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READY WHEN YOU ARE.[ (EDC) Board Meeting/(CDC) Board Meeting]
WELL, THE TIME IS NOW SEVEN OH TWO AND I CALL THE HU ECONOMIC DEVELOPMENT CORPORATION TYPE A AND TYPE B BOARD OF DIRECTORS MEETING INTO ORDER.CAN I GET A ROLL CALL PLEASE? CHAIR CARLSON VICE CHAIR LUCAS.
PRESENT BOARD MEMBER OWENS HERE.
WILL YOU PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE? PLEDGE OF ALLEGIANCE TO THE FLAG IN THE UNITED STATES OF AMERICA.
AMERICA TO THE REPUBLIC FOR WHICH STANDS? ONE NATION UNDER GOD, INDIVISIBLE, DELIBERATELY AND JUSTICE FOR ALL.
I LEDGE ALLEGIANCE TO THESE TEXAS, ONE STATE UNDER GOD.
DO WE HAVE ANYBODY SIGNED UP FOR PUBLIC COMMENT? NO, SIR.
LET'S GET TO, UH, ITEM SIX ONE, PRESENTATIONS BY MASTER DEVELOPERS FOR CONSIDERATION OF MASTER DEVELOPMENT OF THE COTTONWOOD PROPERTIES.
TONIGHT WE HAVE FOUR PRESENTATIONS, UM, FROM MASTER DEVELOPERS FOR THE COTTONWOOD PROPERTIES.
AND WE'RE GONNA KICK THINGS OFF WITH MIDWAY.
SO MIDWAY TEAM, UH, THERE'S, UH, THE MIC IS ON FOR YOU AND THE CLICKER'S UP THERE, AND YOU SHOULD BE ABLE TO ADVANCE THOSE SLIDES.
UH, FIRST OF ALL, THANK YOU, UH, CHENEY AND TEAM FOR ALLOWING US TO COME PRESENT TO Y'ALL TONIGHT.
UM, WE'D SENT SOME INFORMATION A COUPLE WEEKS AGO.
HOPEFULLY Y'ALL HAD AN OPPORTUNITY TO REVIEW THAT.
UH, THERE'S SOME MORE MATERIALS I LEFT FOR YOU ON YOUR DESK LIST TODAY.
UM, YOU KNOW, FIRST I'M EXCITED TO BE HERE.
UH, MY FAMILY'S FROM WILLIAMSON COUNTY.
MY, MY MOTHER WAS BORN IN TAYLOR.
AND I'VE BEEN COMING UP THIS WAY FOR YEARS.
UH, I WAS TELLING THE GENTLEMAN I CAME UP WITH TODAY, I REMEMBER COMING WITH MY GRANDFATHER IN THE BACK OF THE, THE COTTON TRUCK DOWN TO Y'ALL'S GIN HERE BACK WHEN I WAS PROBABLY SIX OR SEVEN YEARS OLD.
AND, UH, SO IT BROUGHT BACK A LOT OF MEMORIES COMING THROUGH HERE AND WE'VE BEEN FOLLOWING Y'ALL'S GROWTH FOR YEARS, AND I'M EXCITED FOR Y'ALL ON THE OPPORTUNITY TO BE HERE.
UM, A LITTLE BACKGROUND, YOU PROBABLY SAW A LITTLE OF THIS MIDWAY, UH, IS, UH, WE'RE 55 CELEBRATING OUR 55TH ANNIVERSARY THIS YEAR.
AND MIDWAY IS, UM, A VERTICALLY INTEGRATED DEVELOPMENT TEAM.
UH, WE SPECIALIZE IN MIXED USE AND WHAT WE TRY TO STALL OURSELVES AROUND AND WHAT WE, THE PROJECTS THAT ATTRACT US.
AND ONE OF THE REASONS THIS PROJECT WAS INTERESTING TO US, UH, WE HAD A CHANCE TO, UH, VISIT WITH BOB FARLEY BEFORE HE LEFT.
AND THEN CHANEY AND I'VE HAD SOME CONVERSATIONS AND CONGRATULATIONS ON YOUR NEW ROLE.
UM, YOU KNOW, THERE'S STILL A LOT OF QUESTIONS ABOUT EXACTLY WHAT Y'ALL WANNA DO, BUT WHAT I'VE LEARNED AND, AND JUST READING YOUR BOARD UP HERE TONIGHT, UM, I THINK I UNDERSTAND AND I THINK WE'D BE A GOOD FIT.
WHEN I LOOK AT GROW RESPONSIBILITY AND SUSTAINABILITY SUSTAINABLY, THAT'S WHAT WE'RE ABOUT.
WE, WE TRY TO DO THINGS THAT MATTER.
WE TRY TO CREATE ENVIRONMENTS THAT ARE UNIQUE AND ENDURING.
UH, WE DON'T WANT SOMEBODY TO LOOK AT ONE OF OUR PROJECTS 50 YEARS LATER AND SAY, I WISH THEY WOULD'VE DONE SOMETHING DIFFERENT WITH THAT LAND, BECAUSE WHATEVER WE PUT THERE, AND WHATEVER Y'ALL PUT THERE IS GOING TO BE THERE FOR THE REST OF OUR LIVES AND FOR PROBABLY MORE GENERATIONS.
AND THEN I LOOK AT THE LAST ONE, CREATE THE HIGHEST QUALITY OF LIFE.
UH, YOU KNOW, OUR PURPOSE, STATED OF PURPOSE AT MIDWAY IS TO CREATE ENDURING INVESTMENTS IN REMARKABLE PLACES THAT ENRICH PEOPLE'S LIVES.
AND YOU DON'T HEAR ANYTHING ABOUT PROFIT IN THERE.
IT'S ABOUT ENRICHING PEOPLE'S LIVES AND CREATING PROPERTIES OF VALUE.
AND THE WAY WE DO THAT IS WE FOCUS ON CREATING PLACES THAT PEOPLE WANNA BE.
AND IF YOU CREATE THE RIGHT PLACE, PEOPLE WILL COME AND IT WILL BE A FINANCIAL SUCCESS.
BUT WE DON'T PUT THE, THE NUMBER ONE THING THAT WE'RE SHOOTING FOR IS NOT TO CREATE, TO MAKE A BUNCH OF MONEY.
'CAUSE THE MONEY'S A BYPRODUCT OF SUCCESS IN DOING THINGS WELL.
AND AS A COMPANY, WE'RE NOT MERCHANT BUILDERS.
AND I DON'T KNOW HOW MUCH Y'ALL KNOW ABOUT THE DEVELOPMENT PROCESS, BUT THERE'S TWO TYPES OF BUILDERS.
THERE'S INVESTMENT BUILDERS AND MERCHANT BUILDERS.
UH, MERCHANT BUILDERS ARE PEOPLE THAT BUILD AND AS SOON AS THE PROJECT STABILIZED, THEY SELL IT AND THE NEXT PERSON TAKES IT IN.
AND, AND YOU CAN IMAGINE, UH, YOU KNOW WHAT KIND OF SOMETIMES YOU GET WHEN YOU DO THAT BECAUSE I MEAN, IF, JUST TO GIVE YOU A SIMPLE EXAMPLE.
IF YOU HAD A USED CAR OR YOU WEREN'T, YOU, LET'S SAY YOU NEED NEW TIRES IN YOUR CAR, BUT YOU KNEW YOU WERE ONLY GONNA OWN THAT CAR FOR A COUPLE YEARS, YOU'D GO TO N TB AND YOU'D GO INSIDE AND YOU'D SAY, YOU'D LOOK AT THE TIRES THAT ARE A THOUSAND DOLLARS A PIECE.
YOU LOOK AT THE ONES THAT ARE 150 BUCKS A PIECE AND YOU GO, I'M ONLY GONNA OWN IT A YEAR OR TWO.
IF YOU HAD A LONG-TERM MENTALITY AND YOU KNEW YOU'RE
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GONNA DRIVE THAT CAR FOR THE NEXT 10 YEARS, YOU'D SPEND THE MONEY TO BUY THE CAR, THE, THE PRODUCT.WELL, THE SAME THING HAPPENS IN DEVELOPMENT.
WHEN YOU'RE DEVELOPING TO MAKE A PROFIT AS A MERCHANT BUILDER, YOU'RE BUILDING TO MAXIMIZE YOUR PROFIT.
YOU'RE NOT NECESSARILY DOING THE THINGS THAT ARE ENDURING.
AND AS INVESTMENT BUILDERS, WE BUILD EVERYTHING WITH, THEY UNDERSTAND THAT WE'RE PROBABLY GONNA OWN THIS IN PERPETUITY, OR AT LEAST UNTIL SOMEBODY OFFERS US A PRICE.
UH, AND, AND A LOT OF OUR PROJECTS, AND YOU, YOU'VE SEEN OUR BROCHURES, UH, YOU KNOW, CITY CENTER PROJECT WE DID 18 YEARS AGO IN HOUSTON.
WE STILL OWN THE MAJORITY OF THE COMPONENTS IN THEIR COLLEGE STATION.
WE DID A PROJECT WITH THE UNIVERSITY OF A AND M.
UH, THEY LEASED US 60 ACRES OF LAND.
UH, WE STARTED ABOUT 12 YEARS AGO.
WE STILL OWN ALL THE COMPONENTS IN THERE.
WE OWN TWO HOTELS, TWO OFFICE BUILDINGS, THE RETAIL COMPONENT, THE ENTERTAINMENT, THE RESTAURANTS.
UM, WE OWN IT BECAUSE WE'RE PLANNED TO BE THERE FOR THE LONG PERIOD OF TIME.
UM, AND I'D SAY THAT'S THE BIGGEST DISTINCTION BETWEEN US AND MOST DEVELOPERS.
'CAUSE WE'RE LOOKING FOR THE LONG-TERM SOLUTION.
AND WHEN WE GET TO THIS PROJECT, LET ME FORWARD THROUGH THIS A LITTLE BIT.
UH, SEE WHAT THEY HAVE UP HERE.
YOU KNOW, YOU CAN SEE THIS, I'VE TALKED ABOUT THIS A LITTLE BIT.
OUR PURPOSE IS TO CREATE ENDURING INVESTMENTS IN REMARKABLE PLACES THAT ENRICH PEOPLE'S LIVES.
AND WE LOOK AT EVERYTHING THROUGH THAT LENS.
AND WE'RE IN A, WE'RE IN A SITUATION, FORTUNATELY, UH, WE GET TO CHOOSE A LOT OF OUR PROJECTS AND WE FOCUS ON THE THINGS THAT WE ENJOY DOING AND THE THINGS THAT REALLY MEET THAT.
UM, YOU KNOW, WHAT WE BELIEVE, UH, YOU KNOW, OUR ACTIONS FOLLOW OUR BELIEFS.
UH, YOU KNOW, AND YOU CAN SEE OUR VALUES THERE.
UH, YOU KNOW, INTEGRITY, PASSION, WE DO, WE VALUE EVERYTHING THROUGH THIS LENS.
UH, AS A COMPANY, UH, YOU CAN SEE THERE, YOU KNOW, WE'RE 55 YEARS OLD.
YOU, WE, UH, WE'VE PROBABLY BUILT, LAST TIME I CHECKED, WE WERE ABOUT 50 MILLION SQUARE FEET THAT WE'VE DEVELOPED OR ACQUIRED.
UM, YOU SEE A NUMBER RIGHT THERE IN THE MIDDLE, 500 PLUS EVENTS.
AND YOU'D UNDER, YOU'D ASK YOURSELF, WHY DO, WHY IS A DEVELOPER HAVE THAT NUMBER ABOUT EVENTS? WELL, WE'RE NOT A PASSIVE LANDLORD.
AND WHEN YOU CREATE PROJECTS THAT YOU'RE TRYING TO MAKE ENDURING FOR THE COMMUNITY AND INVITES THE COMMUNITY IN, WE SPEND A LOT OF TIME ACTIVATING THOSE PROJECTS.
THEY USUALLY HAVE A GREEN SPACE IN 'EM.
WE DO A LOT AROUND GREEN SPACE.
AND WHAT YOU HAVE TO DO INITIALLY, LIKE LAST YEAR AT ONE OF OUR PROJECTS I JUST MENTIONED, CITY CENTER, WE HAD OVER 360 EVENTS.
I'D SAY THAT IN THE BEGINNING WE WERE PROGRAMMING PROBABLY 80% OF THOSE.
TODAY, 15 YEARS LATER, WE MIGHT PROGRAM 10% OF THOSE.
AND WHAT, AND THE REASON THAT IS, IS BECAUSE THE COMMUNITY HAS NOW SEEN THAT THEY CAN DO THINGS AT OUR PROPERTIES THAT THEY CAN ENGAGE IN.
AND THEY'RE CALLING US AND SAYING, HEY, CAN WE DO OUR CHRISTMAS CAROLS THERE TONIGHT? CAN WE DO THIS THERE TONIGHT? CAN WE DO A CAR SHOW? CAN WE DO A, UH, YOU KNOW, A FUN RUN THAT STARTS AND ENDS AT YOUR PROPERTY? AND THAT'S WHEN WE KNOW THAT THE PROJECT IS BEING APPRECIATED BY THE COMMUNITY.
THAT, THAT ONE PROJECT I JUST MENTIONED WAS JUST VOTED, UH, DEVELOPMENT OF THE DECADE IN HOUSTON FOR THOSE REASONS.
PEOPLE FEEL LIKE THEY OWN IT, IT'S THEIR PROPERTY.
AND THAT'S WHAT WE'RE TRYING TO DO HERE.
THIS JUST KIND OF SHOWS YOU SOME OF OUR PROJECTS THAT YOU MAY OR MAY NOT BE FAMILIAR WITH.
UH, CITY CENTER, UH, EAST RIVER, UH, EAST RIVER, THAT SECOND ONE ON THE LEFT.
UH, WE'RE ACTUALLY HAVING A FUNCTION THERE TOMORROW NIGHT OR THURSDAY.
WE'RE HAVING 1200 PEOPLE OUT THERE FOR, UH, A REAL ESTATE INDUSTRY'S EVENT THAT'S 150 ACRES ONE MILE EAST OF HOUSTON.
SO IT'S A LITTLE BIT SMALLER ON THE TRACK WE'RE TALKING ABOUT HERE, BUT IT'S IN AN URBAN ENVIRONMENT.
IT HAS A, A MILE AND A HALF OF WATER FRONTAGE.
IT'S THE FIRST TIME YOU'VE SEEN WATER FREIGHT FRONT DEVELOPMENT IN HOUSTON.
UH, WE'RE DELIVERING THE FIRST TWO OFFICE BUILDINGS OF RETAIL SECTION, ABOUT SIX RESTAURANTS AND A MULTI-FAMILY PROJECT IN THE FIRST PHASE.
AND I MEAN, IT'S JUST AN EXCITING PROJECT, BUT THAT'S WHAT WE ENJOY DOING.
AND, AND WHEN YOU DO PROJECTS LIKE THAT, NO DIFFERENT THAN WHAT YOU'RE DOING HERE.
YOU SET A STAGE OF WHAT YOU'RE TRYING TO CREATE.
WE, IT'S LIKE HAVING A PARTY, UH, AND YOU'RE PLANNING YOUR FOR A PARTY OR BARBECUE, BUT YOU DON'T, YOU HADN'T PUT OUT YOUR INVITATION LIST.
WE DON'T KNOW WHO'S GONNA SHOW UP TO THIS PARTY.
WE JUST NEED TO SET THE TABLE RIGHT AND DO THE RIGHT THINGS IN THIS MASTER PLANNING SO THAT WE ATTRACT THE TYPE OF USES AND WE GET OURSELVES COLLECTIVELY IN A POSITION WHERE WE CAN SAY NO TO DEALS.
SO WE'LL SEE MORE OPPORTUNITIES AND THEN WE CAN SAY, DOES THAT FIT, DOES IT NOT FIT? AND IT'S JUST NOT ABOUT FILLING THE SPACE.
WHEN I LOOK AT THIS PROJECT, YOU KNOW, TO DO, TO DO THIS, RIGHT, IN MY OPINION, IT'S PROBABLY A 10 TO 12 YEAR PROCESS.
UH, YOU, YOU DON'T WANNA RUSH IT BECAUSE YOU DON'T KNOW WHAT THE LAST DEAL YOU DID, WHAT OPPORTUNITIES CREATES FOR THE NEXT DEAL.
SO WHEN, WHEN WE COME BACK, I'M GOING BACK TO THE FIRST THING I START OUT.
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OBJECTIVES YET.I'VE HAD, WHAT, 30 MINUTES OF CONVERSATION WITH CHENEY PROBABLY.
AND, UH, IF THAT MUCH, AND WITH BOB, PROBABLY THE SAME.
YOU KNOW, I KNOW WHAT Y'ALL'S DESIRES ARE, BUT WE DON'T KNOW AS A COMPANY EXACTLY WHAT Y'ALL TRYING TO DO.
WE DON'T KNOW HOW YOU WANNA STRUCTURE THIS TRANSACTION.
UH, EVERY DEAL WE'VE DONE IS DIFFERENT.
UH, EAST RIVER, WE OWN ALL THE PROPERTY COLLEGE STATION.
WE DID A GROUND LEASE FOR 75 YEARS WITH THE UNIVERSITY.
UH, MEMORIAL GREEN, YOU SEE THERE.
UH, THAT'S A JOINT VENTURE WE DID WITH THE METHODIST HOSPITAL OUTTA HOUSTON THAT OWNED THE PROPERTY.
AND THEY WERE CONCERNED ABOUT LEAVING SOMETHING IN THEIR WAKE THAT WOULDN'T BE REPRESENTATIVE OF THEIR CULTURE AND WHAT THEY, THEY ARE.
SO WE JOINT VENTURE THE PROPERTY WITH THEM TO DO IT RIGHT.
LONE STAR IS A, IS A VENTURE IN SAN ANTONIO THAT WE'RE WORKING ON.
BUT EVERY PROJECT IS DIFFERENT.
EVERY PROJECT HAS DIFFERENT OBJECTIVES.
AND SO CONSEQUENTLY WE NEED TO KNOW A LOT MORE BEFORE, UH, WHEN WE PLAN A PROJECT.
UH, ONE, THE FIRST THING WE START OUT IS TRYING TO FIGURE OUT WHAT OUR PARTNERS TRYING TO ACCOMPLISH.
UH, I DON'T GET THE IMPRESSION FROM Y'ALL AT ALL THAT YOU'RE JUST INTERESTED IN SELLING A PIECE OF PROPERTY AND LET THE DEVELOPER GO DO WHAT HE WANTS TO DO.
UH, THIS, THIS TRACK, I'VE DRIVEN IT NUMEROUS TIMES AND WHAT'S GOING ON IN THIS AREA, YOU KNOW, IT HAS THE OPPORTUNITY TO BE SOMETHING REALLY SPECIAL.
AND AND I WOULD ENCOURAGE Y'ALL TO VIEW IT THAT WAY AND TAKE THE TIME AND THE PATIENCE TO GET IT RIGHT.
UH, THERE'S, THERE'S OBVIOUSLY A RESIDENTIAL COMPONENT IN THERE.
THERE, THERE'S, THERE'S A LOT OF DIFFERENT USES.
YOU CAN DO A MAGNIFICENT PROJECT ALONG WATER.
WE, WE PROVED IT, YOU SEE IN OUR BROCHURES, I JUST LEFT YOU.
UM, THERE'S A, THERE'S ONE OF OUR DIVISIONS THAT'S CALLED URBAN PARKS AND GREEN SPACES.
WE LITERALLY FOCUS AND WORK WITH COMMUNITIES IN HOUSTON.
WE'RE DOING TOO RIGHT NOW WITH THE CITY WHERE THEY HAVE PARKS AND, YOU KNOW, PEOPLE USED TO IN AND PUT IN SLIDES AND SWINGS AND THINGS LIKE THAT.
YOU CAN CREATE SO MUCH ENERGY WITH THE PARK.
ONE WE'RE DOING WITH A GROUP, UH, IN HOUSTON.
UM, WE'RE, WE'RE DESIGNING AROUND THE CULTURE AND, AND THE ARTS.
WE'RE BRINGING IN WHERE THE COMMUNITY IS.
IT'S, IT'S A MINORITY COMMUNITY THAT'S VERY ACTIVE IN THE ARTS.
AND WE'RE CREATING A PLACE WHERE PEOPLE CAN GO.
AND THIS, YOU KNOW, THE PARK IS THE ART.
AND BY DOING THAT, WE'LL CREATE, UM, YOU KNOW, A LITTLE ECOSYSTEM AROUND THERE.
THERE'S NOT MUCH THERE RIGHT NOW.
BUT I KNOW OVER TIME, THE FOOD TRUCKS WILL COME, START TO SERVE THE PEOPLE THAT ARE COMING TO THE PARK.
AND OVER TIME PEOPLE START LITTLE COFFEE SHOPS AND THEN PEOPLE START MIGRATING IN.
