[00:00:03]
WE'LL GO BACK INTO, UH, THE MEETING HERE.
[Items 3.1 - 3.3]
WITH, WE'LL DO ITEMS 3, 1, 3, 2, AND THREE, THREE TOGETHER.TES 1 0 1, BASIC INTRODUCTION TO, UH, TIFFS THREE PROJECT AND FINANCING PLAN, DRAFT PRESENTATION OF TES TWO.
I'LL, UH, I'LL STAND OVER HERE.
WE'RE AN ECONOMIC DEVELOPMENT CONSULTING FIRM.
ALSO WORKING ON THE COMPREHENSIVE PLAN WAS BROUGHT IN TO HELP DO TOURS 1 0 1, TALK ABOUT A POTENTIAL TOURS NUMBER THREE, AND THEN SOME ADJUSTMENTS TO BE MADE TO TOURS NUMBER TWO.
ALL RIGHT, SO WE'LL, I'LL TRY TO GO QUICKLY.
OBVIOUSLY, FEEL FREE TO INTERRUPT.
I'M GONNA START WITH A HIGH LEVEL TOURIST PRESENTATION.
EVERYTHING APPLIES TO ANY TOURISTS, WHETHER WE'RE TALKING TOURISTS, THREE OR TWO.
AND THEN WE'LL TALK ABOUT THE SPECIFICS.
SO I THINK, AS YOU KNOW, A, A TOURIST IS A TOOL THAT LOCAL GOVERNMENTS USE TO PAY FOR IMPROVEMENTS WITHIN A SPECIFIC GEOGRAPHIC AREA.
SO YOU TAKE A PORTION OR ALL OF FUTURE TAX REVENUE ABOVE AND BEYOND WHAT'S BEING COLLECTED TODAY, AND YOU DEDICATED TO PAY FOR PROJECTS WITHIN THAT ZONE.
SO THE ADDITIONAL TAX REVENUE IS CALLED THE TAX INCREMENT.
SO YOU COLLECT WHAT YOU COLLECT TODAY AND THE ADDITIONAL REVENUE IS WHAT YOU CALL THE INCREMENT.
THERE ARE TWO TERMS THAT ARE USED INTERCHANGEABLY, AND I'M NOT SURE HOW FAMILIAR YOU ARE WITH TURS AND TIS TAX INCREMENT FINANCING IS THE GOVERNMENT, UM, PART OF THE STATE CODE THAT ALLOWS YOU TO CREATE A TAX INCREMENT REINVESTMENT ZONE.
SO THE HIGH LEVEL IS TAX INCREMENT FINANCING.
UNDER THAT, YOU CREATE ONE OR MORE TAX INCREMENT REINVESTMENT ZONES.
IF YOU LOOK AT WHAT OTHER CITIES USE, THEY OFTENTIMES WILL USE THOSE TERMS INTERCHANGEABLY.
SO SOMETIMES THEY'LL REFER TO THEIR ZONE, IS IT T OTHERS ARE MORE DESCRIPTIVE AND USED THE TERM TUR.
SO THOSE TWO TERMS ARE USED THAT ARE CHANGEABLE.
IF YOU LOOK AT OTHER COMMUNITIES, THIS IS THE COMMON GRAPHIC.
YOU SEE THE BLUE IS WHAT'S CALLED THE BASE VALUE.
SO LET'S SAY IN A ZONE IT'S A MILLION DOLLARS.
THAT MILLION DOLLARS IS THE BASE.
ANY REVENUE GENERATED OFF ANYTHING ABOVE THE MILLION DOLLARS GETS PUT.
THE TAX INCREMENT GOES IN THE ZONE.
WHEN THE TOURIST TERMINATES IN 20, 25 OR 30 YEARS, THE MONEY GOES BACK TO GENERAL FUND AS IF THE TOURISTS NEVER EXISTED.
SO WHILE THE TOURISTS EXIST, THE MONEY YOU'RE COLLECTING TODAY BASED OFF THAT MILLION DOLLARS YOU COLLECT FOR GENERAL FUND, LIKE NORMAL ALL OR A PORTION OF THE FUTURE REVENUE WOULD GO INTO THAT TAX INCREMENT ACCOUNT.
SO THAT'S THE WAY ALL OF THESE, THESE WORK, AS I SAID, IT'S NOT A TAX INCREASE.
THEY'RE CREATED BY CITIES PREDOMINANTLY.
SOMETIMES COUNTIES, THEY CAN OCCASIONALLY BE OWNER ED, BUT THE VAST MAJORITY ARE GONNA BE CREATED BY THE CITY.
CITIES CAN ALLOCATE SALES TAX REVENUE TO A TOURISTS.
SO THE TOURISTS AT NEW BRAUNFELS, IF YOU KNOW WHERE THE BUCKYS IS ON THE EAST SIDE, THEY ALLOCATED SALES TAX TO THAT ONE TO PAY IT OFF FASTER.
UM, AND THEN THE TOURS THEN GOES AWAY FASTER.
IN THAT CASE, MOST CITIES JUST DO PROPERTY TAX.
IT IS NOT THE TAX REVENUE ASSOCIATED WITH PERSONAL PROPERTY.
SO WE'RE JUST TALKING REAL PROPERTY THAT'LL HAVE AN IMPACT.
WHEN WE TALK ABOUT THE MEGA SITE, YOU CAN SPEND IT ON ALL KINDS OF THINGS.
I SAY TYPICALLY RELATED TO ECONOMIC DEVELOPMENT.
SO IT'S GONNA BE CONSTRUCTION OF PUBLIC WORKS, IMPROVEMENTS, ACQUIRING LAND, ECONOMIC DEVELOPMENT, GRANTS, DEVELOPER AGREEMENTS, DEMOLITION.
YOU CAN SPEND IT ON, UH, PROPERTY MANAGEMENT.
SO UPKEEP A PUBLIC SPACES OR ROADS, RELOCATION COSTS.
YOU CAN HIRE ENGINEERS AND ARCHITECTS.
ALL THE KINDS OF THINGS YOU ALL TYPICALLY SPEND ECONOMIC DEVELOPMENT FUNDS ON.
YOU CAN USE THAT WITH TOURIST FUNDED.
SO THIS IS WHAT'S REQUIRED TO CREATE A TOURIST.
YOU CREATE A PRELIMINARY REINVESTMENT ZONE FINANCING PLAN.
YOU HAVE TO HAVE PUBLISH A, A PUBLIC HEARING.
NOTICE YOU HAVE THE PUBLIC HEARING, YOU PASS IT.
SOMETIMES IT TAKES ONE READING, OTHER TIMES IT TAKES TWO READINGS.
ONCE YOU DO THAT, THE TOURS EXIST.
WHEN YOU PASS THE ORDINANCE, YOU'RE TALKING ABOUT THE PHYSICAL SIZE OF THE ZONE, THE NUMBER OF YEARS, THE AMOUNT OF THE INCREMENT.
SO EITHER 50% OF FUTURE TAX REVENUE, A HUNDRED PERCENT, WHATEVER YOU DECIDE.
YOU ALSO SET THE NUMBER OF, OF BOARD MEMBERS AND THE RULES THAT GOVERN.
NOW YOU HAVE TO HAVE AT LEAST FIVE, NO MORE THAN 15 OTHER TAXING ENTITIES THAT PARTICIPATE, GET AT LEAST ONE MEMBER.
SO THIS IS ALL SET ON STATE LAW.
[00:05:01]
SO FOR TERRORS NUMBER THREE, THE MEGASITE TERROR, IT HAS TO GET PAST THIS YEAR, WE HAVE TO GET THROUGH STEPS FOUR TO LOCK IN.THAT'S THE BARE MINIMUM THAT HAS TO GET THROUGH THIS YEAR IS STEP NUMBER FOUR.
IT'S POSSIBLE TO GET THROUGH ALL OF THOSE.
ONCE THE BOARD'S BEEN APPOINTED AND THERE'S BYLAWS, THEY HAVE TO APPROVE WHAT'S CALLED THE FINAL PROJECT AND FINANCE PLAN.
IT COMES BACK TO THE CITY FOR APPROVAL, AND NOW THE TOURISTS IS UP AND RUNNING AND CAN ENTER INTO DEVELOPMENT AGREEMENTS.
BUT THIS IS THE PROCESS TO CREATE A TOURIST ON TOURISTS.
NUMBER TWO, YOU GOT THROUGH PART OF THIS.
YOU DIDN'T GET ALL THE WAY THROUGH.
YOU GOT THROUGH ABOUT STEP FOUR, YOU GOT THROUGH THE PRELIMINARY PLAN, THE CREATION.
I DON'T BELIEVE BOARD MEMBERS WERE APPOINTED AND THERE HAS NOT BEEN A FINAL PROJECT AND FINANCE PLAN.
SO ON TOURS TWO, YOU GOT THROUGH PART OF THIS PROCESS.
I CALL THESE THE TWO KEY RULES.
THERE'S OTHERS, BUT YOU CAN'T HAVE MORE THAN 30% OF THE PROPERTY IN THE TOURISTS BE USED FOR, USED AS RESIDENTIAL WHEN IT'S CREATED.
THAT CAN CHANGE ONCE IT'S CREATED BECAUSE YOU'LL SEE A TOURIST SOMETIMES ON MASTER PLAN COMMUNITIES, BUT AT THE TIME OF CREATION, YOU CAN'T HAVE MORE THAN 30% OF THE PROPERTY BE USED FOR RESIDENTIAL.
THE SECOND ONE JUST SAYS, YOU CAN'T HAVE TOO MANY TOURISTS IN YOUR COMMUNITY JUST BASED ON HOW BIG YOU ARE.
THIS IS NOT AN ISSUE EITHER ONE OF THESE FOR WHAT WE'RE TALKING ABOUT.
ALL RIGHT, SO YOU HAVE TWO EXISTING TOURS AND WE'RE GONNA BE TALKING ABOUT A POTENTIAL TOURIST.
NUMBER THREE, YOU HAVE THE CO-OP, YOU HAVE TOURISTS.
NUMBER TWO THAT WE CAN CHANGE, CALL IT WHAT WE WANT, BUT TOURISTS NUMBER TWO EXISTS.
AND THEN TOURISTS, NUMBER THREE WOULD BE THE MEGASITE TOURS.
I KNOW I COVERED A LOT, BUT DOES THAT MAKE SENSE? THERE'S A SEVEN STEP PROCESS.
YOU HAVE THREE TOURS, ONE SORT OF FULLY BAKED.
NUMBER TWO, WE'VE DONE SOME OF THE STEPS, BUT NOT ALL OF THEM.
AND THEN IF YOU ALL CHOOSE TO MOVE FORWARD WITH TOURS.
NUMBER THREE, WE HAVE TO WORK THROUGH ALL SEVEN STEPS.
