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IT IS NOW 6:00. I'M GOING TO BRING THIS MEETING OF THE CITY OF HUTTO ECONOMIC
[(EDC) Board Meeting/(CDC) Board Meeting]
DEVELOPMENT CORPORATION BOARD TO ORDER.IT'S A SPECIAL MEETING THAT WE'RE HAVING. WE CALL ROLL CALL, PLEASE.
CHAIRMAN MIKE MENDEZ. PRESENT.
PRESENT. BOARD MEMBER SEAN LUCAS.
BOARD MEMBER RANDALL CLARK PRESENT.
WE DO HAVE A QUORUM PRESENT WITH FIVE MEMBERS.
LET'S MOVE ON TO ITEM NUMBER THREE. PUBLIC COMMENT. ANYBODY, ANY CITIZEN WISHING TO SPEAK BEFORE THIS BOARD CAN COME FORWARD.
YOU'LL HAVE THREE MINUTES TO SPEAK. I DON'T SEE ANYBODY HERE.
LET'S MOVE ON TO ITEM NUMBER FOUR FOR ONE AGENDA.
CONDUCT A CONDUCT A SECTION 505.179 PUBLIC HEARING ON PROJECT ACROPOLIS.
FOR PURPOSES OF NOTICE OF THE INTENT TO EXPEND FUNDS AND DEVELOPMENT OF AN INCENTIVE AGREEMENT FOR THE PROJECT.
DID YOU WANT ME TO? THE EXECUTIVE DIRECTOR WANTED ME TO KIND OF LET THE BOARD KNOW WHAT WE'RE DOING. SO A PROVISION OF THE LOCAL GOVERNMENT CODE, AND I'M JUST GOING TO READ IT. SO YOU UNDERSTAND IT SAYS, EXCEPT AS PROVIDED BY SUBSECTION B, A TYPE B CORPORATION SHALL HOLD AT LEAST ONE PUBLIC HEARING ON A PROPOSED PROJECT BEFORE SPENDING MONEY TO UNDERTAKE THE PROJECT.
AND THEN SUBSECTION B, THE EXCEPT SAYS A TYPE B CORPORATION, THAT THE CREATION OF WHICH WAS AUTHORIZED BY A MUNICIPALITY WITH A POPULATION OF LESS THAN 2000, IS NOT REQUIRED TO HOLD THE PUBLIC HEARING UNDER THIS SECTION.
IF THE PROPOSED PROJECT IS DEFINED BY SUBCHAPTER C, CHAPTER 501. SINCE YOU ARE NO LONGER A AND THE 20,000 POPULATION IS TRACKED BY THE DECENNIAL CENSUS, AND SINCE YOU ARE NOW CONGRATULATIONS, YOU'RE NO LONGER CONSIDERED A SMALL CITY UNDER.
UNDER THIS PROVISION, WHICH MEANS YOU HAVE TO HAVE THESE HEARINGS ON, ON YOUR PROJECTS EVEN IF THEY ARE A CHAPTER 501 PROJECT.
AND SO THE NEXT PROVISION IN THE LAW AND THAT'S WHAT THIS WAS, THIS DOES, THIS STARTS THE CLOCK, SO TO SPEAK, BECAUSE IT SAYS A TYPE B CORPORATION MAY UNDERTAKE A PROJECT UNDER THIS CHAPTER UNLESS NOT LATER THAN THE 60TH DAY AFTER THE DATE.
NOTICE OF THE SPECIFIC PROJECT OR GENERAL TYPE OF PROJECT IS FIRST PUBLISHED.
THE GOVERNING BODY OF THE AUTHORIZING MUNICIPALITY RECEIVES A PETITION FROM MORE THAN 10% OF THE REGISTERED VOTERS OF THE MUNICIPALITY, REQUESTING THAT AN ELECTION BE HELD BEFORE THE SPECIFIC PROJECT OR GENERAL TYPE OF PROJECT IS UNDERTAKEN.
IN ORDER TO YOU'RE NOT REQUIRED TO HOLD AN ELECTION AFTER THE SUBMISSION OF A PETITION.
IF THE VOTERS OF THE MUNICIPALITY HAVE PREVIOUSLY APPROVED THE UNDERTAKING OF THE PROJECT OR SPECIFIC GENERAL TYPE OF PROJECT.
AND SO THAT'S THAT'S WHAT THIS IS.
