THAT WE'RE GOING TO BUY THE GROUND, WE'RE GOING TO DEVELOP, AND WE'RE GOING TO BUILD SPECULATIVELY.
WE GO OUT THERE AND BUILD A BUILDING.
SO I THINK WE WOULD GO OUT AND MAKE THAT COMMITMENT TO YOU RIGHT FROM THE FRONT THAT THAT WOULD HAPPEN. AND IF WE WEREN'T GOING TO DO THAT, WE WOULD OBVIOUSLY WORK THROUGH DEFAULT OPTIONS WITH YOU OF HOW THE EDC OR THE CITY OR OTHERS COULD BE ABLE TO REPURCHASE THE GROUND IN THAT PROCESS.
SO THAT GROUND DIDN'T JUST LAY FALLOW.
BUT TO BE VERY CLEAR, WITH ALL OF THE PROJECTS WE HAVE, WHEN WE TAKE DOWN GROUND, WE SPECULATIVELY DEVELOP.
WE IMMEDIATELY WANT TO GET PRODUCTIVE AND PUT IT TO USE.
OKAY. SO IF THERE WAS LIKE A SO IF THERE WAS LIKE A SOME TIME FRAME TO WHERE, LIKE AFTER FIVE YEARS, YOU HAD TO HAVE, SAY 25% BUILT OUT OR THE EDC COULD EXERCISE AN OPTION TO BUY 25% OF THE LAND BACK AT, SAY, A 10% DISCOUNT THAN WHAT YOU PAID ON IT.
THAT'S SOMETHING THAT YOU GUYS I MEAN, IT KIND OF PUTS A PRESSURE ON YOU ALL TO DEVELOP IT. IT'S NOT OVER OR WHATEVER THE NUMBERS ARE.
IT'S NOT OVER BURDENSOME IN TERMS OF, YOU KNOW, WE'RE NOT TRYING TO SET YOU UP TO FAIL, BUT THAT GIVES US SOME PROTECTION.
YOU GUYS ARE OKAY WITH SOME KIND OF RANGE LIKE THAT.
I THINK WE'D HAVE TO WORK THROUGH ALL OF THOSE DETAILS.
RIGHT? BETWEEN US ALL AND CONSIDERATION OF DEVELOPMENT COSTS AND INFRASTRUCTURE AND ALL OF THE OTHER THINGS THAT GO INTO THIS.
BUT YES, THE CONCEPT OF HAVING PUBLIC PURCHASE OPTIONS TO HAVE A LITTLE BIT OF A CARROT ON ONE SIDE AND A STICK ON THE OTHER.
WE'RE FAMILIAR WITH THAT AND HAVE WORKED THROUGH THOSE KIND OF THINGS MANY, MANY TIMES. OKAY, THANKS.
ANY OTHER QUESTIONS? HAVE YOU WORKED WITH TAX INCENTIVE TAX INCREMENT REINVESTMENT ZONES IN CONNECTION WITH THE PROJECTS? AND THAT WOULD BE SOMETHING THAT WE WOULD BE INTERESTED IN DOING FOR A NUMBER OF REASONS.
[01:30:02]
AND SO THAT WOULD BE A METHOD BY WHICH YOU WOULD BE ABLE TO RECOUP SOME OF YOUR INFRASTRUCTURE COSTS. ABSOLUTELY.SO MY WHOLE PRACTICE, I WENT TO THE UNIVERSITY OF TEXAS AT AUSTIN, BUT MY WHOLE PRACTICE AND PIECE WE HAD INTO THE FLINT TEAM IS DOING PUBLIC PRIVATE PARTNERSHIPS IN EVERY JURISDICTION WE'RE IN ACROSS THE NATION.
SO SOMETIMES THAT'S TAX ABATEMENT, SOMETIMES THAT'S TIFFS, SOMETIMES THAT'S MUNICIPAL UTILITY DISTRICT, SOMETIMES THAT'S IRBS.
LIKE WE HAVE LOOKED AND USED EVERY TYPE OF TOOL ACROSS THE COUNTRY IN JURISDICTIONS THAT FLINT AND BURNS AND MAC AND OTHERS HAVE GONE INTO.
SO WHAT WE NEED TO DO, WHAT THE KEY FOR US IS JUST BEING COMPETITIVE WITH OTHER SPECULATIVE DEVELOPMENTS IN THE MARKET.
SO IF THEY HAVE TAX ABATEMENT, WE NEED TO HAVE TAX ABATEMENT JUST SO THAT WE'RE NOT AT A COMPETITIVE DISADVANTAGE WITH THAT AS WE GO OUT TO LEASE AND BRING VELOCITY TO THE SITE. BUT IF THAT'S NOT THE THE STANDARD IN THE MARKET, AND WE CAN GO AND INSTEAD HARVEST SOME KIND OF TAX INCREMENT FINANCING, DISTRICT OR OTHERWISE, TO PAY FOR THE INFRASTRUCTURE OF THE SITE THAT BENEFITS ALL OF US AND IS ABSOLUTELY SOMETHING WE WOULD WORK WITH THE CITY OF HUTTO AND THE EDC ON TO EFFECTUATE.
AND SINCE BOTH OF MY KIDS WENT TO A&M.
SO I'M SORRY YOU WENT TO UT, BUT THAT'S OKAY.
WELL, I JUST SCREWED THE WHOLE THING UP.
I'M GOING TO SAY WE WE REALLY LIKE TALKING TO YOU GUYS. SO YOU SAID YOU WERE FROM UT. I'M A TEXAS TECH RED RAIDER, SO THAT JUST KIND OF BLEW IT OUT OF THE WATER FOR ME TO THE UNIVERSITY OF KANSAS AT LEAST.
BOTH OF THOSE SCHOOLS HAVE A FOOTBALL TEAM THAT PUT ON THE FIELD.
SO. ANY OTHER QUESTIONS? ANYTHING ELSE? GENTLEMEN? IF NOT, LET ME KIND OF TELL YOU THAT WE ARE STILL ENTERTAINING SOME OF THE OTHER DEVELOPERS THAT WE'VE BEEN IN CONVERSATION WITH. SO WE'RE HOPING TO BE ABLE TO MAKE A DECISION, I SAY FAIRLY SOON, BUT, YOU KNOW, WE'RE GOVERNMENT, SO FAIRLY SOON FOR US COULD STILL BE A MONTH.
AND WE'LL BE ABLE TO REACH BACK OUT TO YOU.
YOU CAN STILL STAY IN CONTACT WITH BOB, AND BOB CAN KIND OF KEEP YOU IN THE LOOP AND LET YOU KNOW WHAT'S GOING ON. BUT I APPRECIATE YOUR TIME.
AND YEAH, IF YOU'VE GOT THAT INFORMATION THAT YOU SAID YOU COULD SEND TO US THE PRESENTATION, WE'D LOVE TO HAVE IT.
JUST SEND IT TO BOB. WE'LL MAKE SURE WE GET IT OUT TO ALL THE BOARD MEMBERS SO THEY CAN TAKE A LOOK AT IT. OKAY.
VERY GOOD. WELL, THANKS FOR YOUR TIME THIS EVENING.
WE'RE WE'RE REALLY EXCITED ABOUT THIS OPPORTUNITY.
I APPRECIATE IT. WE THINK THAT.
I'M SORRY. GO AHEAD HERE AND APOLOGIZE FOR THE TECHNICAL, TECHNICAL DIFFICULTIES IN NOT BEING THERE IN PERSON LIKE WE HAD INTENDED.
THANKS FOR EVERYTHING. WE WELCOME THAT INFORMATION. THANK YOU FOR THE CONSIDERATION.
YOU BET. THANK YOU. THANKS, GUYS.
THANK YOU. THANK YOU. THAT'S OUR LAST PRESENTATION TONIGHT, BOB. OKAY. HOW'S EVERYBODY DOING? DO WE WANT TO PLUG ON IN INTO THE AGENDA? EVERYBODY GOOD WITH THAT? YEAH.
OKAY. WHY DON'T WE GO OVER THE AGENDA AND WE'LL GO IN EXECUTIVE SESSION AFTERWARDS? OKAY, LET'S GO ON TO AGENDA ITEM SIX POINT.
I'M SORRY. THE CONSENT AGENDA. 6.16.2 YOU RECEIVED THE MINUTES AND THE MONTHLY FINANCIAL UPDATES. IF YOU HAVE ANY QUESTIONS OR JUST A MOTION WOULD BE IN ORDER.
MR. CHAIRMAN, I'LL MAKE A MOTION TO APPROVE THE CONSENT AGENDA ITEMS AS WRITTEN.
SECOND. ANY OTHER DISCUSSION? ROLL CALL PLEASE. BOARD MEMBER.
RANDALL. CLERK I. BOARD MEMBER.
MIKE SNYDER. I BOARD MEMBER SEAN LUCAS I AND CHAIRMAN MIKE MENDEZ I MOTION CARRIES FIVE ZERO. LET'S MOVE ON TO AGENDA ITEM SEVEN ONE DISCUSSING.
CONSIDER AUTHORIZING THE CHAIR TO EXECUTE TEMPORARY AND PERMANENT EASEMENTS ON THE MEGA SITE PROPERTY AND LOCATIONS WHICH MAY NOT IMPEDE THE DEVELOPMENT IN SUPPORT OF THE CITY'S HIGHWAY 79 WATERLINE PROJECT AND FUTURE WASTEWATER PROJECTS BRINGING WATER UTILITIES TO AND THROUGH THE SITE.
THANK YOU. CHAIR. WE WERE CONTACTED BY THE LEGAL COUNSEL FOR THE CITY ATTORNEYS OR FOR THE CITY OF HUTTO IN THAT THEY HAVE SOME FUTURE ANTICIPATED WATER AND WASTEWATER PROJECTS THAT THERE ARE UNDER DESIGN AND INDICATED A NEED FOR TEMPORARY AND PERMANENT EASEMENTS IN ORDER TO BE ABLE TO BRING THE WATER AND WASTEWATER TO THIS FACILITY AS WELL AS TO OTHERS THE OR BOTH.
THE COTTONWOOD DEVELOPMENT CORPORATION HAS ALSO HAD THAT THAT REQUEST WITH REGARD TO PROPERTIES IT OWNS. IT'S TAKEN THE POSITION AS AN INSTRUMENTALITY OF THE CITY TO OFFER THIS ISSUE WITHOUT COST AND THAT IT ACTUALLY CREATES AN ENTITLEMENT IN THE PROPERTY.
[01:35:01]
IT WILL ONLY INCREASE THE PROPERTY VALUE, THAT OF THE PROPERTY YOU OWN AND WILL BETTER, BETTER EXPEDITE THE WATER AND WASTEWATER INFRASTRUCTURE PROJECTS OF THE CITY.ANY QUESTIONS FOR JORGE? GEORGE. MOTION WILL BE IN ORDER.
I MAKE A MOTION THAT WE ACCEPT.
WE HAVE A MOTION BY BOARD MEMBER CLARK.
I'LL SECOND. SECOND BY BOARD MEMBER LUCAS.
ANY FURTHER DISCUSSION? ROLL CALL PLEASE. BOARD MEMBER SEAN LUCAS, A BOARD MEMBER.
CHENEY GAMBOA, A BOARD MEMBER RANDALL CLARK, I CHAIRMAN.
MIKE MENDEZ, I MOTION CARRIES FIVE ZERO.
AGENDA ITEM SEVEN TWO. DISCUSS AND CONSIDER ACTION TO CREATE AND FUND A FULL TIME EXECUTIVE DIRECTOR POSITION AND WORK WITH THE CITY TO TRANSITION.
THE CITY EMPLOYED ECONOMIC DEVELOPMENT EXECUTIVE DIRECTOR TO THE CORPORATION, INCLUDING ESTABLISHING JOB DUTIES TO REPRESENT THE CITY AND ECONOMIC DEVELOPMENT MATTERS. BOARD MEMBERS, I APOLOGIZE FOR NOT BEING HERE FOR THE LAST MEETING. I HAD THIS PUT ON THE AGENDA.
ACTUALLY, THIS ITEM IN SEVEN THREE.
I WANT TO BE ABLE TO BEGIN TO START MAKING A MOVE IN MOVING OUR ECONOMIC DEVELOPMENT DIRECTOR BACK UNDER THE EDC CORPORATION.
CURRENTLY, AS YOU KNOW, HE IS ACTUALLY HIRED BY THE CITY MANAGER.
WE PAY A PORTION OF HIS SALARY TO THE CITY, BUT AND HE DOES RETAIN STILL ALL THE BENEFITS THROUGH THE CITY. WHAT I'D LIKE TO DO IS TO HAVE THAT DISCUSSION WITH THIS BOARD AND THEN BEGIN TO START HAVING DISCUSSIONS WITH THE COUNCIL AND MAKE A PRESENTATION TO THE COUNCIL ABOUT MOVING IN THAT DIRECTION AND BRINGING HIM BACK UNDER.