AND OVER TIME, YOU KNOW, YOU'LL DEVELOP A RESIDENTIAL BASE AND WE'RE REDEVELOPING AN AREA BASED ON WHAT WE'RE DOING IN THE PARK.
UH, WE STARTED THIS A FEW YEARS AGO.
UH, 'CAUSE WE WERE FORTUNATE ENOUGH TO BE INVOLVED WITH TEXAS A AND M ON AGGIE PARK.
UH, I DIDN'T MAKE THE DECISION TO FIRE THE COACH AND GIVE HIM $75 MILLION.
SO WE'RE BETTER, WE'RE MORE FISCALLY MINDED THAN THAT.
BUT, UH, THE, UH, THERE WAS A PIECE OF PROPERTY THAT I RAN AROUND WHEN I WAS ON CAMPUS 40 YEARS AGO, AND IT WAS JUST A DERELICT PIECE OF PROPERTY WITH A DITCH RUNNING THROUGH IT.
AND IT TOOK ME 10 YEARS TO CONVINCE THE UNIVERSITY TO LET US TAKE IT.
AND I TOLD 'EM WE'D DO IT FOR FREE.
AND YOU CAN SEE IT IN THE BOTTOM RIGHT OF THAT PICTURE.
AND I MEAN THAT WE'RE BRINGING IN TENS OF THOUSANDS OF PEOPLE A WEEK TO THAT PROPERTY NOW.
AND, AND IT'S CHANGED THE COMMUNITY AND HOW IT'S USED AND, AND HOW THE EVENT CENTER'S USED IN THE AMPHITHEATER.
AND, AND THAT'S WHAT THIS IS EAST RIVER AS AN EXAMPLE.
BUT, UM, THAT'S WHAT I'M THINKING Y'ALL ARE HOPING TO DO, IS CREATE A, A PULSE FOR THIS COMMUNITY AND A PLACE WHERE PEOPLE CALL THEIR OWN AND THAT'S WHERE THEY GO.
AND YOU KNOW, YOU ARE CALLING IT COTTONWOOD.
I LOVE THE NAME JUST, JUST BASED ON THE EXPERIENCE I HAD WITH MY GRANDFATHER HERE WITH THE COTTON TRUCKS.
BUT WHAT I ENVISION IS, IF WE DO THIS RIGHT, WHICH I KNOW WE WILL, 'CAUSE THAT'S WHAT WE DO, UH, YOU'LL HAVE NEIGHBORS IN THE COMMUNITY SAY, LET'S GO TO DINNER TONIGHT.
WELL, WHERE DO YOU WANNA GO? LET'S GO TO COTTONWOOD.
THEY'RE NOT GONNA SAY, LET'S GO TO X, Y, Z RESTAURANT.
THEY'RE GONNA SAY, LET'S GO TO COTTONWOOD.
AND THEN THEY'RE GONNA DISTILL IT DOWN FROM THERE.
BUT COTTONWOOD BECOMES THE PLACE THAT PEOPLE WANT TO GO.
AND IT, WE, WE'VE DONE THAT DOZENS OF TIMES.
EAST RIVER PEOPLE ARE GONNA START REFERRING TO THIS AS LET'S GO DINNER AT EAST RIVER AND THEN DO THEY, WHICH OF THE 20 RESTAURANTS DO WE GO TO? UH, AND THAT'S HOW, IN MY OPINION, YOU BUILD COMMUNITY THROUGH REAL ESTATE.
AND UH, LIKE I SAID, ALL WE DO IS MIXED USE.
THAT'S ALL WE'VE DONE FOR THE LAST 20 YEARS.
AND WHAT WITHIN MIXED USE, SO IS SINGLE FAMILY RESIDENTIAL, IT'S MULTI-FAMILY RESIDENTIAL.
IT'S, IT'S RESTAURANTS, IT'S HOTELS, IT'S, IT'S, UH, F AND B.
UH, THE THING THAT WE DON'T DO A LOT OF IS BIG BOX.
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WE DO BIG BOX BECAUSE, UH, FOR TWO REASONS.ONE, WHY
WHO KNOWS WHERE THAT BIG BOX IS GONNA BE 20 YEARS FROM NOW WITH AMAZON, YOU KNOW, IS IS THAT EVEN GONNA BE RELEVANT IN THE FUTURE? AND, UH, WE JUST, WE DON'T DO THAT.
UH, BECAUSE IT'S NOT, WE JUST DON'T THINK IT'S ENDURING TO COMMUNITIES.
I DON'T THINK IT'S ON THE BEST PIECE OF PROPERTIES IN TOWN.
UM, YOU KNOW, THIS IS THE ONE IN CENTURY SQUARE.
THE HOTELS WE DO, WE DON'T DO A LOT OF, UH, WELL LEMME SAY THIS, THE ONLY HOTELS WE OWN ARE WITHIN OUR PROJECTS.
WE DON'T DO HOTELS THAT ARE JUST ALONG THE SIDE OF THE ROAD.
THAT'S A, THAT ACTS AS A COMMODITY.
UH, WE TRY TO DO HOTELS THAT HAVE THEIR OWN FLAVOR.
THE GEORGE IS ONE WE DID IN COLLEGE STATION.
WE ALSO DID CALVARY COURT THERE, UH, IN HOUSTON WE DID THE ALESSANDRA AND, AND THE MORAN, BOTH WITHIN PROJECTS OF OUR OWN.
BUT IF YOU DO A HOTEL RIGHT, IT'S WHERE PEOPLE THAT LIVE IN YOUR COMMUNITY WANT THEIR GUESTS TO STAY WHEN THEY COME VISIT.
AND, UH, THEY DON'T COST ANYMORE TO DO.
IT'S JUST TAKING THE TIME TO CREATE A BRAND THAT'S ENDURING.
UM, YOU KNOW, AS YOU CAN SEE IN THAT BOTTOM PICTURE, I THINK THAT DAY THEY HAD IN COLLEGE STATION, THEY HAD A, UH, CAR SHOW WHERE SOME CAR CLUB IN TOWN WANTED TO COME USE IT, AND THEY STACKED UP ALL THEIR CARS AND, AND PEOPLE COME OUT AND WATCH IT.
UM, AGAIN, THIS IS AGGIE PARK.
I DON'T KNOW, TELL ME WHEN I'M GETTING ON YOUR TIME.
'CAUSE I'M WANNA LEAVE TIME FOR QUESTIONS.
IT, IT CHANGED HOW THAT COMMUNITY'S VIEWED.
UH, YOU KNOW, IF YOU'VE EVER BEEN TO COLLEGE STATION, IT'S NOT THE PRETTIEST PLACE IN THE STATE OF TEXAS.
UH, BUT NOW THERE'S, THERE'S A A THERE'S
BUT, YOU KNOW, WHAT I WANNA DO IS LEAVE THIS OPEN TO QUESTIONS.
I DIDN'T GO THROUGH A LOT OF PREPARATION ON THE PLANNING PROCESS AND THE MAN MASTER PLANNING PROCESS.
THERE'S PLENTY OF TIME TO GET INTO THAT AS WE GO FORWARD.
IF, IF YOU LIKE WHAT WE'RE DOING, UM, WHAT I WANNA SAY IN CLOSING IS WHAT YOU'RE TRYING TO DO, OR BASED ON OUR UNDERSTANDING OF WHAT YOU'RE TRYING TO DO, IS WRITE DOWN OUR, OUR SWEET SPOT.
IT'S WHAT WE GET EXCITED ABOUT.
UM, WE DON'T GET EXCITED ABOUT GOING AND BUILDING BIG INDUSTRIAL BUILDINGS.
WE DO 'EM FOR CLIENTS, BUT THAT DOESN'T, THAT'S NOT WHAT EXCITES US.
WE LIKE TO GET EXCITED ABOUT DOING THINGS THAT THE COMMUNITY RALLIES AROUND AND GETS INVOLVED WITH.
AND, AND THAT'S WHY I THINK THIS PROJECT'S SPECIAL.
AND THAT'S WHY, UH, WE'RE HERE PITCHING OUR WARES, HOPING THAT WE HAVE A SHOT AT IT.
BUT, BUT I'M HAPPY TO ANSWER ANY QUESTIONS FOR Y'ALL.
UH, I, I GUESS FOR ME, UH, I'M RAISED UP A HU FOR 23 YEARS.
SO I WAS HERE WHEN IT WAS A WET SPOT ON THE GROUND AND JUST KIND OF PASS THROUGH PASSING SNUFFY.
UM, JUST CURIOUS WITH THE, WITH DIFFERENT PROJECTS, YOU KNOW, ONE OF THE THINGS THAT WE HAVE IN HERETO IS OLD TOWN AND THOSE BUSINESSES.
AND SO I WANNA BE REAL MINDFUL OF, OF, OF THAT PART OF OUR TOWN AND NOT SURE NOT, AND NOT DOING SOMETHING THAT'S GONNA, NOT NECESSARILY HURT THEM, BUT THE CONNECTIVITY, UH, BETWEEN THE COTTONWOOD PROPERTY.
I KNOW THERE WAS A TIME WHERE WE WERE TALKING ABOUT MAKING SURE THAT WE HAD PARKS AND, AND WALKWAYS WHERE YOU COULD EASILY JUST PEDESTRIAN, JUST WALK FROM ONE FROM THE OLD TOWN AND MAYBE HIT COTTONWOOD PROPERTIES.
UM, SO JUST HOW HAVE YOU GUYS WORKED WITH THE CITY, YOU KNOW, WHEN IT COMES TO PUTTING PROJECTS AND MAYBE PARTNERING UP WITH THOSE? WELL, I THINK IT'S WHAT CITIES ARE, JUST THE COMMUNITIES THEMSELVES.
UH, WE DON'T WANNA LIFT OURSELVES UP BY DESTROYING SOMEBODY ELSE.
AND IN COLLEGE STATION, I'LL USE IT AS AN EXAMPLE.
UH, THERE'S AN AREA CALLED NORTHGATE, WHICH IS A WHOLE HISTORIC PART OF COLLEGE STATION.
AND THEN WE HAVE DOWNTOWN BRYANT THAT HAS AN OLD HISTORIC DISTRICT.
UM, WE COULD EASILY CALLED BUILT OUR PROJECT AND GO CALLED ON THOSE TENANTS AND SAID, COME OVER HERE.
WHAT WE WANT TO DO IS COMPLIMENT WHAT THEY'RE DOING.
WE WANT TO BE DIFFERENT FROM THEM AND, AND HAVE OUR LIFT OUR OWN SELVES UP.
WE DON'T HAVE TO KNOCK SOMEBODY ELSE DOWN TO DO WELL.
MM-HMM,
FORTUNATELY, Y'ALL ARE IN A VERY, UH, GROWTH ORIENTED MARKETPLACE.
THERE'S GONNA BE PLENTY OF OPPORTUNITY FOR NEW THINGS THAT ARE GONNA APPEAL TO DIFFERENT PEOPLE.
AND, UH, WE WOULD EMBRACE WHAT YOU'RE DOING.
AND IF YOU NOTICE IN THAT PACKAGE I GAVE YOU, THERE'S A LITTLE FLYER IN THERE THAT SAID DISTRICTS, IT'S A MAGAZINE.
EVERYTHING WE DO, WE CALL A DISTRICT.
UH, YOU KNOW, AND WHEN WE DO THAT, THE DISTRICTS SOMETIMES BLEED OUTSIDE OF OUR OWNERSHIP AREA.
AND BECAUSE WE WANT PEOPLE TO REFER TO THIS AREA, IT'S LIKE CITY CENTER IS, WE OWN 36 ACRES AND WE BOUGHT ANOTHER NINE.
BUT PEOPLE CONSIDER CITY CENTER PROBABLY 80 ACRES AROUND THERE NOW, WHICH WE WANT.
UH, COLLEGE STATION, CENTURY SQUARE, OUR PROJECT BLEEDS OUT.
PEOPLE TALK, I'M IN, YOU KNOW,
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SOMEBODY WILL BUILD APARTMENT PROJECT, SAY WE'RE IN CENTURY, UH, CENTURY SQUARE.HEY, IF YOU WANNA BE IN OUR DISTRICT, WE'D LOVE TO HAVE YOU.
LET'S JUST STAY TO OUR STANDARDS.
BUT, UH, TO ANSWER YOUR QUESTION, UH, WE WOULD PROBABLY EMBRACE THEM AND TRY TO CREATE A DISTRICT AND, AND, AND HOW WE FEED INTO THAT AND, AND, AND PROMOTE THEM AS MUCH AS WE PROMOTE OURSELVES.
'CAUSE IT, IT ALL HAS TO WORK IN UNISON AT THE END OF THE DAY.
I GUESS MY OTHER QUESTION WOULD BE, UM, THE COMMUNITY IS REALLY, REALLY WANTING AND NEEDING, UM, SOME TYPE OF, UM, GROCERY STORE, BOTTOM LINE.
UH, JUST SOMETHING THAT, THAT OUR COMMUNITY ON THIS SIDE OF THE TOWN CAN HAVE ACCESS INSTEAD OF HAVING TO DRIVE, UM, OVER TO THE HEB PLUS.
SO, AND I KNOW, AND I UNDERSTAND THAT IT'S HARD TO SAY, OH, WELL, WE'RE GONNA BRING SO AND SO IN OR BRING THEM THAT PERSON IN.
BUT I THINK YOU'RE, YOU'RE ASKING THE QUESTION LIKE, WHAT ARE WE LOOKING FOR? THAT IS SOMETHING THAT I'VE HEARD FROM THE COMMUNITY OF HOPING TO HAVE AN OPPORTUNITY TO PUT SOMETHING ON THIS SIDE OF THE TRACKS THAT WE'RE, THIS COMMUNITY CAN HAVE, UH, YOU KNOW, A PLACE TO GO BUY GOODS.
UM, WELL THERE'S, THERE'S DIFFERENT LEVELS OF GROCERY.
UH, I MEAN, YOU HAVE YOUR WHOLE FOODS, YOU HAVE YOUR SPROUTS, YOU HAVE, UH, IN AUSTIN, HEB HAS A LOT OF THE MARKET SHARE IN AUSTIN AREA.
UM, THE BOTTOM RIGHT LEFT PICTURE, YOU SEE THERE IS AN HEB.
IT'S THE FIRST URBAN STORE WE DID WITH HEB.
IT'S, UH, WE HAVE 200, 340 RESIDENTIAL UNITS ABOVE A 90,000 FOOT STORE WITH A, AND THAT'S GOOGLE'S OFFICE BUILDING ON THE CORNER ALL IN ONE PATH.
AND WHAT WE TRIED TO DO IS PUT THEM IN AN ENVIRONMENT WHERE THEY COULD BE SUCCESSFUL, BUT IT, IT WASN'T JUST THIS BIG ASPHALT PARKING LOT THAT, UH, FELT TOO SUBURBAN.
WE WERE, YOU KNOW, WHAT'S, WHAT'S INTERESTING, AND I HAVEN'T TALKED ABOUT THIS, IS IN AREAS WHERE THERE'S NOT URBAN VANITY, SOMETIME PEOPLE SEEK URBAN VANITY.
WHERE, FOR EXAMPLE, IF, IF YOU, IF YOU CALL BRIAN AND SAID, LET'S GO TO DINNER TONIGHT WITH THE WIVES, YOU KNOW, YOU'RE PROBABLY GONNA GO TO A RESTAURANT, BUT YOU'RE HAVING A GOOD TIME.
YOU WANNA BE RESPECTFUL OF THE RESTAURANT, OR YOU WANT TO GIVE HIM HIS TABLE BACK SO HE CAN TURN IT.
BUT Y'ALL MIGHT WANT TO CONTINUE YOUR EVENING, BUT ODDS ARE YOU BOTH HAVE TO GO GET IN YOUR CARS AND DRIVE SOMEWHERE ELSE TO FINISH YOUR EVENING.
WHAT WE TRY TO DO, CREATE ENVIRONMENTS WHERE YOU COULD LEAVE THAT RESTAURANT, WALK OUTSIDE, LISTEN TO SOMEBODY PLAYING MUSIC OUT IN THE PLAZA, WALK OVER TO THE ICE CREAM STORE, GET AN ICE CREAM, COME SIT OUT THERE BY THE PLAZA.
THAT'S WHAT CREATES MEMORIES AND THAT'S WHAT CREATES COMMUNITY.
SO WHAT WE TRY TO DO IS CREATE MORE OF AN URBAN ENVIRONMENT AND A SUBURBAN FEEL.
AND I CAN TELL YOU IT'S EXTREMELY SUCCESSFUL BECAUSE PEOP THAT RESONATES WITH PEOPLE.
YOU KNOW, THEY DON'T WANT TO GET IN THEIR CAR EVERY TIME THEY WANNA DO SOMETHING AND THEY WANT TO EXTEND THEIR EVENINGS WITH THEIR FRIENDS.
AND WE TRY TO CREATE AN ENVIRONMENT THAT ALLOWS THAT TO HAVE IT.
NOW, SELFISHLY, GOING BACK TO MY FIRST POINT, CREATING ENDURING INVESTMENTS IN REMARKABLE PLACES.
IF YOU'RE GOING IN THERE, I'M GETTING PERCENTAGE RENT FROM THE RESTAURANT.
I'M GETTING PERCENTAGE RENT FROM THE ICE CREAM SHOP.
I'M GETTING PERCENTAGE RENT WE MONETARILY CAN DO FINE BECAUSE WE'RE EXTENDING YOUR STAY AND YOU'RE SPENDING MONEY IN DIFFERENT PLACES.
THAT HELPS US CREATE THE ENVIRONMENT THAT WE'RE TRYING TO CREATE.
SO, UM, I THINK THERE'S A PLACE FOR, AGAIN, ONCE WE UNDERSTAND WHAT YOU'RE TRYING TO DO, I MIGHT NOT, BASED ON WHAT YOU TELL US, I MIGHT NOT SAY WHOLE FOODS IS THE RIGHT CHOICE.
I MEAN, HEB IS THE RIGHT CHOICE.
IT MIGHT BE SOMETHING OF A SMALLER SCALE THAT SEEMS MORE, UH, THAT RESONATES MORE WITH THE COMMUNITY.
IT MIGHT BE A BUTCHER, IT MIGHT BE A FISH MARKET.
YOU KNOW, IT MIGHT BE SOMETHING THAT'S A LITTLE SPECIAL WHERE YOU CAN GET THOSE PIECES.
BUT YOU CAN GO, YOU KNOW, GO TO HEB ONE, YOU WANNA BUY YOUR SCOT STYLES, BUT COME HERE FOR YOUR FRESH FRUIT AND YOUR FRESH, FRESH FISH.
YOU KNOW? AND, AND WE HAVE TO UNDERSTAND MORE, AGAIN, WHAT YOU ARE TRYING TO CREATE.
BUT THOSE THINGS, WE MIGHT GO TRY TO CURATE THOSE TENETS INSTEAD.
UM, REALLY APPRECIATE, UM, GIVING US A RUN THROUGH OF YOUR PORTFOLIO AND THE THINGS THAT YOU'VE DONE AND ACCOMPLISHMENTS THAT YOU HAVE.
UM, I GUESS A QUESTION THAT I WOULD HAVE IS, UM, YOU KNOW, YOU MENTIONED THAT YOU HAVE SEEN, UM, YOU KNOW, THE SPIT OF LAND THAT WE'RE TALKING ABOUT.
JUST, YOU KNOW, EYEBALLING IT, GETTING A GOOD FEEL FOR IT.
THAT BEING SAID, FROM THE OUTSET, JUST OFF TOP, WHAT POTENTIAL RISKS, IF ANY, DO YOU SEE WITH THIS PRO PIECE OF PROPERTY THAT WE HAVE? UM, DO YOU SEE ANY, ARE THERE THINGS THAT, YOU KNOW, KIND OF CATCH YOUR ATTENTION? WHAT, WHAT DOES THAT LOOK LIKE FOR YOU? WELL, FIRST OF ALL, I THINK IT'S, YOU HAVE A LOT OF THE COMPONENTS THAT WE'D LOOK FOR IN A TRACK LIKE THIS.
I MEAN, YOU HAVE DEPTH THAT ALLOWS YOU TO HAVE DIFFERENT USES.
'CAUSE WHAT YOUR PROPERTY IN THE BACK MORE THAN LIKELY
[00:25:01]
IS GONNA BE A RESIDENTIAL PRICE, SINGLE FOR RESIDENTIAL.I WANNA BE ABLE TO FIGURE OUT HOW WE CREATE TRAILS THAT BRING, THAT, MAKE IT WALKABLE UP TO THE FRONT.
IF YOU WANT TO WALK YOUR BIKE TO THE RESTAURANT OR RIDE YOUR BIKE TO THE RESTAURANT, YOU WANNA TAKE YOUR KIDS OUT.
YOU HAVE THE LUXURY OF A CREEK ON YOUR, YOUR WEST SIDE.