SINCE WE HAVEN'T FINISHED THE SETUP OF TOURS TWO.
WHAT ADVANTAGES WOULD THERE BE TO JUST REDRAWING THE VALUE TO INCLUDE TWO AND THREE AND HAVING JUST TWO JURORS IN THE CITY? WOULD THERE BE ANY IN ADVANTAGE TO THAT? DISADVANTAGE TO THAT? UM, I THINK, I THINK THERE MAY BE SOME ISSUES.
YOU'RE STILL TRYING TO UNWIND WITH TOURISMS NUMBER TWO POTENTIALLY IN SOME OF THOSE PROPERTIES IN TERMS OF OWNERSHIP, CORRECT.
UM, IT GETS A LITTLE BIT CONFUSING TO KEEP TRACK OF DIFFERENT BASE YEARS.
AND SO IT'S A LITTLE BIT OF AN ACCOUNTING EXERCISE.
AND WHAT I MEAN BY THAT IS THESE PROPERTIES HAVE 2019 BASE YEAR WHEN THIS WAS CREATED, THESE WOULD HAVE 22.
IT MAKES THE ACCOUNTING A LITTLE BIT MORE CHALLENGING.
I THINK IT'S EASIER TO HAVE TWO WITH THIS ONE BEING FOCUSED PRIMARILY ON ECONOMIC DEVELOPMENT, INFRASTRUCTURE WAREHOUSING, PRIMARY JOB CREATION.
AND THIS ONE HAS A SLIGHTLY DIFFERENT LOOK DEAL.
BUT IF YOU SO CHOSE, YOU COULD DO THAT.
YOU HAVE TO BY ORDINANCE, UNWIND THE SECOND TERMS, THEN TRY TO RECREATE A THIRD TERMS. UM, BUT THAT'S A POSSIBILITY.
ANY OTHER QUESTIONS ON THE BOUNDARIES OF THE ZONES? WELL, THE PARTICIPATION, UM, SO IF AN EDC IS GIVING BACK SALES TAX MONEY, DOES THAT MEAN THE EDC HAS TO HAVE A REPRESENTATIVE ON A BOARD? NO.
UM, THE EDC, THE EDC FALLS LEGALLY UNDER THE CITY AND THEY WOULD BE COVERED UNDER THOSE, THOSE THE MINIMUM OF FIVE.
UM, THAT WOULD REALLY BE FOR A COUNTY, A HOSPITAL DISTRICT.
UM, THE OTHER THING THAT COMES UP IS SCHOOL DISTRICTS DO NOT PARTICIPATE.
I SAY BY LAW THEY CAN'T, BUT THEY TECHNICALLY CAN.
ONCE THE TOURIST STATUTE WAS CREATED, SCHOOL DISTRICTS WERE PARTICIPATING AND THEY DON'T WANT THEM TO DO THAT.
SO IF A SCHOOL DISTRICT DOES PARTICIPATE, THEY'RE NOT HELD HARMLESS IN THE HOOD FUNDED ME.
DO YOU KNOW HOW SCHOOL FINANCE WORKS? SO DE FACTO, THEY DON'T.
THERE'S ONLY BEEN ONE EXAMPLE I KNOW OF THAT'S DONE IT IN 20 YEARS.
UM, AND SO SCHOOL DISTRICTS CAN, BUT THEY DON'T JUST BECAUSE OF HOW SCHOOL FINANCE WORKS.
SO YOU'RE LOOKING AT GETTING A COUNTY TO JOIN A COLLEGE DISTRICT, A HOSPITAL DISTRICT.
NUMBER THREE, YOU'RE FAMILIAR WITH THE MEGA SIDE OR PROPOSED TOURISTS.
NUMBER THREE, NOT ALL OF THIS IS WITHIN THE CITY LIMITS.
SO IF YOU CREATE A TOURISTS, THOSE PROPERTIES WOULD NEED TO GET ANNEXED FOR THEM TO BE PAYING TAX INCREMENT.
SO ONLY THE EDCS PROPERTY IS CURRENTLY WITHIN THE CITY LIMITS.
THE TITAN PARK ALL CAME IN UNDER THE CITY WHEN THAT DEAL GOES.
AND THE PROLOGIS PROJECT ALSO CAME UNDER THE CITY.
THEY HAD 30 DAYS TO YEAH, I THINK THEY HAVE 30 DAYS TO, RIGHT.
SO THAT, OKAY, THEN I'LL UPDATE THIS.
THIS WAS BASED OFF OF, UH, THE EJ MAP.
SO LET ME UPDATE THIS, BUT THAT'S, THANK YOU FOR POINTING THAT OUT.
[00:10:01]
LOT OF THIS IS NOT IN, SO THOSE HAVE TO COME IN FOR THOSE TO PAY, UH, THE PROPERTIES TAX ON THOSE AND SO THEY HAVE TO BE IN AT THE TIME OF THE CREATION OR NO, THEY CAN JOIN AFTERWARDS.BUT SO WHAT HAPPENS IS YOU'LL SEE THESE DONE IN A SIMILAR SETUP.
AND SO YOU PUT THE TOURIST IN PLACE AND THEN THEY ASKED TO BE ANNEX.
SO THEN THEY START PAYING INCREMENT, AND THEN THERE'S USUALLY A DEVELOPMENT AGREEMENT REACHED WITH THEM.
THERE'S NO REASON YOU WOULD NECESSARILY WANT TO ENTER INTO AGREEMENT IF THEY'RE NOT PAYING THE PROPERTY TAX FOR QUALITY FOR THE CHARGE TO GET THAT.
SO TALK ABOUT THE LOGISTICS OF THAT THEN.
SO RIGHT, BECAUSE THEY'RE NOT IN AT THE FORMATION.
WHAT THEN THEIR BASE YEAR BECOMES THE YEAR THAT THEY ARE IN IT? NO, LET ME HOP AHEAD.
SO, AND THANK YOU FOR POINTING THAT OUT.
UM, SO STATE LAW SAYS YOU HAVE TO COME UP WITH THE BASE VALUE AS IF THEY WERE IN THE TURS AT THE TIME OF TURS CREATION.
SO, BECAUSE THOSE ARE GONNA COUNT AS, AND I DON'T KNOW IF THOSE ARE GONNA BE VACANT OR RANCH, THEIR TAXABLE VALUE WOULD BE THE SAME AS THE COUNTY.
WHERE YOU SEE A BIG DIFFERENCE FOR TAXING ENTITIES IS WHAT PEOPLE DO IN TERMS OF SINGLE FAMILY, IN TERMS OF EXEMPTIONS.
SO WHAT'S COMMON WHEN YOU LOOK AT THESE, ALL OF THESE WILL WILL BE THE SAME FOR TAXING ENTITIES.
THE ONE THAT VARIES IS YOUR SINGLE FAMILY RESIDENTIAL FOR YOUR HOMESTEAD EXEMPTIONS.
SO THE BASE VALUE IS GONNA BE 1.6 MILLION.
SO THIS MAP IS, THAT WOULD BE THE, SO THESE TWO ARE NOW IN THE CITY LIMITS AND OR WILL SOON BE IF THEY'RE NOT.
AND THEN THESE ARE STILL IN THE EJ.
SO THERE IS WHAT IT LOOKS LIKE, YOU KNOW, THE PROJECTS PROLOGIS, YOU'VE GOT, UH, THE MEGA TECH AND YOU'VE GOT THE EVCS PROPERTY.
IT'S A, IT'S A LITTLE BIT SMALLER THAN THAT.
SO THIS WOULD BE THE BASE YEAR.
IF YOU WOULD GET THROUGH THE FIRST FOUR STEPS, THE BASE VALUE FOR THIS TOURIST WOULD BE 1.6 MILLION.
SO WE DID A PRELIMINARY FORECAST WORKING WITH BOB, WORKING WITH SOME OF THE PROJECTS I DID 25 YEARS.
I ASSUME, UH, THE CITY AND THE COUNTY WOULD CONTRIBUTE 50%.
THAT'S A FAIRLY STANDARD CONTRIBUTION RATE.
MOST JUST DO 50% OF M AND O AND INS.
OTHERS SAY NO, WE'LL KEEP INS SEPARATE.
SO MAYBE IT'S 60% OF M AND O, BUT MOST, TO MAKE IT EASY, JUST EITHER SAY 50, 60, 70% OF THE TOTAL TAX RATE, THE TAX RATE GOES UP AND DOWN.
SO YOU USE WHATEVER THAT CURRENT YEAR'S TAX RATE IS.
TAX RATE GOES UP, YOU USE A HIGHER TAX RATE.
IF IT GOES DOWN, LIKE MANY HAVE Y'ALL'S HAS THE TAX RATE GOES DOWN, THE TOURISTS THEN AS TAX RATES, AND I'M DOING THIS FOR CLIENTS ACROSS THE STATE, IT'S GOOD FOR TAX PAYERS AS THE RATES GO DOWN, IT MAKES YOUR TOURIST FINANCING PLAN A LITTLE BIT MORE CHALLENGING BECAUSE THE RATE'S GONE DOWN.
AND SO YOU'RE NOT MAKING AS MUCH MONEY FOR THE TOURISTS.
SO THAT'S SOMETHING THAT PEOPLE NEED TO THINK ABOUT WHEN YOU THINK ABOUT FINANCING IS WHAT YOU THINK YOUR, YOUR LONG TERM TAX RATE'S GOING TO BE.
I ASSUME A TWO AND A HALF PERCENT APPRECIATION RATE OVER THE NEXT 25 YEARS AT 50%.
I HAVEN'T ASSUMED ANY KIND OF TAX ABATEMENT PROJECTS MAY REQUIRE OR, YOU KNOW, OR NOT REQUIRE BETWEEN THE TWO.
IT'S ABOUT 80 MILLION FOR EACH.
THE CITY AND THE COUNTY OVER 25 YEARS TOTAL OF 167 MILLION, THAT'S AT 50%.
SO THE CITY AND COUNTY WITHIN EACH RECEIPT FOR THEIR GENERAL FUND IS SIMILAR AMOUNT BECAUSE WE CAN BE SPLITTING IT UNDER THIS EXAMPLE, 50 50, A DISCOUNT RATE AT 5% NEEDS.
IF SOMEONE GAVE YOU THE MONEY TODAY AND YOU WERE PAYING A 5% INTEREST RATE, HOW MUCH WOULD THEY GIVE YOU? THAT'S ABOUT 75 MILLION.
JUST TO PUT THAT IN A FRAME OF REFERENCE WITH INTEREST RATE.
SO AGAIN, YOU CAN MAKE THIS 20 YEARS, YOU CAN MAKE IT 25 YEARS, YOU CAN MAKE IT 30 YEARS.