I THINK THAT WHAT I'M LOOKING AT IS CURRENTLY WE I THINK WE'RE IN A GREAT SITUATION, I CAN TELL YOU THAT. I'VE HAD AN OPPORTUNITY TO MEET WITH OUR CITY MANAGER, ISAAC TURNER, WHO'S OUT IN THE AUDIENCE, AND I THINK THAT WE'RE IN A GREAT POSITION BECAUSE HE, ALONG WITH BOB, ARE WORKING VERY WELL TOGETHER, AND THAT'S A POSITIVE AND A PLUS.
BUT AS WE KNOW, HE'S AN INTERIM CITY MANAGER, AND WE DON'T KNOW WHAT THE NEXT CITY MANAGER WILL BRING.
I'M OF THE OF THE OPINION THAT BOB CAN'T SERVE TWO MASTERS IN THIS PARTICULAR CASE.
HE ANSWERED TO THE CITY MANAGER, BUT HE'S DIRECTED BY THE BOARD.
AT ANY POINT IN TIME WHEN THERE BECOMES A CONFLICT THAT COULD ARISE THAT PLACES OUR ECONOMIC DEVELOPMENT DIRECTOR AND KIND OF A PRECARIOUS POSITION OF TRYING TO FIGURE OUT EXACTLY WHICH DIRECTION TO GO.
SO THE, THE I'M NOT SURE ABOUT THE HISTORY.
NOT THAT I WANT TO KNOW THE HISTORY, BUT HE WAS PLACED UNDER THE CITY MANAGER A FEW YEARS AGO BECAUSE SITUATIONS AND THINGS THAT TOOK PLACE BETWEEN THE BOARD AT THAT TIME AND THE ECONOMIC DEVELOPMENT DIRECTOR AT THAT TIME.
AND SO THAT WAS THE REASON THAT THIS COUNCIL CHOSE TO MOVE HIM BACK UNDER THE CITY OR MOVE HIM TO THE CITY MANAGER.
I THINK THAT WE HAVE A VERY STABLE BOARD.
I THINK WE HAVE A VERY COMPETENT BOARD.
I THINK WE HAVE A VERY DIVERSE AND QUALIFIED BOARD.
AND ALONG WITH THAT, I THINK WE'VE DONE A REALLY GOOD JOB OF PROMOTING THE CITY AND MOVING IT FORWARD. AND WITH THAT, WE HAVE AN EDC DIRECTOR THAT HAS BEEN ESTABLISHED IN THIS BUSINESS FOR YEARS, NOT ONLY WITH CITY MANAGEMENT, BUT ALSO WITH OTHER PRIVATE ENTITIES THAT HE WORKED WITH AND DOING THESE TYPE OF DEALS.
SO I THINK HE BRINGS FORTH THE EXPERIENCE THAT WE NEED TO DO THAT.
SO WHILE I UNDERSTAND THE CONCERNS THAT THAT HAPPENED PREVIOUSLY, MY CONCERN NOW IS TO ENSURING THAT WE CAN CONTINUE TO MOVE THIS FORWARD AND HAVE THIS BOARD WORK DIRECTLY WITH THE EDC DIRECTOR AND HAVE THEM ANSWER TO THIS BOARD SO THAT WE KNOW EXACTLY THE DIRECTION THAT WE'RE STEERING THIS SHIP AND WORKING IN CONJUNCTION WITH THE CITY AT ALL TIMES.
I CAN TELL YOU THAT IN THE CONVERSATION THAT I HAD WITH THE CITY MANAGER, I STATED TO HIM THAT I WOULD ENSURE AND COMMIT AND PLEDGE TO HAVE OUR EDC DIRECTOR, BOB, CONTINUE TO WORK WITH THE CITY.
AND THAT WOULD NEVER CHANGE, BECAUSE WE CAN'T DO THIS WITHOUT THE HELP OF THE CITY OF HUTTO. SO WE HAVE TO WORK LOCKSTEP TOGETHER AND DO THIS.
SO I BROUGHT THIS DOWN BEFORE THE BOARD TO BE ABLE TO HAVE THIS DISCUSSION AND ALLOW ME TO BE ABLE TO MOVE TO THE COUNCIL AND MAKE A PRESENTATION TO THE COUNCIL FOR THEIR CONSIDERATION OF MOVING BOB BACK UNDER THE EDC.
WE WOULD TAKE FULL RESPONSIBILITY OF HIS SALARY AND STILL WORK OUT AN AGREEMENT THAT HE WOULD AT THE EDC DIRECTOR WOULD ALWAYS BE ABLE TO HAVE THE BENEFITS THROUGH TMRS AND THROUGH THE CITY BENEFITS.
AND THAT WOULD NEVER CHANGE THROUGH AN AGREEMENT THAT WE HAD WITH THEM. I WOULD OPEN UP FOR ANY FURTHER DISCUSSION.
SO HOW WELL WOULD IT HAVE ANY IMPACT IN WHAT KIND IF HE MOVES UNDER THE EDC? WE'RE CURRENTLY UTILIZING CITY RESOURCES FOR COMMUNICATION AND MARKETING AND THINGS LIKE THAT. SO IF WE'RE KIND OF MAKING THAT SEPARATION,
[01:40:02]
WHAT IMPACT DOES THAT HAVE TO THOSE RESOURCES AT THE CITY AND WHAT COULD WE ANTICIPATE AS FAR AS FEEDBACK FROM THE CITY? WHAT I WOULD WANT IS FOR US TO CONTINUE TO WORK WITH THE CITY AND HAVE OUR CITY SERVICES AGREEMENT IN PLACE FOR THOSE THINGS SUCH AS IT MARKETING.THOSE THINGS ARE STILL TAKING PLACE. WHILE I KNOW THAT THE THE CITY TEAM IS ABLE TO DO THAT I WOULDN'T LOOK AT TRYING TO DISTURB THAT WHATSOEVER.
I'M JUST TALKING ABOUT TAKING THAT COMPONENT, PULLING IT OUT AND BRING IT BACK UNDER.
BUT WE STILL HAVE A CITY SERVICE AGREEMENT WITH THE WITH THE CITY OF HUTTO AND WOULD KEEP THAT IN PLACE. AND WE HAVE A STAFFING SHARING AGREEMENT CURRENTLY THAT WE MAKE A ALLOCATION OF FUNDS EACH YEAR TOWARDS THE CITY FOR OUR USE OF, YOU KNOW, FINANCE AND LAND USE AND ALL OF THE OTHER PROVISIONS.
AND IT WOULD JUST MODIFY THAT SLIGHTLY IN THAT THE ALLOCATION OF FUNDS FOR THE EXECUTIVE DIRECTOR WOULD NO LONGER BE ALLOCATED THAT WAY, AND WE WOULD LOOK TO EVALUATE SOME CREDIT ASSOCIATED WITH THE WORK THAT WE WOULD DO WITH 380 AGREEMENTS AND OTHER TAX INCENTIVE TYPE OF PROJECTS THAT BUILD DEVELOPMENT.
OKAY. AND ARE WE DISCUSSING SEVEN TWO AND SEVEN THREE IN CONJUNCTION OR ARE WE ONLY ON SEVEN TWO? WELL, WE'RE ONLY ON SEVEN TWO RIGHT NOW.
I COULD PROBABLY OPEN UP SEVEN THREE. WE CAN HAVE A DISCUSSION ALL JOINED TOGETHER. SO LET ME GO AND DO THAT THEN, BECAUSE IT DOES LEAD TOGETHER. I'M GLAD YOU'RE ASKING. LET'S GO IN AND OPEN UP.
SEVEN THREE DISCUSSING. CONSIDER ACTION TO APPROVE A PROPOSED JOB DESCRIPTION OF EDC SPECIALISTS EMPLOYED BY THE CORPORATION TO CREATE AND FUND A POSITION.
OKAY, SO QUESTION FOR THAT IS THAT THEN THAT POSITION WOULD ALSO BE UNDER THE EDC.
SO WE'RE LOOKING AT TAKING ON TWO SALARIES RIGHT NOW.
TWO SALARIES. CORRECT. I CAN TELL YOU THE DISCUSSION THAT I HAD WITH THE CITY MANAGER, AND HE MAY HAVE FURTHER DISCUSSION OR FURTHER COMMENTS ON THIS, BUT IT'S HIS BELIEF THAT WE ACTUALLY NEED TWO PEOPLE TO HELP THE WORST.
THAT'S HOW BUSY BOB IS RIGHT NOW, THAT IN ORDER FOR US TO TO DO THIS PROPERLY, THAT WE NEED TWO PEOPLE UNDER TWO PEOPLE IN ADDITION TO BOB, UNDER THE EDC. SO THAT WOULD BE A TOTAL OF THREE.
BUT RIGHT NOW, WHAT WE'VE REQUESTED EDC SPECIALISTS, I THINK MAYBE ONCE AFTER WE DO AN ANALYSIS OF WHERE WE'RE AT AND WHAT WE'RE LOOKING AT REEVALUATE AND EVALUATE THAT WE COULD POTENTIALLY LOOK AT THAT ALSO.
OKAY. GEORGE, ANY ANY ISSUES OR CONCERNS WITH HAVING JUST TWO EMPLOYEES AT OUR ENTITY, LIKE JUST THE NUMBER OF PEOPLE WORKING? I MEAN, IS THAT I THOUGHT THAT WAS A CONCERN BEFORE THAT WE HAD TO PIGGYBACK ON TO THE CITY AND THE I MEAN, THE FROM AN INSURANCE PERSPECTIVE, NOT NOT NOT COST OF INSURANCE, I GET THAT, THAT WE SHARE OR THEY CAN BUY INTO THE PROGRAM WITH THE CITY OF HUTTO.
BUT RIGHT. THERE'S TWO EMPLOYEES.
ANY CONCERNS WITH THAT? YEAH, THERE'S A STATE LAW THAT SAYS THAT ECONOMIC DEVELOPMENT CORPORATION EMPLOYEES CAN BASICALLY BACK LIKE A BACKPACK ON TOP OF THE CITY FOR ALL THOSE BENEFITS.
ACTUALLY, THAT'S SOMETHING THAT THE CITY CHOOSES TO DO OR NOT DO.
SO WE WOULD HAVE AN EXPECTATION THAT IN THE PAST THAT WAS THE WAY IT WAS.
SO IT WOULD BE CONTINUE THAT WAY.
WITH REGARDS TO THE CORPORATION ITSELF, WE WOULD NEED TO FORMALIZE BASIC POLICY AND PROCEDURES FOR EMPLOYEES, HAVE A MECHANISM BY WHICH TO DEAL WITH COMPLAINTS OR CONFLICTS IN THE ORGANIZATION.
AND THAT WOULD ULTIMATELY CREATE ISSUES THAT THE BOARD WOULD HAVE TO ULTIMATELY BE THE FINAL DECISION MAKER ON.
BUT OTHER THAN THOSE I MEAN, IT'S IT'S ONE OF THOSE, YOU KNOW, I, YOU KNOW, THE DO YOU KNOW HOW TO, YOU KNOW, TO STOP A FIGHT? YOU JUST TAKE IT AWAY FROM BOTH CHILDREN AND THEN THEY DON'T HAVE A FIGHT OVER IT. BUT THE AND SO I'VE WORKED VERY WELL WITH, YOU KNOW, A SMALL CADRE OF STAFF AND ECONOMIC DEVELOPMENT CORPORATION, THE BASS AND AND I WOULDN'T EXPECT ANYTHING DIFFERENT HERE, ESPECIALLY IN LIGHT WITH I THINK BOB AND I HAVE A VERY GOOD RELATIONSHIP NOW WORKING IN TEAM AND IN TANDEM AND SO.
OKAY. AND I WOULD JUST HIGHLY ENCOURAGE BOB AND, AND THE CHAIR TO KIND OF JUST LOOK THROUGH OUR SERVICING AGREEMENTS AND SEE IF THERE'S ANYTHING THAT WE CAN PULL BACK AND MAKES MORE SENSE FOR BOB TO CONTROL THAN NECESSARILY THE CITY. AND, YOU KNOW, LOOK AT THOSE EXPENSES AND TRY TO REDUCE SOME OF THAT COST AND BRING IT BACK INTO OUR EDC BUDGET.
BUT YEAH, I CAN TELL YOU THAT.
AND I'M GLAD THAT YOU BROUGHT THAT UP, BECAUSE I WANT THE BOARD TO KNOW IS THAT THIS IS NOT A FOREIGN CONCEPT OR CONVERSATION WITH BOB.
