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[(EDC) Board Meeting/(CDC) Board Meeting]
TIME IS SIX 30 AND I CALL THIS REGULARLY SCHEDULED HUDDLE, ECONOMIC DEVELOPMENT CORPORATION, TYPE A AND TYPE B BOARD OF DIRECTORS MEETING TO ORDER.PRESIDENT VICE CHAIRMAN, SEAN LUCAS.
AND BOARD MEMBER MATTHEW MINTON.
TO THE FLAG OF THE UNITED STATES OF AMERICA.
AND TO THE REPUBLIC FOR WHICH STANDS? ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY.
UNDER THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD ONE.
ALL RIGHT, ITEM FIVE, PUBLIC COMMENT.
DO WE HAVE ANYBODY SIGNED UP? SEEING NONE ONTO ITEM SIX.
ECONOMIC, UH, DIRECTOR'S REPORT, UH, DISCUSSING THIS WITH, UH, BOB DES MINGO.
HE SAID HE WOULD, UH, SKIP THAT FOR THIS MEETING, SIR.
AM WITH THAT ON THE CONSENT AGENDA, ITEM 71 AND 72 71, CONSIDER AN APPROVED CORPORATE MINUTES FROM A SPECIAL CALLED MEETING ON 5 1 20 23 AND 72.
CONSIDER AND APPROVE THE FINANCIAL REPORTS FOR THE PERIOD ENDING MARCH 31ST, 2023.
IF ANYBODY WANTS TO PULL ANYTHING OUT FOR ADDITIONAL DISCUSSION, ALWAYS HAPPY TO ENTERTAIN A MOTION.
I'LL APPROVE THE MINUTES AS STATED ON 7.1 FOR A SPECIAL CALLED MEDIAN FIVE.
ALL RIGHT, WE HAVE A MOTION BY SECRETARY CLANCY, A SECOND BY BOARD MEMBER MINTON.
UH, IF WE CAN GET A ROLL CALL, PLEASE.
WAS THIS ON SEVEN ONE OR 72 OR SEVEN? ONE AND 72.
YEAH, WE'RE JUST, JUST INDIVIDUAL.
CONSIDER AND APPROVE THE FINANCIAL REPORTS TODAY, PERIOD.
I'VE HAD A COUPLE OF QUESTIONS FROM MORGAN HIRSCH REGARDING THE FINANCIAL REPORT AND, UH, I WAS ASKED TO ADDRESS THAT AT A MEETING.
UM, SO IF YOU LOOK AT THE BALANCE SHEET, WHICH IS THE FIRST SHEET IN YOUR PACKET, UM, YOU'LL NOTICE THAT, UM, UNDER LIABILITIES THERE'S AN AMOUNT ACCORDING TO ABOUT $6 MILLION DUE TO THE CITY OF PETTA.
SO THE QUESTION IS, WELL, WE HAVE SOME BONDS, YOU KNOW, ABOUT 8.5 MILLION IN BONDS THAT WE'VE ISSUED.
SO WHERE ARE THE BONDS THERE? LIABILITY.
AND WE, WE HAVE A NOTE FOR $15 MILLION WITH ALLIANCE.
WELL, UH, WHERE'S THAT ON THE FINANCIAL STATEMENT? SO THOSE ARE THE QUESTIONS THAT, THAT I'VE RECEIVED.
UH, SO TO ADDRESS THOSE, UM, I HAVE TWO ADDITIONAL PIECES OF PAPER IN YOUR PACKET.
AND THESE ARE THE FINANCIALS FOR, UH, THE AUDITED FINANCIALS FROM, UM, SEPTEMBER OF 2021.
WE DON'T HAVE AUDITED FINANCIAL CHECK FOR 22.
UH, AND IF YOU LOOK AT THE STATEMENT OF POSITION IN THIS LAST COLUMN TITLED, UH, EDC, YOU'LL NOTICE THAT UNDER NON-CURRENT LIABILITIES, THERE'S 8.5 MILLION AND THAT'S REPRESENTATIVE OF THE BONDS.
AND THEN ON THE SECOND STATEMENT, DOWN AT THE BOTTOM, THERE'S A NOTE IN THE FINANCIAL STATEMENT.
AND THIS SAYS THAT THERE'S 8.7 MILLION OF PRINCIPLE THAT'S OUTSTANDING BY YEAR.
SO YOU SAY, WELL, WHY DOESN'T THE EIGHT SEVEN EQUAL TO 85? WELL, THE, THE AMOUNT THAT'S DUE IN ONE YEAR IS SHOWN AS CURRENT LIABILITY, AND THEN THE AMOUNTS THAT ARE DUE GREATER THAN ONE YEAR ARE SHOWN AS NON-CURRENT LIABILITY.
SO IF YOU TAKE OUT THE 190,000, YOU'LL TIE BACK TO 0.5 MILLION.
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I UNDERSTAND THAT LONG-TERM LIABILITIES ARE REPORTED AT THE COM COMPONENT LEVEL.SO WHERE'S THAT 21 MIL OR WHERE'S THE 15 MILLION OF, UH, LOAN THAT WE JUST ISSUED TO ALLIANCE BANK? SO IF YOU TURN TO YOUR FINANCIAL STATEMENT ON PAGE TWO, YOU'LL SEE UP UNDER THE REVENUE SECTION LOAN PROCEEDS, AND YOU'LL SEE RECORDED TO DATE IS 15 MILLION.
SO THE LOAN WAS RECORDED AS LOAN PROCEEDS.
SO YOU'LL NOTICE WE'VE GOT, YOU KNOW, WE, WE DID EXPECT, AND WE ADJUSTED THE BUDGET TO 21 MILLION BECAUSE IN CURRENT YEAR, WE KNEW WE WERE GETTING A LOAN FROM ALLIANCE BANK FOR 15 MILLION.
AND WE ALSO KNOW THAT THE CITY, UH, GAVE 6 MILLION.
SO THAT 6 MILLION IS NOT RECORDED AS LOAN PROCEED.
AND YOU'LL NOTICE IT'S ON THE BALANCE SHEET.
AND WE HAVE THAT CURRENTLY RECORDED AS A DUE TO CITY OF HUTA.
SO CHRISTINA AND I HAVE STRUGGLED ON THIS.
AND THE REASON WE'VE STRUGGLED, AND I INCLUDED IN YOUR PACKET THIS DOCUMENT, AND IF YOU NOTICE THIS DOCUMENT, THIS FUNDING AND REFUNDING AGREEMENT FOR THE 6 MILLION, YOU'LL NOTICE I'VE HIGHLIGHTED THE WORD GRANT.
AND IN THIS DOCUMENT IT CALLS THIS A GRANT NOT ALONE.
GRANTS DON'T HAVE TO BE PAID BACK LOANS DUE.
UM, IN SECTION 3.02, IT SPECIFICALLY SAYS, UNDER NO CIRCUMSTANCES SHALL THE OBLIGATION TO THE EDC HERE UNDER BE DEEMED TO CREATE ANY DEBT WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION.
I'VE ASKED GEORGE, OUR ATTORNEY ABOUT THIS, AND GEORGE AND I READ THE LAW DIFFERENTLY.
GEORGE BELIEVES THAT THIS NEEDS TO BE A GRANT.
I POINTED OUT TO HIM IN THE LAW, I THINK IT COULD BE A LOAN, BUT GEORGE REALLY BELIEVES THIS IS THE RIGHT PAPERWORK FOR THIS.
UM, IF YOU LOOK AT ANOTHER SECTION 3.04 D FOR DELTA, UM, THIS SAYS THAT UPON LENDER APPROVAL, OR LET ME READ IT IN ENGLISH, UPON ALLIANCE'S APPROVAL OR UPON ALLIANCE'S APPROVAL NO LONGER BEING NECESSARY, MEANING THAT 50 MILLION HAS ALREADY BEEN PAID BACK, ALL NET PROCEEDS RECOVERED BY THE EDC FROM THE SALE OF REAL ESTATE WILL NOT BE USED OTHER THAN TO REFUND THE CITY, UH, GRANT TO THE CITY WITHOUT CITY COUNCIL'S CONSENT.
SO THAT KIND OF MAKES IT SOUND LIKE IT'S A LOAN, RIGHT? SO BASICALLY CHRISTINA AND I HAVE BOOKED IT ON THE BALANCE SHEET RATHER THAN ON THE INCOME STATEMENT TO MAKE IT STAND OUT.
AND WE WANNA DISCUSS IT WITH OUR EXTERNAL AUDITOR AS TO THE PROPER WAY TO BOOK IT.
GIVEN THIS DOCUMENT BEING A GRANT, UM, BECAUSE THIS BOARD HAS TOLD ME NATE, BELIEVE IT'S A LOAN, THE CITY MANAGER BELIEVES IT'S A LOAN.
BOB BARLEY, YOUR ECONOMIC DIRECTOR BELIEVES IT'S A LOAN, YET MY PAPERWORK SAYS IT'S A GRANT.
