* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [River Creek Corporation and the Cottonwood Development Corporation] [00:00:03] CALL THIS MEETING TO ORDER AT 5:33 PM. THIS MEETING OF THE JOINT MEETING OF THE RIVER CREEK ROAD AND INCORPORATION AND COTTONWOOD DEVELOPMENT CORPORATION. UM, FIRST ITEM IS ROLL CALL STU COTTONWOOD FIRST. UH, CHAIRMAN THORNTON IS HERE, UH, BOARD MEMBER GORDON HERE AND BOARD MEMBERS MENDEZ HERE, AND THEN THE RIVER CREEK, UH, CORPORATION CHAIRMAN GORDON HERE, BOARD MEMBER, ERIC MENDEZ HERE, BOARD MEMBER THORNTON HERE. UH, IT LOOKS LIKE NO PUBLIC COMMENT. UH, CONSENT AGENDAS PROVING THE, UM, JULY 15TH, 2022 MEETING MINUTES. DO WE HAVE A MOTION? SO MOVE. UH, I'LL SECOND WITH A ONE ADDITIONS ON ITEM 5.2. I NOTICED THERE'S NO RECORD OF THAT VOTE, BUT IT ALSO PASSED THREE. OH. SO IF WE COULD JUST ADD THAT TO THE MINUTES THAT THRIVE TO PASS THE SAME AS FIVE THREE, EXCEPT THAT AMENDMENT. OKAY. UM, LET'S CALL THE VOTE, UH, BOARD MEMBER GORDON, AYE. BOARD MEMBERS, MENDEZ. AYE, UH, BOARD MEMBER THORNTON. AYE. MOTION PASSES. THREE ZERO. OKAY. ITEM FIVE DOT TWO CONSIDERATION AND POSSIBLE ACTION ON COTTONWOOD DEVELOPMENT CORPORATION BUDGET FOR FISCAL YEAR 20 22, 20 23. I DON'T WANT TO, BUT IT'S UP TO YOU. AND I EMAILED THEM TO SATURDAY. NEVER GOT TO SEND THEM TO THAT. SO I SAID, I DIDN'T HAVE ANY HANDOUTS. THERE'S REALLY JUST ONE, ONE LINE ITEM IN EACH BUDGET AND THAT'S PROFESSIONAL SERVICES AND IT'S REALLY, THERE'S NO REVENUE, EITHER ONE OF THEM. IN FACT, THE RIVER CREEK HAS SOME CASH, BUT IT HAS NO MONEY. THE ONLY ASSET IT HAS. SO IN REALITY, THE CITY IS PAYING THOSE PILLS. WE'RE JUST TRACKING THEM AND THE CORPORATION BECAUSE IT IS RELATED TO LAWSUITS, NAME IT WITH THE CORPORATION NAME. AND I KNOW THERE'S A COKE YET. WE'RE SUCCESSFUL IN THAT. SO IT'S A WAY TO KEEP IT OUT OF THE GENERAL FUND OUT OF THE CITY GARDEN IN THERE. SO THAT'S WHERE WE'RE TRACKING IT. UNFORTUNATELY THAT YOU'RE IN TO BE ABLE TO TRANSFER SOME CASH SOMEWHERE ELSE. WHAT'S THE LINE ITEM AMOUNT FOR THE PROFESSIONAL SERVICES FOR RIVER, UH, FOR COTTONWOOD AND SEVEN 50, 150,000 AND FOR RIVER CREEK 400,000. OKAY. CAN WE SAY COTTONWOOD HAS SOME CASH? WE HAVE A CREASE AND SOME CASH I DO OFF THE TOP OF HEAD, NO MUCH FROM THOSE CORPORATIONS, BUT UNDER THE PIDS LEGAL FEES RELATED TO, YOU KNOW, THE CASH BALANCE FOR RIVER CREEK, BUT OFF THE TOP OF YOUR HEAD, I'M NOT GOING TO HOLD YOU TO IT. I KNOW IT'S OVER A