UH, WHICH IF THERE'S A CREEK, THERE'S A FLOODPLAIN
YOU COULD DO SPORTING THINGS DOWN THERE.
THEY'RE, THEY'RE, THEY'RE DRY 90% OF THE TIME, IF NOT MORE.
SO THERE'S A LOT OF THINGS YOU CAN DO WITH THE RIGHT MATERIALS WHERE YOU HAVE SOCCER FIELDS OR PLAYING FIELDS AND THINGS LIKE THAT.
AND IF THEY FLOOD THREE DAYS A YEAR, SO WHAT, YOU KNOW, THEY DRAIN BACK DOWN.
SO WE'LL TRY TO INCORPORATE THINGS LIKE THAT.
SO WHEN I LOOK AT YOUR PROPERTY, I LOOK AT IT AND GO, YOU KNOW, YOU'RE AT A GREAT INTERSECTION.
IT'S JUST, I WOULD SAY THE RISK IS TRYING TO GO ZERO TO 60 AND 2.3.
THAT'S, THAT'S WHEN YOU'RE GONNA RUN OFF THE ROAD.
WHAT WE DO IS WE PLAN LONG AND EXECUTE QUICKLY.
SO WE'LL DO A LOT OF PLANNING AND WE'LL HAVE A LOT OF CHARETTES WITH YOUR COMMUNITY.
FIND OUT WHAT PEOPLE WANT AND THEN WE PLAN.
YOU KNOW, BUT WE'RE GONNA DO, IF WE'RE INVOLVED, WE'RE GONNA ASK A TON OF QUESTIONS, MORE QUESTIONS THAN YOU'VE PROBABLY EVER HEARD.
AND WE'RE GONNA ASK YOUR COMMUNITY.
WE'RE GONNA ASK YOUR COMMUNITY TO COME UP HERE AND, AND DO SOME CHARETTES AND TELL US WHAT THEY WANT.
NOW WE CAN'T DO EVERYTHING THEY WANT 'CAUSE ONE, WE, NONE OF US CAN PROBABLY AFFORD IT.
BUT, UH, BUT WE CAN HEAR AND TIE THE PIECES TOGETHER AND GET A GOOD FEEL FOR WHAT THEY WANT AND WHAT'S GONNA RESONATE FOR 'EM.
BUT AT THE SAME TIME, WE'RE HEARING THAT WE HAVE TO UNDERSTAND THAT THE COMMUNITY'S ALSO CHANGING AND THERE'S PEOPLE MOVING IN THAT HAVEN'T EVEN THOUGHT ABOUT MOVING TO HUDDLE YET.
SO WE'RE GONNA BRING A LOT OF OUR HISTORY AND RESEARCH WITH US AND TRY TO, AND TRY TO INSTILL THAT INTO THE PROJECT.
BUT, UH, AGAIN, I THINK THE, TO ANSWER YOUR QUESTION, I THINK THE BIGGEST RISK, I DON'T THINK, I DON'T THINK IT'S GONNA BE A MONETARY RISK.
'CAUSE WE WOULDN'T PUT THE PROJECT IN A SITUATION WHERE IT'S GONNA BE A FAILURE FINANCIALLY.
UH, IF IT, IF IT'S, IF WE'RE NOT GETTING THE, THE FEEDBACK FROM THE RESTAURANTS AND THE RETAILERS THAT WE THINK WE NEED TO PUT A SHOVEL ON THE GROUND, WE'RE, WE'RE GONNA TELL YOU THAT.
SO I DON'T THINK WE'D GET INTO FINANCIAL SITUATION.
I THINK IT'S JUST TRYING TO DO SOMETHING TOO QUICKLY WITHOUT THINKING ABOUT IT.
AND JUST BECAUSE SOMEONE CALLS AND SAYS, I'LL, I'LL PAY YOU X FOR YOUR CORNER.
LET'S SELL IT WITHOUT THINKING ABOUT HOW THAT IMPACTS EVERYBODY ELSE ON THE PROPERTY.
AND, UH, SO I, YOU KNOW, YOU'VE GOT TO, IF WHAT I UNDERSTAND FROM BOB AND CHENEY, Y'ALL REALLY HAVE A DESIRE TO DO THIS.
BECAUSE A LOT OF PEOPLE DON'T, YOU KNOW, THEY SAY, GIMME THE BIGGEST DOLLAR I CAN GET, THE QUICKEST I CAN GET IT.
AND WE'RE NOT, WE DON'T, WE DON'T ALIGN WITH THEM VERY WELL,
SO, YOU KNOW, UH, I DON'T WANNA RUN PAST MY TIME CHENEY, SO, UH, AM I, OKAY, QUESTION? YES MA'AM.
UM, MY QUESTION TO YOU IS WHAT'S THE LARGEST PROJECT ACRE WISE THAT YOUR COMPANY HAS DEVELOPED? AND THEN HOW MANY PHASES DID THAT TAKE? WELL, THE LARGEST ONE WAS SPRING TRAILS IN HOUSTON, WHICH WAS ABOUT 1600 ACRES.
AND IT WAS PRIMARILY RESIDENTIAL WITH SOME COMMERCIAL PIECES, BUT IT WAS A RESIDENTIAL COMMUNITY THAT'S WON NUMEROUS AWARDS FOR, WE CALL IT SPRING TRAILS.
'CAUSE WE WERE ALONG A CREEK AND WE ENGAGED THE CREEK AND WE BROUGHT IT INTO THE COMMUNITY.
AND, YOU KNOW, WE DID THE STUDIES IN THE AREA AND FOUND THAT MOST PEOPLE, THEY DIDN'T WANT A GOLF COURSE COMMUNITY.
THEY WANTED TRAILS AND BIKES AND THINGS LIKE THAT.
SO WE NAMED THE PROJECT SPRING TRAILS AND WE EMBRACED WHAT THE COMMUNITY WANTED AND IT WAS A HUGE SUCCESS.
UH, THAT'S THE LARGEST PROBABLY ACREAGE.
WE ACTUALLY BOUGHT THE LAND NEXT DOOR TO, THERE'S ANOTHER 3000 ACRES.
UM, BUT, UH, WE ENDED UP SELLING, SORRY.
I WAS JUST, UM, WONDERING ABOUT YOUR EXPERIENCE WITH THE, THAT DEVELOPMENT AND THEN ALSO, UM, I SEE THAT YOU HAVE A LOT OF EXPERIENCE WITH THE DEVELOPMENT, DESIGN, CONSTRUCTION, UH, FINANCE AND MARKETING.
AND I'M JUST WONDERING, IS THAT ALL IN HOUSE OR DO YOU PUT, UM, THINGS OUT TO BID? I'M JUST WONDERING WHAT IS OR WHAT THE TESTS YOU DO AND THEN ALSO WHAT TESTS THAT YOU PUT OUT FOR BED.
UH, WELL LET ME ANSWER THE LAST QUESTION FIRST.
UM, MIDWAY, THE COMPANY MIDWAY ITSELF IS A PUREBRED DEVELOPER.
WE DO DEVELOPMENT AND IN OUR DEVELOPMENT TEAM, DAVID HIGHTOWER'S WITH US TONIGHT, UH, DAVID'S A CIVIL ENGINEER AND HAS BEEN DOING DEVELOPMENT FOR THE LAST 42 YEARS.
[00:30:01]
ANYBODY IN HOUSTON ANYWAY, RELATIVE TO HIS KNOWLEDGE ABOUT CIVIL ENGINEERING.NOW, HE'S NOT GONNA DESIGN OUR PROJECTS.
HE'S NOT GOING TO PHYSICALLY GO OUT AND BUILD THEM.
WE'RE GONNA HIRE PEOPLE TO DO THAT AND, AND BID THAT WORKOUT.
BUT DAVID'S MAKING SURE THAT THE ENGINEERS DON'T OVERDESIGN SOMETHING.
WE'RE, WE'RE PAYING 150% FOR SOMETHING THAT WE SHOULD HAVE PAID A HUNDRED PERCENT FOR.
CHECKING EVERYTHING AND MAKING SURE THAT WE'RE DESIGNING FOR THE USE AND THE, AND DOING IT PROPERLY.
WE HAVE ARCHITECTS ON STAFF, BUT WE'RE NOT DESIGNING OUR BUILDINGS.
THEY WORK WITH THE ARCHITECTS THAT WE HIRE.
SO MIDWAY, UM, IS INTEGRATED AND WE HAVE CONSTRUCTION PEOPLE ON STAFF THAT HAVE YEARS AND YEARS OF CONSTRUCTION, BUT WE'RE NOT ACTUALLY BUILDING.
SO WE HIRE THIRD PARTY CONTRACTORS.
WE JUST MAKE SURE THAT WHAT WE'RE PAYING FOR, WE'RE GETTING AND WHAT WE'RE DESIGNING WE'RE DOING.
UH, 'CAUSE WE DON'T WANT TO DO IT TWICE.
AND, UH, TO ANSWER YOUR QUESTION ABOUT THE REST OF IT, WE HAVE A SISTER COMPANY CALLED PARKWAY, UH, THAT IS, WE'RE ALL OUR SERVICES DOMICILE.
SO THEY DO PROPERTY OPERATIONS, THEY DO MARKETING, THEY DO, UH, THE LEASING OF OUR PROJECTS.
AND THEY'RE, THEY'RE, THEY'RE A CAPTURED FIRM, BUT THEY'RE IN 13 MARKETPLACES AROUND THE COUNTRY.
AND, UM, THAT IS OUR SERVICE SIDE.
DEVELOP MIDWAY IS THE DEVELOPMENT COMPANY.
IT'S, IT'S, IT'S JUST A PUREBRED DEVELOPMENT COMPANY.
AND, AND WE LIKE IT BECAUSE THERE'S MORE COLLABORATION GOING ON.
WE'RE NOT WORRYING THIS COMPANY MIDWAY DOESN'T WORRY ABOUT, YOU KNOW, THE OPERATION SIDE.
'CAUSE WE HAVE THE RIGHT PEOPLE DOING THAT.
WE, WE WORRY ABOUT HOW DO WE BUILD THE BEST PROJECT.
AND SO IT, IT'S, IT'S A SYSTEM THAT WORKS FOR US.
BUT IT'S TWO, BASICALLY, IF YOU NOTICE MY CARD, ONE SIDE SAYS PARKWAY, ONE SIDE SAYS MIDWAY.
UH, I'M, I'M CO-CHAIR OF PARKWAY AND CHAIRMAN OF MIDWAY.
SO, SO WHAT I'M HEARING IS THAT YOU ARE PART OF THE MASTER PLAN AND VISION AND, AND THEN, UM, THEN EACH OF THE DEPARTMENTS YOU GUYS PUT OUT FOR THE CONSTRUCTION AND, UM, THE FINANCE AND MARKETING AND ALL OF THAT.
WELL, UH, SO MY QUESTION IS, IS SO ARE YOU, DO YOU HAVE LIKE IN-HOUSE MASTER PLANNERS? WELL, NO.
WHAT WE'LL DO, UM, MAYBE I DIDN'T EXPLAIN IT RIGHT.
AS A MASTER DEVELOPER, THAT'S THE GROUP THAT'S COMING IN AND SAYING, LET'S LAY THIS PROPERTY OUT.
LET'S FIGURE OUT WHERE THE USES GO.
THAT'S WHAT WE DO VERY, VERY WELL.
SO IF THERE'S A DESIRE TO DO A BOUTIQUE HOTEL OR A HOTEL OF QUALITY ON THIS PROPERTY, WE WILL DO THAT HOTEL.
IF THE COLLECTIVE GROUP SAYS, HEY, I WANT A, A HOLIDAY INN ON THE CORNER, WE'RE NOT THE BEST PEOPLE TO DO A HOLIDAY INN.
NOW WE CAN DESIGN THAT INTO THE PROJECT IF THAT'S WHAT THE COMMUNITY WANTS.
BUT WE'LL GO OUT TO PEOPLE THAT FRANCHISE AND DO HOLIDAY ENDS THAT DO HOLIDAY ENDS.
WELL, WE DON'T, WE WOULDN'T DO HOLIDAY INNS WELL, BECAUSE WE'D BE TOO HANDS ON OUR CUSTOMERS
SO IT, OR IF THERE'S A PIECE OF THE PUZZLE, FOR EXAMPLE, LIKE THE RESIDENTIAL PIECE, UH, IF THERE'S A SINGLE FAMILY RESIDENTIAL COMPONENT, WE WILL DESIGN THE STREETS.
WE'LL PUT THE INFRASTRUCTURE IN, WE'LL PUT THE MUD TOGETHER OR HOWEVER IT GETS DONE, UH, THROUGH THE COMMUNITY.
BUT WE'LL SELL LOTS TO BUILDERS.
WE DON'T DO VERTICAL RESIDENTIAL, UH, SINGLE FAMILY.
WE'LL GO OUT AND FIND THE BEST RESIDENTIAL HOME BUILDER IN TOWN THAT, THAT RESONATES IN THIS COMMUNITY, THAT UNDERSTANDS THE CLIENT IN THIS COMMUNITY.
AND WE'LL SAY, OKAY, WE HAVE 300 LOTS.
LET'S BRING IN, YOU KNOW, FOUR DIFFERENT BUILDERS AT DIFFERENT PRICE POINTS IF THAT'S WHAT WE DO.
AND THEN WE GO GET THE BEST TWO PEOPLE ON EACH OF THOSE PRICE POINTS AND LET THEM BUILD THE HOMES FOR THE CUSTOMER.
BUT WE'RE DELIVERING LOTS IN THAT CASE.
SO I THINK I ANSWERED YOUR QUESTION BY, WE'RE THE MASTER HORIZONTAL DEVELOPER, EVERYTHING HORIZONTAL WE DO.
AND THEN PROBABLY 90% OF THIS PROJECT, THE VERTICAL WE WOULD DO, UH, IT MIGHT BE THAT, FOR EXAMPLE, WE WERE TALKING ABOUT GROCERY STORES.
THERE MIGHT BE SOMEBODY THAT WHOLE FOODS WOULD PREFER TO USE AS A DEVELOPER OF THEIR GROCERY STORE THAT HAS DONE 50 OF THEM.
IF HE KNOWS WHAT THEY WANT AND WE CAN PUT HIM IN OUR MODEL, WE DON'T HAVE TO NECESSARILY DO THAT GROCERY STORE.
IF THERE'S A BETTER PERSON TO DO THAT, THAT HAS MORE CONFIDENCE OF THAT RETAILER, LET'S BRING 'EM IN THE PLAN.
WE DON'T HAVE TO DO THAT PORTION.
SO, UM, DOES THAT, DOES THAT ANSWER KIND OF WHAT YOU'RE SAYING? YES, THANK YOU.
YEAH, THE, UH, IT, IT, IT'S A SUBTLETY, BUT MASTER PLANNING IS THE HORIZONTAL, GENERALLY SPEAKING.
AND THEN THE VERTICAL IS THE, THE VERTICAL DEVELOPMENT, WHICH IS THE DIFFERENT USES.
[00:35:01]
AND TO KIND OF, I DIDN'T GO INTO THIS, BUT MIDWAY IF YOU CAN THINK OF IS WE'RE PRODUCT TYPE AGNOSTIC.WE LOOK AT DEVELOPMENT AS A HORIZONTAL PROCESS.
IF I'M BUILDING A HOTEL OR IF I'M BUILDING A LAB, OR IF I'M BUILDING A, A MULTIFAMILY PROJECT, THE HORIZONTAL'S ABOUT THE SAME.
THE VERTICAL IS WHAT MAKES A HOTEL DIFFERENT THAN A MULTIFAMILY FROM A HOTEL, FROM A RETAIL.
AND SO WE DO DEVELOPMENT VERY WELL.
AND THEN WE JUST PLUG IN THE RIGHT PEOPLE WITHIN OUR COMPANY THAT DO THE VERTICAL WELL.
AND SO WE'RE, IT'S NOT, WE'RE NOT AN APARTMENT DEVELOPER RUNNING AROUND THE COUNTRY LOOKING FOR AN APARTMENT SIDE, OR WE'RE NOT A STRIP MALL GUY LOOKING FOR THE NEXT RETAIL SIDE OR THE NEXT HOTEL GUY LOOKING FOR THE HOTEL SIDE.
WE'RE, WE WANT TO DO A PLAN THAT MAKES SENSE AND THEN WE'LL PLUG IN OURSELVES WHERE IT MAKES SENSE.
SO IN THE INTEREST OF TIME, 'CAUSE I KNOW THAT WE NEED TO PUSH, PUSH THROUGH.
DO YOU HAVE A ONE QUESTION OR ANYTHING THAT YOU'D LIKE TO ASK? UM, SO PART OF THIS PROPERTY ABUTS UP AGAINST AN EXISTING SINGLE FAMILY DEVELOPMENT.
UH, AND SO MY CONCERN WOULD BE, HAVE YOU HAD EXPERIENCE IN THE PAST INTEGRATING EXISTING DEVELOPMENTS INTO NEW PROJECTS? I WOULD SAY YES.
AND, UM, MEMORIAL GREEN'S ONE OF THOSE.
UH, IT'S, UH, WE DID 90 RESIDENTIAL HOMES IN A RESTAURANTS AND OFFICE WITHIN A COMMUNITY.
WE WANT TO EMBRACE THAT COMMUNITY.
WE WANT THEM TO BE PART OF THIS COTTONWOOD DISTRICT BECAUSE THEY'RE OUR CUSTOMERS.
AT THE END OF THE DAY, IF, IF THEY DON'T HAVE A TRAIL GOING INTO THEIR PLACE, LET'S PUT SOME MONEY ASIDE AND BUILD A TRAIL INTO THEIR PLACE AND CONNECT THEM IN.
WE'RE THINK ABOUT THIS AS INCLUSIVE.
WE WANT THE COMMUNITY TO EMBRACE THIS AND, AND ENJOY IT.
WE'RE NOT SAYING, HERE'S THE WALL, YOU'RE NOT WELCOME.
IT'S THE COMPLETE OPPOSITE OF THAT.
SO I'D LIKE TO GIVE YOU JUST A TWO MINUTES IF YOU WANNA WRAP UP AND SAY ANY FINAL COMMENTS AND, UM, CLIPS.
WELL, I WOULD JUST SAY AGAIN, THANK YOU FOR EVEN CONSIDERING THIS.
UH, THIS IS WHAT WE LOVE DOING.
AND I HOPE THAT COMES THROUGH IN WHAT WE'RE TALKING ABOUT HERE.
UH, WE HAVE THE EXPERIENCE TO DO WHAT YOU WANNA DO.
I BELIEVE, UM, AGAIN, I WOULDN'T, UM, YOU HAVE A GREAT PIECE OF PROPERTY.
I'D BE RESPECTFUL AND BE GOOD STEWARDS OF THAT PROPERTY.
AND IF I UNDERSTAND EVERYTHING YOU, Y'ALL ARE SAYING, Y'ALL WANT TO DO THAT.
AND I THINK WE'RE A, A GOOD CHOICE FOR TRYING TO DO THAT.
AND THE PACKAGE I SENT UP THE OTHER DAY, UH, WE PUT IN SOME REFERENCE LETTERS AS YOU ASK, AND I ENCOURAGE YOU TO CALL THOSE.
I'LL BE HAPPY TO CONNECT YOU WITH ANY OF OUR LENDERS, ANY OF THE PEOPLE WE'VE DONE BUSINESS WITH.
WE DO A LOT OF REPEAT BUSINESS WITH PEOPLE BECAUSE THEY KNOW US.
AND, UM, I THINK WE'D BE A GOOD FIT FOR Y'ALL.
BUT I HAVEN'T HEARD THE OTHER THREE GROUPS, SO, UH,
BUT I KNOW WHAT WE DO AND I KNOW THIS FITS RIGHT DOWN OUR FAIRWAY AND BE, AND WE'D BE PROUD TO BE HERE.
AND I'D LOVE TO GO TO SOMETHING WITH WILLIAMSON COUNTY 'CAUSE 90% OF MY FAMILY'S BURIED RIGHT DOWN THE STREET.
TRULY, THANK YOU VERY MUCH FOR THIS TIME.
YOUR PRESENTATION SWAP OUT MY TECHNOLOGY HERE.
DO YOU GUYS HAPPEN TO HAVE IT ON ANYTHING?
ACTUALLY, THIS ISN'T MY COMPUTER, SO THAT WOULD NOT BE DELIGHTFUL.
HOPE YOU DIDN'T TELL THE WIFE YOU'RE GONNA COME HOME EARLY TODAY, EUGENE.
I DIDN'T, I DIDN'T ACTUALLY HAVE SAW AT EIGHT 15 YESTERDAY AND WAS LIKE, OH MY, ACTUALLY TOM, IF YOU WANNA GO AHEAD AND DO THAT, I HAVE MY LAPTOP.
I PUT IT BACK, I LEFT IT OPEN-ENDED 20 IN A MONTH.
