[1. CALL SESSION TO ORDER ]
[00:00:03]
WE'LL CALL THE SPECIAL CALLED JOINT CITY COUNCIL AND COTTONWOOD DEVELOPMENT CORPORATION.
MEETING TO ORDER FOR THURSDAY, DECEMBER 1ST, 2022.
I THINK NOW THEN THE CHAIRMAN HAS TO CALL THE OH CHAIRMAN DOES THAT.
WHO'S THE, UH, CALL, THE CALL THIS MEETING OF THE COTTONWOOD DEVELOPMENT CORPORATION TO ORDER, UH, FOR ITEM ROLL CALL, UH, BOARD MEMBER GORDON HERE.
UH, BOARD MEMBER EZ IS NOT HERE, AND BOARD MEMBER THORNTON IS PRESENT.
DO WE HAVE ANY PUBLIC COMMENT? NO.
[4. EXECUTIVE SESSION ]
RIGHT.HEARING NONE, THEN WE'LL GO BACK TO EXECUTIVE SESSION AT 6:37 PM TO DISCUSS AND CONSIDER AUTHORIZING LEGAL COUNSEL TO OBTAIN A SUPERSEDES BOND ON BEHALF OF THE CORPORATION AND LONGHORN TITLE COMPANY, PRESTON HOLLOW CAPITAL LLC, ET ALL LITIGATION MATTER AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL SUCH DOCUMENTS TO SECURE SAID BOND.
WE'RE GOING DOWN HERE WHEREVER YOU WANT.
HERE'S, LET'S RUN BACK UPSTAIRS THEN.
AND THEN WITH THAT, WE WILL GO BACK INTO EXECUTIVE SESSION.
WE'RE BACK FROM EXECUTIVE SESSION ON THE JOINT CITY COUNCIL COTTONWOOD DEVELOPMENT MEETING.
NO ACTION WAS TAKEN IN EXECUTIVE SESSION.
[5. ACTION RELATIVE TO EXECUTIVE SESSION]
US TO, I GUESS, BACK TO ITEM FIVE.THE, THE ACTION HAVE FOR EXECUTIVE SESSION IT BE IS ACTION RELATIVE TO EXECUTIVE SESSION? YES.
DISCUSS AND CONSIDER AUTHORIZING LEGAL COUNSEL TO OBTAIN A SUPERSEDES BOND ON BEHALF OF THE CORPORATION AND THE LONGHORN TITLE COMPANY, PRESTON HOLLOW CAPITAL LLC AT ALL LITIGATION MATTER AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL SUCH DOCUMENTS TO SECURE A SET BOND.
SO, UM, I MAKE A MOTION AS MEMBER OF THE CDC BOARD, UH, TO, I MOVE TO AUTHORIZE LEGAL COUNSEL TO TAKE ALL ACTION NECESSARY TO PURSUE THE LEGAL RELIEF SOUGHT AS DISCUSSED IN EXECUTIVE SESSION IN THE SEVERED LONGHORN TITLED PRESTON HOLLOW CAPITAL LAWSUIT DURING THE APPEAL AND APPROVE IN LIEU OF A SUPERSEDED BOND TO NEGOTIATE A PUBLIC PRIVATE PARTNERSHIP WITH ENDEAVOR TO WORK DILIGENTLY IN PARTNERSHIP WITH THE BOARD OF DIRECTORS TO SELL THE REMAINING CDC TRACKS OF LAND AT MARKET RATES IN EXCHANGE FOR THE CONSIDERATION DISCUSSED IN EXECUTIVE SESSION.
MOTION BY BOARD MEMBER GORDON.
UH, SECONDED BY BOARD MEMBER THORNTON.
ANY DISCUSSION ON THE MOTION? UH, CALL THE VOTE BOARD MEMBER GORDON AYE.
NO, I THINK WE'LL WAIT, WE'LL WAIT.
SPEAKING FOR THE CITY ON THE CITY COUNCIL SIDE, NOT THE CDC SIDE, UM, I MOVED TO AUTHORIZE A TRANSFER OF 8.4 MILLION FROM THE CITY'S UNENCUMBERED FUND BALANCE TO COTTONWOOD CDC IN LIEU OF THE SUPERSEDES BOND TO RELEASE THE DEEDS OF TRUST HELD BY PRESTON HOLLOW WITH COTTONWOOD DEVELOPMENT CORPORATION, LAND REPAYMENT TO THE CITY WITH INTEREST AS A COTTONWOOD DEVELOPMENT CORPORATION, LAND IS SOLD.