MILLION DOLLARS, 1.2. OKAY. SO ARE THESE POSTED SOMEWHERE LIKE IN OUR DROPBOX AND EMAIL? OH, THERE WE GO. YEAH. I DIDN'T PRINT THEM OUT. I'M SORRY. THEY PUT THEM IN THE BUDGET THAT WENT TO COUNCIL ON A COURT. SO THEY WERE IN FULL CITY BUDGET. THEY WERE LISTED IN THERE ALSO. UM, SO BOTH OF 'EM AND THE FACT THAT THESE ARE LIKE JUST THE COPIES OF WHAT WAS IN THE BUDGET. SHE'S PULLING, YOU HAVE A PREFERENCE ON WHICH ONE YOU WOULD LIKE ME TO PULL IT FIRST. ANGIE, DO YOU HAVE A PREFERENCE ON ONE THAT YOU WANT ME TO PULL AT FIRST? I CAN SEE THAT COTTONWOOD. AND WHEN SHE HAD TO GO, IT WAS THAT FIRST YEAR. IT DOESN'T, IT DOESN'T EVEN HAVE FUN BALANCE. IT'S NEGATIVE BECAUSE WE HAVE TO, WHAT THE AUDITORS HAVE REQUIRED US TO DO IS THAT NOTE IS THE FAULT ON THE NOTE. AND THERE, WE HAVE TO SHOW IT THAT WAY. UM, LEGALLY, IF I GUESS BEING SO WE WERE AND THIS IS THAT THE STUFF THAT'S, WE'RE TIED UP WITH THE PRESTON HOLLOW AND ALL THAT LAND AND ALL THAT NONSENSE. OKAY. SO THAT'S WHERE I WAS GOING TO ASK. THAT'S A PRETTY BIG NEGATIVE. SO THAT'S WHAT THAT IS. SO THE AUDITORS, IT'S THE WAY WE CUT TO A REPORT THAT, SO WE DO HAVE THE LAND, BUT YOU CAN SEE IN 2021, THE BALANCE WAS 15 MILLION AND THE FUND BALANCE, WHICH IS THE VALUE OF THE, WHAT WE PAID FOR THE LAND. BUT THEN WE HAD TO RECOGNIZE THAT THE DEATH, THOSE ONES, AND THEN THE DIFFERENCE BETWEEN 22 AND 23 IS JUST THAT 750 K THEY'RE ON PROFESSIONAL SERVICES. OKAY. WE HAVE SOME, AND, UH, SCROLL DOWN A LITTLE BIT. [00:05:05] WHAT WE'RE ESTIMATING FOR. YOU CAN SEE LAST YEAR THERE WAS, YOU KNOW, THE NET OF THE 3 MILLION, SOME OF THAT IS, UH, SOME OF THE DEBT, BUT A LOT OF THAT IS LEGAL. SO IF OUR PLAN WITH REGARDS TO SELLING THEM CERTAIN ASSETS, OKAY, BUT THAT'S COTTONWOOD. OKAY. JUST NOW THIS IS THE BEST INFORMATION I HAVE. THEY CAN ALWAYS BE AMENDED. WELL, WE KNEW IN OUR LAST MEETING THAT WE HAD, THAT THERE WASN'T MUCH IN THE BUDGET, SO I JUST WANT TO MAKE SURE WE CLARIFY AND EVERYBODY KNOWS WHAT'S IN THERE. SO , YEAH, THIS ONE'S A LITTLE DIFFERENT BECAUSE OF THIS ONE. AND THAT'S THE PID THAT COVERS THIS PROPERTY HERE. THE CO-OP WELL, THERE'S THREE OF THEM. OH, THEY'RE ALL TIED TO THIS CROSS CREEK. I MUSTANG. THERE'S THREE OF 'EM. I KNOW. CAUSE WE ROLLED THEM ALL TOGETHER. SO BECAUSE OF BOND PROCEEDS AND THE WAY THIS ONE KIND OF HAS WORKED BECAUSE WE ROLL THOSE KIDS TOGETHER. CAUSE TECHNICALLY THEIR CORPORATION, THIS ONE'S A LITTLE DECEIVING, BUT THERE IS CASH