I THINK FOR THIS TYPE OF PROJECT AND THE INFRASTRUCTURE NEEDS AND THE OVERPASS AND ALL THOSE THINGS, I THINK 25 YEARS AT 50%, ASSUMING YOU CAN GET THE COUNTY TO PARTICIPATE, WOULD, WOULD BE AN APPROPRIATE PLACE TO START.
SOME OTHER QUESTIONS THAT COME UP, WE'LL TALK ABOUT THIS WITH TOURISTS TOO.
UM, YOU CAN TERMINATE A TOURISTS EARLY IF YOU WANT.
NOW THERE'S SOMETIMES THERE'S DEVELOPMENT AGREEMENTS THAT PREVENT YOU FROM DOING THAT.
I WORK WITH BOB IN GRAPEVINE AND GRAPEVINE EXTENDED THEIR TOURS ONCE OR TWICE FOR A VARIETY OF REASONS.
UM, SO, BUT AGAIN, I THINK THAT 25 YEARS IS, IS USUALLY A GOOD STARTING POINT.
WE WERE TERRORS NUMBER TWO WAS FOR 30 YEARS EXAMPLE.
AND I THINK MAYBE ON THIS 1 25 YEARS, UM, WOULD BE, WOULD, WOULD MAKE SENSE.
[00:15:01]
LOT.ANY QUESTIONS OR COMMENTS OR DOES THAT MAKE SENSE FOR, FOR HOW THIS TOURS WOULD WORK FOR, FOR THIS AREA? CAN YOU SET YOUR GOAL OF WHAT YOU NEED TO SAY, FUND A BRIDGE OR SOMETHING? MM-HMM.
CAN YOU THEN COME BACK IN FIVE YEARS AND IT'S BUILT OUT, EVERYTHING'S GOING GREAT AND DECIDE YOU WANNA DO ANOTHER 30 MILLION PROJECT? MM-HMM.
YOU CAN'T, SO WHAT'S COMMON IS SOME WILL, SOME WILL HAVE A TOURIST THAT SAY IT TERMINATES EITHER 30 YEARS OR ONCE IT GETS $50 MILLION FOR A PROJECT.
OTHERS KEEP IT MORE BROAD AND THEN THEY'LL COME BACK IN.
LIKE YOU SAID, MAYBE YOU NEED TO ADJUST YOUR PROJECT PLAN, MAYBE YOU DON'T.
BUT AS LONG AS WE WRITE YOUR PROJECT PLAN IN A WAY THAT'S SPECIFIC, BUT ALSO THROUGH GENERAL, YOU CAN ADD PROJECTS IF THOSE RESOURCES ARE AVAILABLE AND MANY PLACES DO THAT, YOU CAN, YOU CAN ADD PROJECTS, YOU CAN EXTEND THE TIMELINE, YOU CAN SHORTEN IT.
UM, THOSE CHANGES HAVE TO BE DONE BY ORDINANCE.
BUT, BUT IN ORDER TO ADD PROJECTS, DOES IT HAVE TO BE, IF YOU STARTED IT WHEN IT WAS VAGUE OR CAN YOU SAY SPECIFICALLY, WE WANNA BUILD A BRIDGE AND THEN COME BACK IN FOUR YEARS.
SO DO ANOTHER ORDINANCE WHERE, CAUSE I FIND OPEN ENDED THINGS JUST BECOMES LIKE A PRETTY FOR ALL.
SO YOUR PROJECT PLAN, UH, YOUR, YOUR YOUR PROJECT PLAN, YOU CAN HAVE THE TOURISTS BOARD APPROVE AND THEN IT DOES COME BACK TO, TO THE CITY FOR APPROVAL.
UM, YOU PROBABLY DON'T NEED A PUBLIC HEARING ON THOSE, BUT YES, YOU CAN KEEP IT NARROW AND LIMITED AND SAY IT'S SIDEWALKS AND THIS ONE OVERPASS AND NOTHING ELSE.
AND THEN Y'ALL CAN DECIDE, YOU KNOW, A FEW MONTHS LATER OR A FEW YEARS LATER, HEY, LET'S ADD FOUR PROJECTS.
SO WE CAN MAKE THAT AS SPECIFIC OR AS NARROW AS YOU NEED TO.
WHAT HAPPENS WITH MOST CLIENTS, AND I'M HELPING SOME CLIENTS GO BACK TO THIS ONE, IT TURNS INTO A, A SCRAMBLE AT THIS TIME OF YEAR JUST BECAUSE YOU HAVE THAT DECEMBER 31ST, YOU KNOW, DEADLINE.
AND THAT'S JUST TRUE CAUSE EVERYONE'S BUSY WITH BUDGETS AND EVERYTHING ELSE.
A LOT OF THAT SPECIFICITY YOU DO IN THE FINAL PROJECT AND FINANCE PLAN LAW DOESN'T, THE STATE LAW DOESN'T SAY WHAT YOU HAVE TO HAVE ON THE PRELIMINARY PLAN.
I HAVE A DRAFT VERSION AVAILABLE.
WE MAY NOT GET TO THAT TONIGHT.
IT'S A LITTLE BIT MORE DETAILED THAN YOU'RE REQUIRED, BUT MOST OF THE DETAIL IS WORKED OUT RIGHT HERE IN THIS FINAL PROJECT IN FINANCE.
SO MY, CAN YOU GO BACK TWO SLIDES THERE? UHHUH? SO 50% OF THE TOTAL PRIESTS ABOUT TAX WITHIN THE CITY AND ITS INDUSTRIAL DISTRICTS.
IT'S POSSIBLE THAT, WELL, I DON'T KNOW, WE'LL GET 50%, BUT I GUESS IT'S OKAY.
IT'S AT THE TIME OF CREATION TOO.
JUST, OKAY, SO, SO, SO THESE TWO ARE AT THE TIME OF I KNOW WHERE YOU'RE HEADED.
SO IF YOU KNOW WHERE BLANCO VISTA IS IN SAN MARCO, IT'S A RESIDENTIAL NEIGHBORHOOD THAT IS PREDOMINANTLY, IT'S A TOURIST.
IT'S NOW PREDOMINANTLY RESIDENTIAL.
AT THE TIME OF CREATION, IT WAS VACANT, ALAN.
SO IT'S AT THE TIME OF CREATION FOR THESE TWO.
IN THEORY, IF EVERYTHING GOES GREAT AND IT IS WORTH MORE THAN 50%, YOU'D HAVE TO THINK ABOUT USING ANOTHER TOOL.
BUT THAT'S PROBABLY A GOOD, GOOD PROBLEM TO HAVE.
UM, SO TIME OF CREATION, IF YOUR CITY'S AVS 4 BILLION, YOU HAVE A 2 MILLION VALUATION, YOU ENTER IT.
IF THAT 2 MILLION BLOWS UP INTO SAY 20 BILLION AND YOUR TOTAL CITIES WITH 24 4 BILLION, EFFECTIVELY, YOU JUST CAN'T DO ANYMORE TUR AT THAT POINT.
BUT IT DOESN'T REQUIRE YOU TO CLOSE THIS ONE DOWN OR DO ANYTHING.
IT'S JUST YOU STILL ADD PROJECTS TO THIS ONE.
SO AS LONG AS YOU, SO I GUESS THE KEY IS HURRY UP AND DO YOUR TUR NOW.
THE OTHER THING PEOPLE WILL DO IS YOU'LL CHANGE, UH, BOUNDARIES.
SO I'LL, I'M JUST GONNA MAKE SOMETHING UP.
LET'S JUST SAY THERE'S AN ELIGIBLE PROJECT BY STATE LAW THAT YOU WANNA FUND.
AND THIS TOURIST HAS A LOT OF MONEY.
SOME COMMUNITIES WILL AMEND THE BOUNDARIES TO PICK UP THAT PROJECT AND THEN CHANGE THE PLAN TO PAY FOR IT.
SO THERE'S A LOT OF WAYS PEOPLE KIND OF WORK WITHIN THE RULES FOR, FOR ADJUSTMENTS ON HOW TO USE THAT MONEY.
BUT THE BEST WAY TO START 'EM IS TO SAY, THIS IS THE BOUNDARY.
THIS IS WHAT WE THINK WE NEED.
THEN DEAL WITH IT IN A COUPLE OF YEARS.
SO HOW DOES THE VALUE THEN APPLY TO THE NO NEW REVENUE RATE CALCULATION? YOU GONNA MAKE ADJUSTMENTS ON THE WORKSHEET.
I SHOULD HAVE BROUGHT A WORK ROW.
THE WORKSHEET HAS ADJUSTMENTS FOR TAX INCREMENT REINVESTMENT ZONES.
YOU SUBTRACT, YOU SUBTRACT OUT WHAT YOU SEND TO THE TOURISTS BEFORE YOU MAKE THAT, UH, THAT IT'S SPELLED OUT ON THE WORKSHEETS WHERE THAT'S DONE.
AND THE YEAR THAT ALL THAT HITS BACK.
SO THE TOURISTS IS PAID OFF, IT'S NOW ALL AND THE TOURISTS TERMINATES.
SO WE DEALT WITH THAT IN LOST COLINA.
SO IN THAT SITUATION, YOU THEN HAVE TO THINK ABOUT SLOWLY LOWERING THE TAX RATE SO YOU DON'T GET SOME KIND OF POTENTIAL TAX RATE SWINGS.
AND SO WHAT THEY DID THERE IS THEY DECIDED TO
[00:20:01]
SLOWLY DROP THE CONTRIBUTION BY LIKE 5% OF THE YEAR.JUST TO SORT OF LEVEL OUT, INSTEAD OF HAVING LOST CARINAS JUST HIT THE IRVING TAX ROLL IN ONE FAIL SW.
AND THAT CHANGES BASED ON OBVIOUSLY STATE LAW AND CAPS AND WHO KNOWS WHAT PEOPLE DO WITH THAT.
BUT YOU DO GET, MAKE AN ADJUSTMENT ON THE, ON THE, IT'S A THREE PAGE WORKSHEET, BUT YOU TELL THEM ABOUT IF WHENEVER YOU ESTABLISH THE DETERS MM-HMM.
SO YOU CAN RAISE IT, GO UP OR DOWN.
SO 50 PERCENT'S NOT ENOUGH, OR A PROJECT COMES IN AND WE NEED TO GO FROM 50% TO 55.
UM, IF THE COUNTY JOINS, WHICH THEY HOPE THEY WOULD, THEY WOULD ALSO HAVE, WHEN THEY COME IN THROUGH AN INTERLOCAL AGREEMENT, THEY'LL ALSO SAY WE'RE IN FOR 25 YEARS AT 50%.
IF YOU WANT THEM TO GO UP WITH YOU, YOU HAVE TO GO BACK AND ASK THEM.
YOU COULD GO UP TO 80 AND THEY COULD STILL STAY AT 50.
WE COULD, WE COULD ADJUST OURS EVEN IF THEY DIDN'T WANT TO.
I'M SORRY FOR STANDING IN FRONT OF YOU.