WE HAVE TO DATE, WE'RE GONNA GO TO GOOGLE FULL OR ALL MICROSOFT.
I KNOW THIS IS A GREAT LITTLE EXAMPLE.
ARE WE CHOOSING, ARE CHOOSING UPDATES GOOGLE? YEAH.
I MEAN, WE COULD HAVE WANTED TO, BUT I WOULDN'T WANT TO DO IT WITHOUT
[00:40:01]
ALL US BEING HERE.TIE THOSE INTO YOUR QUESTIONS.
HOW DO YOU, THERE IS THE, UM, SO GUEST AND IT'S CAPITAL P, PUBLIC CAPITAL G GUEST ALL TOGETHER.
IT'S STILL PUBLIC, BUT THEY, THEY DON'T GET TO HEAR THIS PRESENTATION ME TALKING THAT BECAUSE THE PRESSURE'S ON THEM.
LIKE, HE'S NOT GONNA SAY, I MEAN, WHY WOULD HE DO THAT? ARE WE GOING? I'M READY.
ARE WE, ARE WE GONNA PITCH IN THEORY? YEAH.
I DON'T SEE HOW WE CAN TONIGHT.
[00:46:29]
UM, SO TO KICK IT OFF, WE DID GO THROUGH YOUR, YOUR ACCOUNT PLAN TO UNDERSTAND WHAT YOU'RE TRYING TO DO.AND TODAY WE'LL JUST GO THROUGH SORT OF OUR INTENTIONS, SORT OF WHAT WE THINK IS THE TOP EIGHT GOALS THAT YOU'RE TRYING TO ACCOMPLISH.
UH, WE WILL UNVEIL SORT OF WHAT WE THINK ARE THE HEADWINDS IN THE MARKET FOR THIS VISION, THE TAILWINDS.
AND THEN WE WILL TALK ABOUT HOW THOSE IMPACT YOUR TOP EIGHT GOALS.
AND THEN LUKE HERE WILL TALK ABOUT HOW WE SOLVE FOR THOSE HEADWINDS.
SO IF THERE'S ANYTHING THAT I WANT YOU ALL TO TAKE AWAY FROM TODAY, ASIDE FROM OUR VISION, SORT OF HOW WE DO THINGS, IT'S THE POINT THAT THIS LAND IS YOUR LAND.
OKAY? UM, WE ARE HERE TODAY WITH RED OAK AND VIEWPOINT AS YOUR ADVISOR AND YOUR PARTNER.
WE'RE NOT HERE TO BE A RED OAK DEVELOPMENT.
THIS IS A HUDU RED OAK PARTNERSHIP.
SO AS WE GO THROUGH THIS PROCESS OF EXPLAINING HOW WE SEE THIS HAPPENING, WHAT ARE THE HEADWINDS? WHAT ARE THE TAILWINDS IN THE BACK OF THE MIND WE'RE ADVISING AND SORT OF WITH THIS PARTNERSHIP MINDSET? OKAY, SO IN GOING THROUGH YOUR COMP PLAN FAIRLY THOROUGHLY, WE SEE ESSENTIALLY EIGHT GOALS.
AND NOW THERE'S OTHER ONES AS WELL.
BUT THE TOPIC THAT WE SEE IS ESSENTIALLY YOU'RE TRYING TO DEVELOP A MIDDEN URBAN PROJECT.
UM, THAT WILL FOSTER AND CAPTURE HIGH DENSITY SUCH AS MULTIFAMILY, ATTACHED SINGLE FAMILY, UM, SOME SORT OF COMMERCIAL RETAIL COMPONENT, WHICH SEEMS TO BE OPEN AS TO WHAT THAT COULD MEAN.
COULD MEAN WHAT WE DO SUCH AS MEDICAL OFFICES OR, YOU KNOW, CAMPUSES AS WE CALL IT.
IT COULD BE MICRO RETAIL, IT COULD BE BIG BOX RETAIL.
BUT IT IS A DEFINITELY A COMPONENT OF YOUR OVERALL GOAL.
UM, ONE OF THE THINGS I THINK WE SHOULD BE HIGHLIGHTING IS IN THE TOP RIGHT THERE, THE HALF THE LAND TO BE USED FOR COMMERCIAL DEVELOPMENT.
REALLY CRITICAL AS TO HOW WE GO THROUGH THIS IN THIS PLANNING PROCESS.
AND I THINK AS MIDWAY EXPLAINED, THEY'RE NOT WRONG.
AND THIS WILL BE A 12 TO 15 YEAR PROCESS IF WE TRULY WANNA MAKE THIS HALF COMMERCIAL.
AND THEN TO THE FAR RIGHT, SOME OF THE EASIER THINGS, DESIGNING A TRULY INTERCONNECTED, WALKABLE COMMUNITY.
UM, IF YOU LOOK AT RED OAK AND SORT OF OUR CORE VALUES, EVERY ONE OF OUR MASTERS, WE FOCUS ON INTERCONNECTEDNESS, UH, USE OF PARK SPACE.
AND IF YOU LOOK AT ALL OF OUR MASTER COMMUNITIES, WE'RE GENERALLY IN THE 20 TO 30% USE OF PARKLAND, RIGHT? SO THAT'S ABOUT DOUBLE THE, THE INDUSTRY, UH, AVERAGE.
AND BEFORE WE DO ANYTHING, WE WOULD PARTNER WITH YOU TO DO SURVEYS IN THE COMMUNITY TO UNDER TO UNDERSTAND AND, AND ENSURE THAT WHAT WE'RE PROPOSING IS NOT CRAZY.
UM, AND IT MIGHT BE CRAZY, BUT WE'LL GET THROUGH THAT PROCESS OVER TIME.
WE, WE WE'RE DOING A ONE IN PRAIRIE LEAGUE THE SAME WAY WE'RE LOOKING AT GEORGETOWN UP IN DALLAS, OUT IN FLAGSTAFF.
YOU HAVE TO UNDERSTAND WHAT THE COMMUNITY WANTS TO UNDERSTAND THE DEMAND DYNAMICS OF YOUR COMMUNITY.
OKAY? SO, AND OF COURSE WE'LL DO THIS IN A WAY TOGETHER THAT WE'LL BE FOCUSED ON A LONG-TERM TRAJECTORY, NOT IN THE NEAR TERM.
SO THAT'S, THAT'S THE SU SUSTAINABILITY ENVIRONMENT IMPACT ON THE BOTTOM LEFT.
SO OPENING UP HERE WITH SOME OF THE TAILWINDS, AND IF YOU KNOW ANY OF THIS, LET ME KNOW AND I'LL JUST SKIP AHEAD.
BUT IN AN ODD WAY, THE SHORTAGE OF SINGLE FAMILY HOMES ACROSS THE NATION IS A TAILWIND.
UM, HATO FROM OUR RESEARCH HAS ABOUT THREE AND A HALF MONTHS OF SUPPLY OF HOMES.
YOU'RE, YOU'RE PRODUCING ABOUT 250 HOMES, UM, THAT ARE AVAILABLE AT ANY GIVEN TIME THAT IS FAR BELOW WHERE YOU NEED TO BE.
SO THERE'S A CLEAR DEMAND TO DEVELOP SOME SINGLE FAMILY AS PART OF THIS VISION.
AND IF YOU LOOK AT ONE OF THE KEY STATS HERE, UM, IN THE BOTTOM OF THE FIRST PARAGRAPH, YOU'LL SEE THAT YOUR HOME OWNERSHIP RATE IS 81%.
THAT'S 19% ABOVE THE NATIONAL AVERAGE RIGHT NOW THAT TELLS US THAT THIS
[00:50:01]
IS A PLACE EITHER THAT IS STARVING FOR RENTALS, WHICH I DON'T THINK IT IS, OR IT'S A PLACE THAT PEOPLE WANT TO OWN AND NOT RENT, WHICH I THINK IT IS.SO AS WE THINK ABOUT, OKAY, HOW MUCH MULTI-FAMILY DO YOU WANT? HOW MUCH BTR SPACE WOULD YOU WANT? THAT SHOULD BE IN THE BACK OF YOUR MIND IS THAT PEOPLE WANT TO OWN IN HUDDLE.
THEY DON'T WANNA RENT, GENERALLY SPEAKING.
OKAY, THE NEXT ONE'S PRETTY UNIQUE.
TODAY, I WAS TALKING TO ONE OF OUR PARTNERS, HPI, WHO DOES WORK FOR HILLWOOD JOHNSON DEVELOPMENT AND WHAT HAVE YOU.
UM, AND WE'RE SEEING THIS TREND AND TIMES ARE CHANGING.
YOU DON'T WANNA SEE THE TYPICAL TOWER OFFICE.
YOU DON'T WANNA SEE THE TYPICAL RETAIL THAT YOU SEE.
UM, IN, IN MANY PARTS OF THE, THE, THE, THE US I ENCOURAGE YOU TO LOOK AT A COMMUNITY CALLED WOOD FOREST IN, IN MONTGOMERY, TEXAS.
THEY DO A VERY UNIQUE, INCLUSIVE, INTERCONNECTED, UM, INTERTWINED COMMERCIAL RETAIL RESIDENTIAL COMMUNITY WHERE THE CENTER FOCUS IS VERY MUCH LIKE MUELLER IN A PARK FOCUSED EXPERIENCE.
IN TALKING TO HPI, THEY HAVE 3000 VISITORS THAT COME TO THIS CENTER THAT DO NOT LIVE IN THAT COMMUNITY PER WEEKEND.
OKAY? AND SO WHEN WE THINK ABOUT COMMERCIAL, WE'RE NOT THINKING ABOUT BIG BOX.
WE'RE THINKING ABOUT IS IT POTENTIALLY MICRO RETAIL, 400 TO A THOUSAND SQUARE FEET POPUP SHOPS THAT CAN AFFORD LOCAL BUSINESS OWNERS OPPORTUNITY TO HAVE AN ICE CREAM SHOP, OR A BARBER SHOP, OR A TAILOR SHOP.
THINGS THAT ARE UNIQUE IN EXPERIENCE.
AND YOU'LL SEE THAT IN OUR DESIGN.
WE HAVE THESE SECTIONS FOR FOOD TRUCKS AND THE MICRO RETAIL AND THESE BREWERIES AND DI DISTILLERY DISTRICTS THAT CAN MAKE THIS HAPPEN.
IN LOCKHART, WE HAVE A DISTILLERY, SEVEN ACRES, UM, THAT COMES FROM AVIATION.
SO WE HAVE, WE'LL HAVE AN AMPHITHEATER, UM, DISTILLERY PROJECT RIGHT THERE.
AND THAT IS ONE OF OUR ANCHORS.
IT'S NOT GONNA BE AN HEB ANCHOR, IT'S GONNA BE AN EVENT ANCHOR.
OKAY? AND SO AS WE GO THROUGH THE COMMERCIAL DESIGN CONCEPT, WE'LL BE NEEDING TO THINK CREATIVELY ABOUT HOW WE TRULY CREATE THAT ENVIRONMENT OF, OF UNIQUENESS, IF YOU WILL.
DID I CATCH YOU RIGHT REAL QUICK? SURE.
DID YOU SAY EVENT? THIS WOULD BE AN EVENT? IT COULD BE, IT COULD BE, YOU KNOW, AN AMPHITHEATER, POINTING SPEAKERS SOMEWHERE ELSE.
UM, SO THE THIRD ONE HERE, I THINK WE ALL KNOW TEXAS IS ON FIRE.
UM, AB ABBOTT'S PLAN IS TO HAVE THE LARGEST WORKFORCE IN THE NATION HERE IN TEXAS IN SEVEN YEARS.
AND WE'RE ON TRACK TO DO THAT.
SO YOU, YOU COUPLE THAT WITH, WITH, WITH THE SAMSUNG, YOU COUPLE THAT WITH THE 33% POPULATION GROWTH IN THREE YEARS IN HU WITH A 12 YEAR AVERAGE OF 6.8%, YOU ALL HAVE A LARGE TAIL, ONE OF POPULATION MIGRATION.
BUT WHAT THAT, WHAT THAT MEANS IS THAT YOU HAVE TO GET MORE CREATIVE ON ENTERTAINMENT OPTIONS.
THE WORLD, AGAIN, IS CHANGING.
PEOPLE ARE WANTING TO HAVE AN EXPERIENCE.
THEY WANNA WALK AROUND THEIR COMMUNITIES, THEY WANT TO HAVE ACCESS TO ARTS AND CRAFTS.
THERE'S A HUGE TREND RIGHT NOW WITH WELLNESS AND ACTIVITIES AND OUTDOOR, RIGHT? ONE OF THE THINGS THAT WE DO WITH OUR PARTNERSHIP AND CENTRIC IS WE HAVE FIBER OPTICS THROUGHOUT OUR ENTIRE COMMUNITY.
YOU CAN LEAVE YOUR HOUSE ON AVPN, BE ON WIFI, GO TO THE PARK AND WORK.
ALL OF OUR PARK SPACES ARE INCLUSIVE OF THIS KIND OF CONCEPT, RIGHT? GAZEBOS IN THE PARK PLACE WHERE YOU, WHICH ARE PRETTY CHEAP TO BUILD, WHERE YOU CAN SIT DOWN AND WORK OUTSIDE.
SO A LOT OF WHAT WE DO IS TAILORING TOWARDS THE MILLENNIAL CROWD BECAUSE THAT'S WHO THE BIGGEST CLASS IS COMING UP FOR HOME BUYING AND LIVING, FRANKLY.
NOW, HEADWINDS, THIS IS NOT SO FUN TO TALK ABOUT.
A LOT OF THE HEADWINDS ARE AROUND THE CAPITAL MARKETS.
SO ANYONE UP HERE TODAY THAT TELLS YOU THERE'S NO RISK FINANCIALLY OR THERE'S NO RISK IN THE CAPITAL SIDE IS, I MEAN, THEY'RE JUST SMOKE AND MIRRORS.
WE KNOW FOR SURE THAT RIGHT NOW THE RISK-FREE RATES JUST TODAY IS DOWN TO 4.5%.
SO IF I'M A CAPITAL DEPLOY DEPLOY OF FUND, AND I LOOK AT MY OPTIONS, I CAN MAKE FOUR POINT A 5% ON A 10 YEAR BILL, ARGUABLY THE SAFEST ASSET IN THE WORLD.
OR I CAN GIVE A COMMERCIAL DEVELOPER MONEY TO MAKE SEVEN TO 9%.
THAT'S A BIG RISK IN A RURAL TOWN OF HUDU, RIGHT? AND SO ONE OF THE THINGS THAT WE'LL HAVE TO DO IS WE'LL HAVE TO HEDGE THAT RISK AND SHOW THEM HOW WE PLAN TO GET PEOPLE TO THE SITES AND, AND THE VENDORS IN THE SITES.
OKAY? SO THAT'S KEEP IN MIND ON, ON THE CAPITAL MARKETS.
UM, 2017 AND 2020, WHEN THERE WAS LOW INTEREST RATES, IT WAS EASY TO GET MONEY, IT WAS EASY TO GET LENDING.
THAT HAS CHANGED DRAMATICALLY.
THE NEXT PIECE, MULTI-FAMILY, MANY PEOPLE RIGHT NOW MIGHT NOT SEE THIS, BUT WE ARE ON THE PRECIPICE OF A COLLAPSE OF, OF MULTI-FAMILY.
I'M SURE YOU'RE, YOU'RE ALREADY SEEING MANY DEVELOPERS HOLD BACK DISTRIBUTIONS IN THEIR, IN THEIR PROFORMAS.
INVESTORS ARE NOT GETTING THEIR CASH.
YOU'RE, THEY'RE NOT ABLE TO GET FINANCING BECAUSE THEIR BALANCE SHEETS CAN'T SUPPORT IT.
AND WHEN RECENTLY THE BLACK SWAN EVENT I THINK IS INSURANCE PREMIUMS ARE UP 40% YEAR OVER YEAR.
SO THE IDEA THAT YOU'LL HAVE AN EASY WAY TO GET MULTI-FAMILY HERE IN THE NEXT 18 MONTHS TO TWO YEARS, AGAIN, LOFTY CAN BE DONE, BUT IN TIME.
AND THE LAST ONE AND POTENTIALLY THE MOST SIGNIFICANT TO OUR ECONOMY AS WELL AS I THINK THIS PROJECT, YOU HAVE A 50% USE OF COMMERCIAL.
RIGHT NOW WE HAVE A MAJOR PROBLEM IN HEADWIND
[00:55:01]
WITH COMMERCIAL ONE OUT FOUR WORKERS ARE WORKING FROM HOME.OKAY? AND HUDU, THAT'S ONE OUT OF EIGHT.
SO THE DEMAND FOR OFFICE WILL AUTOMATICALLY COME DOWN.
BUT ON TOP OF THAT, IF YOU LOOK BELOW THERE, 12 MILLION SQUARE FEET ARE VACANT RIGHT NOW IN AUSTIN, OR 26% TO BREAK EVEN IN COMMERCIAL, YOU NEED TO HAVE ABOUT AN 8% VACANCY RATE.
SO WE HAVE A THREE X RATE RIGHT NOW IN VACANCY THAT WE HAVE TO GET THROUGH TO BE ABLE TO COUNTER THAT.
THAT'S PROBABLY FOUR TO FIVE YEARS OUT.
SO AS WE GO TO PLAN THROUGH ALL THIS, WE HAVE TO THINK ABOUT, OKAY, WELL HOW DO WE CREATE MORE DEMAND? HOW DO WE ALSO CREATE DIFFERENT USES OF OFFICE? SO ONE THING THAT WE DO IS MED CAMPUSES, WE HAVE AN ANCHOR HOSPITAL AND LOCKHART, WE HAVE MED CLINICS AROUND THAT ENTIRE SEGMENT TO PRODUCE THAT DEMAND.
SO YOU'LL HAVE TO THINK DIFFERENTLY THAN JUST YOUR STANDARD OFFICE PLAY.
AND THEN JUST GOING BACK TO YOUR TOP EIGHT GOALS, IF YOU LOOK AT SORT OF HOW WE'RE CATEGORIZING THE IMPACT OF THESE HEADWINDS, THIS IS HOW WE'RE SEEING IT.
UM, AGAIN, ON THE MIXED USE, URBAN, IS IT POSSIBLE? SURE.
UM, LONGER TIME HORIZON AND WITH CAREFUL PLANNING AS TO WHAT GOES FIRST IN THAT COMMUNITY.
UM, THE 50% OF LAND USE FOR COMMERCIAL, TRICKY POSSIBLE, BUT STILL LONGER HORIZON OR DIFFERENT USE DESIGNED OF NEIGHBORHOOD TO BE WALKABLE, INTERCONNECTED.
THAT'S WHAT WE DO ALL DAY LONG.
UM, THE, THE HEAVY RESIDENTIAL EMPHASIS POSSIBLE WITH CERTAIN TYPES OF PRODUCTS, WHICH LUKE WILL GO ON TO TALK ABOUT LATER.
UM, ACCESS TO PUBLIC SERVICES PARKS SOMEWHAT EASY TO DO.
AGAIN, THE COMMERCIAL SPACE WILL HAVE TO BE CREATIVE AND JOBS, I THINK EITHER WITH THIS OR NOT, YOU ALL ARE IN A GREAT SPOT WITH JOBS.
SO I THINK LONG TERM, PRETTY SOLID.
LUKE, YOU WANNA STEP UP AND TALK ABOUT ZONING AND SORT OF CONCEPTS? THANK YOU TOM.
UH, THANK YOU GUYS FOR HAVING US TODAY.
AGAIN, MY NAME'S LUKE CARAWAY, UH, PRESIDENT OF VIEWPOINT ENGINEERING.
WE PROVIDE ENGINEERING AND PLANNING SERVICES, UH, TO CLIENTS ALL OVER THE GREATER AUSTIN MSA AND EVEN HAVE PROJECTS IN DALLAS AS WELL.
UM, I'M GONNA TALK A LITTLE BIT ABOUT, YOU KNOW, TOM, TOM JUST GOT DONE TALKING ABOUT SOME OF THE HEADWINDS, UM, TO SOME OF THE GOALS, YOU KNOW, SOME OF THE GOALS THAT WERE EXPRESSED IN THE COMPREHENSIVE PLAN.
UM, TALK A LITTLE BIT ABOUT HOW WE KINDA DEAL WITH THOSE AND, AND WHAT, WHAT ARE SOME GOOD APPROACHES TO BE ABLE TO MOVE ASPECTS OF THE DEVELOPMENT FORWARD, UM, WHILE ALSO UNDERSTANDING AND KEEPING YOUR EYE ON THE LONG-TERM GOALS? UM, I THINK OBVIOUSLY, YOU KNOW, RESIDENTIAL IS A, YOU KNOW, RESIDENTIAL IS A SOMETHING WHERE WE, WE KNOW THE MARKET IS THERE.