BOB AND I HAVE HAD THIS CONVERSATION NOW FOR FOR A FEW MONTHS NOW.
AND THE POSSIBILITY OF DOING THAT, WE HAD TO FIND THE RIGHT TIME. I THOUGHT JANET WAS GOING TO BE THAT TIME, BUT OF COURSE, I WASN'T HERE, SO WE PUSHED IT OFF TO THIS MONTH, BUT BOB WAS VERY FAMILIAR WITH IT.
FROM MY UNDERSTANDING, I DON'T THINK HE WOULD SAY NO TO IT.
HE JUST ALSO BELIEVES THAT THIS IS A THE BEST MOVE FOR IT.
I CAN TELL YOU IN THE TIME THAT I'VE BEEN IN CITY GOVERNMENT IS THIS IS NOT UNHEARD OF FOR
[01:45:03]
THE EDC DIRECTOR TO BE UNDER CITY MANAGER.IT IS KIND OF FOREIGN FOR ME NOT TO HAVE EDC DIRECTOR UNDER THE EDC.
IT'S A FOREIGN CONCEPT, BUT IT'S NOT UNHEARD OF IN MUNICIPAL GOVERNMENT. BUT I JUST I WOULD WANT TO BRING IT BACK IN.
AND JUST TO MAKE SURE THAT WE DO CONTROL EVERYTHING THAT'S TAKING PLACE AND ECONOMIC DEVELOPMENT. ANY MAYOR.
OR IF YOU HAVE YOUR HAND UP TO SPEAK OR YOU JUST HAD YOUR HAND UP. I JUST I DO GOT A COUPLE THINGS. SURE. SO I'VE ALWAYS BEEN A BIG PROPONENT OF THE EDC DOING ECONOMIC DEVELOPMENT. I THINK ONE OF THE PROBLEMS WE HAD BEFORE IS THE CITY TOOK ON SOMETHING THE CITY IS NOT NECESSARILY ABLE TO HANDLE, WHICH IS ECONOMIC DEVELOPMENT.
AND THEY IT SEEMED LIKE THE CITY WAS PUSHING THE EDC TO DO THINGS A CERTAIN WAY AND OTHER GROUPS. AND SO I THINK THE MOST SUCCESSFUL CITIES, THOSE CITIES CONCENTRATE ON THE CORE SERVICES.
EDC CONCENTRATES ON ECONOMIC DEVELOPMENT AND SO ON.
SO I LIKE IT FROM THAT PERSPECTIVE.
ONE OF THE THINGS I'VE NOTICED WITH OUR CITY MANAGER, INTERIM CITY MANAGER IS LIKE WHEN WE'RE HAVING MEETINGS, HE'S NOT IN THE MEETINGS TELLING US HOW IT'S ALL GOING TO GO DOWN. IT'S BOB MAKING THE QUESTIONS, BOB ASKING THE QUESTIONS. SO THERE'S A LOT OF SUCCESS THERE.
THE TWO THINGS I THINK WE'VE ALSO GOT TO FIGURE OUT IS WHAT PROBLEM IS THIS SOLVING? AND SO IF WE DO MOVE THE POSITION BACK THEN WE'VE GOT TO BE DOING THAT FOR A REASON.
BECAUSE I THINK THERE'S ALWAYS A POSSIBILITY. ONE OF THE THINGS I TALKED TO MIKE ABOUT THE CHAIRMAN MONTHS AGO WAS THAT ONE OF THE REASONS THE POSITION HAPPENED, THE WAY IT HAPPENED WAS BECAUSE AT THE TIME WE HAD A BOARD THAT MAYBE WASN'T AS SOPHISTICATED AS IT IS NOW.
AND WE HAD A DIRECTOR THAT MAYBE WASN'T AS SOPHISTICATED AS IT IS NOW.
AND SO RIGHT NOW EVERYTHING IS CLICKING.
BUT IF BOB LEAVES, A NEW PERSON COMES IN.
WE HAVE TO MAKE SURE AS A BOARD WE HAVE SOME KIND OF WAY TO MANAGE TWO OR 3 OR 4 EMPLOYEES OR WHATEVER IT IS, BECAUSE WE ALL GOT FULL TIME JOBS.
AND SO SOMEHOW SOMEONE'S GOT TO BE ABLE TO MANAGE THIS.
AND SO THAT IS A BENEFIT ALMOST IN SOME ASPECTS.
AND MAYBE THAT'S DONE THROUGH THE SERVICES AGREEMENT.
BUT FROM AN HR STANDPOINT AND THINGS LIKE THAT, YOU KNOW, IF IF THE DIRECTOR HAS A COMPLAINT FROM AN EMPLOYEE, I MEAN, ARE WE EQUIPPED TO HANDLE THAT AND MAYBE WE CAN UTILIZE THE CITY FOR SOME OF THESE SERVICES. SO I THINK IF WE WORK THROUGH ALL THAT AND FIGURE OUT WHAT EXACTLY WE'RE SOLVING, BECAUSE WHATEVER WE'RE SOLVING, THERE'S ALWAYS THAT UNINTENDED CONSEQUENCE LATER ON OF THE BOARD CHANGES UP IN THREE YEARS.
AND BOB'S STILL HERE, AND WE DON'T WANT BOB GOING BACK AND FORTH BETWEEN ENTITIES. EVERY TIME WE GET WE GET GOOD LEADERSHIP AND THEN WE DON'T HAVE GOOD LEADERSHIP. SO THERE'S SOME THINGS THAT WHEN THE CHAIRMAN I TALKED THAT I SAID, HEY, I DON'T SEE A PROBLEM WITH AT ALL AS LONG AS WE FIGURE OUT SOME OF THE LOGISTICS.
BUT THINGS ARE CLICKING NOW. PRETTY GOOD.
SO, CHENEY, RIGHT BEFORE YOU CAME ON AND IT WAS ONE OF THE FIRST ONES I WAS ON, WAS WE HAD THE OTHER WAY WHERE WE HAD A SPECIALIST UNDER A BOARD, AND WE HAD A THING WE HAD NO WAY, JUST AS THE MAYOR WAS SUGGESTING, OF WHAT THEIR DAY TO DAY JOB ROLE WAS DOING, EVEN.
AND WE'RE PAYING THE SALARY AND WE HAD NO, BECAUSE WE ONLY MEET MONTHLY.
SO I DO WONDER IN THAT REGARD.
NOW BOB'S HERE EVERY DAY, SO WE HAVE THAT.
BUT IF WE IF WE GOT AWAY FROM THAT, THAT IS THE ONLY CONCERN IS DO WE MAKE A CHANGE BECAUSE WE HAVE BOB OR DO WE JUST KEEP A PROCESS IN PLACE THAT WORKS BETTER INDEPENDENT OF BOB? BUT THAT'S MY ONLY MY THOUGHT.
JUST BECAUSE WE LITERALLY EIGHT MONTHS AGO HAD THIS EXACT PROBLEM AND MOST OF THIS BOARD WAS HERE AND WE CORRECTED IT AND MOVED IT THERE FOR A REASON, RIGHT? YEAH, I GUESS THAT WAS GOING TO BE MY QUESTION.
YOU GUYS ARE KIND OF ALLUDING TO IT IS DRAMA AND WHATEVER.
ASIDE, WHAT WAS THE PROBLEM WITH THE PREVIOUS STRUCTURE? WHY DID WE GO TO THIS STRUCTURE? AND THEN WHAT'S KIND OF WHAT ARE THE PROS AND CONS OF WHAT'S THE PRECIPITATING EVENT? YEAH, I DON'T AND I CAN TELL YOU THAT I DON'T THINK THERE'S ANYONE ON THE BOARD THAT WAS HERE AT THAT TIME WHEN IT WAS MOVED OVER.
OKAY. BUT MOVED TO THIS WAY OR MOVED TO THE WHEN WHEN THE ECONOMIC DIRECTOR WAS MOVED TO THE CITY AND ANSWERING TO THE CITY MANAGER.
WELL, I CAN TELL YOU IN JUNE OR JULY I WAS THERE.
THAT WAS LIKE FIVE MONTHS AGO.
I THINK THEY'RE TALKING ABOUT THE ONE THAT WE AS A BODY. JUST RECENTLY, FIVE MONTHS AGO, WE HAD WE HAD A SPECIALIST, WHICH IS BASICALLY THE BUSINESS RETENTION SPECIALIST THAT WAS THERE FUNDED BEGINNING OCTOBER 1ST.
OKAY. AT THAT POINT IN TIME, WE HAD BOB, WHO ANSWERED TO THE CITY MANAGER HIRED BY THE CITY MANAGER BECAUSE THAT WAS ALREADY IN PLACE WHEN WE CAME ON, BECAUSE YOU AND I WERE ON THE BOARD AND WE'RE ACTUALLY ON THE INTERVIEW PANEL, AND THE CITY MANAGER MADE THAT DECISION.
IT WASN'T THE BOARD. IT WAS THE CITY MANAGER.
NOW WE HAD A BUSINESS RETENTION SPECIALIST THAT WAS WITH US AND THE WAY IT WAS
[01:50:06]
STRUCTURED, THE POSITION HAD NO SUPERVISOR HAVE A RESOLUTION AND ORDINANCE, NOT A RESOLUTION THAT SAID, WE WANT BOB NOW TO BE ABLE TO ADMINISTER THE DAY TO DAY OPERATIONS FOR THE EDC, WHICH INCLUDED THE BUSINESS RETENTION SPECIALIST. THAT'S TRUE. SO WE ACTUALLY HAD TO PASS SOMETHING ON UP HERE THAT DID THAT.SO THIS IS MORE OF AN OVERSIGHT, AN ORGANIZATIONAL STRUCTURE ISSUE THAT WE'RE TRYING TO STREAMLINE. THAT'S ONE.
YES. THAT'S ONE. SO AND I APOLOGIZE FOR THOSE THAT HAVEN'T MET OUR CITY MANAGER, INTERIM CITY MANAGER ISAAC TURNER IS HERE.
AND HE AND I HAVE HAD A CONVERSATION ABOUT THIS. AND SO I, I WANT HIM THE OPPORTUNITY TO BE ABLE TO SPEAK AND ON KIND OF SOME OF THE ISSUES THAT WE'VE DISCUSSED. SO I'LL GO AHEAD AND TURN IT OVER TO HIM. CHAIRMAN ERISMAN AND THE CDC, THANK YOU FOR THIS OPPORTUNITY TO VISIT WITH YOU.
LET ME SAY THAT OUR CONVERSATION, MY CONVERSATION WITH THE CHAIR WAS PHENOMENAL. WE SEE EYE TO EYE ON 90% OF THINGS.
JUST FOR YOU TO KNOW, I LOOK AT MYSELF AS YOUR CITY MANAGER.
I AM NOT GOING TO STAY PERMANENTLY.
BUT IN ORDER FOR ME TO DO MY JOB EFFECTIVELY AND MAKE A CHANGE, THE PROPER CHANGES WHILE I'M HERE THAT THIS COUNCIL IS ASKING OF ME, I'M PRETENDING AS THOUGH I'M GOING TO BE YOUR CITY MANAGER. I'M TRYING TO SET THINGS IN PLACE, LEVEL THE FIELD, MAKE THINGS SMOOTH AS THOUGH I'M GOING TO BE HERE. BOB HAS BEEN PHENOMENAL TO WORK WITH.
HE HAS BEEN ABSOLUTELY GREAT TO WORK WITH.
I AM NOT AN ECONOMIC DEVELOPMENT SPECIALIST PER SE.
I DON'T WANT TO BE AN ECONOMIC DEVELOPMENT DIRECTOR WHEN I GROW UP, AND I DON'T WANT TO MICROMANAGE HIS AREA. I THINK BOB CAN ATTEST TO THAT, AND I WON'T EVEN LOOK AT HIM TO TELL YOU THAT. I KNOW HE CAN ATTEST TO THAT.
YOUR CHAIRPERSON IS. CITY MANAGEMENT EXPERIENCE HAS BEEN PHENOMENAL TO DEAL WITH SOME VERY, VERY GOOD CONVERSATIONS.
HUDDLE. ONE OF THE THINGS I THINK THAT HUDDLE NEEDS IS TO KIND OF SETTLE DOWN AND TO, AGAIN, CONTINUE TO DEMONSTRATE THAT HUDDLE KNOWS HOW TO HANDLE CITY BUSINESS.
HUDDLE KNOWS HOW TO HANDLE ITS ECONOMIC DEVELOPMENT BUSINESS HUDDLE KNOWS HOW TO HANDLE MANAGE GROWTH OR SUSTAINABLE GROWTH, HOWEVER YOU WANT TO PHRASE THAT.
AND ONE OF THE THINGS THAT WE'RE TRYING TO DO IS STRENGTHEN THE CITY COUNCIL TEAM.