SECOND MOTION BY MAYOR SCHNEIDER.
SECOND BY COUNCIL MEMBER KENZIE.
I JUST WANNA SAY FOR MYSELF, I'M NOT, UM, COMFORTABLE WITH USING TAXPAYER MONEY, UM, IN A SITUATION THAT'S VERY COMPLEX AT THIS TIME.
UM, SO THAT'S ALL I WANNA SAY.
[00:05:01]
SO THE REASON I'M, I'M RECOMMENDING OR MADE THE MOTION TO DO THIS IS BECAUSE THE ONE THING THAT I THINK THE CITIZENS NEED MORE THAN ANYTHING IS STABILITY THE PATH FORWARD.AND I BELIEVE THAT THIS IS THE BEST WAY TO DO THAT WITH THE LEAST AMOUNT OF RISK.
AND I KNOW THERE'S A DEBATE ON RISK WITHIN THE CITY COUNCIL, AND MY FEAR IS, IS THAT IF WE DON'T DO THIS, WE HAVE LESS THAN A MONTH TO HAVE A DEAL COMPLETELY DONE ON A MONTH.
THAT HALF THE MONTH THAT PEOPLE THAT WOULD BE DOING THE DEAL DON'T EVEN WORK.
AND SO THIS BRINGS MORE, UM, UH, SECURITY IN MY MIND.
AND FOR ME, IT'S THE OPPOSITE.
I THINK IT INCREASES THE RISK, BUT THAT'S KIND OF HOW I, WHEN WE HEARD EVERYTHING IN, IN, UH, EXECUTIVE SESSION, THAT'S, THAT WAS THE CONCLUSION I CAME TO.
SO, AND I DON'T WANT TO PUT ANY FURTHER TAXPAYER MONEY UP FOR LAND VENTURES AT THIS TIME, IS MY THINKING.
ANY OTHER DISCUSSION ON THIS ONE? I KIND OF AGREE WITH THE MAYOR.
I THINK WE'VE RELINQUISHING CONTROL YET AGAIN IS SOMETHING THAT I ALSO DON'T FEEL THAT THE HU TAXPAYER WOULD WANT TO DO.
SO FOR THAT, I THINK I'M IN THE OPPOSITE CAMP.
MAYBE OPPOSITE, BUT THAT IS A GOOD POINT BECAUSE EVERY TIME I COME HERE, I LOOK AT THE CO-OP AND I THINK THE LAST TIME WE DID A DEAL
IT MAY COST MORE, BUT I THINK IF EVERYBODY WENT BACK AND REDID THE CO-OP AND SAID, THERE'S A LITTLE BIT LESS RETURN, IT'S GONNA COST THE CITY A LITTLE BIT MORE, I THINK EVERYBODY WOULD SAY THAT'S THE DEAL FOR US.
BUT I JUST WANNA SAY, YOU GOTTA COMPARE APPLES TO APPLES.
THE DEAL WITH CO-OP IS TOTALLY DIFFERENT THAN THIS.
AND I JUST, I JUST WANNA SAY FOR THE RECORD AS WELL, UM, I AGREE WITH THE MAYOR AND COUNCIL MEMBER KENZIE AS WELL, IS THAT, YOU KNOW, WE ARE GOING TO, UH, BE NEGOTIATING, NEGOTIATING A PUBLIC PRIVATE PARTNERSHIP AND DOING THIS IS PUTTING THE CITY IN THAT POSITION AND BEING A PARTNER IN THIS DEAL, IN THE DEVELOPMENT, UM, IN OUR CITY FOR THE RESIDENTS.
SO I JUST WANNA MAKE CLARIFICATION.
YOU UNDERSTAND THAT HIS MOTION IS NOT TO PUT MONEY IN THE PUBLIC PRIVATE PARTNERSHIP, BUT FOR US TO GO IT ALONE, THAT'S THE MOTION ON THE TABLE.
NO, IT'S, IT'S, NO, IT'S STILL TO BE NO, NO, IT'S, IT'S STILL TO WORK WITH THEM, BUT IT'S TO PUT THE 8.4 MILLION IN, WE'RE STILL SELLING THEM LAND VALUE, 11 MILLION.