UM, SO GIVEN THAT CONFUSION, WE'VE, WE WANT OUR AUDITOR TO FINISH OUR CITY FINANCIALS AND THEN WE'D LIKE TO HAVE A MEETING WITH THE AUDITOR IN, WITH GEORGE AND HIS STAFF TO DETERMINE THE PROPER BOOKING FOR THE TRANSACTION.
SO THAT'S WHY WE BOOKED IT IN THAT MANNER.
SO I WANTED TO ANSWER THAT QUESTION.
AND THEN, UH, THIS IS A ROUTINE FINANCIAL STATEMENT.
OTHER THAN THAT ONE ITEM, THERE'S NOTHING UNUSUAL ABOUT YOUR FINANCIALS.
I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.
I JUST WANNA SAY THANKS, BECAUSE A LOT OF TIMES I FEEL LIKE WE ARE PUSHED TO VOTE FOR THINGS AND WE KIND OF GLOSS OVER SOME OF THE DETAILS.
AND SO, UM, I DON'T CARE HOW FRUSTRATED PEOPLE GET, UM, WITH YOU, AND I KNOW YOU GET WITH ME, BUT IT DOESN'T EVER BOTHER ME WHEN I ASK ALL THE QUESTIONS BECAUSE THAT'S ALL YOU NEED IS SOMETHING TWO YEARS DOWN THE ROAD TO FIND OUT YOU SHOULDN'T HAVE DONE IT THIS WAY.
AND I COMPLETELY AGREE THAT WORDING MEANS EVERYTHING BECAUSE IT'S THE INTENTION.
AND WHEN WE'RE ALL GONE, IT'S THE NEXT GROUP THAT COMES IN AND SAYS, WAIT, IT'S A GRANT.
AND THEN WE END UP WITH AN ISSUE.
AND, UM, SO THANKS FOR BRINGING THAT UP.
BUT I ALSO, YOU DIDN'T SAY IT IN 4.03, IT ALSO SAID THIS AMENDED AGREEMENT WILL TERMINATE WHEN 100% OF THE GRANT IS REFUNDED TO THE CITY.
BUT I DO SEE WHERE IT SEEMS VERY CONFUSING TO USE THE WORD GRANT WHEN YOU WOULD JUST TRAN TRADE INTO THE WORD LOAN.
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I'M JUST TRYING TO BE VERY TRANSPARENT WITH YOU AND LET YOU KNOW THAT CHRISTINA AND I ARE STRUGGLING WITH THE LANGUAGE OF THE AGREEMENT.UM, SO WE'LL GET WITH THE ATTORNEY, WE'LL GET WITH THE AUDITOR.
IT'S PROBABLY NOT GONNA HAPPEN IN THE MONTH OF, UH, MAY.
IT'LL PROBABLY HAPPEN IN THE MONTH OF JUNE BECAUSE WE'RE EXPECTING THE CITY'S FINANCIALS, WHICH INCLUDE THE EDC FINANCIALS TO BE DELIVERED AT THE JUNE 1ST, UH, COUNCIL MEETING.
IT'LL PROBABLY BE JUNE BEFORE WE GET BACK TO YOU ON THIS ISSUE, BUT WE'VE BOOKED IT SO IT'LL STAND OUT.
AND IT IS A TO-DO ITEM ON OUR LIST.
WE'RE JUST STRUGGLING HOW TO BOOK THE TRANSACTION.
AND I'D JUST BE VERY TRANSPARENT AND OPEN WITH YOU THAT IT'S NOT AN EASY TRANSACTION TO BOOK BECAUSE OF THE WAY THE AGREEMENTS WERE.
WELL, THAT'S YOUR, UH, AUDITOR AND YOU COMING OUT, WHICH IS GREAT.
I DO GOT A QUESTION ON THIS, UH, SALES TAX DEAL.
IT LOOKS LIKE WHEN WE'RE LOOKING AT 13, 14 ALL THE WAY UP TO, I DON'T KNOW WHAT THAT IS, 18 NIGHTS OR SOMETHING, IT LOOKS LIKE IT, IT WAS ACTUALLY EDC SALES TAX, BUT THEN AT SOME POINT I ALMOST FELT LIKE IT SWITCHED OVER TO CITY SALES TAX NUMBERS.
BECAUSE LIKE IN 13 AND 14, THE ACCRUAL MONTH OF OCTOBER 200,000 CAME IN AND 2 24, BUT THEN ONCE IT GETS UP TO FOUR OR 500 OR EVEN 600, I THINK THAT ALMOST FEELS LIKE THE CITY.
NO, THAT'S ACTUALLY THE, I BELIEVE THAT THAT'S THE EDC SALES TAX AMOUNT.
IT HAS BEEN CONTINUING TO GROW IN THOSE AMOUNTS.
UM, IF I WERE TO LOOK AT THE, UH, CITY SALES, I MEAN, THIS IS THE EDC SALES TAX.
WHEN YOU LOOK AT THE CITY SALES TAX, IT'S AMAZING HOW IT'S GROWN.
SO FOR ACTUAL, SO HERE'S WHY I GET CONFUSED.
SO THE 2022 TO 2023, THAT SEEMS LIKE THAT'S THE CITY BECAUSE THE ACTUAL THERE IS NOT MATCHED INTO H E D C ACTUAL, UH, CAN YOU GIVE ME A NUMBER THAT YOU'RE, UH, $929,676? YEAH, THAT FEELS LIKE THE CITY SELLS TAX.
SO IT WAS AN ESTIMATE, BUT THE ACTUAL AMOUNT FOR THAT TIME PERIOD WAS $629,000.
AND WE'RE SEEING THE SAME THING ON THE CITY SIDE WHERE, UH, SALES TAX WAS UNDER BUDGETED FOR THE YEAR.
AND IF YOU LOOK AT PAGE TWO OF YOUR FINANCIAL STATEMENT, YOU'LL NOTICE THAT, UM, SALES TAX WAS ORIGINALLY BUDGETED AT 2.5 MILLION AND THAT YOU ALREADY APPROVED A BUDGET AMENDMENT FOR 3 MILLION.
BUT IF I LOOK AT THE ESTIMATES ON THIS, WE'RE ESTIMATED TAKE 10 MILLION IN TO EDC ON SALES TAX REVENUE.
SHE'S TALKING ABOUT A CITY COLUMN.
YEAH, THAT'S, I MEAN, I, SO OH, OKAY.
WHAT I'D LIKE TO DO IS, I SEE WHAT YOU'RE SAYING.
CAN WE JUST MAKE THIS BE ONLY, AND I KNOW IT'S A PAYMENT.
CAN WE MAKE IT ONLY EDC SO THEN WE CAN JUST SEE EDC NUMBERS? YES, WE CAN DO THAT.
WHICH, THAT'S WHAT I WAS THINKING.
IT LOOKED LIKE WE USED TO DO THAT.
OR MAYBE OUR SALES TAX WAS THAT LOW IN HU.
THAT COULD HAVE BEEN THAT LOW.
ANY OTHER QUESTIONS OR COMMENTS? JUST TO CLARIFY, JUST KIND OF WHAT MAYOR SNYDER WAS TALKING ABOUT FOR DECEMBER THROUGH OCTOBER, THE ESTIMATE WAS 6 77 AND THE ACTUAL WAS 9 29.
I'M JUST MAKE SURE I'M READING THAT RIGHT.
NO, FOR, FOR THE EDC ONLY PORTION WAS 232,000.
THAT'S WHY I WAS THINKING WE JUST TAKE THE CITY PART OUT THAT WAY WE JUST SEE 2 32 AND SEE HOW WE'RE DOING, UM, BE A MORE MEANINGFUL NUMBER IF IT WAS EDC ACROSS THE BOARD.
ANY OTHER COMMENTS OR QUESTIONS? AND, UH, BOARD MEMBER CLARK, I FOUND OUT VERY LATE THIS EVENING THAT YOU WOULD NOT BE JOINING US IN PERSON.
I DID SEND YOU AN EMAIL WITH THE FINANCIAL STATEMENTS ON IT.
I'M LOGGING IN THERE, SO I'LL HAVE THOSE DOCUMENTS THAT WAY.
ALRIGHT, THERE'S NO ACTION ON SEVEN TWO.
UH, ITEM EIGHT ONE DIS UH, DISCUSS AND CONSIDER A PRESENTATION REGARDING A FARM LEASE PLAN FOR ALL OR PART OF THE APPROXIMATE 250 ACRES KNOWN AS THE COTTONWOOD PROPERTIES CURRENTLY OWNED BY THE H E E D C.
UM, WE DID GET AN APPROACHED, UM, BY A GENTLEMAN WHO WAS INTERESTED ON THE COTTONWOOD PROPERTIES OF DOING SOME AG PRODUCTION FOR THIS SEASON,
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UH, FOR SOME ADDITIONAL REVENUES.UM, WE'D ASK MR. CLICK TO COME IN TONIGHT AND JUST SAY A FEW WORDS TO YOU.