AND WE'RE TRYING TO STRENGTHEN OUR ADMINISTRATIVE TEAM.
BOB IS A CRITICAL PART OF THAT.
HE WILL TELL YOU OR SHOULD BE ABLE TO TELL YOU THAT A LOT OF THE DECISIONS THAT WE HAVE, I DON'T GET VERY MANY THINGS THAT HAPPEN TO MY IN MY OFFICE.
AND IT'S AN EDICT COMING FROM ON HIGH.
AND I JUST GO OUT AND SAY, THOU SHALT DO THIS.
WE HAVE A LOT OF TEAM DISCUSSIONS, A LOT OF TEAM MEETINGS.
RIGHT NOW YOU HAVE SOME CRITICAL PROJECTS I CONSIDER CRITICAL BECAUSE THEY'RE VERY LARGE.
IN THIS MEGA SITE AREA AS WELL AS SOME OTHER AREAS, AND WE'RE WORKING ON SOME TEAMS TO PUT SOME THINGS IN PLACE.
THERE ARE A NUMBER OF THINGS IN HUTTO WHERE WHEN WE OPEN UP A CLOSET, MORE SKELETONS TEND TO DROP OUT, FALL OUT, AND IN ADDITION TO THE ONES THAT WE KNEW WERE ALREADY THERE, WE'RE HAVING A FEW OF THOSE.
AND SO I WOULD SUGGEST TO YOU, STRONGLY SUGGEST TO YOU THAT IF YOU WANT TO CHANGE THE STRUCTURE YOU DO, AS THE MAYOR INDICATED, INDICATE WHAT PROBLEMS YOU'RE TRYING TO SOLVE. IF YOU GET IN A SITUATION WHERE YOU THINK YOU HAVE THE WRONG PEOPLE IN THE WRONG PLACE, WHETHER IT'S THIS BOARD, WHETHER IT'S IN MY POSITION, WHETHER IT'S IN BOB'S POSITION, THAT'S A LIFE SITUATION.
YOU WON'T BE ABLE TO ORGANIZATIONALLY GET PAST THAT.
YOU HAVE TO MAKE SOME CHANGES WITH THE INDIVIDUALS.
YOU HAVE TO SET THE EXPECTATIONS.
IF YOU WANT TO DO A PERFORMANCE IMPROVEMENT PROGRAM, YOU DO THAT.
BUT ULTIMATELY THERE HAS TO BE ACCOUNTABILITY NO MATTER WHO THE PERSON REPORTS TO.
I THINK MOST OF US WOULD AGREE THAT THE RELATIONSHIP RIGHT NOW AS IT IS WITH THIS INTERIM CITY MANAGER, AND BOB IS WORKING WELL, I CLEARLY AGREE THAT YOU NEED TO HAVE SOMEBODY IN PLACE FOR SUCCESSION AND YOU SHOULDN'T HAVE A GAP IN THERE.
SO AND BOB IS VERY BUSY AND PROBABLY COULD BE DOING A LOT MORE IF HE HAD SOMEBODY TO TAKE CARE OF SOME OF THE THINGS THAT THAT OCCUR IN ECONOMIC DEVELOPMENT.
SO I ABSOLUTELY AGREE THERE NEEDS TO BE A SECOND PERSON, EVENTUALLY A THIRD PERSON.
I'M NOT SURE IF THAT'S NEEDED RIGHT NOW, BUT DEFINITELY A SECOND PERSON. I WILL SAY THIS. MY EGO IS NOT IN THIS.
WHATEVER YOU ALL DECIDE AND I WILL SAY THE SAME THING TO COUNCIL.
WHATEVER YOU DECIDE, WE'LL ABSOLUTELY MAKE IT WORK.
WE'LL ABSOLUTELY MAKE IT WORK BECAUSE WE ALL WANT TO DO WHAT'S BEST FOR HUDDLE, JUST LIKE YOU DO. WE'RE IN THE SAME BOAT THERE.
WE ARE SETTING SOME EXPECTATIONS, SETTING SOME TONE ESTABLISHING RELATIONSHIPS WITH THE ADMINISTRATION.
WE'RE SUPPORTING BOB. BOB SUPPORTING US.
AND I'D LIKE TO HAVE AN OPPORTUNITY TO WORK WITH THAT FOR THE NEXT SEVERAL MONTHS THERE WILL BE AN OPPORTUNITY, I THEN THINK, FOR YOU ALL TO GO THROUGH THE BUDGET PROCESS. A NEW MANAGER WILL BE IN PLACE AND NOT TOO LONG, AND THEN WORK THAT SITUATION OUT.
THROUGH THE BUDGET PROCESS, A NEW MANAGER WILL BE IN PLACE. YOU'LL HAVE THE COUNCIL, OBVIOUSLY LOOKING TO WE'RE LOOKING TO WHERE TO PUT RESOURCES.
AND I THINK THAT WOULD BE AN EXCELLENT TIME TO DO THAT.
[01:55:03]
MR. CHAIR, I HAVE TO TAKE ONE STRONG, STRONG, STRONG EXCEPTION WITH YOU, YOU KNOW, AND I KNOW HAVING BEEN CITY MANAGERS, WE CAN SERVE MORE THAN TWO MASTERS AT ONE TIME.THERE'S ABOUT 35 TO 40,000 PEOPLE WHO CAN DO THIS JOB THAT I'M DOING BETTER THAN I CAN IN THIS CITY. AS YOU KNOW, IN ANY CITY.
YOU KNOW, THAT'S HOW THAT GOES. AND I SAY THAT IN SMILING, BUT PART OF HIS JOB IS TO WORK WITH THIS BOARD, AND THAT'LL BE WHETHER HE REPORTS TO A CITY MANAGER OR TO DIRECTLY TO THE BOARD, IT'S GOING TO BE TO WORK WITH THIS BOARD.
PART OF HIS JOB WILL BE TO WORK WITH WHOMEVER IS IN THE CITY MANAGER POSITION.
THAT'S JUST IT. THAT'S JUST THE NATURE OF THE BEAST.
AND THEN HE HAS CLIENTS THAT HE HAS TO QUASI REPRESENT, CLIENTS WHO HE HAS TO QUASI SATISFY AND KEEP CONTENT AND AND KEEP MOVING AND PROJECTS THAT HE HAS TO KEEP MOVING. SO HE'S GOING TO HAVE TO DO AND IS DOING A LOT OF JUGGLING AND A LOT OF DIFFERENT TASKS.
I THINK IT'S IMPORTANT THAT THAT THE CHANGE BE WELL THOUGHT OUT WELL PREPARED.
AND I UNDERSTAND WE LOOK BACK AT THE PAST TO MAKE SURE WE DON'T REPEAT THE MISTAKES, BUT I'M PUSHING AS HARD AS I CAN FOR US TO FOCUS ON THE FUTURE AND GET TO THAT.
SO I WOULD APPRECIATE THE BOARD'S CONSIDERATION OF DELAYING THAT UNTIL LATER ON. AND. AND EITHER WAY, WE'LL MAKE IT HAPPEN.
WE'LL MAKE IT WORK, AND WE'LL MAKE IT WORK. VERY WELL. THANK YOU SIR.
THANK YOU GUYS. AND HE IS CORRECT.
WE WE ACTUALLY MET AND HE'S RIGHT.
WE I WOULD SAY WE PROBABLY AGREE ON PROBABLY 95%, NOT JUST 90. I THINK WE JUST I'D SAY 95%.
HE DID RELATE TO ME THAT HE WOULD AS HE DID TONIGHT, THAT HE WOULD ALSO TELL THE COUNCIL THAT HE WANTS TO WAIT TILL THE BUDGET PROCESS. AND SO I RESPECT THE MAN FOR BEING VERY UPFRONT WITH ME AND TELLING ME EXACTLY WHAT HIS POSITION IS AND WHAT HE'S LOOKING FOR.
HE DOESN'T DENY THE FACT THAT IT NEEDS TO HAPPEN. HE JUST SAYS IT DOESN'T NEED TO HAPPEN NOW. SO I THINK AS FAR AS AS FAR AS SERVING TWO MASTERS, I AGREE WITH YOU ONLY IN THE EXTENT THAT THERE'S NO SENSE IN SUBJECTING OTHER STAFF MEMBERS TO HAVING TO SERVE TWO MASTERS.
I THINK THAT IN A IN A APPOINTED POSITION SUCH AS YOURSELF AND SUCH AS MYSELF AND MY DAY JOB, WE DO SERVE MORE THAN ONE MASTER.
BUT IN THIS PARTICULAR CASE, I DON'T THINK THAT WE NEED TO SUBJECT OTHERS TO TO THAT. AND I'M AFRAID THAT THAT'S WHAT WE'RE DOING BY PUTTING BOB IN THAT POSITION.
AS FAR AS THE BUDGET'S CONCERNED WHILE I UNDERSTAND YOUR POSITION IN TRYING TO GET THE TEAM GOING, WE'VE HAD THIS, AND I'M NOT SAYING ANYTHING THAT I HAVEN'T TOLD. TOLD ISAAC. I JUST WANT YOU TO KNOW, FOR THE BOARD'S STANDPOINT WELL, I UNDERSTAND THE CONCEPT OF WANTING TO DO THAT. I BELIEVE EITHER WAY, WE HAVE TO MAKE THAT PAYMENT NO MATTER WHAT. WHETHER WE DO IT NOW, WHETHER WE DO IT THROUGH REIMBURSEMENT TO THE CITY, WE'RE STILL HAVING TO OUTLAY THAT MONEY. EITHER WAY, I DON'T. IN MY OPINION, IT'S NOT A MATTER OF HAVING THE WAITING TILL THE BUDGET PROCESS, BECAUSE I THINK I THINK WE'RE STILL PAYING IT NO MATTER WHAT.
I DID PLEDGE TO ISAAC THAT WE WOULD MAKE HERE AND MYSELF THAT WE WOULD PLEDGE TO ENSURE THAT BOB WOULD CONTINUE TO WORK WITH THE CITY IN EVERY PART TO MAKE IT A PARTNERSHIP, AS WE'RE DOING NOW. WHAT WHAT I ENVISION IS THAT THEY WOULD SEE NO CHANGE ON A DAY TO DAY OPERATION IF BOB'S PUT UNDER US, THAT HE WOULD CONTINUE TO BE THERE, CONTINUE TO BE IN THE MANAGEMENT MEETINGS, CONTINUE TO WORK WITH WITH THE CITY STAFF AS HE'S DOING NOW ON FEBRUARY 14TH.
HE WOULD BE DOING THAT ON JULY 14TH AND THAT WOULDN'T CHANGE.
SO BUT I DO APPRECIATE THE FACT AND, YOU KNOW, HE WE WE HAD A GREAT CONVERSATION.
WE'RE VERY OPEN AND HONEST. AND THAT'S WHAT I APPRECIATE ABOUT HIM. VERY DIRECT, VERY DIPLOMATIC, VERY TACTFUL AND VERY UNDERSTANDING.
AND MY POSITION, WHAT I WAS WANTING TO DO AND VERY RESPECTFULLY GAVE ME HIS POSITION ALSO.
SO I JUST WANT YOU TO KNOW MAYOR, I THINK WE'VE GOT A GREAT CITY MANAGER THAT YOU MANAGED TO FIND AN INTERIM CITY MANAGER.
SO I WOULD OPEN UP FOR ANY FURTHER DISCUSSION, COMMENTS, QUESTIONS. THAT INCLUDES EDC SPECIALISTS, AS YOU'VE HEARD. DO WE HAVE A JOB DESCRIPTION OR.
IT'S IT'S IN. BOB CAN CORRECT ME HERE.
IT'S MY UNDERSTANDING THAT A JOB DESCRIPTION WAS BEING CREATED DURING THE BUDGET PROCESS LAST YEAR IN OCTOBER, BUT IT WAS NEVER COMPLETED AND NEVER FINALIZED. THAT'S MY UNDERSTANDING.
SO WE WOULD PROBABLY WANT TO DEVELOP THAT.
WE CAN GET SOMETHING IN AN EDC SPECIALIST.
THEY, THEY HAVE BASIC UNDERSTANDING OF THE PROJECTS.
AND THEN THROUGH BOB'S DIRECTION, THEY WOULD BE ASSISTING HIM ON DIFFERENT PROJECTS AS NECESSARY.
THE THE, THE WITH REGARD TO THIS POSITION IN EMPLOYEES, IT IN MY 25 YEARS I'VE SEEN IT IN AS A PENDULUM IS THAT WHEN THERE IS THE APPEARANCE
[02:00:07]
THAT THE YOU KNOW FOR INSTANCE, SAY THAT THIS BOARD SAID I WANT TO EXPLORE CREATING A RAIL SPUR. AND THE CITY MANAGER WAS STRONGLY AGAINST THAT.AND BOB IS IS SUPERVISOR IS THE CITY MANAGER.