IN A BANK ACCOUNT THAT SAYS CORPORATION THAT I CAN SEE. I'M NOT SURE EXACTLY. THERE IS A PASSION AGAIN. I THINK IT'LL BE, YOU GUYS ARE A LITTLE BETTER. HOPEFULLY. WILL YOU SCROLL IT UP? GRACIE PLEASE? YES, SIR. I'M SORRY. ROLL DOWN. SCROLL DOWN. I'M SORRY. OKAY. OKAY. SO FORGIVE ME. YOU'RE GONNA HAVE TO WALK ME THROUGH THIS. AND SO FOR THE PITT ASSESSMENT IN 20 AND 21, THAT'S FOR ALL THREE PIDS INCLUDES ALL THREE. WHY IS THERE NOTHING IN 20, 22 OR 23, WE WERE WAITING FOR THE, THOSE ASSESSMENTS COME TO YOU GUYS TO THE COUNCIL AT THIS NEXT MEETING. SO I WAS THERE FOR 22 OR 20 OR 23. WHAT ABOUT 22? FOR 22? WE JUST NEED TO UPDATE, WE HAD PULLED THE PITS OUT AT SEPARATELY IN THE BUDGET THAT WENT TO COUNCIL SO THAT YOU COULD SEE ALL PIECES INSTEAD OF TRYING TO COMBINE IT TO HERE. WHEN IT GETS REPORTED IN THE ANNUAL FINANCIAL REPORT THAT COMES TO COUNCIL AND IT'S OUT THERE FOR EVERYONE, IT GETS ROLLED ALTOGETHER. SO, BUT WE TRY TO BREAK IT OUT FOR CLARITY, FOR EVERYONE TO SEE CROSS CREEK MUSTANG. SO YOU COULD SEE EACH OF THE SIX KIDS INDIVIDUALLY. AND WHY ISN'T IT HERE? JUST BECAUSE IT JUST DIDN'T GET UPDATED. WELL, BECAUSE I DIDN'T WANT, IT WOULD LOOK LIKE IT'S DOUBLE. IF YOU PUT IT IN HERE AND THEN YOU PUT IT IN THERE. OH, I SEE. BECAUSE THIS IS A SUB COMPONENT OF THE OVERALL BUDGET AND YOU'VE ALREADY ACCOUNTED FOR THEM. I SEE. I UNDERSTAND NOW SO THAT YOU COULD SEE THAT WHEN THOSE SAP'S COME FORWARD, YOU CAN SEE HOW WE'RE ACCOUNTING FOR THOSE, BECAUSE WE DO HAVE TO TRACK ALL OF THOSE ASSESSMENTS, THE EXPENSIVE. OKAY. AND THEN THIS SECTION OPERATING EXPENDITURES THAT ALSO HAS TO DO WITH PIDS. SO THAT'S WHY THAT'S NOT THERE. AND THEN THE NON-OPERATING EXPENSES IS ALSO PIDS. OKAY. THAT'S WHAT THAT SERVICE IN THE BIDS. AND THEN THAT CAPITAL IS CONSTRUCTION BECAUSE THEY'RE DOING SO REALLY THE ONLY NEW IS JUST THAT LEGAL. I SEE NOW. OKAY. YEAH. THANKS FOR WALKING ME THROUGH THAT. AND THEN THE UNRESERVED BALANCE. I MEAN, WHERE'S THAT DID THAT BALANCE COME FROM? WHY DO WE HAVE 6 MILLION IN THERE? IT'S UH, STILL SOME BOND PROCEEDS FROM THE PITS THAT ARE SITTING THERE. THEY CAN'T, THEY HAVE TO BE, YOU DON'T USE TO REVERSE IT. SO WHY ARE WE ABLE TO TAKE 450,000 IN LEGAL FEES OUT OF THAT BOND MONEY THEN? BECAUSE IT'S RE TRANSFERRED. WE PROBABLY NEED TO SHOW THAT. OKAY, SO GENERAL IT WON'T BE COMING FROM THIS FIVE-POINT [00:10:01] CAUSE THE SHOW IS 5.9 MILLION GOING DOWN TO 5.4 MAKES IT LOOK LIKE THIS