UH, IN TERMS OF WHAT HE HAS IN MIND, HE IS AWARE, OBVIOUSLY, THAT WE'RE ACTIVELY PURSUING SALES OPPORTUNITIES FOR THE PROPERTY, UM, AND THAT SOMEWHERE DURING THE TIME IN WHICH HE MIGHT BE RAISING CROPS THAT WE MIGHT BE OUT THERE SURVEYING AND DOING SOME OTHER THINGS TO THE PROPERTY.
BUT DESPITE THAT, HE'S WILLING TO PUT IN FOR A, UH, THIS SEASON'S WORTH OF, OF AG ACTIVITY ON THE PROPERTY AND GET US A LITTLE BIT OF INCOME FOR THE, UH, FOR THE SEASON THAT'S COMING UP.
SO I KNOW HE'S COME IN, I DON'T KNOW IF YOU HAVE ANYTHING THAT YOU WANT TO ADDRESS TO THE BOARD.
SO, UM, WELL, LET'S JUST MOVE THE ITEM ON UNTIL HE COMES BACK, HUH? YEAH.
IS HE GONNA BE HERE THIS EVENING OR WE JUST NEED TO SKIP THE ITEM? I THINK WE CAN SKIP IT FOR NOW AND COME BACK TO IT IF, AND WE DO HAVE A PROPOSAL TO SHARE, BUT SINCE HE WAS PLANNING TO BE HERE, I THOUGHT IT WAS EASIER IF HE JUST GAVE THE PRESENTATION.
SO WE WANNA TABLE IT OR WHAT DO WE WANNA YEAH, HE'S TABLING OR SKIPPING THE RIGHT THING HERE, JUDGE.
WELL, YOU COULD TAKE IT FROM THE TABLE AND THEN BRING IT BACK AT THE END OF THE MEETING OR SEE IF HE'S AT A LATER TIME DURING THE MEETING.
AND THEN JUST AT THE END OF THE MEETING, IF YOU'VE NOT DONE ANYTHING, YOU'LL NEED TO POSTPONE IT.
TABLE EIGHT ONE, THEN ALL ONTO ITEM NINE ONE, DISCUSS, CONSIDER ACTION APPROVING RESOLUTION OR RESOLUTION R 20 23 105 TO OPENING A BANK ACCOUNT FOR CORPORATIONS OPERATING ACCOUNT AT WELLS FARGO BANK AND HU AND TRANSFER ALL EXISTING FUNDS INTO THE ACCOUNT FROM THE CORPORATION'S EXISTING OPERATING ACCOUNT AT CADENCE BANK AND ASSIGNED CHAIRMAN DON CARLSON VICE CHAIR TREASURER, SEAN LUCAS.
AND, UH, AND ANOTHER BOARD MEMBER TO BE NAMED AS SIGNERS ON THE ACCOUNT AND ASSIGNED CITY STAFF MEMBERS, CHAN GABO AND CHRISTINA BISHOP AS AUTHORIZED USERS ON THE NEW ACCOUNT.
MOTION TO APPROVE IS PRESENTED.
IS THAT WHAT YOU GUYS ARE WANTING?
WELL, SO THAT'S A SHORT VERSION.
SO HERE ARE MY THOUGHTS CURRENTLY.
SO OBVIOUSLY WE'RE SWAPPING BANKS, ALL THAT STUFF.
I THINK THAT'S MORE THAN, THAN NEEDED, ESPECIALLY SINCE CADENCE HAS ALREADY EXITED THE HUDDLE MARKET.
UM, RIGHT NOW WITH THE WAY THE BOARD IS, UM, SINCE SEAN IS SERVING IN TWO ROLES, WHAT I WOULD LIKE TO HAVE IS, UM, GO AHEAD AND HAVE ERIN, SINCE SHE'S ANOTHER OFFICER, UM, SERVE AS ANOTHER SIGNER, BASICALLY AS AN EMERGENCY SCENARIO.
BECAUSE RIGHT NOW, UM, WE BASICALLY CAN'T DO ANYTHING WITHOUT SEAN AND I BEING IN THE SAME ROOM AT THE SAME TIME.
UM, AND THAT'S INCREDIBLY DANGEROUS, I BELIEVE.
SO IF ANYBODY WANTS TO MAKE A MOTION, I'M, I HAVE A QUICK QUESTION.
UM, WELL HOLD ON JUST FROM A, UH, LOGISTICAL THING HERE.
SO I ALREADY PUT A MOTION OUT.
UM, I WAS THINKING YOU WERE GETTING READY TO SECOND IT BY SAYING THAT, BUT, UM, SO I'M OKAY ADDING AARON INTO MY MOTION IF THERE'S A SECOND TO THEN DISCUSS.
SO WE HAVE MOTION BY BOARD MEMBER SNYDER SECONDED BY MYSELF AND OPEN IT UP FOR A DISCUSSION.
UM, JUST QUESTIONS ABOUT WHY WELLS FARGO IN PARTICULAR, OR DID YOU DRAW NAMES OUT OF THE HAT? UH, SO THE CITY ACTUALLY ALREADY BANKS, UM, WITH WELLS AND IT JUST MAKES SENSE TO, UH, CONSOLIDATE.
BUT THAT WAS ALREADY DETERMINED BY THE BOARD, UM, TWO MEETINGS AGO, I THINK.
YEAH, WE HAD CONCERNS TOO ABOUT WE WANTED TO BE LOCAL RIGHT.
BUT WITH EVERYTHING THAT'S TRANSPIRED OVER THE PAST MONTH AND A HALF, IT MADE US FEEL LIKE SOME OF US MAYBE TO GO TO A BANK THAT'S TOO BIG TO FAIL SO THAT WE DON'T HAVE TO WORRY ABOUT ALL OF A SUDDEN, UM, VER OR SOMEBODY JUST ONE DAY THE MONEY'S TIED UP AND MAYBE WE DON'T GET IT BACK.
AND, UM, AND THEN SEAN WORKS AT CHASE AND SO WE RULED OUT CHASE AUTOMATICALLY JUST FOR WE DIDN'T WANNA CONFLICT.
ANY ADDITIONAL COMMENTS? ANYTHING? ALL RIGHT.
HEARING NONE, ROLL CALL PLEASE.
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SECRETARY CLANCY.MOTION PASSES FIVE OH ITEM NINE TWO.
DISCUSS AND CONSIDER ACTION TO REVISE THE CURRENT REGULAR MEETING SCHEDULE OF THE BOARD TO MEET TWICE A MONTH, ONLY SECOND AND FOURTH MONDAYS OF THE MONTH, AND SET A REGULAR MEETING TIME.
UM, SO THIS ITEM, UH, YEAH, BOB AND I HAVE BEEN DISCUSSING IT, UH, YOU KNOW, AT LEAST A DECENT AMOUNT.
SO WE'VE GOT A FAIRLY PACKED AGENDA, SO, UH, EVERY SINGLE TIME.
SO INSTEAD OF US BEING HERE UNTIL 10, 11 O'CLOCK AT NIGHT, UH, I WOULD LIKE TO BE ABLE TO SPLIT THIS.
AND IT ALSO WOULD AFFORD US SOME TIME TO BE ABLE TO SAY MAYBE ONE MEETING IS MORE GEARED TOWARDS, UM, DEVELOPMENT OF THE MEGASITE.
AND THE OTHER ONE IS MAYBE DEALING MORE WITH COTTONWOOD.
THIS IS A HYPOTHETICAL, UM, BUT THAT'S JUST REALLY KIND OF THE OVERALL GIST OF IT.
SO I'M OKAY IF WE MAKE IT A PACT TO, UH, NOT CALL SPECIAL MEETING UNLESS IT'S ABSOLUTELY EMERGENCY TYPE STUFF AND WE JUST GET INTO THE HABIT TELLING PEOPLE, YOU MISSED THIS ONE.
CAUSE RIGHT NOW WE'RE MEETING TWO TO THREE TIMES A MONTH.
SO IF I CAN, IT MAKES MY SCHEDULE BETTER TO KNOW THAT SECOND AND FOURTH I'M ALWAYS BOOKED INSTEAD OF RIGHT NOW, I WHATEVER THE SEVEN US CAN MEET, THAT'S WHEN WE MEET ON SOME OF THESE.
BUT I'M PERFECTLY OKAY WITH THAT BECAUSE IT'S, IT CAN BECOME A LOT REAL QUICK.
I MEAN, IT'S ALL NEEDED THINGS DON'T GET ME WRONG, BUT I THINK IF BY DOING IT EVERY OTHER WEEK IT MAKES THE, UH, THE SCHEDULE, I THINK A LITTLE BIT MORE PALATABLE FOR, YOU KNOW, FOR OTHER PARTNERS THAT MIGHT NEED TO PRESENT.
MY, MY OTHER THOUGHT IS THE, UM, BY DOING SECOND AND FOURTH, THAT ALSO IS BETWEEN COUNCIL MEETINGS.
SO IF THERE IS ACTION THAT WE TAKE, THAT GIVES STAFF TIME TO THEN PREP THE DOCUMENTS TO GO TO COUNCIL AND ORIGIN TO THE FOLLOWING FRIDAY FOR DRAFT.