WELL, SO THE CITY MANAGER SAYS DON'T DON'T WORRY ABOUT THAT.
THAT'S NOT IMPORTANT. WE NEED YOU TO WORRY ON THESE THINGS.
WELL, THAT'S HIS BOSS TELLING HIM WHAT TO DO.
BUT THAT'S NOT WHAT THE BOARD TOLD HIM. WHAT TO DO NOW, DO I EXPECT THAT OF THE CURRENT STAFF? NO. CAN IT OCCUR IN THE FUTURE? YES. YOU KNOW YOU KNOW, IN 2017, THE CHANGES THAT OCCURRED BASICALLY NOT ONLY HAD THAT POSITION, BUT ANY BOARD PROJECT HAD TO BE APPROVED BY THE CITY MANAGER UNDER BYLAWS.
SO, I MEAN, YOU TALK ABOUT A SIGNIFICANT, YOU KNOW, USURPED OF POWER FROM A CITY MANAGER'S POINT OF VIEW.
BUT IT GOES THE OTHER WAY AROUND IS THAT IF THE ECONOMIC DEVELOPMENT CORPORATION STARTS PERFORMING EXPENDITURES OF FUNDS AND SO FORTH, BECAUSE THE ECONOMIC DEVELOPMENT DIRECTOR ISN'T CLEARLY BEING PROPERLY SUPERVISED, THEN AS I'VE SEEN IN OTHER CITIES, I'VE SEEN HUNDREDS OF THOUSANDS OF DOLLARS BE SPENT WITHOUT THE BOARD'S PERMISSION OR WITHOUT THE CITY COUNCIL'S PERMISSION ON A PROJECT. YOU KNOW, ONE HAD TO DO WITH, LIKE, THEY DECIDING TO EXPLORE THE AND AND AND ENGAGE IN A CONTRACT FOR $3 MILLION OF LAND THAT THE CITY COUNCIL HAD NOT APPROVED, AND THEY HAD ALREADY PAID $200,000 IN EARNEST MONIES. SO THE BAD THINGS CAN HAPPEN, BUT IT'S IT'S IT'S EITHER SIDE.
YOU HAVE TO MAKE SURE THAT YOU HAVE GOOD PEOPLE.
AND THEN GENERALLY IT SEEMS THAT IF THE IF BOB IS IN A POSITION TO DO THE WILL OF THIS BOARD AS, AS OUR EXECUTIVE DIRECTOR, THEN IT WOULD LIKELY BE MORE IT WOULD BE CLEANER IF HE WORKED FOR THE BOARD.
BUT DOES IT HAVE TO BE THAT WAY? NO. IF BOB IS IS GOOD AND HIS SUPERVISORS ARE GOOD, THEY RECOGNIZE HIS JOB IS TO DO WHAT THIS BOARD SAYS AND LETS THEM DO IT.
THEN IT DOESN'T REALLY MATTER.
SO IT IT REALLY MATTERS ON WHAT YOU KNOW WHAT WHAT SIDE OF THE PENDULUM ARE YOU WANTING TO PROTECT? ANY OTHER FURTHER QUESTIONS? COMMENTS? I WAS JUST SOMETHING THAT YOU WOULD GO BACK AND CREATE JOB DESCRIPTIONS, MAKE SURE JOB DESCRIPTION FOR BOTH THAT AND THE SPECIALIST ROLES KIND OF SALARY RANGE FOR THE. YEAH, THERE'S A LOT OF THAT THAT'S FREELY AVAILABLE THROUGH THE INDUSTRY.
OKAY. I MEAN, AN EDC SPECIALIST, YOU KNOW, ECONOMIC DEVELOPMENT CORPORATION DIRECTOR. I MEAN, THOSE ARE YEAH, IT'S NOT DIFFICULT TO FIND.
AND I WOULD I WOULD HOPE THAT THROUGH OUR CITY SERVICES AGREEMENT, WE'D BE ABLE TO WORK WITH THE HR DEPARTMENT TO BE ABLE TO GET ALL THAT SOLIDIFIED AND PRESENT TO THE BOARD AND TO THE COUNCIL. SO THEN DO WE PRESENT TO THE BOARD FIRST GET APPROVED HERE, THEN GO BACK TO COUNCIL, GET APPROVED THROUGH THEM OR COUNCIL FIRST.
AND THEN THE POSITION IS SOMETHING YOU AND YOU ALONE SELECT.
THE FUNDING OF THAT POSITION GOES INTO YOUR BUDGET AND HAS TO BE APPROVED BY THE CITY COUNCIL. AND SO THAT'S HOW THEY AGREE OR DISAGREE WITH YOUR WITH YOUR PERSONNEL.
SO MY THOUGHT PROCESS IS THAT IF WE COULD GET A CONSENSUS OR ACTION TONIGHT.
THEN I WOULD WORK WITH THE MAYOR AND THE COUNCIL TO DO A PRESENTATION TO THE COUNCIL.
AND IF THEY'RE AT LIBERTY TO VOTE THAT NIGHT, THAT'D BE GREAT. I'D BE WILLING TO COME BACK THE NEXT NIGHT OR THE NEXT MEETING FOR THEM TO BE ABLE TO DO THAT.
AND THEN IF WE HAD ACTION BY THE COUNCIL THAT SAID, YES, WE'RE OKAY WITH THIS, THEN WE WOULD COME BACK AND WORK ON THE JOB DESCRIPTION, GET THAT APPROVED THROUGH US, AND TAKE THAT TO THE COUNCIL AND SAY, THIS IS WHAT THE BOARD'S AGREED ON, AND WORKING THROUGH THE HR DEPARTMENT FOR SALARY RANGES AND EVERYTHING FOR THE EDC DIRECTOR AND THE SPECIALIST.
AND I CAN TELL YOU, I'M GLAD THAT THAT GEORGE BROUGHT UP RIGHT NOW, WE HAVE AN EXCELLENT RELATIONSHIP WITH THE CITY, AND IT'S FOR THAT VERY REASON THAT I WANT TO MOVE BOB UNDERNEATH, BECAUSE I'M NOT SURE EXACTLY WHAT THE FUTURE HOLDS.
AND IT COULD CONTINUE TO BE EXCELLENT AND THEN IT COULD NOT. BUT I THINK BY MOVING THEM UNDER, WE AT LEAST GUARANTEE THAT WE KNOW THAT WE'RE GOING TO BE IN CONTROL OF THE EDC DIRECTOR AND THE DIRECTION THAT THIS BOARD HOLDS.
THE ONLY THING I WOULD ASK AND BESEECH THE COUNCIL THAT THEY CONTINUE TO APPOINT STRONG MEMBERS TO THE BOARD OF EDC.
YEAH. AND THEN, IN THEORY, YOU'RE NEVER GOING TO GET BOTH BROKEN AT THE SAME TIME. HOPEFULLY NEITHER EVER GET BROKEN.
BUT AT LEAST WE HAVE THE THE EDC DIRECTOR UNDER US.
WE KNOW THAT THE EDC BOARD CAN GO FORWARD AND BE SUCCESSFUL, WHICH LONG TERM IS GOING TO HELP THE CITY.
SO YEAH, I THINK FOR SEVEN THREE, WE ALL KNOW THAT BOB NEEDS HELP.
YES, WE ALL KNOW. SO I DON'T THINK THERE'S ANY QUESTION ABOUT THE POSITION ITSELF.
IT'S JUST A MATTER OF DETAILS.
SO I THINK THE SOONER WE CAN GET ANY AND ALL OF IT READY FOR APPROVAL,
[02:05:05]
I SAY WE ROLL. LET'S GO.SOUNDS LIKE YOU'RE MAKING A MOTION. OH AM I? OH. SO YOU DIDN'T ANSWER THE FORM OF A QUESTION FOR YOU GUYS DO MOTIONS.
SO I'M NOT READY TO MOVE BOB OVER TONIGHT.
AND HERE'S WHY I'M NOT REAL SURE.
LIKE WHO? WHO'S GOING TO MANAGE AND I DON'T.
LET ME PUT IT THIS WAY. I DON'T HAVE A PROBLEM WITH ANY THE BOARD OR THE POSITION OR WHO'S IN IT RIGHT NOW.
SO I'M LOOKING AT THINGS LIKE FOUR YEARS FROM NOW OR FIVE YEARS FROM NOW.
SO WE STILL GOT TO FIGURE OUT IS IT SEVEN DIFFERENT PEOPLE.
IS HE NOW GOING TO GO FROM SERVING TWO MASTERS TO SERVING SEVEN TO WHERE ANY ONE OF US CAN SAY, HEY, BOB, I NEED YOU TO DO THIS.
HEY, BOB, I NEED YOU TO DO THAT.
SO WE GOT TO FIGURE OUT WHO UP HERE IS GOING TO MANAGE THEM.
EDC SPECIALIST? WHO'S MANAGING THAT PERSON.
IS THAT STRICTLY, BOB? AND THEN DO IF I WANT THEM TO GO RUN A BUNCH OF REPORTS BECAUSE I'M BORED, THEN DO I TELL BOB BECAUSE I DIRECT HIM? HEY, TELL YOUR EMPLOYEE TO GO DO THIS THE WAY IT'S SET UP, KIND OF. NOW IT'S KIND OF FREE THAT WE JUST KIND OF SAY, HEY, BOB, CAN YOU DO THIS? AND I DON'T REALLY KNOW WHAT THE RULES ARE RIGHT NOW.
I DON'T I DON'T REALLY HIT BOB WITH A LOT OF INFORMATION REQUESTS, AND I DON'T KNOW WHAT THE CITY'S DOING. AND THEN VICE VERSA.
IF HE COMES OVER HERE, HOW DOES THE CITY INTERACT WITH THEM? IF THEY NEED SOMETHING, CAN BOB JUST SAY, I DON'T HAVE TIME THIS WEEK? BECAUSE LIKE GEORGE SAID, THERE IS A POSSIBILITY.
I MEAN, IN 2016, THIS POSITION WAS IN THE EDC AND THEN A WHOLE BUNCH OF STUFF SUPPOSEDLY HAPPENED. AND SO WE MOVED THE POSITION BACK TO THE CITY.
AND THEN WE KNOW FOR A FACT A WHOLE BUNCH OF STUFF HAPPENED.
SO WE MOVED IT. WE MOVED THE BOARD AROUND, BUT KEPT THE POSITION AT THE CITY.
AND THEN I THINK WE MOVED THE SPECIALIST IN JUNE OR WHAT HAVE YOU SAID.
WE, WE KIND OF BUDGET FUNDED IT.
WE BUDGETED IT OUT. SO GEORGE IS RIGHT THAT IF IF THE CITY MANAGER WENT ROGUE, THE CITY MANAGER COULD TELL BOB TO LEAVE US ALONE AND DON'T DO ANYTHING THEY SAY AND DO IT MY WAY. THE FLIP SIDE IS, IF THE EDC ALL OF A SUDDEN GETS TOO BIG FOR THEMSELVES AND DECIDES THEY DON'T AS A BOARD, WE ONLY WANT BOB TO DO CERTAIN THINGS AND WE DON'T LIKE THE DIRECTION THE CITY IS GOING.
WE WANT TO DO THIS. THAT'S WHERE YOU START GETTING SOME CONFLICT TOO, RIGHT? BECAUSE THEN WE'VE HAD THAT HAPPEN TOO, BECAUSE EDC A YEAR AGO WAS GOING ONE DIRECTION, THE CITY COUNCIL WAS GOING ANOTHER, AND THEN WE REPLACE THE EDC BOARD FOR THE MOST PART.
AND SO I DON'T KNOW, THAT'S WHAT I MEAN. FOR ME, I GOT TO KNOW WHAT THE PROBLEM IS BECAUSE WE MAY JUST BE DOING THINGS.
AND UNTIL WE KNOW SOME SAFETY GUARDS, WE MAY JUST BE CREATING NOT A CONFLICT TODAY BECAUSE IT'S RUNNING SMOOTH. THE CONFLICT COULD HAPPEN IN, YOU KNOW, LIKE RIGHT NOW, FOR INSTANCE, THE BUDGET'S PRETTY WIDE OPEN.
THERE'S JUST A BIG CHUNK OF MONEY YOU CAN USE FOR A LOT OF THINGS.
THAT MAY IF YOU START THROWING EMPLOYEES IN THERE AND ALL OF A SUDDEN THE EDC JUST RUN AND SPENDING, YOU KNOW, UP TO $1 MILLION WITHOUT ANY INVOLVEMENT FROM THE CITY COUNCIL, THAT MAY CREATE AN ISSUE LIKE WE HAD IN 2016 WHERE PEOPLE STARTED SECOND GUESSING THINGS.