I THINK EVERYONE WHO'S COME UP TILL NOW HAS ALLUDED TO THE FACT THAT THIS DEVELOPMENT REALLY LENDS ITSELF TO A RESIDENTIAL COMPONENT AND LIKELY A SINGLE FAMILY COMPONENT.
UM, I THINK WHAT WE'RE TALKING ABOUT DOING IS REALLY GETTING CREATIVE WITH THAT AND DOING SOME THINGS THAT ARE NOT WHAT YOU GUYS ARE USED TO SEEING IN THE MARKET.
SO, YOU KNOW, MORE ALLEY LOADED PRODUCT, UM, THAT IS MORE INDICATIVE OF A FORM ZONING OR AN, WHAT I WOULD CALL LIKE AN URBAN APPROACH TO SINGLE FAMILY.
UM, WHERE, YOU KNOW, NO, YOU KNOW, YOU REMOVE THE DRIVEWAYS FROM THE FRONT OF HOUSES, UM, ALL THE ACCESS IS IN THE BACK.
YOU MOVE PARKING, YOU REMOVE PARKING GARAGES, UM, YOU HAVE MORE DECORATIVE, YOU KNOW, DECORATIVE ARCHITECTURE.
UM, MORE, MORE PORCHES IN THE FRONT OF HOUSES.
UM, SO, YOU KNOW, USUALLY THAT PRODUCT'S ABOUT 35 TO 40 FEET.
UM, AND IS MORE, IS A, IS A SMALLER PRODUCT, BUT IT'S ALSO MORE DECORATIVE.
AND IT'S, IT'S MORE, YOU KNOW, THE STREET SCAPE IS MORE ALLURING.
UM, AND AGAIN, YOU TAKE, YOU'RE TAKING THE CARS OUT OF THE STREET SCAPE AND YOU'RE MOVING THEM TO THE BACK OF THE RESIDENCES.
UM, ALSO WORKING IN SOME, YOU KNOW, MIDDLE HOUSING, WHICH IS A BIG BUZZ WORD ALL OVER THE COUNTRY, UM, WHEN IT COMES TO DEALING WITH AFFORDABLE HOUSING ISSUES, UM, AND PROVIDING YOUR, YOU KNOW, TOWN HOMES, PROVIDING SOME, YOU KNOW, WHAT YOU SEE IN THE FAR RIGHT LOWER RIDE IS, UH, ARE CALLED TEXAS BROWNSTONES.
THAT'S A PRODUCT THAT, UH, THE NOVAK BROTHERS, UM, HAVE KIND OF PATENTED AROUND AUSTIN.
UM, THAT LOOKS VERY MUCH LIKE AN OLD SCHOOL, KIND OF NEW YORK, NEW YORK BROWNSTONE APPROACH, BUT HE KIND OF HAS A TEXAS FLARE TO IT.
UM, YOU KNOW, FIVE PLEXES DU FIVE PLEXES TO DUPLEXES.
THOSE TYPES OF THINGS THAT REALLY GET YOU, YOU KNOW, GET YOU THAT ADDED RESIDENTIAL DENSITY THAT'S GOING TO FUEL, YOU KNOW, SOME OF THE OTHER COMPONENTS OF A MIXED USE DEVELOPMENT.
'CAUSE YOU'RE GONNA CREATE USERS, UM, THEY'RE MORE TIGHTLY COMPACTED, SO YOU'RE GONNA HAVE MORE WALKABILITY THROUGHOUT THE COMMUNITY BECAUSE EVERYTHING IS TIGHTER KNIT.
YOU FIND REALLY COOL SPACES IN COMMUNITIES LIKE THIS BECAUSE, YOU KNOW,
[01:00:01]
YOU MIGHT, YOU MIGHT HAVE ALLEY LOADED PRODUCTS FOR ACCESS, AND THEN YOU MIGHT PROVIDE PUBLIC PARK SPACE IN BETWEEN THE UNITS INSTEAD OF A STREET.SO YOU MIGHT CARVE OUT A, YOU KNOW, TAKE A STREET OUT OF AN AREA AND MAYBE THE, THE TOWN HOMES IN THAT AREA ARE FACING EACH OTHER AND HAVE LIKE A PARK WHERE PEOPLE CAN GO OUT AND BARBECUE AND KIND OF GATHER IT.
IT MAKES FOR A MUCH MORE CONNECTED COMMUNITY.
UM, AND A COUPLE THINGS THAT, THAT, YOU KNOW, WE'VE KIND OF TALKED ABOUT IN, YOU KNOW, AS FAR AS LOOKING LONG TERM AND PROVIDING FOR A, YOU KNOW, AN URBAN MIXED USE FEEL.
YOU KNOW, I THINK FORUM ZONING IS A PART OF THAT.
THAT'S SOMETHING THAT HU'S, UM, KIND OF ADOPTED AS, AS A PART, PART OF THE ZONING FOR THE PROPERTY ACTUALLY IS WHAT YOU WOULD CALL FORUM ZONING.
AND, AND WHAT THIS LOOKS LIKE IS, YOU KNOW, YOUR BUSINESSES ARE MOVED TO THE PUBLIC REALM, SO YOU DON'T HAVE A BIG HEB PARKING LOT WITH A BUILDING SET BACK 500 FEET FROM THE STREET.
YOUR BUILDINGS ARE INTERFACING WITH YOUR STREET.
UM, THE PARKING WOULD BE IN THE BACK OR, OR POTENTIALLY HAVE PARKING GARAGES.
AND SO IT MAKES FOR A MUCH MORE WALKABLE ENVIRONMENT AND INVITING ENVIRONMENT FOR THE PEOPLE THAT LIVE IN THE COMMUNITY AND THE PEOPLE THAT ARE GONNA COME USE THE COMMERCIAL SPACE OR THE MED OFFICE.
UM, AND IT ALSO TYPICALLY LENDS ITSELF, IT FOCUSES MORE ON, YOU KNOW, PHYSICAL FORM AND, AND, AND BUILDING PRESENCE AS OPPOSED TO, UM, ACTUAL REGULATING ZONING USE.
SO YOU CAN TURN, YOU KNOW, YOU CAN TURN SOMETHING THAT WAS PUT IN AS, YOU KNOW, A CERTAIN USE, LIKE A RESIDENTIAL TOWN HOME USE, AND YOU CAN REDEVELOP THAT AS A MIXED USE PRODUCT, MAYBE ADD SOME COMMERCIAL TO THAT.
SO IT REALLY LENDS ITSELF TO REDEVELOPMENT AS WELL, TO INCORPORATE MIXED USES, NOT JUST IN SPECIFIC AREAS, BUT THROUGHOUT THE COMMUNITY.
UM, HIERARCHICAL ZONING IS ANOTHER THING THAT KIND OF CO, YOU KNOW, COMBINES WITH FORM ZONING AND, AND REALLY JUST OFFERS THAT, THAT MIX OF USES.
IT, IT'S, YOU KNOW, THE, THE BASIC CONCEPT IS RESIDENTIAL DEVELOPMENT CAN GO ANYWHERE.
UM, YOU KNOW, IT CAN BE, IT CAN BE CLOSER TO YOUR COMMERCIAL SPACE, IT CAN BE CLOSER TO YOUR OFFICE SPACE.
AND SO IT, IT ALLOWS ITSELF A, A CERTAIN LEVEL OF FLEXIBILITY WHERE, UM, YOUR RETAIL SPACES AND YOUR OFFICE SPACES CAN REALLY, YOU KNOW, REDEVELOP OVER TIME.
SO IF IT BE, YOU KNOW, YOU CAN MAKE SOME INVESTMENTS ON A PIECE OF PROPERTY AND MAYBE 15 TO 20 YEARS DOWN THE LINE, THAT BECOMES SOMETHING ELSE.
AND THE HIERARCHICAL ZONING ALLOWS YOU TO NOT HAVE TO GO BACK TO CITY COUNCIL TO GO GET THAT LAND USE APPROVAL, WHICH IS HUGE.
I, I DON'T THINK PEOPLE UNDERSTAND WHAT A BARRIER THAT CAN BE TO DEVELOPMENT, TO REDEVELOPMENT WITHIN A COMMUNITY.
SO IT REALLY KIND OF PUTS AN EMPHASIS ON, HEY, OVER TIME THIS CAN BECOME SOMETHING BETTER.
THIS CAN CONTINUE TO BECOME SOMETHING NEW AND IT CAN REALLY GROW AND EVOLVE INTO SOMETHING MORE.
UM, I THINK LAST AND, AND THIS KIND OF RESONATES WITH WHAT EVERYBODY'S TALKED ABOUT AS FAR AS THE COMMERCIAL SPACE, UM, IS, IS REALLY, YOU KNOW, DRIVING, DRIVING THE, THE LONG-TERM USE OF RETAIL IN THIS DEVELOPMENT AND, AND, AND DOING THAT WITH VENUE DRIVEN COMMERCIAL AND PARKS, YOU KNOW, INITIATIVES.
UH, BUT THAT INCLUDES BREWERIES.
COULD INCLUDE, COULD INCLUDE ATHLETIC VENUES, UM, LIKE A TOP GOLF OR SOMETHING SIMILAR IN, I'M, I'M FROM DRIPPING SPRINGS AND DRIPPING SPRINGS.
WE HAVE A PLACE CALLED DREAMLAND THAT IS IN, IN BASICALLY A, UH, PICKLEBALL KIND OF COURT, BUT A PLACE THAT YOU CAN TAKE YOUR KIDS AND THEY CAN RUN AROUND ON A SPLASH PAD.
THEY HAVE A, THEY HAVE A BEER TAP ROOM.
IT JUST REALLY BRINGS THE COMMUNITY TOGETHER AND BRINGS PEOPLE FROM DIFFERENT, UH, FROM DIFFERENT SUBDIVISIONS AND AREAS.
SO I THINK THINGS LIKE THAT REALLY CAN CATALYZE THE COMMUNITY AND BRING PEOPLE IN.
I MEAN, I THINK THIS COMMUNITY, YOU KNOW, I DRIVE INTO HUDU, I SEE HEB, I SEE LOWE'S, I SEE A BUNCH OF STRIP RETAIL IN THE FRONT.
I THINK THIS COMMUNITY, IT'S GONNA BE IMPORTANT FOR IT TO REALLY STAND OUT AND TO REALLY HAVE SOMETHING THAT BRINGS PEOPLE IN.
AND I THINK THE VENUES HAVE THE POTENTIAL TO DO THAT.
UM, ATHLETIC, YOU KNOW, ONE THING WE'VE, WE'VE CONSIDERED DOING IN OUR DEVELOPMENTS AND, AND ARE TALKING TO THE CITY OF LOCKHART ABOUT DOING, IS POTENTIALLY DOING SOCCER FIELDS IN THE PARK SPACE, UM, WHERE YOU CAN HAVE YOUTH SOCCER TOURNAMENTS OVER THE WEEKEND AND, AND REALLY BRING PEOPLE IN THAT WAY.
SO I THINK, I THINK THE COMMERCIAL, ESPECIALLY EARLY ON IN THE DEVELOPMENT, IS REALLY GONNA HAVE TO CENTER AROUND FIGURING OUT WAYS TO DRAW PEOPLE THROUGH THESE TYPES OF INITIATIVES AND THROUGH THESE TYPES OF
[01:05:01]
USES.UM, MICRO RETAIL'S ANOTHER ONE THAT TOM HAD TOUCHED OFF, UH, TOUCHED ON, UM, THAT'S REALLY BASICALLY KIND OF AN ELEVATED FARMER'S MARKET AND, AND CAN REALLY INJECT A SENSE OF LOCAL BUSINESS OWNERSHIP INTO THE COMMUNITY WHERE, OBVIOUSLY, YOU KNOW, A LOT OF TEXAS TOWNS HAVE GREAT GUTS FOR DEVELOPMENT.
A LOT OF TIMES THE PRICE, YOU KNOW, THEIR, THEIR LEAST PRICING FOR THE PRICE FOR THEM, FOR SOMEBODY, FOR A BUSINESS OWNER TO GET INTO THAT SPACE IS VERY HIGH FOR THEM.
AND SO WHAT THE MICRO RETAIL DOES IS IT ALLOWS THEM TO HAVE A MUCH LOWER BARRIER TO ENTRY INTO THE MARKET AND REALLY PUTS AN EMPHASIS ON THAT LOCAL BUSINESS OWNER AND, AND BEING ABLE TO, YOU KNOW, AFFORD A 250, 300 SQUARE FOOT PLAY, UH, SQUARE FOOT SPACE AND POTENTIALLY START THEIR BUSINESS.
AND THEN YOU CAN SEE HOW THINGS LIKE THAT CAN DEVELOP INTO, UM, INTO SUPPORTIVE MIXED USE AND, UM, AND MORE DEVELOPED AREAS WITHIN THE COMMUNITY AS THOSE PEOPLE, AS THOSE PEOPLE EVOLVE AND PROGRESS.
UM, THIS IS A CONCEPT PLAN THAT WE PUT TOGETHER.
IT WAS A VERY QUICK BUBBLE PLAN.
SO I'LL CAVEAT THAT WITH, WITH THAT, YOU KNOW, THAT, UM, I THINK IT REALLY JUST SHOWS A LOT OF, YOU KNOW, WHAT WE KIND OF TALKED ABOUT IN THE BEGINNING, UM, SINGLE FAMILY DEVELOPMENT KIND OF IN THE UPPER RIGHT CORNER THAT WOULD INCLUDE YOUR MIDDLE HOUSING.
SO IT WOULDN'T JUST BE FRONT LOADED SINGLE FAMILY HOMES WITH FRONT GARAGES.
IT WOULD BE ALLEY LOADED PRODUCT, UH, 30 FIVES AND FORTIES.
IT COULD BE LIKE FIVE PLEXES, DUPLEXES, TOWN HOMES.
UM, REALLY KIND OF USING THE, USING THE 35 AND 45, 40 FOOT PRODUCT AS A BASIS TO DRAW BUILDERS IN, BUT THEN BE ABLE TO DIVERSIFY OVER TIME.
AND I, I THINK THAT'S AN AREA WHERE THAT'S ONE OF THE AREAS WHERE YOU SEE KIND OF AN IMMEDIATE NEED WITHIN THE CITY, UM, THAT COULD PROVIDE A FOUNDATION FOR THE REST OF THE DEVELOPMENT TO KIND OF BUILD OFF OF, UM, AS YOU GET TOWARDS THE PARK AREA.
WE KIND OF HAVE A, A CENTRAL PARK AREA THAT WE PUT TOGETHER.
UM, AND AGAIN, UH, I KNOW WE'D HAVE TO TALK THROUGH ALL OF THIS STUFF.
THIS IS REALLY JUST KIND OF A QUICK DOODLE THAT WE PUT TOGETHER.
UM, THE, THE KIND OF BROWNISH AREAS ARE MORE MULTIFAMILY.
UM, I'VE SEEN SOME REALLY, YOU KNOW, KIND OF EVOLVED MULTIFAMILY DONE OVER THE LAST PROBABLY FIVE TO SEVEN YEARS IN AUSTIN.
UM, GOODNIGHT RANCH HAS SOME THAT'S, THAT'S REALLY KIND OF, IT'S, IT'S A GARDEN STYLE PRODUCT, BUT IT'S PUSHED TO THE STREET.
IT HAS REALLY GOOD STREET INTERFACE.
UM, POTENTIALLY HAVE SOME MIXED USE COMPONENTS ON THE CORNER IN THE CORNERS OF THE BUILDING.
UM, BUT I THINK, YOU KNOW, THOSE, THOSE, LIKE TOM SAID, THOSE THINGS WOULD HAPPEN OVER, OVER TIME.
YOU HAVE, WE HAVE YOUR MEDICAL OFFICE ALONG HIGHWAY 79, UM, AND THEN THE MICRO RETAIL WOULD KIND OF GO IN THAT PURPLE-ISH, UH, BLUE AREA, UM, WITH, WITH A SUBSTANTIAL INVESTMENT IN THE PARKS, WHICH WE FEEL LIKE MIRRORS, UH, WHAT WAS TALKED ABOUT IN THE COMPREHENSIVE PLAN AND WHAT IS, WHAT IS SHOWN IN, IN THE, UH, FUTURE LAND USE PLANS IN THE ZONING.
UH, JUST TO GIVE AN EYE, JUST OVERALL VIEW REAL QUICK OF, OF KIND OF THE NUMBERS THAT WE'RE THINKING.
UM, ONE FIFTH OF THE TRACT ACREAGE FOR, FOR PUBLIC USE FOR PARKS AND OPEN SPACE, UH, WOULD LOVE TO CONTINUE THE COTTONWOOD TRAIL.
I THINK THERE'S A LOT OF POTENTIAL THERE.
UM, 54% OF THE TRACT IS SET ASIDE FOR RESIDENTIAL DEVELOPMENT.
UH, WE'RE, WE'RE RIGHT NOW RUNNING ABOUT 14 UNITS PER ACRE OF RESIDENTIAL, UH, DENSITY.
AND THAT IS EVERYTHING FROM SMALLER SINGLE FAMILY TO MULTIFAMILY.
UM, AND THEN 20% OF THE TRACK SET ASIDE FOR COMMERCIAL MIXED USE, UM, THE PROPOSED MICRO RETAIL WE TALKED ABOUT.
SO I, I THINK, YOU KNOW, JUST TO REITERATE, SUPER EXCITED.
APPRECIATE THE OPPORTUNITY TO, TO SPEAK TO YOU GUYS TONIGHT.
AND TOM AND I, I SAW THAT THIS MORNING AND IT CRACKED ME UP.
I DON'T KNOW WHY, BUT TOM AND I ARE AVAILABLE TO ANSWER QUESTIONS.
SO IN THE INTEREST OF TIME, WE PROBABLY HAVE ABOUT FIVE MINUTES OR SO FOR QUESTIONS, AND THEN I WANNA GIVE THEM, YEAH, I WANNA GIVE THEM EIGHT MINUTES.
FIVE MINUTES FOR QUESTIONS AND THREE MINUTES FOR THEIR WRAP UP.
ANYBODY, UM, YOU MENTIONED A LOT ABOUT, UM, ABOUT, UH, THE, THE RESIDENTIAL AND JUST INTERESTED TO KNOW ON THIS, WOULD YOU HAVE, UM, YOU KNOW, OPPORTUNITIES FOR LIKE TOWN HOMES OR CONDOS TO OWN
[01:10:01]
INSTEAD OF RENT? WOULD, WOULD THAT BE SOMETHING THAT YEAH, LIKE AGAIN, THAT, UM, ONE OF THE FIRST STATS IS THAT YOU HAVE, YOU HAVE AN 81% OWNERSHIP HERE IN, IN HU EVEN IF THAT DECLINES A LITTLE BIT, YOU'RE STILL IN THE MID TO UPPER SEVENTIES.SO WE'RE GOING TO HAVE TO FOCUS ON SOME SORT OF OWN, UH, PRODUCT.
SO IN MY MIND, IF IT'S GONNA BE A RENTAL PRODUCT, IF YOU REALLY WANNA SEE A GARDEN STYLE MULTI-FAMILY OR, OR FOUR STORY POSSIBLE.
BUT I'D PROBABLY LEAN MORE TOWARDS THE, UM, CONDO SORT OF TOWN HOME RENTALS, BTR SPACE, THE DUPLEXES, QUA PLEXES, AND, AND WE HAVE A GROUP OUT OF, UH, HOUSTON ACTUALLY THAT WE WORK WITH FOR THAT.
I WOULD LEAN TOWARDS OWNING THOUGH, IF THE, IF IT WAS MY, MY OWN LAND.
YOU LISTED ONE OF THE PROJECT NAMES, I BELIEVE.
WHAT WAS IT? UH, FOREST WOOD FOREST IN TEXAS.
WHAT OTHER PROJECTS ARE YOU INVOLVED WITH HERE IN TEXAS THAT YOU CAN SHARE WITH US? YEAH, SO, UM, WE HAVE A VARIETY OF SIZES OF PROJECTS.
WE HAVE A FIVE OR SIX UP IN, UM, DALLAS, MORE IN PHIL PROJECTS, ONE PROMINENT IN BISHOP ART DISTRICT, UM, PRI PRIME, BISHOP ART, BISHOP ART, YEP.
UM, THEN YOU COME DOWN HERE TO AUSTIN.
WE HAVE TWO MASTER COMMUNITIES IN CALDWELL COUNTY.
WE'RE VERY CLOSE TO THOSE, UM, CITY COUNCILS AND EVERYTHING ELSE, SO HAPPY TO, TO PROVIDE THEIR FIRSTHAND EXPERIENCE WITH THEM.
UM, 600 ACRE IN LOCKHART, 347 ACRE IN, UH, NEAR SAN MARCUS.
AND THEN HUDA WOULD BE OUR THIRD MASTER HERE IN AUSTIN.
WE HAVE TWO OTHER COMMUNITIES THAT ARE SMALLER IN THE A HUNDRED, 150 ACRE RANGE.