CAN WE TURN HIM DOWN JUST TO A SCO? YEAH.
I LIKE THIS IDEA BECAUSE THERE'S A LOT OF THINGS MOVING AND I THINK THAT IT'LL KEEP US ON THE BALL INSTEAD OF ONE FOOT FORWARD, TWO STEPS BACK.
THERE'S A LOT OF THINGS THAT WE KNOW APPROVE AND SO THAT WE CAN MOVE FORWARD WITH SOME OF THE CONTRACTS.
UM, DOES THE SIX 30 TIME STILL WORK FOR EVERYBODY? DOES IT NEED TO BE EARLIER? DOES IT NEED TO BE, YOU KNOW, FINE WITH THAT.
UNTIL WE FIX TRAFFIC IN HU IT'S TOUGH TO GET HERE.
WELL, THAT'S ALL I HAD TO SAY ON THAT.
SO IF ANYBODY WANTS TO MAKE A MOTION MORNING THAN HAPPY ENTERTAINER, I'LL MAKE A MOTION TO APPROVE 92 AS STATED WITH THE SIX 30 AT SIX 30.
WHO IS THE SECOND CLARK? YES, CLARK.
WE HAVE A MOTION BY SECRETARY KEN CLANCY.
A, UH, SECOND BY BOARD MEMBER CLARK, IF WE CAN GET OUR ROLL CALL PLEASE.
MOTION CARRIES FIVE OH ITEM NINE THREE.
DISCUSS AND CONSIDER ACTION TO CREATE A TASK FORCE ASSIGNED TO SUPPORT THE DEVELOPMENT EFFORTS OF THE COTTONWOOD PROPERTIES.
ASSIGN THE MEMBERS OF THE TASK FORCE AND AGREE, UH, TO THE EXPECTED FUNCTION AND TERM OF THE TASK FORCE.
UH, THIS IS AN ITEM THAT I HAD ADDED TO THE AGENDA.
SO, UM, BASICALLY THE SHORT AND SWEET OF IT IS AFTER HAVING MANY, UH, MEETINGS OVER THE LAST, UH, WHAT TWO WEEKS, CHENEY ROUNDABOUTS, UM, AND SOME AS RECENT AS TODAY.
UM, I FEEL THAT IT'S BEST JUST TO PUT, YOU KNOW, TWO PEOPLE ON IT AND SAY THEY'RE, THEY'RE THE, THE FACE OF THE BOARD.
UM, AND THAT WAY IT'LL JUST MAKE IT EASIER AND SAY, OH, HEY, WE'RE TALKING COTTONWOOD.
UM, WITH THAT, I WOULD LIKE TO HAVE, UM, BOTH, UH, MARCUS COLEMAN AND MYSELF, UH, SERVE IN THAT CAPACITY SINCE WE'VE ALREADY BEEN WORKING ON THE, THE PROJECT, UH, WITH SOME OF THE DEVELOPERS.
UM, AND YEAH, THAT'S KINDA ALL THAT I HAVE TO SAY ON THAT.
DO YOU THINK, DO YOU THINK WE NEED TO WAIT TILL WE HAVE A FULL BOARD TO DECIDE THAT TASK FORCE IN NEXT MONDAY OR TWO MONDAYS FROM NOW? ARE Y'ALL, ARE WE NOT GONNA HAVE THE FIRST MONDAY, THE FOURTH MONDAY SINCE I T S C? ARE WE GONNA SKIP THAT MONDAY? I THINK IT'S MEMORIAL DAY.
AND MEMORIAL DAY, UNDER YOUR BYLAWS, YOU HAVE THE AUTHORITY TO, TO CREATE AN AD HOC COMMITTEE.
UM, AND SO IF THAT'S WHAT YOU WANT TO DO, BUT, UH, APPOINTING OBVIOUSLY YOU
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BEFORE THEY ARE, UM, THERE THEY NEED TO ACCEPT.SO SINCE, UH, BOARD MEMBER COLEMAN IS A TIER, WE'LL, WE'LL JUST ALL SIT ON THE EDGES OF OUR SEAT TO FIND OUT WHAT HE'S GONNA SAY.
I TALKED TO HIM ABOUT IT ALREADY.
HE SAID THAT HE WAS, UH, UH, WILLING TO DO OR TO, TO SERVE IN THAT CAPACITY.
SO, BUT I THINK IT NEEDS TO BE PROBABLY, YOU KNOW, EVERYBODY IN THE SAME ROOM AT THE SAME TIME TO GO THUMBS UP.
SO JUST FOR ALL CLEAR, WHAT IS THIS TASK FORCE GOING TO DO? BASICALLY WHAT IT'S FOR IS TO, UH, SERVE AS THE POINT FROM THE BOARD SIDE AND BE PRESENT FOR ANY MEETINGS WITH ANY DEVELOPERS, ANYTHING OF THE LIKE.
SO JUST SOME OF THE FEEDBACK THAT I'VE RECEIVED OVER THE LAST TWO WEEKS IS JUST, THERE'S BEEN A LOT OF, UH, YOU KNOW, NAMES AND FACES IN VARIOUS PROCESSES AND BASICALLY JUST AS A, UM, HELP SHEPHERD EVERYTHING OVER THE FINISH LINE FROM WHERE WE SIT.
SO AFTER YOU MEET WITH THE DEVELOPERS, WILL YOU BE ENGAGING IN LIKE TERMS AND THINGS THAT ARE GONNA BE CONTRACTUAL IN NATURE OR? NO, THAT'LL ALL STILL BE BROUGHT TO THE BOARD.
STAFF IS PRESENT FOR ALL OF IT.
I MEAN, UM, WHETHER CHANNEY OR BOB, THEY CAN BOTH, YOU KNOW, PROVIDE MORE DETAIL ON IT, BUT I MEAN, THEY'VE EITHER ONE OF 'EM, THEY'RE ALWAYS INVOLVED IN THE CALLS.
IT'S JUST MORE AS THE, HEY, HERE'S THE REPRESENTATION FROM THE BOARD THAT WILL BE CONSISTENT THROUGHOUT THE PROCESS AS IT RELATES TO COTTONWOOD SPECIFICALLY.
ALL RIGHT, WELL, IF YOU EVER GET TO THINKING ABOUT SOME TASK FORCE FOR CONTRACTUAL THINGS, I THINK THAT MAY SPEED UP SOME OF OUR THINGS.
WE'LL FIND OUT HOW IT WENT THIS PAST WEEK OR SO, BUT, UM, ALL RIGHT.
SO THERE'S CURRENTLY NO ACTION ON NINE THREE.
UM, AND THEN WE HAVE ITEM 94, DISCUSS AND CONSIDER ACTION APPROVING RESOLUTION R 20 23 106 TO AMEND THE CURRENT, EXCUSE ME, H E D C BUDGET TO REALLOCATE FUNDS TO THE BUSINESS IN INCENTIVE LINE ITEM TO PROVIDE NECESSARY FUNDING TO MAKE THE ANNUAL TSTC PAYMENT FOR THE TERMS OF THE CURRENT INCENTIVE AGREEMENT.
SO ALL THOSE DETAILS WERE PROVIDED IN THE AGENDA ITEM REPORT FOR YOU WITH REGARD TO WHICH FUNDS WERE PROPOSED TO BE REALLOCATED TO AND FROM.
WAS THAT NOT IN OUR BUDGET? SO IT WAS, BUT PREVIOUSLY WHEN WE HAD DONE THE BUDGET RELOCATION, THE BUDGET AMENDMENT TO REALLOCATE FOR THE, UM, UM, INTEREST PAYMENTS FOR THE 15 MILLION LOAN, WE HAD MOVED FUNDS FROM THIS LINE ITEM IN ERROR.
AND SO WE NEED TO REVISIT REALLOCATE SO THAT WE ARE PUTTING THINGS BACK SO THAT WE CAN PAY THIS OBLIGATION.
MAKE A MOTION TO APPROVE RESOLUTION R 2023 DASH 1 0 6 AS PER PRESENTED SECOND.
ALL RIGHT, WE HAVE A MOTION BY BOARD MEMBER CLARK.
SECONDED BY BOARD MEMBER MINTON ROLL CALL PLEASE.
MOTION CARRIES FIVE ITEM 10 EXECUTIVE SESSION.
THE BOARD WILL NOW RECESS THE OPEN MEETING AND RECONVENE AN EXECUTIVE SE, UH, SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 51 0 7 1 ATTORNEY CONSULTATION 5 51 0 8 7 ECONOMIC DEVELOPMENT AND 5 51 0 7 2 REAL PROPERTY TO DELIBERATE AND SEEK LEGAL ADVICE REGARDING CITY TE'S PROJECTS, IMPACT AND POTENTIAL BOARDS ROLE RETAIL AND RESTAURANT INCENTIVES PENDING LEGAL ACTION AGAINST BCL L OF TEXAS PROJECT PRIMERO, PROJECT STRAT THREE PROJECT N, Q2, PROJECT GRACELAND PROJECT TITAN PROJECT SKYBOX PROJECT POLY PROJECT, CHICAGO PROJECT E, THE MEGASITE PROJECT, THE COTTONWOOD PROPERTIES, AND ANY NEW PROSPECTS FOR POTENTIAL INCENTIVE EVALUATION AND CONSIDERATION.