SO WE STILL HAVE A PARTNERSHIP, BUT IT'S NOT TO CREATE A PUBLIC PRIVATE PARTNERSHIP.
AND I CAN'T SAY THE DETAILS YET, BUT, UM, YEAH, NO DISCUSSION.
YEAH, NO, I THINK, YOU KNOW, THERE'S RISK WITH, WITH BOTH OPTIONS.
UM, LOWERING OUR, YOU KNOW, WE HAVE A LOT OF FUND BALANCE.
LOWERING OUR FUND BALANCE THAT MUCH IS A PRETTY DRAMATIC SHIFT.
THAT'S ONE OF THE THINGS THAT GIVES ME PAUSE ON THIS.
AND, UM, NOT TRYING TO SQUEEZE EVERY SINGLE DOLLAR WE POSSIBLY CAN OUT OF THE LAND, BUT I THINK THAT WE ACTUALLY GET TO POTENTIALLY GET TO SOME UPSIDE RELATIVELY QUICKLY, EVEN EVEN WITH THE, UH, PARTNERSHIP DEAL THAT WE'RE PURSUING.
UM, THAT'S WHERE I'M AT RIGHT NOW.
ANY OTHER ACTION ON THAT? MAYOR I, UH, MOVE TO APPROVE THE CDCS ACCEPTANCE OF, AND THE USE OF FUNDS DISCUSSED IN EXECUTIVE SESSION FOR THE PURPOSES DISCUSSED IN EXECUTIVE SESSION IN ORDER FOR THE CDC TO ENTER INTO A PUBLIC PRIVATE PARTNERSHIP OF ITS CHOICE PURSUANT TO THE TERMS DISCUSSED IN EXECUTIVE SESSION.
SECOND MOTION BY MAYOR POT GORDON, SECONDED BY COUNCIL MOORE CLARK.
I HOPE WE GET THE WRITE DOWN CUZ WHEN PEOPLE FIND OUT, I THINK THEY'RE GONNA BE SHOCKED.
I THINK THEY'RE NOT
I THINK, I MEAN, I THINK IT'S NO
[00:10:01]
SECRET THAT WE DON'T AGREE ON A LOT OF STUFF ON COUNCIL AND WE INTERPRET THINGS VERY DIFFERENTLY.DOESN'T MEAN THAT ONE SIDE IS WRONG OR ONE SIDE IS RIGHT.
I THINK WHAT IT, WHAT IT MEANS IS THAT, UH, WHERE WE'RE AT AND WHERE WE'RE COMFORTABLE MAKING DECISIONS.
I, YOU KNOW, I THINK THAT'S ONE OF THE THINGS THAT I REALLY REGRET A LOT OF WHAT HAPPENS IN POLITICS IS, UH, YOU KNOW, WHEN WHEN A VOTE DOESN'T GO YOUR WAY, YOU, YOU TEND TO KIND OF, YOU KNOW, SAY THAT THE OTHER PART, OTHER SIDE'S WRONG, AND IT'S, YOU KNOW, IT'S ALL THIS KIND OF MESS.
AND THAT HAPPENS AT THE NATIONAL LEVEL, UM, EVERYWHERE.
AND WE, I THINK THE PUBLIC KNOWS HOW LONG WE WERE BACK IN EXECUTIVE SESSION.
THIS WAS NOT AN EASY DECISION TO MAKE FOR ANY OF US.
UM, AND SO I JUST, I JUST WANT THE, THE PUBLIC TO KNOW THAT, UH, WE, WE DO NOT TAKE THIS DECISION LIGHTLY, NO MATTER WHICH WAY WE VOTE.
AND WE'LL ALSO HAVE TO APPROVE THE AGREEMENTS WHEN THEY COME BACK, WHICH COULD CHANGE DECISIONS.
TODAY'S NOT GIVING UP CONTROL.
ANY OTHER ACTION ITEMS? RIGHT.
NO, WE HAVE TO GO TO EXECUTIVE.
NO, WE ADJOURNING THE, THE OTHER MEETING.
THE CITY COUNCIL WILL ADJOURN AT 10 38 AND THE COTTONWOOD DEVELOPMENT CORPORATION WILL ADJOURN AT 10 38.