UM, SO IF I WAS GONNA LOOK FOR THE ONE IN LOCKHART, WHAT WOULD BE THE NAME OF THAT? SO IT'S CALLED SEA WILLOW RANCH.
AND ONE THING THAT WE DO THAT WE HAVEN'T MENTIONED HERE, GENERALLY WE LIKE TO BUILD A, HAVE A, A 20 TO 40 ACRE TRACK OF LAND FOR THE SCHOOL.
UM, ALL OF THOSE COMMUNITIES THAT WE BUILD, WE DONATE THAT LAND TO THE SCHOOLS TO BUILD.
SO THAT OBVIOUSLY IS A HUGE COMPONENT OF OUR FOUNDATION WORK AS WELL.
SO, THINK I HAVE ANYTHING? OKAY.
WELL, I'D LIKE TO TURN TO BACK OVER TO YOU GUYS.
I DO APPRECIATE YOU GUYS COMING IN FOR A PRESENTATION.
I'LL GIVE YOU THE LAST FINAL MINUTES TO KIND OF CLOSE AND WRAP UP.
YEAH, I THINK, UM, JUST AGAIN, GOING BACK TO OUR FOUNDATION, UM, FOR OUR EDUCATORS.
SO IF WE GET INTO THE, INTO THE TALKS OF THE, OF THE NEXT SORT OF, UM, ROUNDS, I WOULD, I WOULD ENCOURAGE TO LOOK AT OUR PROGRAM TEACH, WHICH IS ONE OF OUR WAYS THAT WE'RE GIVING TEACHERS HOUSING WHERE WE PASS THROUGH OUR PROFITS, UM, AND GIVE ACCESS TO ACTUAL HOMES, TO TEACHERS.
THAT'S GONNA HELP YOUR SCHOOL DISTRICTS TREMENDOUSLY THROUGH ATTRITION.
UM, IF YOU WANT TO HAVE A REFERENCE, MARK ESTRADA, SUPERINTENDENT IN LOCKHART 60 HOMES WILL BE GOING TO HIS TEACHERS.
WE HAVE 40 GOING TO THE SUPERINTENDENT OF LARRY, UM, OVER IN PRAIRIE LEE.
SO THIS WOULD BE A PRIME CANDIDATE HERE AS WELL.
UM, WE'VE TALKED TO THE OLDEST ESTRADA HERE FOR THE, THE SUPERINTENDENT ON THIS PROGRAM.
UM, WITH OUR MED CAMPUS TOO, WE'RE ALSO ABLE TO INTERTWINE THE SCHOOLS AND EDUCATION TO OUR MED CAMPUS.
SO, AND SHE WAS ALREADY DOING THAT, AND SO THERE'S A NICE WAY TO, UM, INTERSECT THAT INTO OUR COMMUNITY.
SO JUST PLUG THERE FOR OUR PROGRAM.
ASIDE FROM THAT, LOOK, WE, WE WANNA BE HERE AND THAT'S WHY WE'RE HERE TONIGHT.
UM, WE'RE HOPING THAT WE CAN KEEP THE, THE, THE CONVERSATION GOING.
I THINK WE GIVE YOU WHAT WE THINK YOU WANT.
I THINK WE HAVE TO SIT DOWN AND REALLY GET INTO THE BRASS TACKS.
THERE'S A LOT THAT GOES INTO THIS EQUATION.
AND, UM, ANYONE WHO YOU CHOOSE TO BE WITH, I WOULD OPEN UP PANDORA'S BOX AND REALLY GET IN INTO THE BRASS TACKS OF ALL THIS.
SO WE'RE, WE'RE HERE FOR THAT.
AND, YOU KNOW, ANY QUESTIONS? WE'RE, WE'RE HERE, SO, GREAT.
DO WE HAVE TIME FOR, LIKE, A TIME FOR LIKE A F**K.
I THINK WE'RE GONNA TAKE A FIVE MINUTE RECESS.
'CAUSE I'M GONNA TRY AND I NEED A RESET.
WE'RE GONNA RECESS FOR FIVE MINUTES.
'CAUSE WE HAVE ONE MORE PRESENTATION.
IS THAT OKAY IF I JUST KEEP IT AND JUST PLUG RIGHT IN? THAT'S FINE.
WHAT WOULD YOU PREFER? I THINK I HAVE, YES, I CAN DO THAT.
[01:15:07]
NO, I'M GOOD.NO, I'M GONNA GO REFILL MY WATER IN A SECOND.
I JUST NEED TO MAKE SURE I DO THIS PROPERLY THIS TIME SO AARON CAN SEE IT.
NEVER KNOW WHAT TECHNOLOGY'S GONNA DO.
THIS IS A RELATIVELY NEW SYSTEM.
[01:20:59]
TECHNICALLY SHE HAS PUT MY ROOM UP THERE.THE TIME IS NOW 8 23 WHEN WE'RE BACK FROM BREAK.
UH, MY NAME'S AUSTIN MCWILLIAMS. I'M A DEVELOPMENT PARTNER AT CSW DEVELOPMENT.
WE THANK YOU FOR HAVING OUR TEAM HERE TONIGHT TO TALK ABOUT WHAT WE BELIEVE IS A VERY SPECIAL OPPORTUNITY FOR THIS COMMUNITY TO CREATE A UNIQUE SPACE AND A GATHERING SPACE FOR A GENERATION TO COME.
UM, OUR TEAM HERE TONIGHT, UH, AUSTIN MCWILLIAMS, DEVELOPMENT PARTNER KEVIN HUNTER, OUR COO AND CFO FOR OUR COMPANY IS HERE AS WELL, AS WELL AS OUR TEAMMATE.
UH, BRIAN MOORE, LEAD LANE, PLANAR AND ARCHITECT AT GFF ARCHITECTS.
UM, AS A BIT OF BACKGROUND ON OUR COMPANY, CSW DEVELOPMENT IS A FULLY INTEGRATED COMMERCIAL DEVELOPMENT COMPANY BASED HERE IN AUSTIN, TEXAS.
WE'VE, UH, BEEN IN BUSINESS ABOUT 20 YEARS, A HUNDRED PROJECTS TO DATE FOCUSED ALMOST EXCLUSIVELY IN AUSTIN AND SAN ANTONIO REGION.
UM, WHAT WE THINK IS A REALLY UNIQUE OPPORTUNITY AND PARTNERSHIP HERE IS OUR RELATIONSHIP WITH JLL.
WE HAVE AN AFFILIATION WITH JLL, THE, THE GLOBE'S SECOND LARGEST COMMERCIAL REAL ESTATE SERVICES FIRM.
UH, THEY HAVE OFFICES AROUND THE COUNTRY, AROUND THE GLOBE, 103,000 GLOBAL EMPLOYEES OF WHICH WE UTILIZE TO LEVERAGE FOR SUCCESS OF OUR DEVELOPMENTS.
UM, WE UTILIZE JLL FOR A LOT OF REASONS.
WE UTILIZE 'EM BECAUSE OF THEIR EXPERTISE.
WE UTILIZE 'EM BECAUSE OF THEIR INTELLIGENCE, THEIR MARKET INTELLIGENCE, THEIR DATA ANALYTICS.
WE UTILIZE 'EM FOR THEIR DEBT.
SOURCING CAPABILITIES IN THE CAPITAL MARKETS IN DAYS LIKE TODAY IS EXTREMELY IMPORTANT.
UM, WE USE 'EM FOR THEIR USER SERVICES.
SO THEY REPRESENT TENANTS, THEY REPRESENT EMPLOYERS, THEY REPRESENT RETAIL TENANTS, ALL OF WHICH WE ROLL INTO OUR PROJECTS.
UM, AND THAT HAS BEEN VERY SUCCESSFUL FOR US OVER THE LAST DECADE, AND WE THINK IT'S A COMPETITIVE ADVANTAGE HERE FOR COTTONWOOD TOGETHER.
UM, THE OPPORTUNITY THAT THIS COMMUNITY HAS TO DEVELOP COTTONWOOD IS SPECIAL.
THERE IS NO OTHER, THERE IS NO OTHER PROPERTY IN THIS REGION THAT HAS THE FUNDAMENTALS IN PLACE TO MAKE SUCH A PROJECT A SUCCESS FOR A GENERATION.
IT HAS MASSIVE EXPANSIVE LAND OPPORTUNITIES, UH, EXTREME AMOUNT OF FRONTAGE ACCESS TO UTILITIES.
IT'S IN OBVIOUSLY A VIBRANT AND GROWING COMMUNITY, BUT IT IS IN THE MIDDLE OF AN EMPLOYER IN MANUFACTURING BOOM THAT WE HAVE NEVER SEEN BEFORE.
THOSE USERS CAN LAND HERE WITH THE RIGHT PARTNER.
OUR PARTNERS AT JLL REPRESENTED SAMSUNG.
OUR PARTNERS REPRESENTED A LOT OF THE VENDORS FOR SAMSUNG.
WE REPRESENTED TESLA, A LOT OF THE VENDORS FOR TESLA.
THERE IS NO REASON WHY THOSE USERS CANNOT BE HERE IN HU AT COTTONWOOD, INTEGRATED IN WITH THE RETAIL AND COMMERCIAL COMPONENTS, INCLUDING SOME RESIDENTIAL THAT WE THINK IS IS POSSIBLE.
BUT TO START THE PROCESS, I WANNA INVITE BRIAN UP HERE.
BRIAN'S THE LEAD LAND PLANNER AND, UH, ARCHITECT AT GFF TO TALK ABOUT THE PROCESS.
HOW ARE WE GONNA START THIS PROCESS TO ACTUALLY BRING COTTONWOOD TO LIFE? IT STARTS BY LISTENING.
I'M BRIAN MOORE, GFF ARCHITECTS AND PLANNERS IN DALLAS.
UH, OUR FIRM ALREADY HAS AN EXISTING WORKING RELATIONSHIP WITH THE, UH, THE, THE CITY OF HOT HOTEL.
HAVING WORKED IN THE CITY OF HOT HOTEL ON RETAINER, UH, FOR THE PAST TWO YEARS OR SO, UH, AT LEAST OVER THE 18, THE LAST 18 MONTHS.
PRIOR TO THAT, UH, OUR FIRM AND MYSELF, UH, HAVE BEEN WORKING WITH,
[01:25:01]
UH, BOB FARLEY, UH, PREVIOUSLY FOR THE LAST, UH, UH, EIGHT TO 10 YEARS OR SO.UH, IN A COMBINATION OF DIFFERENT MUNICIPALITIES, UH, SPECIFICALLY, UM, UH, NAMELY LINCOLN, UH, NEBRASKA, UH, COLLEGE STATION, TEXAS, UH, PRINCETON, TEXAS, RICHARDSON, AND, UH, MOST NOTABLY, UH, GRAPEVINE, TEXAS, WHERE WE'RE STILL ON RETAINER FOR, UH, DOING MASTER PLANNING SERVICES FOR THEM.
UH, YOU LOOK AT THE, THE, UH, THE IMAGE UP ON THE SCREEN, THAT WAS A, A, A PLAN THAT WE QUICKLY DID JUST AS A TEST FIT.
UH, UH, WE UNDERSTAND THAT THE CITY IN PARTICULAR HAS GONE THROUGH THE PROCESS OF WANTING TO, UH, TO ASCERTAIN FROM USER GROUPS LOOKING AT DIFFERENT OPPORTUNITIES, UH, AND DEVELOPMENT OPPORTUNITIES WITHIN THE, UH, 250 ACRE PIECE OF PROPERTY.
UH, THIS WAS DONE PRIOR TO THAT PRO, UH, PRIOR TO THAT PROCESS.
BUT WHAT WE WERE INTENDING TO BE ABLE TO DO WAS TO MERELY SHOW YOU SOME TEST FIT, UH, IDEAS OF HOW MUCH ACREAGE, UH, CERTAIN USES ARE ACTUALLY ALLOCATED TOWARDS.
SO THAT'S WHAT THAT PLAN WAS INTENDING TO DO.
ONE OF THE THINGS THAT WE REALLY TAKE PRIDE IN, UH, FROM A MASTER PLANNING, UH, SERVICES FIRM, IS TAKING A LOOK AT A PROPERTY WITH YOU, NOT TO YOU.
UH, WHEN WE PREPARE MASTER PLANNING, UH, WHAT WE DO IS WE FEEL VERY COMFORTABLE GOING THROUGH, UH, A HALF DAY OR FULL DAY, UH, DESIGN CHARETTE WITH YOU, WHERE WE'RE NOT JUST TALKING AND LISTENING, UH, BUT WE'RE ALSO DRAWING RIGHT THERE ON THE SPOT.
SO, UH, WE'LL GET OUT THE BUTTER PAPER AND LITERALLY DRAW THAT PLAN RIGHT THERE, RIGHT THERE IN FRONT OF YOU AND WITH YOU, UH, TO MAKE, BE ABLE TO MAKE SURE AND GAIN CONSENSUS BUILDING FROM THE VERY BEGINNING.
RIGHT? AND THOSE IDEAS, THERE'LL BE MULTIPLE IDEAS, BUT THEY MIGHT NOT ALWAYS BE THE BEST IDEA.
THEY MIGHT BE A SERIES OF GOOD IDEAS, BUT YOU, UH, COMBINE THOSE SERIES OF GOOD IDEAS IN WITH, UH, UH, MULTIPLE OTHER IDEAS TO PREPARE TRULY THE BEST IDEA FOR YOUR PARTICULAR STAKEHOLDER GROUP.
SO, AS YOU THINK ABOUT WHO YOUR STAKEHOLDER GROUP IS GOING TO BE, IN ADDITION TO YOURSELVES, PERHAPS A COUPLE OF MEMBERS OF, UH, UH, OF THE COMMUNITY, UM, WILL, UH, WILL ENGAGE AND CONDUCT HELPING CONDUCTING, UH, A SERIES OF, UH, A SERIES OF CHARETTES LIKE THAT, AND THEN HAVE, UH, PERIODIC MEETINGS THEREAFTER.
UM, IN ADDITION TO GOING THROUGH AND GETTING COMMUNITY FEEDBACK AND OUR, AND THE STAKEHOLDERS WORK GROUP, WHICH OBVIOUSLY STARTS THIS WHOLE PROCESS, WE DO NOT COME INTO THIS COMMUNITY AND IMPOSE DEVELOPMENT IDEAS THAT HAVE WORKED ELSEWHERE UPON THE COMMUNITY.
WE TAKE THE FEEDBACK SERIOUSLY BECAUSE ULTIMATELY WE WILL SEEK THE ENDORSEMENT OF THIS BOARD FOR A MASTER PLAN THAT WE WORK TOGETHER ON WHILE THE CHARETTES ARE ONGOING AND VARIOUS USES ARE INPUTTED FOR THAT LAND, THAT LAND PLAN.
WE WERE ALSO ENGAGING, UH, JLLS, UH, DATA ANALYTICS TEAM.
THEY'LL DO MARKET DEMAND STUDIES, THEY'LL DO VOID ANALYSIS STUDIES, WE'LL DO FEASIBILITY STUDIES, ALL OF WHICH WE, WE PULL TOGETHER TO INCORPORATE INTO THE MASTER PLAN, WHICH WE COME RIGHT BACK TO YOU TO GET YOUR ENDORSEMENT TO MOVE FORWARD, MOVING FORWARD.
FROM THAT STEP, WE'LL CONTINUE WITH OUR SITE DUE DILIGENCE, ALL THE THINGS NEEDING TO PUT THIS SITE INTO PRODUCTION.
WE'LL DO IT AT THE SAME TIME WE'RE DOING ANY ENTITLEMENTS THAT ARE REQUIRED ON THE SITE TO INCREASE THE VALUE OF THE LAND, TO MAKE IT DEVELOPABLE, UM, TO PUT IT IN PRODUCTION IN REAL TIME.
UM, IT'S TOURS, AGREEMENTS, THREE 80 AGREEMENTS, PUTT AGREEMENTS, UNIFIED DEVELOPMENT AGREEMENTS.
UH, ALL THOSE THINGS WILL BE REQUIRED TO THEN PUT IT IN PRODUCTION AND MERCHANDISE IT CORRECTLY.
I'M GONNA INVITE KEVIN HUNTER UP HERE, KEVIN HUNTER'S, OUR COO, UM, CFO OF, OF CSW.
UH, AND HE WILL TALK ABOUT HOW WE WOULD UNDERWRITE THIS PROJECT, WHICH I KNOW IS IMPORTANT, HOW WE'RE GONNA PUT IT IN PRODUCTION, AND THE PHASING THAT WE WOULD RECOMMEND, UH, FOR THE PROJECT.
UH, WE APPRECIATE, AS AUSTIN SAID, WE APPRECIATE THE OPPORTUNITY TO BE HERE.
UH, WE HAVE WORKED IN A NUMBER OF CITIES, UH, AND WORKED IN PARTNERSHIP WITH CITIES RECENTLY WITH KYLE, UH, MAYOR MITCHELL, KYLE CROSSING, WHERE WE'RE BUILDING RETAIL DEVELOPMENT, UH, COMBINED WITH A VIBE TRAIL, WHICH I DON'T KNOW IF Y'ALL FAMILIAR WITH THIS, BUT THIS IS A 50 PLUS MILE TRAIL THAT THE CITY OF KYLE IS USING TO CONNECT THE OLD TOWN OF KYLE TO THE NEW TOWN OF KYLE, FROM THE EAST SIDE OF KYLE TO THE WEST SIDE OF KYLE.
IN OUR, IN OUR PROJECT, WE'VE INTEGRATED THIS VIBE TRAIL THROUGH IT, WHICH IS A 12 FOOT WIDE INTERMODAL, UH, PEDESTRIAN GOLF CART AND BIKING TRAIL.
I KNOW I'M SUPPOSED TO TALK ABOUT FINANCE, BUT I'VE REALLY ENJOYED THIS PART.
UM, SO ONE THING THAT GOES BACK TO FINANCE, WE WORKED, WE TALKED TO KYLE, WE TALKED TO TRAVIS MITCHELL, WE TALKED TO THE EDC, WE TALKED TO THE STAKEHOLDERS OF THE COMMUNITY.
AND THE BIG PART, THE BIG MISSING PIECE WAS A LARGE RAILROAD TRACK THAT RAN RIGHT NEXT TO OUR PART, NEXT TO OUR PROPERTY.
AND WE COULDN'T FIGURE OUT HOW TO GET THIS
[01:30:01]
SIDEWALK, THIS INTERMODAL TRAIL, THIS VIBE TRAIL ACROSS, UM, ACROSS THE, THIS NATURAL DIVIDE OF THIS RAILROAD.WE TALKED TO THE BORING COMPANY, UM, WHICH IS OWNED BY TESLA, WHERE WE LOOKED AT DOING A TUNNEL UNDERNEATH THE, UH, RAILROAD TRACK TO CONNECT BOTH PARTS OF THE CITY.
WE THOUGHT THAT WAS A GREAT IDEA.
UNFORTUNATELY, UH, STRUCTURALLY AND, UH, RAILROAD TYPE ISSUES, WE COULDN'T MAKE IT HAPPEN.
WHAT WE DID MAKE HAPPEN WAS WE GOT APPROVED THROUGH TXDOT OF, OF A LARGER BRIDGE THAT WOULD BE SPECIALTY BRIDGE FOR OUR, UM, FOR OUR VIBE TRAIL THAT WOULD SOLVE THIS PROBLEM.
WE FIN AS A DEVELOPER, WE FINANCED, WE SAW THE VALUE OF THE PEDESTRIAN CONNECTIVITY.
WE SAW THE VALUE OF LINKING PARTS OF THE CITY TOGETHER, AND WE'VE FINANCED THROUGH A SPECIAL, SPECIAL AGREEMENT, UH, THIS MULTIPLE MILLION DOLLAR, UM, TRAIL THAT IS BEING BRIDGED OVER A LARGE RAILROAD RIGHT THERE ON 1626.
SO, POINT BEING FROM A FINANCING STANDPOINT, WE'VE, WE'VE, LIKE, LIKE AUSTIN SAID, WE'VE LOOKED AT VARIOUS DIFFERENT FINANCING MECHANISMS. YOU'VE GOTTA BE REALLY CREATIVE TODAY.
UM, WE ARE FINANCED INTERNALLY, UH, BY LARGE, HIGH NET WORTH INDIVIDUALS.
WE ARE AUSTIN-BASED, LARGE, HIGH NET WORTH INDIVIDUAL FINANCED.
AND THAT ALLOWS US FLEXIBILITY TO PARTNER WITH CITIES, WITH EDCS, WITH THE COMMUNITY, AND, YOU KNOW, BE IT PARKLAND, BE IT TRAILS, BE IT CIVIC BUILDINGS.
UH, THERE'S ESPECIALLY WAYS TO GET PROJECTS FINANCED THAT BENEFIT THE COMMUNITY THAT, UM, NORMALLY A DEVELOPER WILL WANNA DO A BOND ELECTION OR WHATNOT FOR.