NO, YOU, YOU COULD ADJUST YOURS UP AND DOWN IF YOU WANNA EXPAND THE BOUNDARY ON, LET'S JUST SAY WE WANNA COME DOWN THIS COUNTY ROAD, THEY DON'T HAVE TO FOLLOW.
SO YOU CREATE THE TOURS, YOU GO TALK TO THE COUNTY AND YOU ENTER INTO A SIMPLE INTERLOCAL AGREEMENT WHERE THEY SAY, YES, WE'RE GONNA JOIN THE TOURS FOR 25 YEARS AT THIS CONTRIBUTION AND WE GET X NUMBER OF BOARD SEATS.
SO TO THE MAYOR'S POINT EARLIER, WILL YOU ALSO EXPLAIN IF, IF THAT GROWTH WERE TO HAPPEN SO SUBSTANTIALLY STRONG THEN THE BOUNDARIES OF DETERS MM-HMM.
SO IF YOU HAVE THAT AMOUNT OF GROWTH MM-HMM.
IF, IF YOU COULD PAY ALL THAT DEBT OFF FASTER, YOU COULD THEN MAKE THE DETERMINATION TO GET RID OF THE TOURISTS FASTER.
SOME, SOME TOURISTS AND COMMUNITIES ARE DONE WHERE YOU HAVE THE TOURISTS AS A TOOL.
THE DEVELOPER, I'LL USE BLANCO VISTAS, THEY HAD TO BUILD THE OVERPASS OVER THE RAILROAD TRACKS.
IF Y'ALL KNOW THAT THERE'S A RAILROAD TRACK, THEY BUILT THE OVERPASS.
THE TERMS WAS WE EXIST WHATEVER PERCENT TILL YOU'RE PAID BACK FOR THAT PROJECT.
IF YOU GET PAID BACK FASTER, UM, IF IT TAKES YOU THE FULL 30 OR IF WE DON'T FULLY PAY YOU BACK BECAUSE YOU WEREN'T ABLE TO DEVELOP WHAT YOU SAID YOU WERE GOING TO DEVELOP, THE RISK IS ON YOU.
THIS IS, THIS IS A DIFFERENT TYPE OF TOURISTS.
UH, TOURISTS CAN ISSUE DEBT, BUT MOST DON'T FOR FOUR OR FIVE YEARS UNTIL YOU HAVE ENOUGH REVENUE AND A COVERAGE RATIO TO SERVICE THOSE DEBT PAYMENTS.
BUT IF YOU DON'T, THEN WHAT DO THE CITIES USUALLY DO? YOU DON'T HAVE ENOUGH MONEY.
IF YOU DON'T HAVE ENOUGH MONEY IN THE TURS, YOU CAN ISSUE DEBT SOONER.
EITHER THE GENERAL FUND OR YOUR ECONOMIC DEVELOPMENT GROUP OR THE DEVELOPER WILL MAKE THOSE PAYMENTS FOR YOU.
SO SOME WILL HAVE AN EDC STEP IN AND MAKE THE DEBT PAYMENTS UNTIL THE TOURISTS CAN TAKE OVER.
UM, OTHERS SAY, HEY DEVELOPER, YOU HAVE TO HELP US UNTIL YOUR PROJECT GETS FULLY BUILT UP.
ANOTHER EXAMPLE IS YOU HAVE THE DEVELOPER MAKE THE DEBT PAYMENTS AND ONCE THE CITY CAN, CUZ THE TOURISTS CAN, BECAUSE YOUR DEBT'S CHEAPER, YOU REISSUE DEBT AND YOU TAKE THE DEVELOPER OUT.
SO IF THE DEVELOPER ISSUES DEBT, I'LL SAY 10% AND IN FIVE YEARS YOU CAN DO IT AT 4%.
WELL YOU'RE BETTER OFF CUZ YOU'RE GONNA BE SAVING MONEY CUZ YOU'RE PAYING THEM BACK WITH INTEREST.
AND SO YOU MAY STEP IN AND SAY, HEY, WE'RE JUST GONNA ISSUE DEBT FOR 10 YEARS, YOU KNOW, WE'RE GOOD TO GO.
AND THAT MAY BE YOUR ONLY EXPENDITURE.
SO THERE'S A LOT OF QUESTION MARKS I KNOW ON THIS PROJECT.
AND, AND BOB CAN TALK ABOUT WHAT MAY OR MAY NOT BE NEEDED.
THESE TWO TOURS, THE WAY THEY'RE DRAWN, TOURS TWO AND THREE DO OVERLAP ON THIS COUNTY ROAD AS WE THINK ABOUT INFRASTRUCTURE AND ROADS AND OVERPASSES AND THOSE THINGS.
SO THAT'S BEEN DRAWN DELIBERATELY.
SO IF YOU NEED TO USE FUNDS FROM FROM BOTH OF THOSE TO PAY FOR THAT PROJECT, YOU CAN DON'T HAVE TO.
SO THAT'S TOURS NUMBER THREE AND I'LL COME BACK TO THAT.
BUT LET ME TALK ABOUT, OR UH, TOURISM NUMBER TWO FOR A SECOND.
REBECCA SCREEN, I'M GOING BACK.
WILL YOU TALK ABOUT THE IMPORTANCE OF THE PV CALCULATION, RIGHT? SO AS I SAID BEFORE, THIS IS THE MONEY YOU GET OVER 25 YEARS.
AND IF YOU THINK ABOUT, HEY, IF I WANT IT ALL TODAY AND I GOTTA PAY INTEREST, HOW MUCH WOULD SOMEONE GIVE ME? SO IF YOU IE.
THAT THAT, THAT CONVERTS OVER TO, IF I WERE TO ISSUE DEBT, DEBT, A DEBT, RIGHT? RIGHT.
SO IF YOU SAID, HEY, I'M GONNA ISSUE DEBT PAYING 5% AND THEY, AND THEY BELIEVED THE FORECAST AND THEY WEREN'T WORRIED ABOUT COVERAGE RATIO, IT'S JUST HEY, WE TRUST YOU.
YOU COULD PROBABLY ASK FOR ABOUT $75 MILLION TODAY IN OVER 25 YEARS WITH INTEREST YOU PAID BACK 167 JUST LIKE A HOME, LIKE A HOME.
SO, SO SOME OF IT DOES JUST COME DOWN TO FINANCING AND RISK.
YOU USE GENERAL FUNDS, YOU USE ECONOMIC DEVELOPMENT FUNDS, WE WORK WITH THE COUNTY.
SO THESE TERMS NEVER HAVE MONEY TO START.
SO THE ONES THAT ARE MOST EFFECTIVE
[00:25:01]
HAVE PROJECTS THAT ARE BREAKING GROUND, THAT AREN'T REQUIRING INCENTIVES OR YOU UNDERSTAND YOU'RE GONNA HAVE TO PUT SOME SEED CAPITAL IN THESE TO KIND OF GET IT GOING.THAT ALL MAKES SENSE ON, ON HOW THAT WOULD WORK.
SO AS I SAID ABOUT TOURS NUMBER TWO, MY RECOMMENDATION HAVING LOOKED AT THIS, UM, MY RECOMMENDATION TO YOU WOULD BE CLARIFY A FEW THINGS.
UM, THERE WERE A LOT OF MOVING PARTS IN THAT LAST ONE.
AND MY RECOMMENDATION WOULD BE JUST TO CLARIFY, TO MAKE IT SIMPLE AND EASY FOR FOLKS TO UNDERSTAND.
IT HAD A 30 YEAR LIFE, I MIGHT CHANGE IT TO 28 YEARS.
SOURAS IS TWO AND THREE WOULD TERMINATE AT THE SAME TIME.
DON'T HAVE TO, IT JUST MAKES THE ACCOUNTING EASIER TO KNOW THEY END AT THE SAME TIME.
SO THAT MEANS IT WOULD BEGIN IN 2019 AND TERMINATE IN IN 2047.
IT HAS A BASE VALUE OF $548,000 CUZ IT WAS, IT WAS AG OR OR TAX EXEMPT AT THE TIME.
UM, AND THEN I WOULD CLARIFY THE CITY OF HU'S PARTICIPATION.
THE COUNTY DOES NOT PARTICIPATE IN THIS.
I WOULD CLARIFY THAT THE PART, THE CITY'S PARTICIPATION IS 50%.
IF YOU WANNA MATCH TOURISTS NUMBER THREE AND THAT THERE IS NO SALES TAX CONTRIBUTION GUARANTEED TO THE TUR, YOU CAN STILL SPEND FOUR B FUNDS ON TURS PROJECTS.
I JUST PROBABLY WOULD NOT FORCE YOU TO PUT SALES TAX FUNDS IN THAT ACCOUNT BECAUSE YOU HAVE ALL THE FLEXIBILITY OF LEAVING IT IN YOUR EDC WITHOUT LOCKING IT UP BECAUSE YOU MAY NEED IT FOR SOMETHING ELSE WHO MIGHT HATE FOR IT TO JUST BE SITTING IN THAT ACCOUNT.
THAT'S WHY MOST DON'T WITH THAT THREE AND A HALF PERCENT CAP ON A, ON A BUCKYS OR A CABELLAS OR A BASS PRO, YOU WILL.
SO THIS IS THE CLEANUP I WOULD DO ON TOURISTS.
NUMBER TWO, YOU WOULD STILL NEED TO APPOINT A BOARD, HAVE A FINAL PROJECT AND FINANCE PLAN, HAVE THE TOURISTS BOARD APPROVE THAT FINAL PROJECT AND FINANCE PLAN AND THEN STILL NEEDS TO COME BACK TO THE CITY.
SO HERE'S ROUGHLY WHAT A TIME.
SO I DID A VERY SIMPLE FORECAST.
IT'S A COUPLE MILLION DOLLARS OVER 25 YEARS DEPENDING ON WHAT HAPPENS IN THAT ZONE.
THERE'S A LITTLE, THERE'S SOME THINGS WORKING, BUT, BUT THIS IS JUST A HIGH LEVEL OF WHAT WE THINK.
SO DEPENDING ON HOW AGGRESSIVE YOU ALL ARE IN THE DIRECTION YOU ALL WANNA SET A COUPLE THINGS.
YOU HAVE TO, NOVEMBER 3RD, YOU GOTTA PUBLISH A RESOL.
YOU'D ALL HAVE TO PASS THE RESOLUTION CALLING FOR THE PUBLIC HEARING.
IT'S GOTTA BE IN THE NEWSPAPER.
IT'S GOTTA POST SEVEN DAYS IN ADVANCE.
THAT GIVES US THE WINDOW STANDARD.
YOU KNOW, PUBLIC NOTICE, YOU'D HAVE A PUBLIC HEARING, MOST HAVE THE PUBLIC HEARING, CLOSE IT AND THEN VOTE ON THE ORDINANCE ON THE 17TH.