TIME IS SEVEN O'CLOCK, TIME IS 9 45 AND WE HAVE RETURNED FROM EXECUTIVE SESSION.
UM, FIRST THING IS WE NEED TO CALL BACK ITEM EIGHT ONE, DISCUSS AND CONSIDER A PRESENTATION REGARDING A FARM LEASE PLANNED FOR ALL OR PART OF THE APPROXIMATE TWO 50 ACRES KNOWN AS THE COTTONWOOD PROPERTIES CURRENTLY OWNED BY THE, UH, BY H E DC.
UH, SO I'M A FARMER, EIGHT GENERATION TEXAS FARMER, UH, FARM QUITE A BIT OF LAND IN TRAVIS COUNTY AND, AND IN AND IN WILLIAMSON COUNTY.
I FARMED SEVERAL FARMS CLOSE TO HUTTO HERE.
AND WHAT BROUGHT THIS UP IS THAT I AT LEASED A FARM THAT WAS AL THAT WAS ALSO NOT
[00:30:01]
BEING TAKEN CARE OF VERY WELL, RIGHT NORTH OF YOUR PROPERTY.SO WE'RE MOVING EQUIPMENT HERE IN THE NEXT COUPLE OF WEEKS TO CLEAN THAT UP.
AND I SAW THAT CHARLES PROPERTY WAS KIND OF GROWN UP IN WEEDS AND JOHNSON GRASS.
AND I THOUGHT, WELL, MATE, WHEN I FIGURED OUT WHO IT BELONGED TO, I I GOT IN TOUCH WITH, UH, CHENEY AND ASK HER TO, TO PUT ME ON THE MEETING HERE.
SO MY PROPOSAL IS PRETTY SIMPLE.
UH, I KNOW Y'ALL HAVE, I DON'T, I ASSUME Y'ALL HAVE SOME KIND OF DEVELOPMENT PLANS THAT MY PLAN IS JUST TO GROW HAY.
I DON'T GROW FILL CROPS OR CORN OR ANYTHING LIKE THAT.
SO MY PLAN WOULD BE TO GO IN, CUT THE JOHNSON GRASS AND WEEDS, USE A, YOU KNOW, TRY TO USE SOME KIND OF A VERY LOW IMPACT WEED KILLER THAT WOULD NOT HAVE ANY DRIFT, NO TWO 40 D OR ANYTHING LIKE THAT, BUT SOMETHING THAT WOULD KEEP THE, THE SUNFLOWERS AND BLOOD WEEDS FROM GROWING AND OVERSEED IT BY NO TILLING WITH SOME HAY GRAZER AND TRIED TO GET SOME, SOME HAY OFF OF IT BETWEEN NOW AND AND DECEMBER.
AND IF IT, IF Y'ALL HAD SOMETHING TO DO IN THE MEANTIME, YOU NEEDED THE LAND AND I'M, I'M WILLING TO TAKE THE RISK TO, YOU KNOW, I'M NOT GONNA PUT THAT MUCH MONEY INTO IT.
SO I'M WILLING TO PUT, TAKE THE RISK IF Y'ALL NEED IT, YOU TAKE IT BACK AND WE'RE GOING DOWN THE ROAD.
TRY TO TRY TO, IF YOU COULD GIMME SOME NOTICE AND LET ME CUT IT OFF.
THAT'D BE GOOD IF YOU, IF YOU CAN'T, WELL THAT'S THE WAY THINGS FALL SOMETIME.
SO THAT'S BASICALLY THE PROPOSAL.
I PROPOSED, UH, GAVE YOU A LEASE, UH, PLAN THAT I USE A, A FORM OF A LEASE THAT I USE THAT'S BASICALLY STA STATE BAR FORM.
UH, I HAVE, DON'T, I'M NOT MARRIED TO THE FORM ANY FORUM THAT Y'ALL WANT.
I DO LEASE LAND FROM THE CITY OF AUSTIN.
SO I HAVE VERY HIGH GRADE INSURANCE THAT THE CITY OF AUSTIN REQUIRES.
AND THAT INSURANCE, UH, I'VE TALKED TO MY INSURANCE AGENT AND THEY SAID THEY COULD INSURE YOUR DEVELOPMENT CORPORATION, THE CITY OF HU AND ALL, EVERYBODY AROUND TO MAKE SURE THAT THERE WERE NO, UH, NO PROBLEMS THERE.
UH, WE HAVE COMMERCIAL INSURANCE ON OUR VEHICLES.
WE HAVE, UH, WORKMAN'S COMPENSATION INSURANCE ON OUR EMPLOYEES.
SO WE'RE, ALL OF THESE ARE REQUIRED BY OUR CITY OF AUSTIN CONTRACTS.
I, I LEASE THE HORNSBY BIN FACILITY FROM THE CITY OF BOSTON, HAVE FOR MANY, MANY YEARS WHERE THEY MAKE THEIR DILLA DIRT AND, AND WE PRODUCE HAY THERE AND SELL IT.
UH, UH, AND I'VE DONE BEEN DOING IT A LONG TIME, EIGHT YEARS ON THIS STRETCH AND PROBABLY A TOTAL OF 20 YEARS.
SO, AND I LEASE ANOTHER LARGE FARM FROM THE CITY OF AUSTIN ALSO AT
SO I'M, I'M PRETTY EXPERIENCED WITH IT.
AND IF I COULD HELP Y'ALL BY CLEANING IT UP AND KEEPING THE WEEDS DOWN AND THE, AND I THINK IT WOULD, I, I THINK IT WOULD BE BETTER FOR Y'ALL BECAUSE I, I SEE THE, IF, IF WE GO IN THERE AND CUT IT AND KEEP IT CLEAN AND IT'S NOT REAL TALL, IT'S CLOSE TO HOUSES.
SO WHAT I'M THINKING IS THERE'S GONNA BE LESS ALLERGENS, LESS RATS, MICE, BURMAN, THAT KIND OF THING.
AND IT WILL, IT WILL BE, IT WOULD, IT WOULD BE BETTER FOR THE CITY TO KEEP IT CLEAN AND THAN TO HAVE IT ALL GROWN UP.
SO THAT'S, THAT'S MY PROPOSAL.
IF Y'ALL HAVE ANY QUESTIONS, I'LL BE HAPPY TO ANSWER 'EM.
SO THE ONLY QUESTION I HAD, CUZ I HADN'T SEEN THE AGREEMENT, YOU KNOW, TYPICALLY WHEN I'VE DONE, UM, HAY BAILING AGREEMENTS WITH OTHERS, YOU KNOW, UM, I'VE DONE A 60 40 WHERE WE GET 40% OF THE COST OF THE BALES THAT YOU SELL ON VERSUS THE 60 THAT YOU KEEP.
UM, SO WHAT IS THE, WHAT IS THE AGREEMENT AS FAR AS THAT GOES? OR YOU JUST DO A FLAT CASH AMOUNT FOR THE, THE CASH.
I WAS, MY PROPOSALS GIVE Y'ALL $15 AN ACRE FOR THE CASH, THE FIRST CUTTING FOR THE, FOR THE, THE FIRST CUTTING WHERE THE, WE CUT THIS JOHNSON GRASS AND, AND WEEDS OFF HAVE VERY LITTLE VALUE BECAUSE IT'S 20, 30% WEEDS AND THEN WE'VE GOTTA PUT A BUNCH OF MONEY INTO IT, PLANTING SEED AND PUTTING FERTILIZER, THAT SORT OF THING.
SO IT'S IFFY TO WHERE WE'RE GONNA GET ANY MONEY, BUT WHETHER WE'RE GONNA MAKE ANY MONEY ON THE DEAL.
UH, BUT I'M, I'M NOT, UH, SUPER OPPOSED TO A SPLIT, BUT I PREFER TO, I PREFER TO JUST PAY, PAY Y'ALL CASH MONEY FOR IT.
SO MR. CLICK, NOW I HAVEN'T DONE ONE OF THESE BEFORE.
I, I DON'T HAVE THE EXPERIENCE LIKE HE'S TALKING ABOUT, BUT WHEN YOU SAY $15 AN ACRE, YOU JUST TAKING 15 TIMES SAY 240 ACRES AND PAY Y'ALL FOUR, 3000,
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SEVEN 50, WHATEVER IT IS, AND, YOU KNOW, GIVE YOU RIGHT, Y'ALL A CHECK.I MEAN, FOR ME PERSONALLY, I'M TORN BECAUSE I THINK IT WOULD BE BENEFICIAL NOT TO HAVE, HAVE IT MAINTAINED AND THEN THAT'S, THAT'S A BURDEN NOT ON THE CITY.
MM-HMM
AND SO FOR $3,700 IT COULD COST US LIKE $8,000 TO COLLECT $3,700 BECAUSE BY THE TIME WE HAVE LEGAL LOOK AT IT, THEY MAKE A FEW CHANGES.