MAKES IT LOOK LIKE WE'RE TAKING IT FROM THE UNRESERVED FUND BALANCE, BUT WE'RE REALLY NOT. OKAY. ONCE EVERYTHING GETS CLEARED UP, WE'LL SEE THOSE NUMBERS BUMP BACK UP AGAIN BECAUSE OF THE REPLENISHMENT OR THEIR REIMBURSEMENT BACK INTO THE, INTO THE, UH, RIVER CREEK, A LOT OF THE ASSETS ON THE BOOKS RIGHT NOW FOR THESE CORPORATIONS AS THE LAND HOLDING EACH OF THEM, YOU KNOW, THAT WAS BOUGHT FOR THE BOTH OF THEM. HAVE YOU HAVE SOME ASSETS MOVE THROUGH THAT WILL LAND MAY GO AWAY KASHMIR, BUT ISN'T THAT JUST COTTONWOOD. DOES RIVER CREEK HAVE ANY LAND THAT IT OWNS OUTSIDE OF THE PIDS IT'S PART OF THAT GLOBAL SETTLEMENT? WHETHER OR NOT OH, HERE. YEAH. YEAH. OKAY. I THINK THERE'S STILL SOME LITIGATION TIED UP IN ALL THIS. OKAY. BUT THE LAND WOULD BE IS THE CO-OP. OKAY. AND, UH, UM, LEGAL ANALYSIS THAT WILL APPLY TO THE OTHER TWO, TO THE ATTORNEY GENERAL SAID THAT THEIR, THAT IS REQUIRED TO BE APPROVED BY THE ATTORNEY GENERAL AND THAT DID NOT OCCUR. SO IF THAT WINS WITH THAT AND MAKES BONDS THE VALUE OF THE ZERO, THEN THAT, THAT DEBT ASSOCIATED WITH THE PROPER. AND THEN IT WOULDN'T MEAN THAT THE MONEY'S GOING TO COME HERE. IT WOULD JUST BE THAT THE PROPERTY OWNERS OR HAVE A LIEN PROFITABLE. AND SO THE KID PAYMENTS WILL BE, AND THAT'S WHY WE NEED THAT APPELLATE DECISION, BECAUSE THEN IT COULD BE APPLIED TO CROSS CREEK AND RIVER CREEK THAT, THAT MUSTANG, BECAUSE ALL OF THEM, MY LOVING ASSESSMENTS, THE SAME WAY, THE NEW, THE NEWER THREE DUDE. AND THERE ARE OTHER PORTIONS OF THAT COST THAT MAY OR MAY NOT. UM, ALSO, YEAH, PROPER PARTIAL FROM THE 17.4, 4 MILLION OF IT WAS THAT PART OF THE OTHER ONE. THE OTHER ONE THAT HAS BEEN PERHAPS HAS A POTENTIAL, I CANCELED THEM ALL UP. OKAY. I KIND OF FOLLOW IT SOMEWHAT, BUT YEAH, FOR SURE. OKAY. THAT'S ALL THE QUESTIONS I HAD EVEN AFTER A YEAR. SOMETIMES I STILL HAVE TO READ THROUGH WHAT YOU WROTE, LIKE FOR THE AUDITORS INSTEAD OF OKAY. I'M GOOD. NOW WE'LL BE PRESENTED, HAVE BEEN PRESENTED TO COUNCIL. OBVIOUSLY THERE'S CHANGES TO BE MADE. WE CAN DO THAT STILL OR SOMETHING. WE'RE JUST LIKE TO COVER TRACKING CHAIRMAN IF YOU'RE INTERESTED IN A OCEAN OR MAYBE TO ACCEPT THE COTTONWOOD DEVELOPMENT CORPORATION BUDGET FOR FISCAL YEAR 22, 23, A SECOND. OKAY. MOTION BY BOARD MEMBERS MENDEZ SECOND BY BOARD MEMBER, GORDON. UM, CALL THE VOTE, UH, BOARD MEMBERS, MENDEZ BOARD MEMBER GORDON, UH, CHAIRMAN THORN. AYE. MOTION PASSES. THREE ZERO, MR. CHAIRMAN. I ALSO MOVED TO EACH