YOU COULD AMEND NUMBER TWO AND CREATE TOURS.
I'D SAY CLARIFY BY ORDINANCE YOU WOULD CLARIFY THOSE POINTS.
WE SHORTEN THE NUMBER OF YEARS AND WE CLARIFY THAT IT'S 50%.
YOU ALL NEED TO APPOINT TERRAS BOARDS.
TERRAS, TERRAS BOARDS, TWO SEPARATE BOARDS.
AND WE CAN TALK ABOUT HOW THAT WORKS IN A MINUTE.
BUT THEY EACH HAVE TO HAVE THEIR OWN.
IT CAN BE THE SAME PEOPLE, BUT THOSE WOULD EACH HAVE THEIR OWN PUBLIC NOTICE REQUIREMENTS, THEIR OWN VOTES, THEIR OWN MINUTES, ALL THAT.
SO A LITTLE BIT AGGRESSIVE DEPENDS ON MAYOR HOW MUCH DETAIL YOU WANT TO HAVE IN TERMS OF, OF CONSTRAINING VERSUS BROAD.
YOU WOULD THEN HAVE TO COME UP WITH THAT FINAL PROJECT AND FINANCE PLAN.
TERRAS BOARD APPROVES IT AND THEN IT HAS TO COME BACK TO THE CITY FOR APPROVAL.
REALISTICALLY, THIS MAY BLEED OVER INTO THE BEGINNING OF NEXT YEAR WITH HOLIDAYS AND BOARD APPOINTMENTS AND THOSE KINDS OF THINGS.
BUT WHERE'S THE CRITICAL STEP? NOVEMBER.
NOVEMBER 17TH, RIGHT? NOVEMBER 17TH.
THIS JUST HAS TO GET DONE BY THE, AND I'VE I'VE SPENT THE END OF THE MONTH, I'VE BEEN IN SOME SOMEPLACE TRYING TO GET THROUGH THIS AT THE END.
SO THERE'S A LITTLE BIT OF WIGGLE ROOM, YOU KNOW, IF THERE'S ENOUGH QUESTIONS AND YOU DON'T THINK THE 17TH WORKS, WE HAVE ROOM TO PUSH IT BACK TO ANOTHER REGULAR MEETING.
BUT IF YOU'RE COMFORTABLE, UM, THE 17TH, WE'VE KIND OF TARGETED, YOU STILL HAVE TO DO THESE STEPS.
SO WE'VE GOTTA GET THROUGH THIS STEP HERE.
I WOULD TRY TO GET THROUGH THIS ONE SO THAT IF WE HAVE TO MEET IN JANUARY WITH THE TOURISTS BOARD, WE COULD HIT THE GROUND RUNNING AND PEOPLE KNOW THEY'RE ON A TOURISTS BOARD.
UM, SO YOU CAN START HAVING, AND I DON'T KNOW HOW Y'ALL DO THESE EVERY CITY'S DIFFERENT.
START HAVING THOSE CONVERSATIONS ABOUT WHO WOULD MAKE SENSE TO BE ON THAT BOARD AND START WORKING THAT PROCESS.
CAUSE THAT USUALLY TAKES THREE WEEKS, MAYBE 2, 3, 3 WEEKS DEPENDING.
AND THEN ONCE YOU ALL HAVE APPROVED THE FINAL PROJECT AND FINANCE PLAN, ONLY THEN CAN YOU ENTER INTO DEVELOPMENT AGREEMENTS OR SPEND FUNDS.
SO EVEN IF TOURISTS TWO HAD LOTS OF MONEY SITTING IN IT, YOU CAN'T SPEND IT BECAUSE YOU HAVEN'T GOTTEN THROUGH THAT SEVEN STEP PROCESS.
DO WE NEED THE COUNTY TO HAVE ALL THEIR STEPS DONE TO GET TO NOVEMBER 17TH OR CAN WE DO THAT INDEPENDENTLY? WELL, WE'RE GONNA ASK THE COUNTY TO, I I AND I'LL AND I'M GONNA DEFER TO BOB ON, ON THIS ONE, BUT I'M NOT SURE THE COUNTY'S BEING
[00:30:01]
ASKED TO JOIN TOURS.NUMBER TWO, I THINK MAYBE ON TOURS NUMBER THREE, WE DON'T HAVE, WE NEED TO LET THE COUNTY KNOW WHAT WE'RE DOING BUT THEY DON'T HAVE ANY ROLE UNTIL WE APPROACH THEM TO JOIN AND WE ONLY APPROACH THEM TO JOIN ONCE WE'VE GOTTEN THROUGH NOVEMBER SEVEN.
WITH THEM HAVING ELECTIONS COMING UP AND ALL THAT, I JUST WANTED CORRECT.
THIS TIME OF YEAR MOST CITIES ARE SCRAMBLING AND WE GOT ELECTIONS, THE HOLIDAYS, WE JUST GOTTA GET THROUGH THE 17TH.
JUST SO YOU KNOW, WE HAVE REACHED OUT TO THE JUDGE AND JUDGE OBVIOUSLY WOULD BE THE MOST IMPORTANT AT THIS MOMENT.
UM, THEY'RE VERY INTERESTED IN THREE.
UM, THEY'RE PROBABLY NOT THAT INTERESTED IN TWO.
UM, SO WE'RE GONNA HAVE A MEETING WITH NEXT WEEK JUST RIGHT.
BUT FOR ALL KNOW, IN A FEW WEEKS THEY BOTH MIGHT BE UNDER THEIR WAY OUT OF OFFICE.
UM, YEAH, I MEAN JUST TIMING WISE IT JUST, THIS IS THE BOTTLENECK YOU GET INTO.
I'M WORK, I'M GOING UP TO CANYON TEXAS NEXT WEEK NEAR AMARILLO.
IT TOOK THEM ALMOST A YEAR TO GET THE COUNTY TO JOIN THE COUNTY'S JOINED.
SO WE'RE GETTING THROUGH THROUGH THE FINAL PROJECT FINANCE PLAN FIRST WEEK OF, OF NOVEMBER.
SO AGAIN, IF YOU LOSE STEAM, IN MY EXPERIENCE THIS TAKES SIX TO NINE MORE MONTHS.
SO I THINK WE NEED TO JUST KIND OF HIT IT AND KEEP MOVING IF YOU ALL FEEL COMFORTABLE.
KNOW WE CAN ALWAYS MAKE TWEAKS IF WE NEED TO.
BUT I WOULD JUST TRY TO KEEP THE BALL ROLLING BECAUSE IF ANY PROJECTS COME TO YOU, YOU CAN'T ENTER, YOU CAN'T USE THOSE TOURIST FUNDS UNTIL YOU GET THROUGH THE FULL PROCESS.
AND THEY MAY BE NERVOUS AND SAY, UH, BUT I NEED TO HAVE AN AGREEMENT WITH YOU TO TAKE TO THE BANK OR TO MY INVESTORS.
UM, WHAT ELSE? UM, SO LET ME ASK YOU THIS.
DOES THIS ALL MAKE SENSE? I MEAN, DOES 25 YEARS MAKE SENSE? DOES 50% SEEM I KNOW IS EARLY THAT SEEM REASONABLE TO YOU? UM, TOO LOW, TOO HIGH.
WHAT DO Y DO Y'ALL HAVE ANY INITIAL THOUGHTS ON ON THAT? I PERSONALLY CAN'T COMMIT TO PERCENT LIST.
NOW IF IT WAS 50%, IT'S A SMALL PROJECT WE WOULD KNOCK OUT IN 10 YEARS.
BUT I WOULDN'T JUST GO INTO SOMETHING BLIND AND SAY LET'S, UH, 50% INTO SOMETHING AND, AND THEN FAIR HOW TO SPEND IT.
BUT I THINK IT'S JUST A, A PARKING VEHICLE TO NOT HAVE IT IMMEDIATELY HIT THE KNOW NEW REVENUE RATE.
IT MAKES SENSE TO HAVE IT BE 50% PUT OVER THERE.
CAUSE WE KNOW WE'RE GONNA HAVE LOTS OF PROJECTS THAT WE HAVE TO DO.
AND I'D SAY SOMEONE ON STAFF NEEDS TO START IDENTIFYING PROJECTS AND GETTING 'EM READY.
CUZ MAYBE THE NUMBER 75%, MAYBE IT'S 85%.
BUT LET ME GET BACK INTO SCRAMBLING.
I MEAN WHAT STAFF KNOWS AND WHAT THEY HAVE PLANNED, I'M SURE THEY HAVE SOME THINGS PROBABLY THREE, MAYBE MAYBE FIVE YEARS OUT.
BUT I MEAN IF WE'RE TALKING 10, 15, 20 YEARS, NOBODY HERE HAS A CRYSTAL BALL.
SO THE OTHER PATH FOR EXAMPLE IS MAYBE 40 MILLION BOB, 40 TO 50.
AND I UNDERSTAND YOUR POINT EXACTLY.
I'M SORRY, I DIDN'T MEAN TO CUT YOU OFF.
BUT THAT'S, THAT'S THE CHALLENGE ON THESE IS BECAUSE WE KNOW WHAT PEOPLE HAVE TOLD US THEY'RE GONNA DO.
WE THINK WE HAVE A SENSE OF WHAT IT'S GONNA COST, BUT WE'RE NOT TO TO THAT POINT YET.
AND I ALWAYS SAY THE CHALLENGE WITH THESE IS, IT'S ONE OF THOSE THINGS YOU SOMETIMES JUST HAVE TO TAKE A, I DON'T WANNA SAY A LEAP OF FAITH, BUT IF YOU LIKE THE TOOL, YOU JUST KIND OF HAVE TO GET PUT IT IN PLACE AND THEN, AND THEN TWEAK IT AS YOU NEED TO 50%.
AND THEN I TOTALLY GET YOUR POINT AND YOU CAN ADJUST THAT AS WE GO FORWARD.
UM, IF 50 PERCENT'S NOT ENOUGH, I WOULD SAY PROBABLY DON'T INCREASE THE DETERS.
MAYBE IF IT'S A, A TEMPORARY SHORTFALL, YOU GET IT AT GENERAL FUND WITH THE 50% THAT YOU'RE KEEPING FROM A PROJECT.
DOES THAT MAKE SENSE? SO IF, IF YOU'RE SPLITTING IT 50 50, MAYBE YOU NEED 55% FOR A FEW YEARS, THERE'S WAYS YOU CAN WORK AROUND THAT WITHOUT CHANGING THE OVERALL CONTRIBUTION.
BUT THAT TAKES FORETHOUGHT AND KNOWING THE PLAN FIVE YEARS AHEAD.
YOU CAN MAKE THAT 5% ADJUSTMENT EVERY YEAR.
AND I THINK WE THOUGHT KNOWING THE COST OF, AND AND, AND I, THIS IS A CONVERSATION WITH EVERY CLIENT.