AND WE'VE GOT CREATIVITY AND CREATIVE WAYS TO DO THAT.
SO WHAT AUSTIN HIT ON, AND WHAT THESE OTHER GROUPS HAVE HIT ON AS WELL, IS THE FINANCING MARKETS ARE REALLY DIFFICULT RIGHT NOW TO GET THINGS DONE.
MULTI-FAMILY IS, AS THEY'VE SAID, IT'S VERY HARD TO GET FINANCING.
WHAT CAN GET DONE NOW IS USER-DRIVEN DEVELOPMENTS.
WHAT AUSTIN TOUCHED ON THROUGH THE JLL AND THROUGH OUR OTHER PROJECTS, A GROCER IS INCREDIBLY IMPORTANT.
THAT GREEN, THAT BRINGS THE VIBRANCY TO THE COMMUNITY, THAT THAT REALLY, THE PIECES WILL FALL BEHIND IT.
UH, IT'S VERY HARD TO GET GROCERS.
JLL HAS GREAT RELATIONSHIPS WITH GROCERS.
WE'VE WORKED WITH, UM, SPROUTS, TRADER JOE'S, RANDALL'S, HEB, ALL THE GROUPS, BUT YOU GUYS HIT THE NAIL ON THE HEAD.
YOU NEED A GROCER, UM, THAT WILL GENERATE, UM, THE SMALL SHOP SPACE.
UM, IT WILL GENERATE THE RESIDENTIAL, BUT IT WAS ALSO BRING THE WHOLE COMMUNITY TOGETHER THROUGH THIS GROCERY FIELD.
SO I THINK Y'ALL ARE RIGHT ON WITH THAT.
BUT LANDING A GROCER IS WHAT WE CAN DO.
UH, AND BY BRINGING THE GROCER IN THAT THAT'S THE CATALYST TO GET EVERYTHING GOING.
BUT ALSO THESE EMPLOYMENT CENTERS, LIKE WE'RE TALKING ABOUT, WHAT WE HAVE IS TAYLOR RIGHT DOWN THE ROAD.
WE WANT THESE PEOPLE TO BE HERE.
UM, AND Y'ALL ARE ALL AWARE OF THE COMPETITION THAT TAYLOR IS RAMPING UP.
THEY DON'T HAVE UTILITIES LIKE YOU GUYS DO NOW.
Y'ALL ARE WAY AHEAD, BUT THEY'RE WORKING TO TRY TO CREATE THIS SYNERGY OFF OF SAMSUNG.
WE'VE GOT A UNIQUE OPPORTUNITY TO SAY, WE'VE GOT A DEVELOPABLE SITE, WE'VE GOT A WELL THOUGHT OUT SITE, WE'VE GOT A COMMUNITY BASED SITE, AND LET'S LAND THESE USERS WHILE WE CAN BECAUSE THEY ARE LOOKING.
SO FROM A FINANCING STANDPOINT, USERS IN HAND CREATE, UM, A FINAN, PROVIDE THE FINANCIAL STABILITY TO GET THE DEVELOPMENT GOING IN THE RIGHT DIRECTION.
CSW COMMONLY, ALWAYS, WE ARE FRONTING ALL THE COSTS TO GET THE PROJECT DESIGNED AND MASTER PLANNED.
HOW THE CITY AND OUR PARTNERS AND THE EDC WOULD WANT IT.
THE, ALL THOSE COSTS WE COME UP WITH UPFRONT.
WE TAKE THOSE AT RISK AND WE CREATE A PALLET TO THEN GO ATTRACT THE USERS THAT WE KNOW IN THE MARKETPLACE.
AND THEY'VE GOTTA BE ABLE TO SEE IT AS, HEY, WE, YOU KNOW THIS, WE CAN SEE OURSELVES LANDING HERE.
IT'S GOT THE INFRASTRUCTURE IN PLACE, IT'S GOT THE ACCESS, IT'S GOT, IT'S A WELL THOUGHT OUT, UH, MASTER PLAN DEVELOPMENT.
UM, SO FINANCING IS REALLY TIED TO USERS TODAY.
AND ONCE WE HAVE CREATED THE PALLET, IMMEDIATELY GET A USER OR TWO, THAT'S WHAT WILL GET THE WHOLE PROJECT GOING.
WITHOUT A USER, IF YOU'RE JUST SAYING, HEY, I WANT TO DO SOME RESIDENTIAL HOMES, THAT'S REALLY HARD TO DO RIGHT NOW.
[01:35:01]
GOTTA HAVE A COMMERCIAL APPROACH AND A COMMERCIAL USER AND THEY'RE OUT THERE.SO, UM, CREATIVITY, UH, BUT REALLY USER-BASED APPROACH, COMMERCIAL-BASED APPROACH.
THAT'S THE APPROACH WE WOULD TAKE HERE BECAUSE WE KNOW THAT THE RESIDENTIAL DEMAND IS HERE AND IT CAN BE DONE VERY WELL.
UH, WE ARE A VERTICALLY INTEGRATED DEVELOPMENT COMPANY.
WE WILL DO SOME RESIDENTIAL, BUT, UM, LIKE BRAD SAID EARLIER, IF IT'S SINGLE FAMILY HOMES AND THERE'S SOMEBODY THAT CAN DO IT BETTER, WE'RE GONNA INTERVIEW THE BEST GROUPS AND GET THE BEST GROUPS IN TO DO THE PROJECT.
BUT FROM A RETAIL OFFICE, FLEX AND SOME MULTIFAMILY, WHERE AS GOOD AS IT GETS.
SO I'M GONNA TURN THIS BACK OVER TO AUSTIN.
TO KEVIN'S POINT, UM, THE SUCCESS THAT WE HAVE HAD IN OUR RELATIONSHIP WITH JLL AND HOW WE FORESEE PHASE ONE STARTING HERE, THAT BEING THE RETAIL COMPONENT, THE RETAIL COMPONENT, THE RETAIL AND ENTERTAINMENT COMPONENT CREATES A DRAW.
YOU ALL KNOW IT TOO WELL IN THIS COMMUNITY.
IT HAPPENS IN COMMUNITIES ALL OVER THIS STATE.
IF YOU DO NOT HAVE THE RIGHT ANCHOR, IF YOU DO NOT DEVELOP AND DESIGN THIS PROPERTY CORRECTLY FROM THE BEGINNING, IT HAS FAILED BEFORE IT STARTS.
YOU HAVE THE LAND, YOU HAVE THE WIDTH, YOU HAVE THE DEPTH, YOU HAVE THE UTILITIES, YOU HAVE THE JOB GROWTH THAT IS, IT'S COMING HERE WHETHER YOU WANT IT TO OR NOT.
HOW YOU ARE GONNA BEAT YOUR COMPETITION HERE IS HIRING A COMMERCIAL DEVELOPER THAT KNOWS HOW TO PRIORITIZE THE COMMERCIAL AND RETAIL FIRST, TO THEN ALLOW LAYER IN OTHER APPROACHES.
THE OTHER RESIDENTIAL, IT WILL CREATE EMPLOYERS THAT WILL WANT AN OFFICE HERE BECAUSE THEIR EMPLOYEES CAN WALK TO GO HAVE LUNCH AND NOT JUST AT JIMMY JOHN'S.
IT'LL BE ACTUALLY FULL SERVICE RESTAURANTS THAT CAN ALL BE DONE.
YOU'RE RIGHT, YOU'RE VOID OF A GROCER.
JLL AND OUR TEAMMATES OVER THERE REPRESENT TWO OF 'EM.
TRADER JOE'S BEING ONE OF 'EM.
THESE ARE THE TYPES OF USERS YOU'RE GONNA GET IN FRONT OF.
WE WILL BE INCENTIVIZED TO BRING THEM TO OUR COLLECTIVE SITE.
IT HAS TO BE DESIGNED CORRECTLY FROM THE BEGINNING.
IF IT IS NOT A COMMERCIAL BASED RETAIL ORIENTED SPECIALIST ON THE DEVELOPMENT SIDE, AND THAT'S NOT PHASE ONE, IT CAN BE A REAL CHALLENGE GETTING THE REST OF THE DEVELOPMENT OFF THE GROUND.
IT EVENTUALLY WOULD COME, BUT IT WOULD TAKE MUCH LONGER THAN IT SHOULD.
AND THE RISK THAT WE HAVE IN THIS COMMUNITY IS THAT THERE IS COMPETITION ALL AROUND US.
THERE IS COMPETITION FROM THE NEIGHBORING MUNICIPALITIES, THE D ANNEXATION LAW THAT JUST PASSED, THAT THE LEGISLATURE HAS NOW CREATED UNDEVELOPABLE LANDS TO BE MORE DEVELOPABLE IN REAL TIME.
SO THOSE SITES HAVE NOW ENTERED INTO THE FRAYS COMP COMPETING SITES, HAVING THE RIGHT ALLIANCE, PICKING THE RIGHT DEVELOPER THAT ALSO HAS ALLIANCES WITH THE RIGHT BROKERAGE AND OTHER COMMUNITIES TO GET THE USERS HERE.
THAT IS HOW YOU GET A PROJECT FINANCED.
THAT'S HOW YOU GET IT OFF THE GROUND, AND THAT'S HOW YOU BEAT OTHER GUYS FROM DOING THE SAME THING.
UM, I THINK I KIND OF SUMMARIZED MYSELF AND GOT AHEAD OF MYSELF, BUT
OBVIOUSLY WE'LL HAVE TIME FOR QUESTIONS, BUT WE RECOGNIZE THE OPPORTUNITY.
I'M A FIFTH GENERATION AUSTINITE.
WE WORK ALMOST EXCLUSIVELY IN AUSTIN AND SOME IN SAN ANTONIO.
SOME BETTER PROJECTS DOWN THERE.
UM, WE'RE COMMERCIALLY FOCUSED ON THE DEVELOPMENT SIDE, WHICH WE THINK IS CRITICAL HERE, BUT ALSO HAVING THE RELATIONSHIP WITH J JLLS OF THE WORLD.
I MEAN, WE'RE, WE'RE REPRESENTING A VENDOR, A SUPPLIER FOR SAMSUNG RIGHT NOW.
IT'S GONNA DO A $600 MILLION DEVELOPMENT.
THERE'S NO REASON THOSE GROUPS THAT WE WANT AND WE WANT TO INTEGRATE IN HERE SHOULDN'T GET A FIRST LOOK HERE.
AND HAVING PEOPLE WHO CAN MAKE CALLS TO OUR SILICON VALLEY OFFICE WHO COULD MAKE CALLS TO OUR SOLE SOUTH KOREA OFFICE, THAT IS HOW YOU'RE GONNA GET DEALS DONE.
AND THAT'S HOW YOU'RE GONNA MAKE SURE THEY DON'T LAND SOMEWHERE ELSE.
AND THEN CRITICAL MASS GOES WITH IT.
UM, SO ANYWAYS, WE APPRECIATE IT.
WE, WE ARE OPEN TO ANY QUESTIONS YOU MIGHT HAVE.
I THINK WE ROUGH, WE HAVE ROUGHLY ABOUT SEVEN MINUTES OR SO, SO MAYBE ONE OR TWO QUESTIONS FROM THE GROUP AND THEN I'LL LET YOU CLOSE IF YOU HAVE ANY FINAL THOUGHTS.
I DUNNO IF IT'S A QUESTION OR NOT.
I MEAN, HOW, UM, AND I GUESS I SHOULD ASK EVERYONE AT THE GREEN SPACE, I KNOW GREEN SPACE IS REALLY IMPORTANT TO THIS COMMUNITY AS FAR AS, IS IT SOMETHING THAT YOU GUYS NORMALLY JUST DO WHAT'S NEEDED? OR IS THERE SOMETIMES AN OPPORTUNITY TO DO MORE IN PROVIDING THOSE SCREEN SPACES? I THINK WE'D BE DOING A DISSERVICE TO THIS COMMUNITY IF YOU DIDN'T TAKE ADVANTAGE OF FRITZ PARK.
I MEAN, IT COULD BE FIVE TIMES THE SIZE IT IS NOW.
[01:40:01]
THERE'S NO REASON WHY CAN'T IT BE THE BEST VERSION OF OLD SETTLERS PARK, BUT CONNECTED TO RETAIL WHERE YOU DON'T HAVE TO LEAVE AND GET IN YOUR CAR TO GO HAVE A, TO FINISH THE EVENING.YOU'VE SEEN YOUR KIDS AT A BALL GAME, YOU'VE GONE THERE FOR A KITE FESTIVAL, WHATEVER IT IS.
WHY DO YOU HAVE TO GET UP AND GO SOMEWHERE? YOU WANT TO GO OVER TO THE BREWERY THAT'S RIGHT NEXT DOOR, THE, OR EVEN SHOPPING, WHATEVER IT IS THAT SHOULD BE INTEGRATED.
UH, IT SHOULD BE INTEGRATED INTO THE PARK.
IT SHOULD BE INTEGRATED THROUGH THE PARK OVER THROUGH LIVE OAK STREET OR ONE OF THE STREETS OVER THERE TO CONNECT TO OLD TOWN.
IT CAN CONNECT NORTH WHAT CARROLL DRIVE UP INTO THE RESIDENTIAL TO THE NORTH.
THE TRAIL SYSTEM SHOULD BE BUILT THROUGHOUT, BUT ABSOLUTELY THAT THE GREEN SPACE, I MEAN, IT'S A BLANK SLATE.
YOU HAVE 250 ACRES HERE, MORE THAN LAND THAN WE PROBABLY KNOW WHAT TO DO WITH.
YOU TAKE FULL ADVANTAGE OF IT.
IT SHOULD BE THE SHINING STAR THAT BUILDS OUT THE WHOLE WESTERN SIDE AS WELL AS TAKES ADVANTAGE OF SOME OF THE MORE DIFFICULT LAND TO DEVELOP TO COMMERCIAL PURPOSES.
SO IT'S IDEAL FOR THAT ANYWAYS, AND THEN INTEGRATED IT APPROPRIATELY INTO THE REST OF THE SITTER.
MAYBE ONE FINAL QUESTION FROM THE GROUP.
AARON, DO YOU HAVE ANYTHING? WELL, UM, EARLIER KEVIN HAD MENTIONED RECOMMENDATIONS ON PHASING, AND I WAS JUST WONDERING WHAT THOSE RECOMMENDATIONS WOULD BE.
KEVIN, YOU WANT TO SPEAK
AND ONCE WE, BECAUSE WE BELIEVE THAT THROUGH OUR MARKET INTELLIGENCE, THAT'S WHO WE CAN, THAT'S WHAT WE CAN START WITH.
UH, SO FIRST PHASE WOULD BE COMMERCIAL.
WE WOULD, UM, YOU KNOW, MIX IN THE MIX IN THE, THE, THE PARK SPACE THAT IS NEEDED.
UM, ALL THE USERS, RESTAURANTS, WHATNOT.
YOU SEE THIS PICTURE RIGHT HERE? THIS IS WHAT EVERY, ALL THE RESTAURANTS WANT.
THEY WANT TO FEED INTO A GREEN SPACE WHERE THEIR KIDS CAN GO OUT AND PLAY, THEY CAN INTERACT AND THEY CAN, UM, HAVE A SENSE OF COMMUNITY.
SO THAT'S REAL IMPORTANT IN ALL OF OUR RETAIL DEVELOPMENTS TODAY.
BUT COMMERCIAL, RETAIL FIRST, WE WOULD HAVE A MASTER PLAN WITH THE USES, BUT, UM, THAT'S THE FIRST PHASE.
AND THEN, UM, WHAT'S THE LARGEST ACREAGE WISE THAT YOU ALL DEVELOPED? RIGHT NOW WE'RE WORKING ON ANTHEM PARK IN KILLEEN, TEXAS IS 203 ACRES.
IT'S, IT'S VERY SIMILAR TO THIS.
AARON, I DON'T KNOW IF YOU HAVE THEIR PRESENTATION DECK.
IS THIS, WAS THIS ONE INCLUDED IN THE THING? IT'S UP.
THERE ARE A LOT OF EXAMPLES IN THE BACK PART OF THE APPENDIX PART, SO APPRECIATE THE EXAMPLES.
NO, SHE DOESN'T HAVE THE HAND THAT, YEAH, I, MY BAD.
UM, OBVIOUSLY WE ARE, WE'RE FROM HERE.
OUR TEAM IS LOCAL, AND HAVING THE GLOBAL RELATIONSHIPS WITH USERS IS WHAT I THINK HELPS SETS US APART.
IT HELPS GET THIS THING BUILT AND ALLOWS FOR FUTURE PHASES TO HAPPEN.
THOSE PHASES WILL COME WHEN YOU DEVELOP AN ANCHOR OF THE PROJECT AND THE GROCERY AND THE RETAIL COMPONENT WILL DRAW EMPLOYERS.
IT WILL THEN WANT TO DRAW HOUSING.
AND IT'S IN A, IT'S A COMBINATION OF WHAT IS THE COMMUNITY SUPPORT, WHAT DO WE WANT TO CREATE INTO THEM? IT'S MASTER PLAN, WE CAN DO IT ALL.
IT JUST DEPENDS ON, ON DOING IT RIGHT FROM THE BEGINNING.
WE REALLY APPRECIATE YOU GUYS AS WELL.
I GOTTA GET SCREEN SHARING ON.
[01:45:02]
WANNA CONFIRM.ALL YOUR, THANK YOU ALL FOR HAVING US HERE.
UH, MY NAME IS TERRY MITCHELL.
I'M A PARTNER IN MO MARK DEVELOPMENT.
UH, I HAVE WITH ME STEVEN SPEARS, WHO'S ONE OF OUR PROJECT PRINCIPALS, AND I HAVE REBECCA LEONARD, WHO IS A LAND PLANNER OR LANDSCAPE ARCHITECT WHO DOES A GOOD BIT OF OUR WORK.
UM, I'M GONNA GO THROUGH AND GIVE YOU JUST A LITTLE INTRODUCTION ABOUT WHO WE ARE AND WHAT TYPE OF WORK WE DO, AND THEN AS WE GET INTO THE PLANNING, UH, ASPECTS OF IT AND HOW THAT PROCESS THEN REBECCA AND, AND STEVEN WILL, WILL GIVE YOU SOME MORE DETAILS.
UM, HOW DO WE DEFINE MIXED USE? A LITTLE BIT OF MY BACKGROUND, I'VE DONE ABOUT 35,000 RESIDENTIAL UNITS.
EVERYTHING FROM SINGLE FAMILY TO A 650 SOME ODD, UH, FOOT TALL CONDO IN DOWNTOWN AUSTIN TO MID-RISE CONDOS TO APARTMENTS TO AND EVERYTHING IN BETWEEN.
THAT ACTUALLY LED ME INTO DOING MIXED USE PROJECTS MAYBE 15, 17 YEARS AGO.
AS WE STARTED REALIZING THAT TO SERVE RESIDENTS, THEY NEEDED MORE THAN JUST A HOUSE.
AND SO THERE WERE, IT WAS A PROCESS THAT WE LEARNED AS WE WENT FORWARD AND STARTED DOING THINGS.
UH, FROM OUR PERSPECTIVE, MIXED USE IS THE HARDEST TYPE OF DEVELOPMENT.
TRUE MIXED USE IS THE HARDEST TYPE OF DEVELOPMENT YOU'LL DO BECAUSE THERE'S SO MANY FACTORS AFFECTING IT.
EACH MIXED USE PROJECT IS UNIQUE.
IT HAS ITS OWN PRESSURES, ITS OWN NEEDS, ITS OWN COMPETITION, ITS OWN DEMOGRAPHICS.
AND WE HAVE TO DO THAT RESEARCH, INVESTIGATE, DO FEEDBACK FROM, FROM BOTH, UH, UH, LIKE YOUR, YOUR BOARD, UH, THE CITY IN GENERAL, NEIGHBORS AND, AND SYNTHESIZE THAT, PUT THAT TOGETHER AND IT BEGINS TO TELL US WHAT SHOULD BE THERE GIVEN THE GOALS THAT YOU HAVE.
AND WE MOVE ON, UH, IN, IN THAT MANNER.
THAT'S THE PROCESS WE'VE DONE OVER AND OVER.
WE'LL GET INTO SOME OF THOSE DETAILS ABOUT HOW WE DO THAT.
OUR COMPANY, UH, IS MADE UP OF, I HAVE A PARTNER.
HE ALSO HAS ABOUT 40 YEARS OF EXPERIENCE.
HE WAS A LAND DEVELOPMENT, UH, UH, BUILT COMMUNITIES IN DALLAS AND THEN WAS A, DID A, WAS A MULTI-FAMILY PARTNER FOR TRAMMELL CROW FOR ABOUT EIGHT OR NINE YEARS.
THEN HE GOT INTO THE INVESTMENT BUSINESS AND HE AND I CAME TOGETHER ABOUT 11 YEARS AGO AND, UH, STARTED TAKING ON SOME OF THE PROJECTS THAT WE WERE WORKING ON.