IT GOES BACK THEN OUR ACCOUNTING PEOPLE GOTTA LOOK AT IT.
SAME MANAGERS GOTTA LOOK AT IT.
AND BY THE, THE TIME IT ALL COMES AROUND, I GUESS ONE COULD ARGUE INSTEAD OF PAYING 10,000 TO GO HAVE SOMEONE MOW THE FIELD A COUPLE TIMES, WE ONLY PAID 5,000 AND YOU TOOK CARE OF IT THE WHOLE TIME.
SO THAT'S WHY I'M KIND OF TORN TO OUR, WE'RE GONNA HAVE TO MAINTAIN IT PROBABLY.
UM, AND THIS MAY BE AN OPPORTUNITY TO WHERE WE DON'T PAY AS MUCH TO MAINTAIN IT.
BUT, UH, I THINK IT WOULD COST, I MEAN, TO MAIN TO, TO CUT JUST TO, TO SHRED.
I, I DON'T THINK THAT YOU'RE GONNA BE ABLE TO FIND ANYBODY WHO'S GONNA SHRED THAT FOR LESS THAN $20 AN ACRE, MAYBE MAYBE 30, YOU KNOW? SO I THINK THAT'S GONNA BE WHAT SOMEBODY'S GONNA ASK TO DO JUST TO SHRED IT.
AND SO THAT'S $7,500, YOU KNOW, PER CUTTING.
YOU'RE GONNA HAVE TO DO IT AT LEAST TWICE A YEAR.
UH, SO I UNDERSTAND YOUR, YOUR VIEWPOINT.
UH, I MEAN I'M, I'M WILLING TO, I'M WILLING TO NEGOTIATE ON THE PRICE, UH, AND I'M WILLING TO, I'M, THE, THE PROBLEM WITH THE 60 40 THING IS THE NORMALLY, NORMALLY WHEN I'M LEASING LAND FROM DEVELOPERS AROUND HERE, I PAY THEM ZERO.
OKAY? SO THEY, I JUST TAKE CARE OF THEIR LAND FOR THEM.
BUT THIS IS A DIFFERENT DEAL WITH THE CITY BECAUSE THEY'RE LOOKING FOR A TAX.
THEY'RE LOOKING FOR TAX BENEFITS.
AND Y'ALL DON'T NEED THAT CAUSE YOU'RE NOT PAYING TAXES.
THEY WANT AG, RIGHT? THEY WANT THE AG.
SO, SO WHAT MY YEAH, NO, WE WOULD, WE WOULDN'T WANT TO HAVE TO DEAL WITH THAT.
BUT MIKE, THE OTHER THING IS YES, WE'D HAVE THAT INITIAL E EVEN IF IT WAS A, AN ADDITIONAL THING.
THE ONE ADVANTAGE IS ONCE WE HAD A CONTRACT LIKE THIS, EVEN IF WE TAKE DOWN LAND OVER TIME, THEN HE WOULD STILL PROBABLY BE WORTH HIM TO DO SOME OF THE OTHER LANDS, UM, LIKE THE BACK 80 OR SOMETHING THAT WE COULD ALWAYS JUST HAVE A A, A MAINTENANCE GOING AGREEMENT THAT THEN HE'S GETTING SOME BENEFIT AND IT'S HELPING THE CITY.
SO IT MIGHT SAVE TIME OVER, EVEN OVER A MULTI-YEAR CONTRACT.
NOT THAT WE'D SIGN A MULTI-YEAR CONTRACT, WE JUST DO A YEAR TO YEAR.
BUT ONCE WE PAPER IT UP ONCE, THEN YOU'RE JUST CHANGING THE ACREAGE.
SO I, THAT, THAT MIGHT BE WORTH DOING.
AND I, AND I'M WILLING TO DO IT ON A SHORTER, YOU KNOW, LIKE TO THE END OF THE YEAR AND IF, IF Y'ALL THINK I'M DOING A GOOD JOB FOR IT FOR YOU, THEN Y'ALL CAN CONSIDER EXTENDING IT.
IF YOU DON'T THINK I'M DOING A GOOD JOB FOR YOU, YOU DON'T HAVE TO DO.
I THINK THIS IS A REALLY CREATIVE WAY TO, UM, TAKE CARE OF THAT LAND.
UM, MY QUESTION AND CONCERN WOULD BE, UM, SO SAY WE DID SELL A PIECE OF THAT PROPERTY AND WE NEEDED IT TO, LIKE WHAT'S YOUR WRAP UP PERIOD TO GET EVERYTHING OFF THE PROPERTY, UM, UH, AND READY FOR SOMEBODY TO TAKE OVER IT? ASSUMING THAT WE HAVE, ASSUMING THAT, THAT, THAT'S A VERY GOOD QUESTION AND I APPRECIATE IT BECAUSE, AND IT DEPENDS ON THE WEATHER.
ASSUMING THAT WE HAVE WEATHER THAT GIVES US CUTTING DAYS, WE CAN DO IT WITHIN 30 DAYS.
UH, IF, IF IT'S RAINING AND RAINING AND RAINING AND RAINING, UH, WE MIGHT NOT BE ABLE TO DO THAT.
BUT IN MY PROPOSAL, WHAT I'M, ALL I'M ASKING FOR Y'ALL TO DO IS TO TRY TO ACCOMMODATE US IN THAT EXTENT.
SO IN OTHER WORDS, IF YOU CANNOT, IF YOU CANNOT ACCOMMODATE US BECAUSE YOU HAVE CONSTRUCTION ACTIVITY THAT'S GOING TO DESTROY THE CROP, I'M, I'M WILLING TO TAKE THE RISK TO DO THAT.
I'D DEFINITELY LIKE TO VISIT AND LOOK AT THE CONTRACT AND STUFF BEFORE WE SURE.
AND LIKE I SAID, I GAVE A, I GAVE A A PROPOSAL NOW THAT WOULD POINT OUT THAT BECAUSE WE'RE SO LATE IN THE PLANNING SEASON NOW, IT WOULD BE GOOD IF WE COULD GET SOMETHING DONE PRETTY QUICKLY BECAUSE IF WE, IF WE WAIT MUCH LONGER, THERE'S NOT GONNA BE ANY TIME TO PLANT ANY, OH.
WHAT WE'RE HOPING TO DO IS OVER SEED TO GET A HIGHER VALUE CROP AND THERE'S NOT GONNA BE TIME TO DO THAT.
NOW YOU COULD CONTINUE TO CUT THE JOHNSON GRASS THAT'S GROWING CAUSE IT'S NOT GOING AWAY.
SO HOW MANY WEEKS ARE WE TALKING ABOUT? HOW SOON DO YOU NEED TO KNOW? YEAH, CUZ YOU'RE PRETTY QUICK AND WE'RE DONE LIKE A WEEK
[00:40:01]
QUICK IS PRE IS, YOU KNOW, BEFORE THE END OF THE MONTH, BUT, UH, ONCE YOU GET INTO JUNE, IT STARTS GETTING PRETTY HOT TO PLANT.BUT, BUT AT THAT POINT WE COULD STILL DO SOMETHING, BUT I'M GONNA BE MAKING, I'M LIKELY TO BE MAKING LESS MONEY ON THE DEAL BECAUSE I'M GONNA BE, I'M NOT GONNA BE ABLE TO OVERSEE AT THAT POINT.
WHATEVER GROWS OUT THERE IS THE JOHNSON GRASS IS ALL, WE'LL, ALL, ALL WE'LL BE ABLE TO GET.
HAVE YOU SEEN THIS GEORGE? THIS AGREEMENT? UM, I KNOW MY, UM, MY OFFICE DID TODAY AND THERE WE REALLY DON'T HAVE ANY, UH, WE HAD LIKE ONE LITTLE TWEAK, BUT IT'S JUST A, A TWEAK AND SO I WOULD, UM, SO IT'S A VERY, VERY SIMPLE CONTRACT AS WELL.
UH, TERMINABLE WILL, UM, AND THE UH, UM, THE AMOUNTS WERE STRAIGHTFORWARD.
SO IF, UH, IT WAS TO BE ACTED ON TONIGHT, IT WOULD BE IN A FORM APPROVED BY THE CITY OR BY THE GENERAL COUNSEL.
UH, ONE LAST QUESTION FOR YOU.
WE DON'T KNOW EACH OTHER VERY WELL.
RIGHT? SO WHEN I ASK YOU THIS, I MEAN NO DISRESPECT, WHAT'S THE MOST YOU CAN PAY? BECAUSE I HAVE TO, THE PEOPLE I REPRESENT, THEY ALWAYS WANT THE MOST.
AND SO IF $25 AN ACRE, $25 AN ACRE, YEAH, I'LL MAKE A MOTION TO APPROVE WHAT WERE WE ON EIGHT WHAT? EIGHT.
ONE THE CONTRACT AS AS APPROVED, UM, TO FORM BY THE, UM, EDC ATTORNEY.