THAT HAPPENED THEN. AND SO I THINK WE GOT TO TAKE ALL THIS INTO ACCOUNT BECAUSE I DON'T SEE A PROBLEM TODAY. I JUST SEE THE POTENTIAL FOR PROBLEMS IN THE FUTURE.
AND IF WE HAVE GOOD PROTOCOLS IN PLACE, THEN I THINK WE WE CAN MOVE PEOPLE AROUND AND NOT HAVING THOSE ISSUES WHERE IF WE JUST DO IT RIGHT NOW MAY OR MAY NOT HAPPEN, BUT AT ANY POINT, IF THE BOARD GOT TOO BIG, THE COUNCIL ALWAYS DOES HAVE THE LEVER THAT THEY ALREADY HAVE. SO I DON'T KNOW NECESSARILY THAT THAT IS A A REASON TO NOT MOVE. BOB UNDER TODAY, BECAUSE IF THERE WAS A PROBLEM WITH THE EDC, THE COUNCIL ALREADY HAS A VEHICLE TO HANDLE THAT PROBLEM.
BUT HOW DISRUPTIVE IS THAT TO OUR ECONOMIC DEVELOPMENT DEALS? LET'S SAY WE GO ROGUE, AND THE CITY COUNCIL ALL OF A SUDDEN STARTS REMOVING PEOPLE IN THE MIDDLE OF DEALS.
AND SO SOMEHOW WE GOT TO MAKE SURE AND WHETHER IT'S ADD MORE AT A ANOTHER COUNCIL MEMBER TO THE BOARD TO WHERE THE COMMUNICATION IS ALWAYS SUPER TIGHT, BECAUSE RIGHT NOW IT SEEMS LIKE IT IS.
SO AGAIN, IT'S NOT ABOUT TODAY.
I MEAN, WE MEAN, WE WENT FOR YEARS WITHOUT REALLY MUCH OF ANYTHING GETTING DONE.
ONLY IN THE LAST YEAR HAVE WE REALLY STARTED GELLING.
I MEAN, WE LITERALLY GOT IN OUR OWN WAY ON EVERY ECONOMIC DEAL THAT CAME TO US BECAUSE WE JUST WEREN'T. AND I CAN TELL YOU THAT THE WAY I ENVISIONED THIS, IT WOULD BE VERY SIMILAR TO THE CITY MANAGER STRUCTURE WE HAVE RIGHT NOW IN THAT CITY MANAGER HAS TO ANSWER TO 70 COUNCIL MEMBERS.
AND THE BOARD WOULD ESSENTIALLY APPOINT THE ECONOMIC DIRECTOR.
SO THE ECONOMIC DEVELOPMENT DIRECTOR WOULD HAVE TO ANSWER TO SEVEN BOARD MEMBERS.
SO THEY WOULD BE ABLE TO THE IN MY OPINION, THE CHECKS AND BALANCES THAT THE BOARD CONTROLS, THE EDC DIRECTOR, THE SPECIALIST, I'M SORRY, THE EDC DIRECTOR, THE EDC DIRECTOR WILL MANAGE EVERY STAFF UNDERNEATH THERE, WHICH
[02:10:03]
WOULD INCLUDE THE SPECIALISTS AND ANYBODY ELSE THAT WE ADD TO THAT.I MEAN, TO THE STAFF. AND SO THAT'S THE RESPONSIBILITY THAT THAT THEY NOW TAKE ON AS A DIRECTOR. WE WE SET THE BUDGET AT THE BEGINNING OF THE FISCAL YEAR, AND THE EDC DIRECTOR IS IS NOW REQUIRED TO FOLLOW THAT BUDGET BECAUSE IT IS A GOVERNMENTAL DOCUMENT THAT'S BEEN APPROVED BY THE CITY COUNCIL, WHICH MEANS THAT ANYTHING OUTSIDE THE PURVIEW OF THE BUDGET MEANS THAT THERE ARE CHARGES THAT CAN BE BROUGHT AGAINST THEM, BECAUSE THEY'RE NOW THEY'RE GOING OUTSIDE.
WHAT A CITY, A GOVERNMENTAL ENTITY THAT'S ELECTED BY THE PEOPLE SAYS, YOU CAN ONLY SPEND $10 HERE.
AND THEN HE GOES OUT AND SPENDS $1,000 THERE WITHOUT AUTHORIZATION BECAUSE WE'VE TOLD HIM HE CAN ONLY SPEND TEN.
SO THOSE THOSE MECHANISMS ARE IN PLACE.
AND SO WE HAVE TO ENSURE THAT WE'RE TAKING THAT SAME STRUCTURE THAT EXISTS FROM THE CITY MANAGER, CITY COUNCIL PERSPECTIVE INTO THE BOARD ECONOMIC DEVELOPMENT PERSPECTIVE.
SO THOSE MECHANISMS NEED TO BE IN PLACE NO MATTER WHAT.
AND YOU'RE RIGHT, THE BOARD COULD GO ROGUE.
BUT IF THE BOARD GOES ROGUE WITH THE COUNCIL NOT STEPPING IN TO STOP IT, THEN I DON'T KNOW WHO'S TO BLAME THE BOARD OR THE COUNCIL, BECAUSE THE COUNCIL NEEDS TO BE ABLE TO ALWAYS HAVE A HAND IN WHAT ECONOMIC DEVELOPMENT IS, AND IF THEY'RE GOING ROGUE, THEN THEY JUST NEED TO REPLACE THEM.
AND I AGREE THAT IT WOULD BE DISRUPTIVE, BUT I THINK IN MY IN MY OPINION, WHILE IT MAY BE DISRUPTIVE, THE REALITY IS I THINK THAT YOU'RE CALMING THE WATERS NOW BECAUSE THE DISRUPTION TOOK PLACE BEFORE THE REMOVAL, NOT AFTER THE REMOVAL, IN MY OPINION.
AND SO WE HAVE TO MAKE SURE THAT COUNCIL IS ALWAYS IN, IS ALWAYS IN CONTACT WITH THE BOARD TO KNOW WHAT'S GOING ON.
AND SO AS THE PARENT CORPORATION, THE MUNICIPAL CORPORATION, I'VE ALWAYS FOUND THAT WHEN AN ECONOMIC WHEN A CITY COUNCIL MAYBE ANNUALLY IDENTIFIES WHAT ECONOMIC DEVELOPMENT INCENTIVE AND PROJECTS THAT THAT THEY ARE INTERESTED IN AND GIVES THAT TO THE BOARD, THEN THE BOARD HAS DIRECTION FROM THE PARENT.
THEN THE BOARD GOES OUT AND DOES, YOU KNOW, TRIES TO CREATE THE THE ECONOMIC DEVELOPMENT INCENTIVES AND PROJECTS THAT THAT THE CITY COUNCIL HAS ALREADY TOLD YOU THAT YOU'RE INTERESTED IN DOING. CASE IN POINT, SAN ANTONIO DOES NOT DO SALES TAX EVER, BECAUSE THE CITY COUNCIL PASSED A RESOLUTION THAT SAID, WE'RE NOT I'M NOT GOING WE'RE NOT GOING TO VOTE FOR SALES TAX INCENTIVE PROJECTS.
AND SO WHEN THEY DID THAT, THAT GAVE A CLEAR DIRECTION TO THE BOARD.
DON'T BRING A SALES TAX PROJECT BECAUSE THAT'S NOT GOING TO GET PASSED.
SO IF, IF IF THE PARENT GIVES GOOD DIRECTION TO THE BOARD, THEN THE BOARD CAN GO OUT AND SATISFY THE PARENT BY GOING OUT AND DOING THE PROJECTS THEY CAN WITH LITTLE CONFLICT AT ALL.
BUT YOU'RE RIGHT, CHAIR, IS THAT WHAT HAPPENS IS WHEN THE CITY COUNCIL DOESN'T INTERACT WITH THE BOARD, AND THEN THE BOARD DECIDES FOR ITSELF WHAT IS THE GOOD ECONOMIC DEVELOPMENT PROCESS WITHOUT REGARD TO WHAT THE CITY COUNCIL THINKS.
THEN YOU START BREAKING OFF, AND NOW YOU'RE DOING OVER HERE AND THEY'RE GOING OVER HERE, AND THEN YOU GET CONFLICT.
SO AND THE EASIEST WAY TO GET REMOVED OFF OF A BOARD IS TO GO COUNTER WHAT THE COUNCIL WANTS. RIGHT? THAT'S THE EASIEST WAY.
IF YOU IF YOU WANT TO LOSE THIS SALARY, WHICH IS ZERO, THEN JUST GO UP AND SAY WHAT THE COUNCIL WANTS. I MEAN, AND I DON'T WANT THIS TO GO DOWN TO THIS, BUT I HAVE SEEN SO MANY PEOPLE THAT HAVE HAD COUNCIL MEMBERS ON THE BOARD, AND THEN THE COUNCIL MEMBER DOESN'T RUN FOR OFFICE OR THE COUNCIL MEMBER IS DEFEATED FOR RUNNING FOR OFFICE, BUT THEY KEEP THEM ON THE BOARD.
AND I START TO SEE 3 OR 4 PEOPLE WHO ARE OPPONENTS, POLITICAL OPPONENTS TO THE PEOPLE THAT ARE ON THE CITY COUNCIL. AND GUESS WHAT HAPPENS? THEY'RE DOING SOMETHING THAT THE OTHER PEOPLE DIDN'T WANT THEM TO DO. WELL, YOU KNOW, FACTUALLY, THAT WAS THE COUNCIL'S DISCRETION AS TO, YOU KNOW, BECAUSE YOU ALL SERVE AT THE DISCRETION OF THE CITY COUNCIL.
SO I WOULD ASK THAT BASED ON THE AGENDA ITEM, I'M NOT I'M NOT READY.
AND I AGREE, MAYOR, WE'RE NOT READY TO TAKE ACTION ON BRINGING HIM OVER RIGHT NOW.
I THINK THIS IS THE BEGINNING OF THE DISCUSSION THAT I WANT TO HAVE WITH THE COUNCIL, AND ALSO FURTHER DISCUSSION WITH THE CITY MANAGER.
BUT WHAT I'M WHAT I'M LOOKING FOR IS, IS A CONSENSUS OF THIS BOARD THAT WOULD ALLOW ME TO NOW GO BEFORE THE COUNCIL AND WORK WITH THE CITY COUNCIL TO SAY THIS IS A PROPOSAL THAT WE'D LIKE TO BRING BEFORE YOU AND TO GET THE CITY COUNCIL TO SAY YAY OR NAY.
AND IF THEY'RE FINE WITH IT, THEN WE WOULD COME BACK AND WE WOULD ACTUALLY DEVELOP THE JOB DESCRIPTION FOR THE EDC DIRECTOR TO BE UNDER THE BOARD, AND THEN FOR THE JOB DESCRIPTION FOR THE EDC SPECIALIST, FOR THE EDC DIRECTOR TO HIRE.
AND WE WOULD HAVE NOW THIS BOARD WOULD HAVE STAFF THAT WE HAVE TO MANAGE.
WE ACTUALLY WE'D HAVE A STAFF PERSON TO MANAGE, AND THAT PERSON WOULD MANAGE THE REST OF THE STAFF AND STRUCTURE IN THAT MANNER.
I MEAN, I SEE IT ENVISIONED IN A VERY MUCH SMALLER SCALE ORGANIZATIONAL CHART AS A CITY
[02:15:07]
OF QUITO. AND WHEN I SUGGESTED A MOTION THAT'S EXACTLY KIND OF WHAT I WAS THINKING AS WELL, IS THAT YOU WOULD GO OUT AND CREATE BOTH JOB DESCRIPTIONS, GET RANGES AND SALARIES, YOU KNOW, DO THE LEGWORK TO BE ABLE TO PRESENT A FULL PACKET AND THEN GIVE US A GOOD UNDERSTANDING OF EXACTLY WHAT WE'RE MOVING OVER AND WHAT THE COSTS ARE TO IT.SO YEAH, WHEN I SAID MOTION THAT THAT'S KIND OF THE TRACK THAT I WAS GOING DOWN.
AND SO IT WOULD BE A MOTION TO AUTHORIZE STAFF IN THE CHAIR TO PREPARE AND PROPOSE A RE WHAT DO YOU CALL A RE ALLOCATION OF STAFFING BETWEEN THE CITY AND THE ECONOMIC DEVELOPMENT CORPORATION? AND ARE YOU SAYING BEFORE GOING TO COUNCIL, YOU WANT TO SEE THAT OR DO YOU WANT HIM TO GO TO COUNCIL, FIGURE THAT OUT AND THEN BRING IT BACK TO THIS BOARD? I THINK WHATEVER'S FASTER AT THIS POINT, I THINK THAT THE ROUTE OF GOING TO COUNCIL FIRST AND THEN COMING BACK IS THE IS THE LONGER ROUTE.