50% TO ME IS WHAT I RECOMMENDED.
WE PUT IN THIS KNOWING THAT OVERPASS ALONE IS PROBABLY 30 TO 40 MILLION.
THEN WE CAN ALSO REIMBURSE THE WATER INFRASTRUCTURE.
WE PUT THROUGH ANOTHER 40 MILLION.
SO WE'RE ALREADY AT 70 MILLION CORRECT.
THE ROAD AND, AND THEN THE ROAD THROUGH PROBABLY BOTH ROADS 15 MILLION MM-HMM
SO WE'RE ALREADY AT ALMOST A HUNDRED MILLION MILLION AND WE'RE AT 88.
I MEAN WE'RE ALREADY, NOW DO YOU PAY YOURSELF BACK INTEREST OR NOT? SO DO YOU EVEN NEED TO WORRY ABOUT INTEREST? CAUSE SOME CITIES SAY WE'LL JUST PAY OURSELVES BACK.
WE'RE NOT WORRIED ABOUT INTEREST.
LET ME GIVE YOU ANOTHER EXAMPLE.
UH, IF YOU KNOW WHERE THE SAN ANTONIO ZOO IS BY THE MUSEUM, THERE'S A PARKING GARAGE THAT HAS THE GRASS THAT THE VINES GROWING ON IT.
THEY PUT THAT IN THE TURS AND THEY SAID ONLY IF IT THE TOURIST HAS MONEY, WE'LL PAY OURSELVES BACK THAT WAY.
SO ONE THING SOME CITIES DO IS THEY PUT THESE PROJECTS THAT WE'D LIKE TO PAY OURSELVES BACK FOR, BUT WE DON'T HAVE TO EXPLAIN TO 'EM WHAT YOU MEAN BY PAY YOURSELF BOND.
SO THEY PAID FOR THAT WITH, UH, PARKING KEYS OR GENERAL FUND.
[00:35:01]
AND THE WAY THAT AGREEMENT WAS WRITTEN WAS THE TURS WOULD REIMBURSE THE CITY IF FUNDS WERE AVAILABLE AFTER THEY MET OBLIGATIONS UNDER OTHER INCENTIVE DEALS THEY HAD.SO IT WAS A WAY TO HAVE THAT PROJECT GO FORWARD BECAUSE THEY HAD COMMITTED THE FUNDS IN THE SHORT TERM TO INCENTIVIZE ALL THE MULTIFAMILY YOU SEE NEAR PEARL.
SO THEY SAID WE REALLY WANT THE PARKING GARAGE, BUT WE DON'T HAVE THE TOURISTS ABLE TO PAY FOR IT.
SO THEY FIGURED OUT A WAY TO USE OTHER CITY FUNDS AND SAID IF THOSE RESOURCES ARE AVAILABLE WE'LL PAY SOME OR ALL OF THAT BACK.
SO ANOTHER WAY THAT THAT MIGHT LOOK WOULD BE IF YOU ISSUE DEBT UP FRONT MM-HMM.
ONCE YOU EXCEEDED THAT AMOUNT THAT YOU NEEDED FOR THE PAYMENTS, YOU COULD RECAPTURE THE MONEY THAT THE GENERAL FUND PAID.
AND YOU COULD RIDE IT AS THAT'S IMPORTANT BUT WILL DEFER BEING PAID BACK IF THERE'S AN ECONOMIC DEVELOPMENT AGREEMENT THAT NEEDS THOSE FUNDS.
BUT YES, THERE'S WAYS YOU CAN, AND THAT'S WHEN I SAY THESE TOOLS ARE USED FOR ECONOMIC DEVELOPMENT BECAUSE YOU DON'T KNOW SEVEN YEARS FROM TODAY WHAT EXACTLY IS NEEDED.
THAT'S WHY SOME CITIES WRITE THESE A LITTLE BIT MORE BROAD CUZ THEY SAY WE'D RATHER NOT HAVE TO GO THROUGH THE EFFORT TO AMEND IT.
SO LET'S SAY ECONOMIC DEVELOPMENT GRANTS, DEVELOPER REIMBURSEMENTS AND PUBLIC INFRASTRUCTURE.
YEAH, I GUESS, I MEAN I, I HEAR THE, THE CONCERNS.
SO MY COUNCIL MEMBERS SAY MM-HMM BUT THEN I ALSO HEARD FLEXIBILITY.
SO YOU COULD SAY I WANNA BUILD A BRIDGE MM-HMM.
AND THEN YOU CAN COME BACK SIX AT 40%.
YOU'D COME BACK SIX MONTHS LATER AND NOW LET'S ADD IN THIS WATER PROJECT.
AND TO ME, IF IT'S TOO MUCH OF AN EFFORT FOR A CITY COUNCIL TO EVERY TIME YOU ADD A PROJECT TO MEET ABOUT IT IN PUBLIC AND TALK ABOUT IT, AND THE EASIEST IS JUST MM-HMM LET'S JUST COMMIT A WHOLE BUNCH OF MONEY TO SOMETHING AND WE'LL JUST GO DOWN THE ROAD.
THAT'S, THAT'S THE ONLY THAT SCARES ME ABOUT THESE IS MM-HMM.
UM, THAT'S WHAT HAPPENS WITH A LOT OF OUR BOND.
WE HAVE THAT IT HAPPEN IN HUDDLE WITH OUR BOND PROJECTS.
RIGHT? AND IF SOMETHING DOES COME UP SEVEN YEARS FROM NOW, WELL THEN YOU ADJUST IT AND ADD THAT PROJECT IN.
NO ONE'S SAYING YOU CAN'T DO THAT.
AND YOU CAN CHANGE YOUR FROM 40 TO 50 TO THE VALUATIONS GO CRAZY AND YOU CAN DROP IT DOWN TO 30.
SO I SEE A LOT OF FLEXIBILITY TO DO PRETTY MUCH WHATEVER YOU WANNA DO.
KEY IS JUST BOUNDARY THAT WILL MAKE THE TAX RATE.
DOES THAT UP THE NEW REVENUE RATE.
EVERY TIME YOU DO THAT, NOW YOU SET NO NEW REVENUE RATE, WHICH YOU'RE COMMITTED TO, THEN YOU'VE NOW CHANGE THAT NUMBER, YOU DROP IT AND NOW YOU'RE NOT GETTING THE FUNDS OUT OF THERE BECAUSE YOU'VE NOW MOVED IT OVER THE OTHER SIDE.
SO WE NEED TO BE GENERAL FUND LOT OF IT ON THE OTHER SIDE.
SO THE OTHER CHALLENGE BECOMES, IT GETS CONFUSING WHAT THE COUNTY, CAUSE YOU KNOW, AND I GET YOU, YOU WANNA KEEP, YOU WANNA ASK THE COUNT CAUSE THEY TEND TO WANNA MATCH YOU.
SO YOU'LL HAVE TO GO THROUGH AND I THAT, THE OTHER THING IS WHEN YOU TYPICALLY, IF YOU'RE GONNA ISSUE DEBT OR IF YOU ENTER TO A DEVELOPER AGREEMENT, OFTENTIMES THE DEVELOPMENT AGREEMENT WILL SAY YOU CAN'T LOWER THE PARTICIPATION RATE CUZ THAT WOULD DELAY THEM GETTING PAID BACK.
SO ONCE YOU ENTER INTO A DEVELOPMENT AGREEMENT, THAT TYPICALLY LOCKS IT IN.
SO IF YOU ISSUE DEBT, THEY'RE GONNA SAY, HEY, YOU CAN'T DROP IT BELOW 50%.
WE UNDERSTAND YOUR RATE'S GONNA GO UP AND DOWN, BUT WE'RE NOT GONNA LET YOU DROP IT TO 25 AND WE DON'T GET PAID BACK.
AND AS LONG AS THEY, IF, IF THEY WERE GONNA GET PAID 2 MILLION A YEAR, THEN WHAT? WHY DO THEY CARE WHAT THE RATE IS AS LONG AS THEY GET THEIR 2 MILLION, $2 MILLION A YEAR REIMBURSEMENT BECAUSE LET'S SAY PROPERTY VALUES OVER 10 YEARS ARE A HUNDRED PERCENT HIGHER THAN WHAT EVERYBODY THOUGHT THEY'D BE LIKE THAN WHAT WE JUST WENT THROUGH.
SO THAT POTENTIALLY YOU'RE TAKING IN A SIGNIFICANT AMOUNT OF MORE MONEY TO WHERE YOU DON'T NEED THE HIGHER RATE TO GET THE SAME AMOUNT OF MONEY.
I THINK THE BETTER WAY TO POTENTIALLY APPROACH THAT, MAYBE LET'S SET THIS FOR A COUPLE YEARS.
I THINK YOU'LL HAVE A LOT MORE CLARITY ON THE COST OF THOSE PROJECTS AND THEN TRY TO MAKE KIND OF ONE CALIBRATION IN A COUPLE YEARS ONCE THERE'S MORE CLARITY ON COST IN THE PROJECT AND INCENTIVES.
BECAUSE DON'T FORGET THIS ASSUMES YOU HAVEN'T GIVEN ANY INCENTIVES IF YOU HAVE TO GIVE A PROPERTY TAX BREAK.
THAT ALSO APPLIES TO THE TURS.
SO THERE'S A, AGAIN, IT'S, AND, AND I'M WITH YOU, THAT'S THAT CHICKEN AND THE EGG AND, AND MAKING SURE THAT THE, THE CITIZENS FEEL COMFORTABLE THAT Y'ALL ARE PROPERLY MANAGING THIS.
BUT IT'S, YOU GOTTA GET IT PUT IN PLACE CAUSE YOU'RE NOT GONNA EXACTLY KNOW EACH OF THOSE PROJECTS AND THOSE COSTS.
AND I DON'T SEE THE BIG DISADVANTAGE WITH LEADING IT MORE VAGUE TO GIVE YOU THE FLEXIBILITY AND THE ABILITY TO KIND OF ADJUST AND TO BE ABLE TO DO THINGS BECAUSE MM-HMM.
AND IF, IF IT'S SHOWING THAT THERE'S NOT ENOUGH PROJECTS AND YOU'VE GOT A RATE AND IT'S JUST LIKE WE'VE GOT MORE MONEY AND WE KNOW WHAT TO DO WITH, THEN WE CAN MAKE AN ADJUSTMENT.
WE CAN MOW IT, WE CAN ADD PROJECTS AT THAT TIME.
WE CAN REDUCE THE, THE TIME FROM
[00:40:01]
30 YEARS TO 25 YEARS OR WHATEVER IT IS.AND WE MAKE THOSE ADJUSTMENTS THAT WAY.
WE JUST PAY IT OFF EARLY AND GET THE, GET RID OF THE TOURS EARLIER.