BUT AT A RATE OF $25 AN ACRE, I'D LIKE TO LOOK AT THE CONTRACT AND MAKE SURE THAT WE'RE NOT GONNA BE LIABLE FOR ANYTHING.
NORMALLY, NORMALLY I DON'T DO IT, I DON'T DO IT THAT WAY.
UM, BUT SINCE GEORGE HAS ALREADY READ IT, YEAH, I'M, I MEAN I CAN GO THROUGH IT FOR YOU.
BUT THE, UH, I MEAN THEY HAVE A INDEMNITY PROVISION HOLD L UH, AND HOLD AS HE SAID, HE'S GONNA CREATE, UH, IT WOULD REQUIRE HIM TO PLACE THE ECONOMIC DEVELOPMENT CORPORATION AS AN ADDITIONAL INSURED UNDER HIS LI COMMERCIAL LIABILITY AND SHOW PROOF OF THAT LIABILITY INSURANCE.
SO EVEN IF SOMEBODY WERE TO SAY GET INJURED ON THE PROPERTY, UM, HIS, UM, IF IT'S AN EMPLOYEE, THEN THAT WOULD BE HIS WORKER'S COMPENSATION.
IF IT WAS A NON-EMPLOYEE, A GUEST ON THE PROPERTY, THEN THAT WOULD BE UNDER HIS LIABILITY, UM, COVERAGE.
AND WE WOULD HAVE AS AN, AS A, UM, AS AN ORGANIZATION WITH THE UH, UM, ADDITIONAL INSURED PROVISION.
WE COULD INDEPENDENTLY MAKE A CLAIM ON HIS INSURANCE FOR THAT, FOR THAT CLAIM IF, IF THERE WAS A CLAIM THAT CAME BACK AGAINST US MM-HMM.
AND SO I, I I FEEL THAT THE, UH, AND THEN ON TOP OF THAT WE'RE, WE HAVE TORT IMMUNITY, SO, UM, SINCE WE, WE ARE NOT GOING TO BE IN CUSTODY OF, OF THE PREMISES, THE SURFACE THEN, UH, MOST OF THE TYPES OF INJURY CLAIMS ASSOCIATED THAT WOULD BE BARRED BY GOVERNMENTAL IMMUNITY MM-HMM.
AND IF WE DON'T, LET'S SAY WE GIVE HIM A ONE WEEK NOTICE, WE, WE COULD, WE COULD BE MEAN AND DO THAT ACCORDING TO THE AGREEMENT YOU HAVE.
LIKE, I LITERALLY HAVE TO READ EVERYTHING OVER AND OVER.
UM, IT'S, IT DEF THAT CONTRACT'S A IS BASICALLY, IT'S A SLIGHTLY MODIFIED STATE BAR OF TEXAS FORM.
SO I JUST WANNA MAKE SURE THAT EVERYTHING IS CORRECT ON IT AND LIKE, YOU KNOW, MAKE SURE THERE'S NO LIABILITIES AND THAT WE'RE NOT GONNA SURE I UNDERSTAND.
YOU KNOW, I'M STUCK ON ANYTHING.
SO I WOULDN'T STEP FOOT ON THE PLACE UNTIL MY, UNTIL MY CON UNTIL MY INSURANCE WAS, WAS IT WAS ON MY POLICY AND COVERED.
WELL, UM, YEAH, WE WOULDN'T EXECUTE IT UNTIL HE PROVIDED ALL THAT PROOF TO US.
WELL, WITH THAT BEING SAID, AGAIN, I, I JUST WANTED TO HAVE THE DISCUSSION CUZ I LIKE, I MEAN, PEOPLE ON ACCOUNTS WILL BE LIKE, YOU DID WHAT? WELL, I THINK THAT THIS IS A VERY, VERY LOW RISK ITEM FOR THE EDC.
I THINK IF ANYTHING, UM, IT, YOU'RE ACTUALLY ABLE TO ESSENTIALLY HELP TWO PARTIES.
ONE, WE'RE ABLE TO MAINTAIN OUR NEWEST LAND ACQUISITION, UM, AND ALSO, YOU KNOW, HELP OUT, YOU KNOW, UH, YOU KNOW, LOCAL FARMER AS
[00:45:01]
WELL THAT IS ABLE TO, YOU KNOW, TURN SOME DIRT THAT WE HAVE AND TO MONEY FOR THE TIME BEING.SO, UM, I, I SEE NO ISSUES WITH HER, MY SIDE AND I WOULD SECOND, UH, BOARD MEMBER SNYDER'S.
LIKE I FULLY CAME HERE TO VOTE.
NO, I WAS LIKE, IT'S NOT EVEN WORTH THE TIME.
BUT AS SOON AS YOU SAID CUTTING IT AND KEEPING IT, I WAS LIKE, YOU KNOW, YOU KNOW WHO'S GONNA COMPLAIN THE NEIGHBORHOOD OVER THERE WITH MICE AND RATS AND SNAKES.
AND THEN I'M LIKE, WELL, THEN THEY'RE GONNA BE ON US AND THEN WE'RE GONNA HAVE TO PAY SOMEBODY.
AND THAT'LL PROBABLY COST US A FORTUNE.
AND IF WE COULD TELL PEOPLE WE'RE GETTING PAID TO TAKE CARE OF THE THING, THEN, UM, AND GEORGE ALREADY REVIEWED IT, SO WE'VE ALREADY SPENT THE MONEY REVIEWING IT.
THE OTHER THING IS, YOU KNOW, HAY BECOMES QUITE A COMMODITY DURING A DROUGHT.
AND, UH, AND SO THIS WOULD BE ANOTHER OPPORTUNITY TO SUPPORT, UM, YOU KNOW, THE, THE CATTLE AND H YOU KNOW, AND, UH MM-HMM.
SO ANY OTHER FURTHER DISCUSSION? ALL RIGHT.
OH, THANK YOU, SIR, FOR WAITING ON US.
THANK Y'ALL FOR BEING SO KINDNESS TO HEAR ME.
I WAS EXTREMELY EMBARRASSED BY THE FACT THAT I DID NOT GET HERE AT SIX 30.
MY VISION'S NOT AS GOOD AS IT WAS AND I SOMEHOW I WAS DRIVING THE TRACTOR AND BOUNCING ALL DAY LONG AND I THOUGHT IT WAS EIGHT O'CLOCK.
AND THEN I WENT TO LOOK AT SHE'S EMAIL AND IT WAS CLEAR THAT SHE SAID SIX 30
I WAS AT THE HOUSE AT SEVEN O'CLOCK ALL DRESSED AND READY TO DRIVE HUDDLE
SO OUR, OUR MEETINGS RUN LONG, SO YOU'RE YOU'RE GOOD.
AND WE'LL GET WITH YOU ON THE, THE CERTIFICATE AND SO FORTH FOR THE INSURANCE.
AND I, AND I, AND I REALLY WANT TO THANK Y'ALL FOR THE OPPORTUNITY AND TO TELL YOU THAT I, I'LL TRY TO DO AN EXCELLENT JOB FOR YOU AND THAT I WANT YOU TO, I WANT TO BUILD A RELATIONSHIP HERE SO THAT HOPEFULLY IN THE FUTURE WE CAN, WE CAN BOTH BENEFIT FROM IT.
MAY I HAVE BEEN EXCUSED? YES, OF COURSE.
I JUST WANTED INVITE YOU OKAY.
ONTO ACTIONS RELATIVE TO EXECUTIVE SESSION 11.1.
UM, THERE IS NO ACTION ON THIS ITEM AT THIS TIME.
UM, I, HEY ANNETTE, I JUST WANNA SAY THAT FOR PEOPLE IN THE PUBLIC THAT ARE WATCHING THIS, HOLD ON, I DON'T KNOW HOW BEST TO SAY IT, BUT ARE IT, IT IS ON US AS AN ENTITY COMBINED WITH A CITY THAT'S CAUSING SOME OF THIS STUFF TO SLOW DOWN AND THAT WE, WE NEED ENGINEERING DONE ON THE, UM, THE BRIDGE OVER 1 32.
WE NEED TO KNOW WHERE THE JUG HANDLES SOME THESES ARE GOING BEFORE WE CAN EVEN IN MY MIND, PROFESSIONALLY PROCEED INTO A CONTRACT WITHOUT KNOWING BASIC STUFF.
UM, 11 TWO, DISCUSS AND CONSIDER ACTION ON APPROVING RESOLUTION AUTHORIZING THE CORPORATION TO ENTER INTO A REVISED ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT WITH THE DEVELOPER FOR PROJECT NO ESLO ENTER INTO A SALES TAX FUNDING AGREEMENT WITH THE CITY OF HODO, TEXAS AND AUTHORIZING THE CHAIR TO EXECUTE THE AGREEMENTS IN A FORM APPROVED BY CORPORATE COUNSEL.
SO CHAIR, I'D LIKE TO MAKE A MOTION TO APPROVE THE, UH, OPTION THREE, UH, DISCUSSED IN EXECUTIVE SESSION.
FOUR, THE ONE THAT WAS ALREADY SIGNED WITH THE, THE GROUP AS, UM, TO AUTHORIZE THE CHAIR TO EXECUTE THE AGREEMENT IN THE FORM APPROVED.