IT'S AN OPPORTUNITY FOR THE PUBLIC TO SAY, WE DON'T WANT THAT.
AND IF THERE'S 10% OF THE PEOPLE THAT VOTED IN THE LAST ELECTION THAT ARE CERTIFIED TO DO THAT, THEN IT GOES TO A VOTE OF THE PEOPLE.
SO THAT AND WE CAN'T SPEND MORE THAN $10,000 ON A PARTICULAR PROJECT UNTIL YOU'VE DONE THIS IN THE 60 DAYS EXPIRES.
SO WE'VE GOT TO GET THIS GOING BECAUSE OF THE COUPLE OF PUBLIC HEARINGS WE'RE GOING TO HAVE. THANK YOU. THANKS, GEORGE.
AND BOARD. THERE ARE TWO PROJECTS I'M JUST GOING TO GIVE YOU KIND OF A THUMBNAIL ON BOTH OF THEM, AND WE'LL SORT OF GET THROUGH THIS, I THINK RELATIVELY QUICKLY.
PROJECT D12 IS A HIGH TECH AUTOMOBILE MANUFACTURER.
PUBLIC HEARING. YEAH. LET ME GO AHEAD AND OPEN UP FOR TWO.
SO OF COURSE WE'LL GO AHEAD AND OPEN UP FOR TWO, WHICH IS CONDUCT A SECTION 505.159 PUBLIC HEARING ON PROJECT D12 FOR PURPOSES OF NOTICE OF THE INTENT TO EXPEND FUNDS AND DEVELOPMENT OF AN INCENTIVE AGREEMENT FOR THAT PROJECT.
I WOULD MAKE NOTE THAT EVERYTHING THAT OUR, ATTORNEY OF RECORD HAS JUST SAID ABOUT THE ACROPOLIS WOULD STAND TRUE FOR D12.
PROJECT D12 SO YOU WON'T HAVE TO REPEAT THAT AGAIN.
SO, BOB, GO AHEAD AND TAKE IT AWAY.
OKAY. SINCE WE'RE ON D12, I'LL JUST STICK WITH THAT.
IT'S A HIGH TECH AUTOMOBILE MANUFACTURER.
CONSIDERING A NATIONAL HEADQUARTERS AND ASSEMBLY FACILITY HERE IN HUTTO AND APPROXIMATELY 143 ACRES OF PROPERTY IT'LL START AN INVESTMENT BEGINNING IN 2022 AT APPROXIMATELY 118 MILLION, CONSISTENTLY INCREASING THAT FOR SIX YEARS UNTIL IT'S REACHED A GRAND TOTAL OF 967 MILLION AT THE END OF 2028.
THE INVESTMENT WILL CONSIST OF LAND, BUILDINGS, FURNISHINGS, MACHINERY, EQUIPMENT, AND TOOLING.
THE PROJECTED JOB GROWTH STARTING IN 2022 IS 47 JOBS.
AGAIN, THESE ARE NET NEW JOBS, NOT RELOCATED.
AND BY 2028, WE'LL RISE TO 814.
TOTAL JOBS WILL RUN THE FULL GAMUT, OBVIOUSLY FROM ASSEMBLY STAFF TO OPERATIONAL STAFF TO ADMINISTRATION, MANAGEMENT, ENGINEERING, SALES AND EXECUTIVE SUPPORT WAGES AND BENEFITS WILL WILL VARY SOMEWHAT UNDER
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NEGOTIATIONS, BUT WILL INCLUDE 100% EMPLOYER PAID HEALTH CARE RETIREMENT PLANS FOR ALL FULL TIME EMPLOYEES, WITH AVERAGE WAGES OF APPROXIMATELY $85,000 PER JOB.INCENTIVES ARE BEING NEGOTIATED, WHICH WILL INCLUDE THE CONSTRUCTION OF WATER, WASTEWATER AND ROAD INFRASTRUCTURE TO SUPPORT THE FACILITY.
IT POSSIBLE TAX ABATEMENT, CREATION OF A TAX INCREMENT REINVESTMENT ZONE AND A SALES TAX SHARING AGREEMENT TO INCLUDE SALES TAX SHARING PURSUANT TO CHAPTER 380 BETWEEN THE CITY OF HUTTO AND THE INCOMING CORPORATION.
TOTAL INCENTIVES ARE ESTIMATED TO FALL SOMEWHERE BETWEEN 36 AND $40 MILLION OVER SEVEN YEARS. ANY QUESTIONS FOR BOB? UPDATE ON ACROPOLIS. DO YOU HAVE ANY? YES, SIR.