AND YOU ALSO HAVE TO APPROVE EVERY PROJECT IF THAT'S HOW YOU SET IT UP.
SO YOU ALWAYS HAVE THAT CONTROL IF YOU, AND I'M SAYING IF YOU MAKE IT MORE BROAD, YOU ALL CAN JUST SAY TOURIST BOARD RECOMMENDS THIS, BUT WE DON'T WANT TO DO THAT.
WHAT'S MORE COMMON IS YOU'LL SEE PEOPLE EXCLUDE THINGS AS OPPOSED TO LIMITING WHAT YOU CAN PAY FOR.
SO SOME, SOME MAY SAY, YOU KNOW, DALLAS COUNTY DID THIS FOR A WHILE.
IF YOU'RE GONNA PAY FOR HOUSING, THERE HAS TO BE AN AFFORDABLE HOUSING COMPONENT BECAUSE THAT'S A BIG ISSUE THERE.
THAT WOULD BE A WAY YOU WOULD PUT BOUNDARIES, UM, AROUND IT AS LONG AS THERE'S SOME ACCOUNTABILITY STANDPOINT, RIGHT? WE HAD A, I DON'T KNOW WHAT IT, 50 MILLION ROAD BOND.
MM-HMM
WHAT'D WE DO? WE SPENT MONEY ON EVERYTHING BUT THE THREE PROJECTS POINT TO SPEND THREE YEARS NOT KNOW TO ISSUE DEBT TO WHERE IT'S LIKE, YOU KNOW, AS LONG AS THERE'S AN ACCOUNTABILITY METRIC, UM, HOWEVER THAT'S FIGURED OUT AND WORDED IN THERE, I THINK EVERYBODY'S GONNA BE FINE.
SO THE ACCOUNTABILITY IS GONNA BE THE TOURIST BOARD HAS TO APPROVE IT AND YOU HAVE TO APPROVE IT.
WHAT SOME TOURISTS DO THAT ARE A LITTLE BIT LARGER WITH MORE MONEY, THEY MAY SAY TO THE TOURISTS BOARD, YOU CAN SPEND UP TO, YOU KNOW, YOU'RE, DO A FACADE GRANT PROGRAM, YOU CAN ADMINISTER THAT PROGRAM WITHOUT COMING BACK TO US.
SO AS YOUR TOURISTS GETS LARGER, SOMETIMES CITIES WILL GIVE THE TOURISTS BOARD AUTHORITY TO GO HIRE A SURVEYING COMPANY WITHOUT ALL OF THOSE ITEMS COMING BACK BECAUSE THEY KNOW THEY'RE CONSTRAINED BY EITHER A DOLLAR AMOUNT.
IT HAS TO BE SPENT WITHIN THE TERRORS.
IT CAN'T JUST BE SPENT ANYWHERE.
UM, OTHERS SAY, NO, WE WANT EVERYTHING TO COME BACK THROUGH US.
SO THAT'S JUST UP TO YOU ALL TO DECIDE, UM, IF YOU WANT TO GIVE THE JURORS FOR AUTHORITY TO HIRE AN ENGINEERING COMPANY OR NOT.
AND AT WHAT POINT DO WE WANT TO DO A TURS FOR OR EXPAND THE CO-OP TO INCLUDE DOWNTOWN CONVERSATION SOMEWHERE IN THE MIDDLE THOUGH.
I MEAN, I GET WHAT YOU'RE SAYING, MIKE, BUT AT THE SAME TIME I UNDERSTAND WHAT RANDALL'S SAYING TOO.
WE WANNA HOLD PEOPLE ACCOUNTABLE, BUT IF IT'S NOT SOMEWHAT BROAD, IT ESSENTIALLY STRANGULATE LIKE AS THE PENDULUM SWINGS, LIKE WHAT HAPPENED BEFORE AND THEN TRYING TO COMPLETELY SWING AND CONTROL EVERY SINGLE STEP OF A PROCESS, STRANGULATE THE PROCESS.
AND THAT'S WHY WE'RE CONTINUALLY UNDER THE GUN.
SO I THINK THAT THERE NEEDS TO BE KIND OF A HAPPY MARRIAGE BETWEEN THE TWO.
SO HOPEFULLY THAT'S WHAT WE CAN KIND OF WORK OUT AND THAT'S WHAT I WOULD PERSONALLY LIKE TO SEE.
YOU'VE GOT ABOUT NINE MINUTES.
YOU WANNA PASS THAT OUT, BOB? OR, UM, TOO SHORT.
THIS IS A, A HIGH LEVEL VIEW ON MY PRELIMINARY PRELIMINARY CLAIM THAT WE PUT TOGETHER FOR JURORS NUMBER THREE.
IT'S, IT'S A FORMAT THAT, UM, DOTTY'S LOOKED AT GEORGE WHO COMPLIES WITH STATE LAW.
THERE'S STATE LAW, SO IT FEELS SORT OF FORMULATE CHECK THE BOX BECAUSE IT IS FORMULATE TYPE THE BOX.
UM, THIS WOULD BE YOUR PRELIMINARY PLAN.
IT'S A LOT OF DATA THAT WE COVERED BEFORE.
YOU HAVE A, UM, UH, ON THAT, ON THE BOTTOM GRAPH IN COLOR.
I GOTTA APOLOGIZE, I'M AN ECONOMIST, NOT A MAP MAKER, SO I DON'T ALWAYS PICK THE BEST COLORS.
THAT JUST SHOWS YOU, UM, WHAT THE DIFFERENT LAND USE CATEGORIES.
THE, THE TABLE ON THE PREVIOUS PAGE GIVES YOU THAT BREAKDOWN.
UM, MY MATH IS WRONG, WHICH WOULD BE UPDATED ON THE NEXT PAGE TO TO, TO UPDATE WHAT'S IN THE EJ AND WHAT'S NOT.
UM, AND THEN IF YOU SKIP THROUGH TOWARDS THE, THE BACK, IT KIND OF LISTS THE BROAD BUCKETS FOR WHAT ARE COMMON.
UH, WHEN I WORK ON THESE, WHAT ARE THE COMMON, UM, ELIGIBLE PROJECT.
ELIGIBLE PROJECT COSTS AND, AND WE CAN TAILOR THESE.
UM, UM, SO PARK AND STREET SCAPE ENHANCEMENTS.
I THINK PRETTY STRAIGHTFORWARD INFRASTRUCTURE IMPROVEMENTS ALL ON PAGE FOUR.
UM, ECONOMIC DEVELOPMENT GRANTS WITH SOME ADMINISTRATION IMPLEMENTATION.
SOME CITIES WILL WANNA REIMBURSE THEMSELVES FOR STAFF TIME.
THAT'S USUALLY THE LAST THING THAT GETS PAID BACK.
THAT'S USUALLY $20,000 A YEAR.
WHATEVER YOU ALL WANT TO PUT IN THERE.
UM, YOU HAVE TO PUT IN WHAT ARE CALLED NON-PROJECT COSTS.
NO ONE KNOWS WHAT THOSE NON-PROJECT COSTS ARE BECAUSE THEY'RE NOT PROJECT COSTS.
INTERESTING WAY TO PUT IT IN THERE.
AND SO, UM, AND THEN THE LAST WOULD BE, YOU KNOW, DEVELOPMENT AGREEMENTS, UM, OR DEVELOPER REIMBURSEMENT.
I WOULD ADD TO THE FINAL POINT.
SO YOU CAN DO THREE 80 GRANTS OUT OF THESE IF YOU WANT.
UM, SO YOU HAVE SOME FLEXIBILITY.
BUT I, ON THIS ONE I WOULD LEAVE IT AS AS PARKS AND STREET SCAPE ENHANCEMENTS.
CUZ AS SOON AS YOU SAY WE'RE NOT GONNA DO SOMETHING LIKE THAT, SOMEONE'S GONNA COME IN WITH A PLAN THAT HAS A PARK FOR AN OPEN SPACE AND YOU'RE GONNA THINK, I KIND OF LIKE TO USE SOME RESPONSE TO PAY FOR THAT.
SO AGAIN, PARKS AND STREETSCAPE INFRASTRUCTURE BROADLY WRITTEN TO INCLUDE EVERYTHING YOU SEE THERE IS EVERY POSSIBLE KIND OF INFRASTRUCTURE.
[00:45:01]
THEN ECONOMIC DEVELOPMENT GRANTS ARE JUST LIKE ANY OTHER INCENTIVE YOU WOULD DO WITH THE DEVELOPER.YOU'RE ENTERING INTO AN AGREEMENT AND WE TOUCH ON REAL PROPERTY AND TIER THREE BECAUSE I THINK THAT'S SIGNIFICANT ON ONE OF THE PROJECTS SURE.
OH, I MEANT AS FAR AS THE VALUE FOR THE TURD.
SO PRO PROLOG IS WHAT I'M THINKING, RIGHT? UHHUH
THAT'S BUSINESS, PERSONAL PROPERTY.
AND SO THAT IS TOTALLY EXCLUDED.
I EXCLUDED BUSINESS PERSONAL PROPERTY WHEN I WORKED WITH, WITH BOB, UM, IN, IN THOSE FOLKS I LOOKED UP COMP, I LOOKED AT THE MICROSOFT DATA CENTER IN SAN ANTONIO.
I LOOKED AT THE ONE OUT, THERE'S A COUPLE IN THE AUSTIN AREA.
I LOOKED AT SOME, SEE THE FACEBOOK OR GOOGLE, I FORGET THE DALLAS AREA.
THEY ACTUALLY HAVE SIX DIFFERENT DATA CENTERS ON ONE CAMPUS.
AND SO MY FORECAST TAKES INTO ACCOUNT, UH, THE REAL PROPERTY VALUE OF THOSE DATA CENTERS.
UH, NOW YOU STILL MAY GIVE THEM A PROPERTY TAX ABATEMENT THAT WOULD LOWER THAT, BUT NONE OF THAT PERSONAL PROPERTY THAT FOLLOWS THE DEPRECIATION SCHEDULE IS INCLUDED IN MY FORECAST.
I'VE ALSO ASSUMED, UH, THAT THE, THE TECH DATA CENTER, UH, THE TITAN POST AND THEN I DID A FORECAST ON THE EVC ON THAT PROJECT IF THAT HAPPENS OR NOT.
SO THIS MAY BE ON THE HIGH END, BUT WE TRIED TO USE REAL WORLD COMPS AND FULL TAXABLE VALUES ON THE REAL PROPERTY.
NOW I'VE COVERED A LOT, SO I GOT SEVEN MINUTES NOW.
I THINK, WHAT ELSE? I'M NOT GONNA ALWAYS, I CAN ALWAYS COME BACK OR STAY, BUT I WOULD SAY THAT'S A, THAT'S A KIND OF MY STARTING POINT FOR THE PRELIMINARY PROJECT AND FINANCE PLAN.