ALL RIGHT, SO WE HAVE A MOTION BY BOARD MEMBER CLARK.
I'LL SECOND A SECOND BY SECRETARY CLANCY.
WAS OPTION FOUR ALREADY SIGNED? YEAH.
ANY FURTHER DISCUSSION? THE, THE THE $3 MILLION INCENTIVE ONE? YES.
WELL, I'LL JUST, I'LL JUST SAY THIS WITHOUT GOING INTO DETAIL.
I'M NOT GONNA BE VOTING IN, IN FAVOR OF THIS HERE OR PROBABLY ON A CITY COUNCIL, BUT MY ISSUE WITH SOME OF THESE AGREEMENTS IS THAT WE'RE GONNA HAVE TO HAVE A BIGGER DECON, A BIGGER CONVERSATION IN TERMS OF WHAT WE'RE TRYING TO BRING TO THE CITY, HOW WE'RE TRYING TO BRING IT TO THE CITY AND WHAT, WHAT WE'RE ACTUALLY TRYING TO
[00:50:01]
DO AS A CITY.BECAUSE THIS WILL BE THE THIRD AGREEMENT THAT'S A MILLION DOLLAR AGREEMENT THAT WE'VE DONE IN THE PAST FEW MONTHS THAT I'M NOT SEEING MUCH OF A BENEFIT FINANCIALLY TO THE CITY.
AND WE'RE SLOWLY FILLING SOME HOLES AND SOME VOIDS.
BUT OVERALL, UM, IF WE'RE JUST DOING IT, IF WE JUST DO DEALS TO DO DEALS TO KEEP GROWING, THE GROWTH IS WHAT EVERYBODY IS COMPLAINING ABOUT, THE FAST GROWTH.
AND THEY WANT US TO SLOW DOWN SOME.
AND SO IN MY MIND, WE HAD TO BE VERY DILIGENT AND, AND BE CHOOSY.
AND I DON'T KNOW IF THIS IS THE RIGHT ONE FOR ME, BUT, AND I JUST WANTED TO POINT OUT, UH, AS A COMMENT BEFORE WE TAKE A VOTE, YOU KNOW, THIS BOARD PASSED THIS, UH, PREVIOUSLY AT, UH, DIFFERENT, UH, AT AS IT WITH SOME, UH, DIFFERENT, UH, PROVISIONS THAT THEN WENT TO COUNCIL, AND COUNCIL HAD PUT SOME ADDITIONAL REQUIREMENTS THAT THEY WANTED DONE AND STAFF WENT BACK AND DID THOSE AND GOT THE, UH, DEVELOPER TO AGREE TO THAT.
SO THAT'S WHY I THINK THIS IS SOMETHING WE SHOULD APPROVE BECAUSE WE'RE GONNA UPHOLD OUR WORD THAT WE DID.
YOU KNOW, WE ALREADY PASSED THIS BEFORE AND THEN COUNSEL ASKED FOR SOME THINGS TO BE DONE AND THAT THOSE WERE REACHED IN THIS AGREEMENT.
AND SO, UM, THAT'S WHY I, I WANTED TO, TO MOVE FORWARD WITH THIS MOTION.
WELL WE HAVE A MOTION BY, UH, BOARD MEMBER CLERK, SECOND MAYOR CLANCY.
UM, CHAIR, IF I MAY, JUST SO EVERYONE IS AWARE, SINCE THERE ARE FIVE, UH, ACTIVE MEMBERS, IT WILL TAKE THREE YES OR NO VOTES TO SWAY THIS VOTE.
ANY FURTHER DISCUSSION OR ARE WE GOOD? ROLL CALL PLEASE.
ITEM 11, THREE, DISCUSS AND CONSIDER ACTION TO APPROVE THE FORGIVENESS OF INCENTIVE PAYMENTS MADE TO DATE FOR JR S TO PROVIDE A DISCOUNTED SALE PRICE ON OUR BUILDING TO THE CITY OF HUTTO.
WE'VE ALREADY DIRECTED COUNSEL TO.
YEAH, WE'VE ALREADY, YEAH, WE'VE HANDLED THAT IN EXECUTIVE SESSION, SO THERE WOULD BE NO ACTION FOR THE BOARD RIGHT NOW.
UH, 11 FOUR IS ACTUALLY WHAT WE JUST DISCUSSED UNDER EIGHT ONE AND WE'VE ALREADY HAD OUR ACTION ON THAT ITEM.
DISCUSS AND CONSIDER ACTION PRE PRECAUTION AGREEMENT WITH THE CITY OF HU, DEPARTMENT OF HOLDER WORKS TO PAY THE FEES ASSOCIATED WITH DEVELOPMENT AND IMPLEMENTATION OF A REVISED INDUSTRIAL PRE-TREATMENT PROGRAM TO SUPPORT CURRENT AND FUTURE INDUSTRIAL PROJECTS.
I THINK WE HAVE NO ACTION ON THIS, CORRECT? I DON'T HAVE ANY.
11 SIX, DISCUSS AND CONSIDER ACTION TO APPROVE THE PURCHASE AND SALE AGREEMENT FOR PROJECT GRACELAND TO PURCHASE APPROXIMATELY 20 ACRES LOCATED AT THE MEGASITE PROPERTY.
I BELIEVE THAT WAS NO ACTION AS WELL, CORRECT? WE WERE, UM, AND YOU GAVE INSTRUCTION TO LEGAL COUNSEL ON THAT ONE.
I DID NOT MAKE NOTES EARLIER, SO THAT'S A SHAME ON ME.
UH, ELE, UH, 11 SEVEN, DISCUSS AND CONSIDER ACTION DIRECTING STAFF ON THE STORAGE AND OUR RETENTION OF THE ITEMS RETRIEVED FROM THE CORPORATION SAFE DEPOSIT BOX UPON THE CLOSURE OF THE HUDDLE LOCATION OF CADENCE BANK, WHAT'S IN THE BAG?
I PRESENT TO THE BOARD THE CONTENT OF THE MYSTERY DEPOSIT BOX FROM CADENCE BANK.
HOPEFULLY IT'S SOME OF THE DOCUMENTS WE'RE MISSING IN THE CITY.
WE'VE BEEN LOOKING FOR
HEY, I'M AN OPEN BOOK, SO GOOD DOG.
WE'LL PUT WHAT IN HERE AROUND.
THEY'RE GOLD BARS EXECUTIVE SESSION FROM PROBABLY, PROBABLY MINUTES.
WHAT'S THAT? AS WE JUST FOUND OUT, WE HAD A SAFETY
[00:55:01]
DEPOSIT BOX.WINDOWS BANK CLOSED
SO HERE'S GOING TO BE MY RECOMMENDATION.
UM, JUST OUTSIDE LOOKING IN, UM, THE GENERAL CONTENTS OF ALL OF THIS APPEARS TO BE VARIOUS EXECUTIVE SESSION OR VARIOUS EXECUTIVE SESSION MINUTES, OTHER DOCUMENTS, LOOKS LIKE SOME ORIGINATION DOCUMENTS, UM, DEPOSIT RECORDS, ET CETERA, ET CETERA.
UM, WE'LL HAVE TO ADD A BUDGET LINE TO ACQUIRE A TAPE RECORDER FOR THIS
CHENEY, CAN YOU TURN THE MIC? I'M SORRY.
I, UM, MY RECOMMENDATION AND I WILL LEAVE THIS UP TO COUNSEL, BUT I WOULD PROBABLY RECOMMEND THAT THEY GO THROUGH THESE DOCUMENTS AND SEE WHAT NEEDS TO BE RETAINED LEGALLY AND WHAT DOES NOT.
AND THEN AT THAT POINT WE CAN GO FROM THERE.
UM, WELL, WE'LL BE HAPPY TO LOOK AT IT FOR, UH, UH, ON YOUR DOCUMENT INSTRUCTION SCHEDULE AND LET YOU KNOW WHAT YOU CAN DESTROY AND WHAT YOU CAN KEEP.
BECAUSE THERE IS SOME ATTORNEY PRIVILEGE INFORMATION IN HERE.
I CAN ALREADY TELL THIS BY LOOKING AT IT.
UM, ULTIMATELY THE, THE BOARD MEMBER WITH THE MOST IMMEDIATE AUTHORITY ON THOSE DOCUMENTS WILL BE YOUR, YOUR SECRETARY.
AND SO THAT WOULD BE THE PER THE CONTACT OF THE BOARD THAT WE'D WORK WITH.
I DON'T HAVE A TAPE PLAYER TEST, MR. CHAIRMAN, THE TAPE CONTAINED.
WHO ARE THE DUTY BROTHERS? I'M UNFAMILIAR WITH IT.
DO WE NEED A MOTION FOR THIS? NO.
WELL HERE GUYS, JUST GIMME 30 SECONDS CAUSE I'M ABOUT TO ADJOURN IT ANYWAYS.
THE TIME IS 10 13 WITH NO OTHER BUSINESS.