BUT IN MY OPINION, IT'S THE MORE IT'S THE MORE PRUDENT ROUTE BECAUSE IF THE COUNCIL IS NOT ON BOARD, THEN ANY PRESENTATION THAT I MAKE TO THIS BOARD ABOUT THIS IS THE ALLOCATION OF FUNDING.
IT'S KIND OF A WASTE OF TIME. WELL, IT'S TRUE, BUT IF WE'RE TAKING ON THE COST, WHY WOULD THAT? THEY NEED THE PRESENTATION TO BE ABLE TO MAKE THAT DECISION. WELL, AND I GET THAT.
BUT THE PROBLEM THAT I HAVE IS THAT I DON'T WANT TO GIVE THEM A JOB DESCRIPTION THAT THIS BOARD HAS NOT APPROVED.
AND IF WE HAVE TO APPROVE A JOB DESCRIPTION, THEN WE'RE BACK TO THE POSITION WE TALKED ABOUT. SO I'M SORRY. ISAAC, LET ME SEE IF I CAN ASSIST YOU WITH THIS CHICKEN OR EGG SITUATION.
PLEASE REMEMBER THAT THERE IS A LOT OF WORK THAT IS INVOLVED IN CREATING A JOB DESCRIPTION, SEVERAL JOB DESCRIPTIONS.
I WILL SHARE WITH YOU THAT THE CITY IS.
AND YOU'VE ALREADY INDICATED THAT IS BEHIND ON CREATING JOB DESCRIPTIONS.
HR IS PRETTY PRESSED. SO I WOULD SUGGEST TO YOU THAT YOU ALLOW YOUR CHAIR, WHO IS VERY ARTICULATE IN SHARING THE VISION AND THE COUNCIL, I BELIEVE, WILL VERY EASILY UNDERSTAND WHAT THE OPTIONS ARE AND WHAT THE CHAIR WOULD LIKE TO DO THAT THAT GO FIRST BEFORE ANY WORK IS DONE ON THE JOB DESCRIPTION AND THAT DETAILED WORK, BECAUSE THAT THAT INVOLVES SOME TASKS.
AND THE CONCEPT SHOULD GET APPROVED FIRST, JUST LIKE WE WOULD DO FOR OTHER POSITIONS FOR THE MOST PART, AND THEN AND THEN COME BACK AND THEY CAN FILL IN THE DETAILS.
IT WOULD BE BETTER AND EASIER ON ON US AS STAFF AND I THINK MAKE SURE THAT THE COUNCIL IS ON BOARD BEFORE STAFF IS GOING AND IN ESSENCE HELPING TO CREATE ANOTHER POSITION.
THANK YOU. ANY QUESTIONS FOR ISAAC? THANK YOU SIR. SO WHAT I AM WHAT I'M REQUESTING IS I DON'T KNOW IF IT'S AN ACTION, BUT JUST A THE CONSENSUS TO MOVE TOWARDS THE COUNCIL AND AND TO PROPOSE THIS CHANGE TO THE COUNCIL FOR THEIR CONSIDERATION BEFORE WE COME BACK AND DOING A JOB DESCRIPTION.
FOR ME, I'D RATHER SEE AN OUTLINE FIRST.
AGAIN, WHO WHO BOB IS GOING TO OR THAT POSITION THE DIRECTOR IS GOING TO MANAGE AND HOW THAT'S ALL GOING TO WORK.
BECAUSE I'M AFRAID IF YOU GO TO CITY COUNCIL, QUESTIONS GET ASKED. IT'S LIKE, WELL, WE'RE GETTING YOUR IDEA OR WHOEVER'S PRESENTING, BUT REALLY WE MAY WE MAY HAVE A WHOLE DIFFERENT AS A GROUP.
AND I KNOW IT SEEMS LIKE IT'S DRAGGING IT OUT, BUT MAYBE WITH THIS CONSENSUS WE CAN COME BACK WITH NOT A NECESSARILY A JOB DESCRIPTION, BUT AN OUTLINE OF WHAT WE THINK THE JOB IS GOING TO BE, WHAT WE THINK BOB'S RESPONSIBILITIES ARE GOING TO BE, OUR RESPONSIBILITIES TO BOB, AND THEN ALSO WITH THE SPECIALISTS, WHAT THEIR WHEN THE BUDGET CAME FORWARD IN OCTOBER, NOBODY DOUBTED THAT WE NEEDED A SECOND PERSON, BUT THE PERSONNEL POLICY REQUIRES A JOB DESCRIPTION BEFORE WE TAKE ON ANOTHER POSITION. WE DIDN'T HAVE ONE.
AND SO WE ASKED THE CITY MANAGER THAT TIME, WE JUST NEED A JOB DESCRIPTION, GIVE US A SALARY RANGE AND THEN FUND IT.
SO I THINK IF WE JUST GOT SOME OUTLINES ON, LET'S SAY, A JOB DESCRIPTION, BUT WHAT WE ENVISION, IT MAY NOT EVEN BE A SPECIALIST.
IT COULD BE A WHATEVER THE NEXT, I DON'T KNOW, SUBDIRECTOR OR WHATEVER THE NAME IS.
WHAT DO WE WANT THEM TO DO? BRING THAT BACK AS AN OUTLINE.
AND THEN WHAT DOES THAT ENTAIL FROM THE MONEY STANDPOINT? BECAUSE WE MAY SAY WE ONLY WANT TO SPEND $90,000 FOR THIS SECOND POSITION.
WELL, THEN IF WE THROW A BUNCH OF DUTIES ON THERE, BOB CAN LOOK AT THAT AND SOME OTHER PEOPLE CAN GO, GUYS, YOU'VE GOT A $200,000 JOB HERE.
YOU NEED TO DIAL THIS BACK OR INCREASE SOME MONEY.
IT IS A CHICKEN OR THE EGG BECAUSE IT SEEMS LIKE THAT'S A PROBLEM WITH PUBLIC MEETINGS, IS YOU HAVE TO FIX ALL THIS IN PUBLIC AND COME UP WITH A CONSENSUS WITHOUT.
AND I WOULD PROPOSE, IF YOU WOULD BE AMENABLE TO IT, TO ALLOW ME TO SPEAK TO THE COUNCIL.
[02:20:02]
AND IT GIVES THE BOARD THE OPPORTUNITY TO BE ABLE TO THINK ABOUT KIND OF WHAT THEY CONCEPTUALIZE. THESE DUTIES WOULD BE OTHER.I MEAN, WE ALREADY KNOW WHAT BOB DOES, AND HE COULD PROBABLY GET THAT INFORMATION TO YOU ALSO. I THINK THERE'S A JOB DESCRIPTION THAT HE HAS ALREADY THAT HE CAN PROVIDE TO YOU. BUT THEN CONCEPTUALIZING WHAT YOU THINK THAT A SPECIALIST WOULD BE ABLE TO DO.
AND SO THAT IF THE COUNCIL SAYS MOVE FORWARD THEN WHEN WE COME BACK AND, AND I SAY YES, WE'RE NOW WE CAN BEGIN, START DEVELOPING THIS, THAT THIS BOARD HAS ALREADY THOUGHT ABOUT. OKAY. I THINK THAT THIS IS WHAT THEY NEED TO DO. THEY NEED TO BE ABLE TO DO X, Y, Z.
NOT A, NOT B. AND WE'D HAVE ALREADY THAT DISCUSSION HERE SO WE CAN DEVELOP THAT AND FINALIZE IT MAYBE IN TWO MEETINGS SO THAT WE CAN TAKE IT BACK TO THE COUNCIL AND SAY, THIS IS WHAT WE'RE CONCEPTUALIZING THIS POSITION TO DISPOSITION TO BE.
I GOT NO PROBLEM WITH THAT. I MEAN, YOU'RE WANTING TO GO TO COUNCIL, GET COUNCIL RECOMMENDATIONS, COME BACK TO THIS BOARD, AND THEN WHEN WE FINALIZE IT, THEN BRING IT BACK TO COUNCIL FOR WHAT I GUESS, LIKE A BUDGET I'M LOOKING AT IS, IS TAKING IT TO THE COUNCIL FOR THEM TO SAY, YES, WE AGREE. GO AHEAD AND DO IT, BRING IT BACK TO US AND LET US KNOW WHAT IT LOOKS LIKE. BUT CONCEPTUALLY, WE AGREE WITH THE PLAN.
OH YEAH. YEAH. BECAUSE IF IF WE DO ALL THIS WORK AND THEN I TAKE IT TO THE COUNCIL AND THEY SAY IT'S NOT GOING TO HAPPEN, THEN WE'VE DONE ALL THIS WORK FOR NOTHING.
SO MOTION TO AUTHORIZE CHAIR TO PROPOSE THIS TO COUNCIL AND PREPARE A PITCH DECK.
YEAH. EXACTLY. IT. YEAH, THAT'S KIND OF WHAT WE'RE LOOKING AT.
I'LL MAKE THAT MOTION. WHAT GEORGE SAID.
WHAT GEORGE SAID? YEAH, WE HAVE A MOTION.
SECOND, A SECOND. ANY FURTHER DISCUSSION? AND THIS WOULD BE FOR AGENDA ITEM SEVEN.
SO I GUESS WE'RE OKAY WITH ROLLING UP ON ONE.
DO WE NEED TO DO A VOTE ON EACH ONE? YOU COULD EITHER. ALL, YOU KNOW, IF THERE'S A CONSENSUS, WE CAN JUST RECOGNIZE A CONSENSUS AND WE CAN MOVE FORWARD.
IF YOU WANT TO DO A FORMAL VOTE ON THE MOTION, THEN YOU CAN DO THAT. WHY DON'T WE DO A FORMAL VOTE ON THE VOTE SO WE CAN AT LEAST LET THE COUNCIL KNOW THAT THE BOARD VOTED ON THIS? SO. AND THIS WILL BE A VOTE ON SEVEN TWO AND SEVEN THREE AND SEVEN THREE.
SO ROLL CALL PLEASE. BOARD MEMBER MIKE SNIDER.
AYE. CHAIRMAN MIKE MENDEZ, I BOARD MEMBER SEAN LUCAS, I BOARD MEMBER GAMBOA I AND BOARD MEMBER RANDALL CLARK.
AYE. MOTION CARRIES FIVE ZERO.
NOW LET'S MOVE ON TO AGENDA SEVEN FOUR UPDATE ON EDC WORKGROUP COMMITTEES.
I THINK THE COMMITTEES THAT WE HAVE ARE THE MARKETING, THE BUSINESS STRATEGIC PLAN.
WE DO HAVE THE PROJECT DARWIN, WHICH I WANT TO MAKE.
NOTE THAT WE WILL PROBABLY JUST MOVE THAT TO PROJECT MEGA SITE BECAUSE WE NO LONGER ARE CHASING THE DARWIN PROJECT, BUT WE STILL HAVE MEGA SITE THAT WE'RE WORKING ON. SO I THINK IT WOULD JUST CHANGE THE NAME OF THAT TO PROJECT MEGA, WHICH WOULD BE THE SAME INDIVIDUALS THAT WERE ON IT. AND THEN OF COURSE WE HAVE THE EDUCATION WORKING WITH TSTC AND HUTTO. SO I'LL START OFF BY THE BUSINESS PLAN.
I MET WITH THE CHAMBER BOARD OF DIRECTORS AND PITCHED TO THEM THE OPPORTUNITY MAYBE TO CREATE AND DO A BUSINESS STRATEGIC PLAN THAT WOULD BE IN CONJUNCTION WITH THE CHAMBER OF COMMERCE AND ALSO THE ECONOMIC DEVELOPMENT CORPORATION.
THEY I'M ASSUMING THEY'RE STILL CONSIDERING THAT I HAVE NOT HEARD BACK FROM ANY CHAMBER MEMBER. SO I SEEM TO HAVE A REALLY GOOD MEETING WITH THEM, AND BOB AND I PITCHED IT TO THE EXECUTIVE COMMITTEE, AND THEN WE WENT TO THE BOARD, AND I PITCHED IT TO THE BOARD.
SO WE SEEM TO HAVE GOTTEN VERY GOOD RESPONSE.
I'M STILL WAITING FOR A REPLY BACK, BUT AS SOON AS I GET THAT, I'LL LET THE BOARD, THE BOARD KNOW WHAT THE RESPONSE WAS FROM THE CHAMBER.