YOU HAVE THE PUBLIC HEARING OPEN.
SO IF YOU GIVE ME AN OPPORTUNITY AND THEN CLOSE THAT PUBLIC HEARING, WE'LL DO THE NEXT ONE. IF THERE'S ANYONE HERE THAT WISHES TO SPEAK ON PROJECT D12 AND THE INFORMATION THAT'S BEEN PROVIDED BY OUR EXECUTIVE, I MEAN THE EDC DIRECTOR.
THERE BEING NONE, DO I NEED TO CLOSE IT NOW OR JUST.
OKAY, WELL, I'LL GO AHEAD AND CLOSE.
ITEM 42, THE PUBLIC HEARING ON THE PROJECT D12.
LET'S GO BACK UP TO PROJECT ACROPOLIS, WHICH IS STILL OPEN, AND WE'LL OPEN THE PUBLIC HEARING FOR THAT ONE. WELL, I'D ALREADY OPENED UP THE FIRST THING THAT OPENED, SO. OKAY.
YES, SIR. ON THE ACROPOLIS SIDE AGAIN, ANOTHER HIGH TECH MANUFACTURER THIS ONE ENGAGED IN THE DESIGN AND FABRICATION OF COMPONENTS FOR ELECTRONIC DEVICES, ENABLING COMMUNICATIONS, COMPUTING, HEALTHCARE, MILITARY SYSTEMS, TRANSPORTATION, CLEAN ENERGY AND OTHER APPLICATIONS.
IT INVOLVES ABOUT 450 ACRES OF LAND IN AND THE MEGA SITE AREA.
WE BEGIN OR THEY BEGIN, RATHER.
THE PROJECT INVESTMENT IN 2022 AT APPROXIMATELY 340 MILLION.
AND RAMP OVER NINE YEARS TO ABOUT $2 BILLION IN TOTAL INVESTMENT.
AGAIN, THIS INVESTMENT CONSISTS OF LAND, BUILDING FURNISHINGS, TECHNOLOGY, MANUFACTURING EQUIPMENT, ETC..
THE JOB GROWTH WILL BRING ABOUT 800 NEW JOBS INTO HUTTO OVER TEN YEARS.
JOBS WILL RANGE AGAIN FROM THE FULL GAMUT OF OPERATIONS ROBOTICS, TECHNICIANS, ENGINEERING, HARDWARE AND SOFTWARE DEVELOPMENT, COMPUTER SCIENCE, COMPUTER OPERATORS, SUPERVISORS, AND PLANT MANAGEMENT. WAGES AND BENEFITS WILL VARY.
ARE STILL UNDER NEGOTIATION, BUT WE'LL INCLUDE, AGAIN, EMPLOYER PAID HEALTH CARE RETIREMENT PLANS FOR ALL FULL TIME EMPLOYEES.
INCENTIVES ARE BEING NEGOTIATED, WHICH WILL INCLUDE THE CONSTRUCTION OF ALL INFRASTRUCTURE, WATER, WASTEWATER, ROADS AT THE SITE VIA A EDC AND TAX ABATEMENT POTENTIAL, CREATION OF A TERS OR TAX INCREMENT REINVESTMENT ZONE, AND A SALES TAX SHARING AGREEMENT BETWEEN THE EMERGENCY MANAGEMENT GROUP AND THE CLIENT. AND THAT WILL ALL BE DONE PURSUANT TO CHAPTER 380 BETWEEN THE CITY OF HUTTO AND THE INCOMING OPERATION.
TOTAL INCENTIVES FOR THIS PROJECT ARE ESTIMATED AT $80 MILLION OVER THE TEN YEAR PERIOD OF THE RAMP. AND I WILL TELL YOU, I DON'T THINK I MISSED THIS WHEN I WENT THROUGH THE ORIGINAL WRITE UP, BUT THE JOBS AND SALARY FOR THIS IS VERY HIGH FOR PROJECT D2, D12 RATHER EVEN HIGHER IN A CASE OF ACROPOLIS, WHERE ESSENTIALLY YOU'VE GOT PROBABLY AN AVERAGE SALARY OUT THERE OF IN EXCESS OF $100,000 A YEAR. WE NOW I'M SORRY, BOB, THE ONLY OTHER COMMENT FOR BOTH PROJECTS IS THAT THESE ARE OBVIOUSLY GREENFIELD PROJECTS, WHICH MEANS THAT IN ADDITION TO THE INFORMATION I SHARED WITH YOU ABOUT DIRECT JOBS. THERE WILL BE OBVIOUSLY CONSTRUCTION, LOTS OF INDIRECT JOB GROWTH ASSOCIATED WITH THESE TWO BUSINESSES, AND THAT'S NOT INCLUDED IN THE NUMBERS THAT I SHARED WITH YOU EARLIER. I NOW MAKE IT AVAILABLE FOR ANYONE IN THE PUBLIC THAT WISHES TO SPEAK ON PROJECTS ACROPOLIS.