UM, SO IF THE REAL, IF THE REAL VALUE'S ALWAYS EXCLUDED, THAT'S THE MAJORITY OF WHERE FOR THAT ONE PROJECT, THAT'S THE MAJORITY OF WHERE THE VALUE COMES FROM PROPERTY.
THE FIRST NO, THERE ARE, THERE ARE, THERE ARE MORE EXPENSES.
THERE'S STILL HUNDREDS OF MILLIONS OF DOLLARS ON THE REAL SIDE TOO.
SO THERE, AND I CAN SEND YOU SOME EXAMPLES.
BOB HAS THEM OF, OF, OF WHERE WE LOOKED THEM UP.
I MEAN IT'S, IT'S HUNDREDS OF MILLIONS OF DOLLARS WHEN IT'S FULLY BUILT OUT.
UM, SO THAT'S THE PRELIMINARY PLAN.
THAT PRELIMINARY PLAN IS WHAT YOU'D BE REQUIRED TO GET THROUGH TO ATTACH TO THE ORDINANCE.
SO IF YOU LIKE THAT FORMAT AND, AND, AND LET SOMEONE KNOW OR EMAIL OR BOB, I WOULD USE THAT SAME FORMAT TO MAKE THE ADJUSTMENTS TO TOURISTS.
NUMBER TWO, I WOULD JUST REWORK THE PLAN AND SAY HERE'S THE PRELIMINARY PLAN FOR AN AMENDED TOURISTS NUMBER TWO.
AND YOU WOULD HAVE TWO DOCUMENTS THAT LOOK VERY SIMILAR WITH DIFFERENT MAPS AND AND VALUES.
BUT THAT'S HOW THEY WOULD LOOK.
SO ONE OF THE ITEMS I'D ASKED ABOUT FOR THE ELIGIBLE PROJECT COSTS WOULD BE ALLOWED TOURIST FUNDS BILL TO BE SPENT IF THEY'RE AVAILABLE FOR EFFECTIVELY THE UPKEEP AND CARE OF THE ROADS AND LOOK AND SPACE AND ALL THAT.
SO YES, THAT WOULD FALL UNDER INFRASTRUCTURE AND WE CAN CALL THAT OUT.
AND THAT WAS, WHAT WAS IT? I YOU'RE LOOKING THAT UP.
IS THERE A MAX? THAT CAN BE, HUH? IS THERE A MAX YEAR THAT IT CAN BE? NO.
SO YOU CAN GET IN 10 YEARS IN AND GO, EH, LET'S BUMP IT OUT TO 30 AGAIN.
SO ESSENTIALLY YOU BUILD THAT, IT ALMOST TAKES ALL THE INFRASTRUCTURE MAINTENANCE COSTS POTENTIALLY OFF OF THE CITY.
AND THEN PEOPLE STRATEGIZE ABOUT HOW TO PHASE, YOU KNOW, HOW TO PHASE IT IN AND PHASE IT OUT.
TECHNICALLY IT'S, IT'S ONLY OFF THE CITY IF YOU HAVE OTHER TAX JURISDICTIONS THAT ARE ALSO PARTICIPATING.
BECAUSE IF THEY'RE NOT PARTICIPATING, YOU'RE STILL PAYING FOR IT.
YOU'RE DEDICATING IT FROM A DIFFERENT SOURCE OF FUNDS.
BUT THAT'S WHERE I WAS GONNA GO WITH FACTORS TOO.
IF NO ONE ELSE IS PARTICIPATING TO ME, THE ONLY ADVANTAGE YOU HAVE IN JURORS TWO IF NO ONE ELSE IS PARTICIPATING IS BEING ABLE TO BORROW AGAINST THAT FUTURE.
AND I WOULD SAY JAMES, THE ONLY THING ABOUT THE, THE COST IS WHEN YOU'RE DOING THAT, YOU'RE, AND I, I DON'T KNOW WHAT THE EFFECT IS ON THE TAX RATE, RIGHT? CAUSE YOU'D HAVE TO RUN THE NUMBERS THROUGH.
BUT WHETHER YOU PAY FOR THE COST OUT OF YOUR GENERAL REVENUE OR YOU GO SELL DEBT OR YOU USE THE DETERS, WHAT THE EFFECT THAT HAS ON YOUR TAX RATE AND YOUR PEOPLE RIGHT? THERE MAY BE AN OPPORTUNITY TO WHERE YOU'RE LOWERING THE TAX BURDEN ON PEOPLE AND BUSINESSES IN REALITY YOU'RE USING.
CAUSE IT'S ALL THIS IS EXCLUDED FROM YOUR RIGHT CALCULATIONS.
I MEAN YOU CAN GET INTO JUST KIND OF EITHER END OF THE KIND OF, I'LL SAY THE EXTREME.
I THINK THE BEST WAY TO THINK ABOUT THESE, ESPECIALLY ON TURS TOO WITH OVERPASSES AND INFRASTRUCTURE IS LET'S GET THE COUNTY AND OTHER ENTITIES TO JOIN.
AND SO WE'RE SHARING THE COSTS.
[00:50:01]
WE CITY, COUNTY, WE REALLY BELIEVE IN SOME ROADWAY PROJECT, RIGHT? AND NEITHER ONE OF US CAN DO IT ON OUR OWN.LET'S USE THIS TOOL AS THE STARTING POINT TO GET GOING ON IT.
WE'RE SPLITTING THE COST BASED ON THE RATIO OF OUR TAX RATES BECAUSE ALL TAX RATES ARE DIFFERENT.
THEY'RE MOST EFFECTIVE, LIKE I SAID, GET THE COUNTY, GET WHOMEVER YOU CAN TO JOIN AND NOW YOU HAVE MORE RESOURCES.
YOU'RE NOT HAVING TO GO BACK EVERY YEAR TO TRY TO PAY FOR SOME OF THESE.
HAVE Y'ALL REACHED OUT TO THE EMERGENCY SERVICES DISTRICT? WE HAVE NOT AT THIS POINT.
I CAN SEE THE COUNTY BE INTERESTED JOINING TWO BECAUSE IF YOU TELL 'EM THAT WE CAN ADD IN IMPROVEMENTS FROM THE SOUTHEAST LOOP OVERPASS IN THE TURS THREE, BUT IN RETURN YOU GUYS HELP US PAY FOR THE IMPROVEMENTS OF THE BRIDGE OVER 1 32 IN TUR TWO, THEN AGAIN YOU'RE USING ALL OF FUTURE MONEY THAT NO ONE HAS TODAY AND THEY DON'T HAVE TO GO TO BOND AND ISSUE.
AND THAT HELPS THEM, I WOULD IMAGINE STRETCH THEIR DOLLARS.
AND THAT'S WHY I, I DON'T HAVE THESE OVERLAP BECAUSE IT'S HARD TO READ, BUT THIS IS A RIGHT AWAY THE TOURS OVERLAP THAT RIGHT AWAY.
THAT'S ONE OF THE CLEAN UP ITEMS. SO WE DID PUT A SOMETHING
THE WAY WE'VE DRAWN IT AND WE'LL HAVE TO CLEAN IT UP IN THE ORDINANCE AND THE DESCRIPTION.
I MEAN NORMALLY YOU WOULD JUST SAY IT'S ALL OF THESE PARCELS GENERALLY DESCRIBED INCLUDING THE RIGHT OF WAYS ON THIS SIDE, YOU KNOW, FROM, FROM THIS ROW TO THAT ROAD.
SO IT WOULD BE, YOU KNOW, ALL THE PARCELS LISTED PLUS THE RIGHT OF WAY ON SOME OF THESE COUNTY ROADS ON HIGHWAY 79TH OF THE OTHERS.
SO YOU HAVE TO RIDE IT IN A WAY THAT PEOPLE CAN GENERALLY UNDERSTAND WHAT YOU'RE TALKING ABOUT.
SO IT'S PARCEL IDS IN THE DESCRIPTION.
SOME DO FORMAL MEETS AND BOUNDS.
THOSE TAKE A LONG TIME TO GET THESE DAYS.
AND SO THIS WOULD BE SUFFICIENT, UH, THE, THE, THE MAP WOULD BE SUFFICIENT FOR SOMEONE TO LOOK AT THAT AND SAY, YES, I UNDERSTAND WHAT'S COVERED.
SO IF WE DO TURS THREE AS LISTED, IT WILL TAKE 25 YEARS TO GET THE 1 67.
AND THEN IF WE WERE TO ONLY DO 10 YEARS, THEN WE WOULDN'T BE ABLE TO COLLECT 1 67.
BE SUBSTANTIALLY LESS, I MEAN AT LEAST HALF.
AND WE KNOW WE NEED AT LEAST HALF TO DO THE PROJECTS.
THAT CORRECT? RANDALL JUST NAMED.
SO FOR ME IT DOESN'T REALLY SEEM FEASIBLE TO DO IT FOR 10 YEARS.
THAT WAS ONE LAST THING ON THE SCHEDULE.
I MEAN REALLY IF WE'LL GET TO THE THE OF THAT AND AS FAR AS THE BOARD AND PUBLIC HEARING ORDINANCES, WE CAN FINISH THE PLAN NEW NEW YEAR.
WE'LL PUSH AHEAD, BUT LIKE I SAID, I TRIED TO GET THROUGH AT LEAST HER'S APPOINTMENTS TO START ASKING PEOPLE BY THE END OF THE YEAR SO THAT WE COULD HIT THE GROUND RUNNING WITH THE FINAL PLANS TO, TO GET THAT MOVING.
CAUSE MY FEAR WOULD BE, WE'LL SORT OF LET THIS SLIDE OR SLIP AND THEN THIS DOESN'T TURN INTO THE BEGINNING OF THE YEAR, SO PEOPLE SHOULD START THINKING NOW.
BUT WHAT WE HAVE TO HAVE IN THE ORDINANCE IS GONNA BE THE NUMBER OF YEARS, THE PERCENT INCREMENT AND BE CLEAR ON THE BOUNDARY AND THE NUMBER OF BOARD MEMBERS.
A LOT OF TIMES IT'S GONNA BE WRITTEN NO LESS THAN FIVE, AND THEN EACH ENTITY THAT JOINS YOU AT A PERSON TO IT AND YOU WRITE IT GENERALLY.
AND THERE'S A COPY OF THAT I THINK FLOATING AROUND OR IS FLOATING AROUND BEING WORKED ON.
BUT SO DO YOU THINK BY THE SET, WRAPPED UP BY THIS, GUESS LET SOMEONE KNOW IF Y'ALL THINK THE 17TH WORKS OR ANOTHER DAY.
BUT IF YOU MOVE THE 17TH, KNOW EVERYTHING ELSE SHIFTS UPPER BACK.
THAT PUTS US AT SEVEN O'CLOCK.
ALL RIGHT, WE'LL ADJOURN AT SEVEN.