THANKS. SO SEAN AND I ARE ON THE MARKETING COMMITTEE, AND WE'VE MET TWICE WITH CITY COMMUNICATIONS STAFF SINCE OUR LAST MEETING AND STARTED KIND OF THE REBRANDING PROCESS.
LUCKILY, WHAT WAS PUT OUT HASN'T REALLY BEEN PUT OUT IN FAR AND WIDE, I WOULD SAY. AND SO WE'RE STILL AT A GOOD SPOT TO BE ABLE TO MAKE SOME CHANGES, TO MAKE IT REALLY IMPACTFUL.
THE EDC WEBSITE IS STILL UNDER CONSTRUCTION, AND IT'S GOING TO BE DELAYED ABOUT TWO WEEKS BECAUSE OF OUR KIND OF PAUSE ON ALL OF THAT TO MAKE SURE THAT THE BRANDING IS WHAT WE WANT IT TO BE. WE'RE WORKING ON THE LOGO.
WE'RE DEVELOPING IT IN-HOUSE AND SHOULD BE DONE AT THE END OF FEBRUARY.
SO THEN ALL THE EDC MATERIALS WILL BE BRANDED ACCORDINGLY.
AND THEN THE ICSC TRADE SHOW IN VEGAS THAT BOB'S GOING TO COMMUNICATION STAFF IS WORKING WITH HIM TO MAKE SURE THAT THE EDC IS BRANDED APPROPRIATELY FOR THAT EVENT AS WELL,
[02:25:03]
KIND OF GETTING AN IDEA OF WHAT TYPES OF BRANDING MATERIALS ARE GOING TO BE NEEDED FOR THAT EVENT AS WELL. AND WE'VE GOT LINKEDIN AND SOCIAL MEDIA POSTS THAT ARE LAUNCHING IN MAY ALONG WITH THE WEBSITE LAUNCH.AND THERE'LL BE A NEW VIDEO PROMOTING HUTTO AND THE EDC AT THAT TIME.
AND THEN WE'RE JUST CONTINUING TO MARKET THE EDC WEB PAGE AND LOOKS LIKE SOME ZOOM PROSPECTOR CONTENT AND THE, HEY, LINKEDIN AND OUR NEWS MEDIA.
AND THEN THERE'S A LINK HERE IN THE NOTES FOR THE FOR AN EXAMPLE OF THE OF A VIDEO FOR THAT TOO. SO I JUST HAD A QUESTION FOR THE BOARD.
I GUESS IT WAS ASKED OF US IN ONE OF OUR MEETINGS, KIND OF WHAT LEVEL OF INVOLVEMENT THE REST OF THE BOARD WANTS, AS WE'RE TRYING TO FIGURE OUT LOGO AND BRANDING.
SO I KNOW WE'RE ON THE COMMITTEE.
SO WE KIND OF FELT LIKE THE DESIGNATED PEOPLE, BUT WE ALSO WANT TO MAKE SURE THAT IT'S SOMETHING THAT THE BOARD GETS BEHIND AND LIKES, AND WE DON'T WANT TO BRING SOMETHING TO YOU FOR APPROVAL.
AND THEN YOU'RE LIKE, OH, WHAT HAPPENED? LIKE WE'RE WAY BACK IN THE PROCESS.
BUT AT THE SAME TIME, WE DON'T NEED EVERYBODY IN ON EVERY SINGLE THING. THAT'S WHY WE'RE ON THE COMMITTEE. SO JUST TRYING TO UNDERSTAND KIND OF OUR GOALPOSTS FOR THAT FURTHER ENGAGEMENT TO COMMENT.
I THINK THAT'S A QUESTION FOR YOU ALL. HOW HOW WOULD YOU WOULD YOU LIKE US TO KIND OF GET A FINAL OR CLOSE TO A FINAL DRAFT AND THEN PRESENT TO YOU GUYS TO GET AN UNDERSTANDING OF IF YOU GUYS LIKE THE LOGO, OR DO YOU GUYS WANT TO GIVE INPUT THROUGH OUR PROCESS TO CONTRIBUTE.
LIKE WHAT ARE YOUR GUYS'S THOUGHTS ON ON THAT? SO WE'RE CHANGING THE LOGO.
BECAUSE THE EDC HAD NO INPUT ON IT.
OKAY. FOR ME I'D SAY IF YOU'VE GOT IT'S A NO CHICKEN EGG THING, RIGHT. DON'T WANT TO DO ALL THE WORK.
BUT I GUESS SOMETHING THAT IS CLOSE TO, YOU KNOW, LIKE A DRAFT THAT IF WE CAN AT OUR NEXT MEETING, LOOK AT AND GO, YEAH, THAT'S THAT SOUNDS GREAT.
I THINK THAT'S MOST APPROPRIATE. SO WE'LL CONTINUE TO WORK THROUGH MARKETING ONCE WE GET SOMETHING THAT WE FEEL COMFORTABLE WITH. MAYBE EVEN 1 OR 2 OPTIONS WE'LL COME TO PRESENT TO THE BOARD, HAVE YOU GUYS LOOK AT IT AND GO FROM THERE.
I WILL ADD THAT I THINK IT'S GEL, RIGHT.
IS THAT CORRECT? GEL. THEY DID A REALLY GOOD JOB IN LAYING OUT TIMELINES, GOALS. WHAT WOULD LOOK ON WHAT THEY'RE ENVISIONING ON EACH ONE OF THE SOCIAL PAGES, HOW THEY'RE LAYING OUT THE WEBSITE, HOW THEY'RE LAYING OUT JUST ALL THE DIFFERENT FACETS AND HOW THEY'RE LAYERING IN OTHER AVENUES THAT WE HAVEN'T NECESSARILY THOUGHT OF THAT COULD BENEFIT.
SO THERE'S A LOT OF GREAT STUFF.
THERE'S A LOT OF GREAT STUFF THAT THEY PREPARED FOR US TO LOOK AT.
NO. YEAH I KIND OF AGREE WITH THAT, JOE.
I KIND OF AGREE. I THINK THAT, YOU KNOW YOU KNOW, AT SOME POINT IN TIME WE HAVE TO TRUST THE PEOPLE THAT ARE IN THE COMMITTEE. AND I THINK YOU HAVE A REALLY GOOD GRASP AS TO WHAT THIS BOARD IS LOOKING AT AND KIND OF THE DIRECTION AND KIND OF WHAT WE ENVISION AND THE GROWTH THAT WE'RE LOOKING AT AND THE POTENTIAL IMPACT THAT'S GOING TO HAVE ON THE CITY, THAT YOU CAN TAKE ALL OF THAT KNOWLEDGE THAT YOU HAVE AND APPLY IT TO THE LOGO AND BRING BACK SOMETHING TO US THAT, YOU KNOW, PRETTY CLOSE, BECAUSE I CAN TELL YOU, I'M I'M NOT A NITPICKER.
I'D PROBABLY SAY, HEY, THAT LOOKS GOOD TO ME. LET'S MOVE WITH IT. SO YEAH, I'M GOOD WITH THAT. AND I THINK THE OTHER THING IS PROBABLY SHARING THE WEBSITE.
I THINK THAT'S ANOTHER THING BECAUSE SO MUCH HAPPENS ON THE EDC WEBSITES, LIKE, WE REALLY WANT TO MAKE SURE THAT WHEN WE LAUNCH THAT IT IS SPECTACULAR.
AND SO I THINK THE MORE EYES WE CAN GET ON THAT AND THE MORE FEEDBACK THE BETTER.
SO AS THAT STARTS TO KIND OF FULFILL ITS POTENTIAL, WE'LL BRING THAT TO YOU GUYS TOO, AND WANT TO GET FINAL DETAILS TWEAKS AND MAKE SURE IT'S GOT EVERYTHING THAT IT NEEDS TO HAVE, BECAUSE I THINK THAT'S GOING TO BE PIVOTAL FOR US. ANY OTHER QUESTIONS? COMMENTS? WE ALSO HAVE THE MASTER COMP PLAN SUBCOMMITTEE THAT WE HAVE.
I BELIEVE THAT'S RANDALL AND CHENEY. I DON'T KNOW IF YOU GOT. WE HAVEN'T HAD A MEETING AGAIN. THEY'RE SUPPOSED TO BE ONE SCHEDULED IN MARCH.
WITH ALL THE COVID THAT HAPPENED AND ALL THE STAFF DOWN, THEY GOT KIND OF DELAYED.
THE SURVEYS CLOSED, I THINK A WEEK AGO.
AND SO THE ADMINISTRATIVE FIRM THAT WE'VE CONTRACTED FROM THE CITY TO, TO DO THE THE 2040 COMP PLAN IS COLLATING ALL THAT DATA, AND THEN THEY'RE GOING TO COME BACK WITH A PRESENTATION AND THAT'LL BE OUR NEXT MEETING.
THEN AFTER THAT WE'LL BE HAVING EVENTS WITH THE THE CITY AND CITIZENS.
WE'LL HAVE A GOOD REPORT AFTER. RIGHT. YEAH. FOR SURE.
THE OTHER ONE WAS ON THE EDUCATION SIDE.
[02:30:02]
I AT THE POWER BREAKFAST, I MET ROBIN RAY, WHO'S THE ASSOCIATE VICE PRESIDENT AT THE EAST WILLIAMSON COUNTY CENTER.AND I'M GOING TO HAVE A SCHEDULED APPOINTMENT WITH HER LATER THIS MONTH TO GO OUT TO THE FACILITY AND GIVE A TOUR AND GET TO MEET ALL THE OTHER PRINCIPALS, AND WE START TALKING ABOUT BECAUSE WE FOUND THAT, YOU KNOW, THEY DON'T GET PAID FOR THEIR STUDENTS UNTIL THEY GET JOBS.
SO ONE OF THE THINGS AS WE GET MORE GROWTH ON NEW ECONOMIC DEVELOPMENT THAT NEED THOSE TRAINED PEOPLE TO WORK WITH THEM, TO MAKE SURE THAT THEY'RE PROVIDING THAT TRAINING SO THEY CAN GET THEM FULL TIME JOBS UPON GRADUATION.
AND THEN WE'VE GOT THAT PARTNERSHIP THAT WE CAN THEN SELL TO POTENTIAL BUSINESS DEALS GOING FORWARD. OKAY. ALL RIGHT.
EXECUTIVE SESSION. I BELIEVE WE DO NEED TO GO IN EXECUTIVE SESSION QUICKLY. SO LET'S DO THAT PURSUANT TO FIVE, CHAPTER 551 OF THE TEXAS GOVERNMENT CODE.
THE BOARD IS RECESSING INTO ITS REGULAR SESSION NOW, AND WE'LL RECONVENE IN EXECUTIVE SESSION TO DELIBERATE AND SEEK LEGAL ADVICE REGARDING THE FOLLOWING, PURSUANT TO 551087 ECONOMIC DEVELOPMENT AND 551071 CONSULT WITH THE ATTORNEY AND 551072 REAL PROPERTY OF THE ACT PROJECT D12 MEGA SITE DEVELOPMENT NEGOTIATIONS AND INCENTIVES OPTION CONTRACTS FOR THE PURCHASE OF LAND IN THE VICINITY AND OTHER OFFERS AND INTEREST RAISED BY PROSPECTS. DESIGNED TO CREATE, MOVE OR EXPAND COMMERCIAL INDUSTRIAL OPERATIONS INTO OR WITHIN THE CITY OF HUTTO.
PURSUANT TO 5510710551071 CONSULT WITH ATTORNEY OF THE ACT MODIFICATION OF THE CORPORATE BYLAWS. IT IS NOW 704.
THAT'S A MOUTHFUL. LORD JESUS.
IT IS NOW 747 AND WE ARE EXITING EXECUTIVE SESSION, COMING BACK INTO REGULAR SESSION.
ITEM NINE ONE DISCUSS AND CONSIDER ACTION ON AMENDING THE CORPORATE BYLAWS TO INCLUDE OBLIGATIONS OF CONFIDENTIALITY UPON THE BOARD, THE DIRECTORS OF THE BOARD. MR. CHAIRMAN, I'D LIKE TO MAKE A MOTION TO APPROVE. NINE ONE AS PRESENTED.
ANY FURTHER DISCUSSION? ROLL CALL PLEASE. BOARD MEMBER SEAN LUCAS, A BOARD MEMBER.
CHENEY GAMBOA, A BOARD MEMBER.
MIKE MENDEZ, A BOARD MEMBER RANDALL CLARK.
AYE. MOTION CARRIES FIVE ZERO.
THERE BEING NO FURTHER BUSINESS BEFORE THIS BOARD. THIS THIS MEETING IS ADJOURNED.
I'M GOING TO BRING US A FORM. HAVE A GOOD VALENTINE'S EVENING.
THANK YOU. THANKS. YOU TOO.
* This transcript was compiled from uncorrected Closed Captioning.