THEY CAN COME FORWARD NOW. HAVE THREE MINUTES. WE'LL NOW CLOSE THE PUBLIC HEARING FOR PROJECT ACROPOLIS.
AGENDA ITEM FOR ONE. WE WILL CLOSE THE PUBLIC HEARING FOR PROJECT D12, WHICH IS ITEM FOR TWO.
ANY QUESTIONS FOR BOB OR GEORGE ON THESE TWO ITEMS? ACROPOLIS AGAIN IS 800 NEW JOBS OVER THE NEXT TEN YEARS.
YES, SIR. THANK YOU. AND I JUST WANTED TO REMIND THE BOARD THAT THE PROJECTS ARE STILL CONFIDENTIAL. WE'RE IN A NEGOTIATION STAGE.
AND SO THE GENERAL INFORMATION HERE WAS REQUIRED BY LAW FOR US TO RELEASE, BUT THAT THE INFORMATION STAYS CONFIDENTIAL AT THIS TIME.
NO FURTHER QUESTIONS. THANK YOU BOB.
I APPRECIATE IT. WE WANT TO CLOSE THE PUBLIC HEARING.
YEAH I DID. OKAY, LET'S MOVE ON TO ITEM 4.3 DISCUSSING.
CONSIDER A BUDGET AMENDMENT TO THE PROJECT LINE ITEM TO SUPPORT THE MEGA SITE DEVELOPMENT PROJECTS. I THINK THIS IS AN ITEM THAT WE'RE LOOKING FOR.
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DID WE GET WITH I'M SORRY.I'M SORRY. I WORKED WITH ANGIE TO.
TO WORK THROUGH WHAT? THE FUNDS HAVE BEEN APPROPRIATED AND WHAT HASN'T.
AND SO THE ADDITIONAL FUNDS WE AUTHORIZED TO BE EXPENDED, WHICH WOULD BE THE LAST MEETING, NEED TO BE APPROPRIATED.
AND AT THIS POINT, WE JUST WANT TO HAVE A MINUTE ORDER ON THAT.
AND THEN WHEN ANY OTHER BUDGET MODIFICATIONS ARE BEING MADE, WE'LL PUT THAT INTO A RESOLUTION FOR FOR IT TO, TO GO THROUGH. OKAY. AND THIS WOULD BE BASED ON THE MEETING THAT WE HAD LAST THURSDAY.
WHAT WAS DECIDED ON TO GIVE BOB THE OPPORTUNITY TO BE ABLE TO MOVE FORWARD ON THE OPTIONS AGREEMENT. RIGHT.
SO WE JUST NEED A MOTION ON THAT.
AND WE'VE ALLOCATED WE'VE IDENTIFIED THE MONEY AND KNOW THAT IT'S THERE.
SO WE JUST NEED TO APPROPRIATE.
YEAH. THIS WOULD JUST BE OUT OF YOUR FUND BALANCE. RIGHT.
SO I MAKE A MOTION TO APPROPRIATE THE FUND BALANCE AS PRESENTED BY FINANCE, TO ALLOW THE OPTION AGREEMENT TO BE EXECUTED BY BOB, AS DISCUSSED LAST THURSDAY.
ANY FURTHER DISCUSSION? ROLL CALL PLEASE.
BOARD MEMBER RANDALL CLARK, I.
VICE CHAIR JOHN CARLSON, I CHAIRMAN MIKE MENDEZ I.
WE HAVE NOTHING FOR EXECUTIVE SESSION, SO WE'LL MOVE ON TO ADJOURNMENT.
THERE BEING NO FURTHER BUSINESS, THIS MEETING'S ADJOURNED. THANK YOU.
BOARD.
* This transcript was compiled from uncorrected Closed Captioning.