THE RIVER CREEK DEVELOPMENT CORPORATION BUDGET FOR FISCAL YEAR 2223. OKAY. AND I'LL SECOND. YEAH, BY BOARD MEMBERS MENDEZ A SECOND BY CHAIRMAN GORDON, UM, CALLED THE VOTE THAT BOARD MEMBERS, MENDEZ, UH, BOARD MEMBER THORNTON. AYE. UH, CHAIRMAN GORDON. AYE. MOTION PASSES [00:15:01] THREE ZERO. MOVING ON TO ITEM SIX, ONE EXECUTIVE SESSION. THE COTTONWOOD BOARD OF DIRECTORS WILL RESETS ITS REGULAR SESSION AND RECONVENING AND EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE CHAPTER 5, 5 1 SECTIONS 5 5 1 2 0 7 1 DASH 0 7 2 AND 0 8 7 OF THE TEXAS GOVERNMENT CODE TO DELIBERATE AND SEEK THE ADVICE OF ITS LEGAL COUNSEL RELATED TO THE TRANSFER AND CONVEYANCE OF REAL PROPERTY IN CONNECTION WITH THE HADOW ECONOMIC DEVELOPMENT CORPORATION TYPE B'S PROJECT E ECONOMIC DEVELOPMENT PROJECT. SO WE WILL MOVE INTO EXECUTIVE SESSION 5:48 PM. OKAY. UM, WE ARE RETURNING FROM EXECUTIVE SESSION AT 6:06 PM. NO ACTION WAS TAKEN ANY EXECUTIVE SESSION, MOVING ON TO ITEM SEVEN.ONE, UH, DISCUSSING, CONSIDER A RESOLUTION OF THE BOARD, APPROVING THE ACCEPTANCE OF A TRANSFER BY THE CITY OF HUTTOE. TEXAS OF PARCEL ARE 3 6 2 9, 9, 8 AS DEPICTED IN THE WILLIAMSON COUNTY APPRAISAL DISTRICT RECORDS DESCRIBED AS 41.274 UNIMPROVED ACRES LOCATED ON THE NORTHWEST CORNER OF US HIGHWAY 79 AND COUNTY ROAD 1 32. SO THE COTTONWOOD LOCAL GOVERNMENT CORPORATION APPROVING THE PURCHASE AND SALE AGREEMENT TO CONVEY THE PROPERTY, AUTHORIZING THE BOARD CHAIR TO EXECUTE A PURCHASE AND SALE AGREEMENT TO STIMULATE SUSTAINABLE GROWTH, PROVIDE FOR ADDITIONAL WATER, WASTEWATER AND ROADWAY IMPROVEMENTS. AS PERFORMING GOVERNMENTAL FUNCTIONS DESCRIBED IN THE TEXAS CONSTITUTION, ARTICLE THREE, SECTION 52 DASH A PROVIDING THE AUTHORITY TO EXECUTE ONLY TRANSFER DOCUMENTATION, DEPICTING THE TERMS AND PROVISIONS PRESENTED TO THE BOARD AND CITY COUNCIL AND AUTHORIZING THE BOARD CHAIR TO EXECUTE THE PURCHASE AND SALE AGREEMENT CONTAINING THE SAME TERMS AND PROVISIONS PRESENTED TO AND APPROVED BY THIS BOARD AND THE CITY COUNCIL PROVIDING FOR REPEAL, PROVIDING FOR SEVERABILITY, PROVIDING AN EFFECTIVE DATE CHAIRMAN. I MOVED TO ACCEPT THE RESOLUTION AND I'LL SECOND, A MOTION BY BOARD MEMBERS MENDEZ SECOND BY BOARD MEMBER GORDON, UM, CALLED THE VOTE BOARD MEMBERS, MENDEZ OR MEMBER GORDON, UH, CHAIRMAN THORNTON. AYE, MOTION PASSES THREE ZERO, UH, NO OTHER ITEMS ON THE AGENDA. WE WILL ADJOURN AT 6:08 PM. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.