AND SO HE AND I COLLECTIVELY HAVE ABOUT 80 YEARS OF EXPERIENCE.
WE GO FORWARD AND, AND, AND, AND DO EVERYTHING FROM, THE SMALLEST PROJECT WE'VE DONE IS MAYBE 40 OR 50 CONDOS, AND THE LARGEST PROJECTS ARE 2200 ACRES, 1600 ACRES.
WE'RE CURRENTLY WORKING ON A NEW 500 ACRE, 5,000 UNIT COMMUNITY, UH, THAT WE'RE DOING THAT HAS A, HAS A MIXED USE COMPONENT, UH, IN IT.
SO ONE OF THE WAYS WE APPROACH THINGS, AND THIS IS VERY IMPORTANT TO US, IS THAT DEVELOPMENT IS NOT DONE IN ISOLATION.
IT AFFECTS A LOT OF DIFFERENT PEOPLE.
AND SO WE TRY TO SUMMARIZE HERE, BUT YOU SEE ON THE LEFT, YOU'LL SEE CUSTOMER BUILDER OR CUSTOMER BUYER.
THOSE ARE THE PEOPLE THAT WILL USE OUR, USE.
THE, THE COMMERCIAL SERVICES THAT ARE THERE.
WE NEED TO UNDERSTAND WHAT THEIR NEEDS ARE.
AT THE SAME TIME, THE PEOPLE WHO ARE FINANCING THE PROJECTS, SELLING THE PROJECTS, THEY HAVE AN INPUT.
AND IF YOU, IF YOU DON'T THINK THEY DON'T, THEN TRY TO EXCLUDE THEM AND FIND OUT THAT THEY DO.
SO YOU HAVE TO HEAR WHAT THEY HAVE TO SAY AND GET THEIR FEEDBACK.
AT THE SAME TIME YOU HAVE INVESTORS.
WE HAVE INVESTORS ON OUR PROJECTS.
OUR SMALLEST PROJECT HAS BEEN THREE OR 4 MILLION.
OUR LARGEST PROJECT, WE'RE WORKING ON A $600 MILLION PROJECT A DAY AND A $525 MILLION PROJECT.
THOSE ARE DIFFERENT INVESTORS.
WE ALSO THEN THE NEIGHBORHOOD AND STAKEHOLDERS, THE, THE PEOPLE WHO ARE AROUND THE COMMUNITY, HOW CAN WE SERVE THEM? WHAT ARE THE NEEDS THAT ARE NOT PRESENTLY BEING MET, AND HOW DO WE SERVE THAT AND INCORPORATE THAT TO MAKE THE ENTIRE REGION BETTER.
AND THEN LAST, WHAT ARE THE GOVERNMENT NEEDS, WHETHER IT'S TAX BASE, WHETHER IT'S INFRASTRUCTURE, WHETHER IT'S OTHER THINGS.
WHAT, WHAT ARE THE THINGS THAT WE'RE MISSING THERE THAT WE NEED TO ADD? PUT ALL THAT INTO A POT AND WE HAVE TO PUT THOSE THINGS TOGETHER TO DESIGN A PROJECT THAT FITS FOR THAT SPECIFIC SITE.
AND IT'S GONNA BE DIFFERENT IF IT WAS IN WEST HU VERSUS EAST HU VERSUS ANYWHERE.
THE PROJECT ON THE NORTH, UH, WAS A PROJECT THAT WE STARTED IN 2017.
MARTIN MARIETTA WENT THROUGH AN RFP PROCESS, SELECTED OUR COMPANY TO DEVELOP A MIXED USE PROJECT WITH THEM.
WE SPENT ABOUT THREE YEARS GETTING APPROVALS FOR 13,000 UNITS, 2 MILLION SQUARE FEET OF MIXED USE ALONG THE COLORADO RIVER.
AND, AND, UH, IMMEDIATELY BEFORE WE STARTED TO DEVELOP THAT PROJECT, WE SOLD IT TO THAT SMALL COMPANY CALLED TESLA.
AND THEY ARE NOW DEVELOPING THAT, UH, IT, IT IS FOR THEIR MANUFACTURING PLAN.
UH, THE PROJECT YOU HAVE BELOW THAT IS PLUM CREEK AND THE BRICK AND MORTAR DISTRICT.
THAT'S A 2200 ACRE DEVELOPMENT IN KYLE.
THE PICTURE YOU SEE IS THE FIRST PHASE OF THE TOWN CENTER THAT'S GOING IN.
IT'S 120 ACRES AND CAN BE EXPANDED INTO ABOUT 240 ACRES.
[01:50:01]
UH, WHEN WE, WHEN WE JUMP THE ROAD, UH, WE'VE ADDED ABOUT 3,500 JOBS IN FIVE YEARS AND ABOUT A BILLION AND A HALF DOLLARS IN TAX BASE.AND WE'RE JUST GETTING STARTED.
WE HAVE, WE HAVE, UH, PUT THREE, UH, TESLA SUBCONTRACTORS THERE.
WE HAVE PUT A SAMSUNG, UH, SUBCONTRACTOR THERE.
WE HAVE THREE HEADQUARTER COMPANIES THAT ARE LOCATED THERE.
AND WE HOPE WE'RE JUST GETTING STARTED.
THE SCHOOL FIELD MIXED USE PROJECT IS THE PROJECT THAT WE ARE DOING, UH, IN EASTERN TRAVIS COUNTY.
UH, IN THIS PARTICULAR PROJECT, THE LANDOWNERS CAME TO US AND SAID, WOULD WE LOOK AT CREATING A SPECIAL COMMUNITY THAT REACHED AS MANY PEOPLE AS POSSIBLE WITH HOUSING AND SERVICES? AND SO ON ABOUT 600 ACRES, WE'LL END UP WITH A 200 ACRE PARK IN THE MIDDLE, 5,000 RESIDENTIAL UNITS SERVING EVERYBODY FROM INCOMES IN THE 40 TO $50,000 RANGE, UP TO AS HIGH AS WE CAN GO WITH SOME MIXED USE COMPONENTS SERVING THE REGION, DIFFERENT TYPE OF MIXED USE BECAUSE IT'S NOT, IT DOESN'T HAVE THE VISIBILITY, BUT IT WILL BE NEIGHBORHOOD SERVICES DONE IN A MIXED USE, UH, FASHION.
THE PROJECT YOU SEE DOWN BELOW THE HATCHERY, VERY URBAN PROJECT, 17 ACRES, 1100 UNITS, SOME SERVICE, UH, RETAIL IN THE AREA.
50,000 SQUARE FEET OF OFFICE, ALL DONE ALONG THE COLORADO RIVER, JUST EAST OF DOWNTOWN.
THOSE ARE THE TYPES OF PROJECTS FROM SMALL TO LARGE, UH, THAT WE DO.
EVERY ONE OF THESE HAS SIMILAR, MAY HAVE A PARTICULAR USE THAT'S SIMILAR, BUT IT'S ALL BEEN COMPLETELY PUT TO D UH, PUT TOGETHER COMPLETELY DIFFERENT BECAUSE THAT'S WHAT'S NEEDED FOR THAT PARTICULAR AREA.
IF WE GO ON TO ABOUT OUR COMPANY, THE STRUCTURE WILL BE WHAT THIS, WHAT YOU GUYS WANT IN TERMS OF PUTTING IT TOGETHER.
BUT TYPICALLY THIS WOULD BE A PUBLIC-PRIVATE PARTNERSHIP WHERE WE PUT TOGETHER AGREEMENT, WE ALIGN OUR INTERESTS TOGETHER TO MOVE FORWARD.
UH, MY PARTNER AND I THEN, UH, MANAGE THAT PROCESS.
AND THEN STEVEN AND HIS TEAM MANAGES THE, THE DESIGN CREATION AND ENTITLEMENT PROCESS.
AND THEN WE HAVE ANOTHER WOMAN IN OUR OFFICE, MEGAN SHANNON, WHO'S OUR CHIEF OPERATING OFFICER, WHO THEN IMPLEMENTS THE INFRASTRUCTURE.
AND, UH, IN, IN CASES WHERE WE ARE DOING THE VERTICAL, SHE WILL ALSO HELP MANAGE THAT PROCESS.
WHEN WE GO FORWARD, YOU WILL SEE JUST, WE WERE LOOKING AT THE OBJECTIVES THAT THE CITY OF HUDU HAD, UH, UH, IN THIS PROJECT.
A LOT OF THOSE INTERESTS ALIGN WITH US.
WE TRY TO DO SUSTAINABLE DEVELOPMENT.
WE DO, UH, UH, STATE-OF-THE-ART, WATER QUALITY.
WE HAVE, WE HAVE CREATED DISTRICTS THAT FUND REGIONAL PARKS AND TAX OURSELVES TO DO THAT.
UH, PEDESTRIAN FRIENDLY IS VERY IMPORTANT.
A RANGE OF HOUSING OPTIONS, UH, IS IMPORTANT TO US.
UM, WE LOOK AT SUSTAINABLE PRACTICES.
STEVEN CAN TALK ABOUT THAT, BUT WE ARE, OUR, OUR STRENGTH IS UNDERSTANDING WHAT THE COMMUNITY NEEDS AND DELIVERING THAT FOR THEM.
WE ALSO UNDERSTAND THAT ECONOMIC GROWTH IS IMPORTANT.
EVERY CITY STRUGGLES FINANCIALLY, AND WE UNDERSTAND THAT PUTTING TAX BASE THERE IS IMPORTANT.
IF WE LOOK AT PLUM CREEK, FOR EXAMPLE, WHILE IT REPRESENTS ABOUT ONE 19TH OF THE CITY, IT WILL END UP WHEN IT'S FINISHED, REPRESENTING MAYBE 33 TO 35% OF THE CITY'S TAX BASE BECAUSE OF, BECAUSE OF THE TOWN CENTER COMPONENT COMPONENT AND THE EMPLOYMENT THAT'S LOCATED THERE.
I WANNA LET STEVEN TALK A LITTLE BIT ABOUT THE PLANNING PROCESS.
UM, ONE THING I WANTED TO ADD WITH THE BRICK AND MORTAR DISTRICT IN PLUM CREEK IS, UM, SPROUTS HAS, UH, RECENTLY ANNOUNCED THAT THEY'RE MOVING OR COMING TO THE BRICK AND MORTAR DISTRICT.
SO WE'RE VERY EXCITED ABOUT THE, UH, THE GROCERY ANCHOR THERE IN THAT SITUATION.
UM, REBECCA AND I ARE GONNA TALK A LITTLE BIT ABOUT THIS, UH, FIRST QUESTION THAT YOU SEE ON THE SCREEN TONIGHT.
UM, I WANNA, UH, RECOGNIZE CHENEY IN PARTICULAR BECAUSE SHE HAS DONE SUCH A GREAT JOB OF HELPING EVERYONE GET CURATED FOR TONIGHT'S EVENT.
AND SHE ACTUALLY POSED THREE SPECIFIC QUESTIONS TO US, UH, IN THE EMAIL RESPONSE, UM, AFTER OUR QUALIFICATIONS.
AND SO, TO BE CONSIDERATE OF YOUR TIME, WE'LL TRY TO HONE IN ON THESE QUESTIONS VERY SPECIFICALLY SO THAT, THAT YOU CAN, UH, UNDERSTAND OUR, OUR THINKING BEHIND IT.
WE REALLY SEE THAT THERE ARE FIVE KEY INTERRELATED STEPS TO SUCCESS IN ANY DEVELOPMENT, AND THAT IS ANALYSIS, PLANNING AND ENGAGEMENT, THE ENTITLEMENT PROCESS, DEVELOPMENT, MARKETING, AND DISPOSITION.
BUT IN EACH OF THOSE FIVE, THERE ARE FOUR COMPONENTS THAT ALWAYS ARE SORT OF CREATING THAT DIAMOND.
AND THAT IS UNDERSTANDING THE FINANCE, ALWAYS UNDERSTANDING WHAT THE FINANCING SITUATION IS OF, OF THE WORLD.
UNDERSTANDING THE MARKET CONDITIONS OF WHAT IS NEEDED IN EAST HUDU, WHAT IS THE COMMUNITY DESIRES, WHAT ARE YOUR DESIRES, WHAT IS THE ENGAGEMENT PROCESS? AND THEN FINALLY, WHAT IS THE PHYSICAL PLANNING AND PLACE MAKING? AND THE REASON WHY I BRING THAT UP IS BECAUSE WOE TO THOSE WHO PUT A PLAN TOGETHER WITHOUT UNDERSTANDING THESE THREE.
AND THEY HAVE BEAUTIFUL RENDERINGS AND BEAUTIFUL DRAWINGS.
[01:55:01]
AND A LANDSCAPE ARCHITECT AND A DEVELOPER THAT GETTING THAT OUT IN FRONT WITHOUT UNDERSTANDING THE MARKET FINANCE AND COMMUNITY ENTITLEMENT CONDITIONS CAN SET A PROJECT UP FOR FAILURE.SO WE'RE CONSTANTLY LOOKING AT THOSE FOUR CONDITIONS IN EACH ONE OF THESE STEPS.
I'M NOT GOING TO GO INTO GREAT DETAIL ON ABOUT THE, THE VARIOUS STEPS, BUT I, I DO WANT TO RUN THROUGH A FEW OF THESE ITEMS. SO THE FIRST ITEM BEING ANALYSIS, PLANNING, ENGAGEMENT.
UM, WE BELIEVE IN AN INCLUSIVE PROCESS.
UH, WE WANT TO PLAN IT WITH YOU.
UH, WE WANT IT TO BE A, A KEY PART OF THIS ENTIRE PROCESS.
KNOWLEDGE AND FACT FINDING IS THE FOUNDATION FOR DECISION MAKING.
SO WE NEED TO UNDERSTAND THE MARKET.
WE NEED TO UNDERSTAND THE TRUTH ABOUT THE INFRASTRUCTURE.
WE HEAR THAT THERE ARE SOME WASTEWATER CHALLENGES TO THE SITE, BUT WE'VE NOT ANALYZED THE WASTEWATER CHALLENGES TO THE SITE.
FOR INSTANCE, WE UNDERSTAND THAT THERE ARE, UH, IMPROVEMENTS BEING DISCUSSED ON THE EAST SIDE WITH THE COUNTY ROAD AND TEXTILE AND THE OVERPASS THAT AFFECTS THE VISIBILITY, MARKETABILITY, AND ACCESSIBILITY TO THE SITE FROM HIGHWAY 79.
THOSE ARE KEY THINGS THAT WE HAVE TO UNDERSTAND EARLY ON.
UM, WE WANT TO GET INTO THE PLANNING ENGAGEMENT PROCESS, WHICH REBECCA WILL, UH, SPEAK TO.
BUT WHAT I WILL SAY TO THAT IS, AS THE LANDOWNER, YOU PLAY A CRITICAL ROLE IN THIS PROCESS.
WE NEED FOR YOU TO HELP US TO DETERMINE WHAT THE STAKEHOLDER ENGAGEMENT PROCESS IS.
SO WHILE THERE ARE CODES IN PLACE, AND THERE ARE CERTAINLY A FORM-BASED EFFORT THAT IS HAPPENING, UM, WE WANNA MAKE SURE THAT THE, UM, THE ENTITLEMENT IS WRITTEN IN CONCERT WITH THE MASTER PLANNING PROCESS THAT, THAT, THAT WE GO THROUGH.
THE LAST THING WE WANNA DO IS COME UP WITH A CREATIVE PLAN WITH YOU ALL.
AND THEN WHEN WE GO TO CODIFY IT, WE'RE LIKE, OH, THE CODES DON'T ACTUALLY SUPPORT WHAT WE JUST TRIED TO DO.
SO WE, WE WANNA MAKE SURE THAT HAPPENS.
AND THEN THE LAST THREE, THE, THE DEVELOPMENT, THE MARKETING AND DISPOSITION, THOSE ARE ALL RUNNING CONCURRENTLY WITH 250 ACRES.
YOU'RE GOING TO HAVE A SERIES OF ACTIVITIES GOING ON AT ONCE.
WE'VE HEARD TONIGHT ABOUT THE MOVEMENT FOR GROCER.
GROCERY STORE AND SUPPORTING RETAIL AND ENTERTAINMENT USES IS, ARE VERY RELEVANT RIGHT NOW.
WE RECOGNIZE THAT IN OUR RESPONSE TO YOU BACK IN OCTOBER, THAT MAY CONSUME ONLY A SMALL PORTION OF THE SITE.
MAYBE IT'S 20 ACRES, 30 ACRES, I'M NOT QUITE SURE.
WHILE THAT'S GOING AND DOING ITS THING, THERE MAY BE OTHER THINGS THAT ARE HAPPENING AS WELL.
MAYBE SOMETHING IS HAPPENING AT THE MEGA SITE THAT INFLUENCES THE NEED FOR CERTAIN DEVELOPMENT TO HAPPEN ALSO ON THE REMAINING PORTION OF THE COTTONWOOD PROPERTY.
SO THE MARKETING, THE DISPOSITION, UH, ALWAYS GOES ON AND ON AND ON CONCURRENTLY.
AND SO WITH THAT, THE LAST THING I WANNA MENTION BEFORE I HAND IT TO REBECCA IS THIS IDEA OF OUR APPROACH.
WE'RE TRYING TO INCREASE VALUE, INCREASE MARKETABILITY, OPTIMIZE THE PRICE AND THE VALUE TO THE LAND FOR YOU AS THE LANDOWNER HITTING COMMUNITY VALUES, SHORTENING THE TIME OF DEVELOPMENT SO PEOPLE CAN ACTUALLY LIVE, WORK, PLAY, AND ENJOY WHAT WE'RE TRYING TO ENVISION.
AND BY THAT PROCESS, CREATE MORE AND MORE OPPORTUNITIES FOR HUDU.
SO, UH, THEY ASKED ME TO COVER TODAY HOW WE WOULD INTEGRATE YOUR COMMUNITY INTO THIS PLANNING PROCESS.
AND, UH, IN THE SPIRIT OF, THERE'S NO TWO PROJECTS THAT ARE THE SAME OUT THERE.
UH, THERE WON'T BE TWO PROJECTS, UH, TWO STAKEHOLDER ENGAGEMENT STRATEGIES THAT ARE THE SAME EITHER.
SO I THOUGHT IT'D BE BEST TO KINDA BRING ONE AS AN EXAMPLE TO TALK ABOUT.
THIS IS THE BELL DISTRICT IN CEDAR PARK, WHICH I'VE BEEN WORKING ON, UM, OVER THE YEARS.
I WROTE THE MASTER PLAN IN 2015 WITH THE CITY.
IT'S 50 ACRES, WALKABLE MIXED USE DISTRICT.
UH, CEDAR PARK WASN'T BLESSED WITH A REALLY WONDERFUL DOWNTOWN LIKE YOU ARE.
UH, THEY KINDA GREW TOO FAST BEFORE THEY HAD A DOWNTOWN.
UH, SO THEY REALLY WANTED THIS TO BE THE CENTER OF VALUE CREATION IN THEIR COMMUNITY, WHICH WAS QUITE A DIFFERENT STORY THAN, THAN THE, UH, CONDITIONS ON THE GROUND WHEN WE STARTED.
IT WAS, IT WAS LOSING, IT WAS THE ONLY PLACE IN THE CITY THAT WAS ACTUALLY LOSING, UM, UH, AND DECREASING IN SALES.
UM, IN 2015, THE PLAN ON THE LEFT WAS ADOPTED.
IT'S CONTINUED TO EVOLVE SINCE THAT MASTER PLANNING PROCESS, UH, THROUGH LOTS OF DIFFERENT ENGAGEMENT OPPORTUNITIES INTO THE PLAN ON THE RIGHT, WHICH IS, UH, IS THE CURRENT PLAN MOVING FORWARD.
SO THE BONES ARE ALL STILL THERE.
THE MIXED USE NATURE OF IT'S ALL STILL THERE.
THE INTEGRATION WITH, UH, PARKS AND OPEN SPACE IS ALL STILL THERE.
SO BRINGING IT BACK TO ENGAGEMENT, I WANTED TO POINT OUT THAT DURING THIS PLANNING STAGE, DURING THE INITIAL STAGES, WE TOOK A VERY BROAD, UH, PERSPECTIVE ON STAKEHOLDERS.
UH, WE LIKE TO ORGANIZE OUR STAKEHOLDER ENGAGEMENT ON THE SPECTRUM.
ON THE LEFT, YOU HAVE THOSE PEOPLE THAT JUST WANNA BE INFORMED.
THEY WANNA SIT IN THEIR LIVING ROOM, THEY WANNA HEAR ABOUT THIS PROJECT, THEY WANNA KNOW IT'S MOVING
[02:00:01]
FORWARD.THEY WANNA COME TO YOUR WEBSITE.
THEN YOU'VE GOT PEOPLE THAT NEED TO BE CONSULTED.
THEY'VE GOT SOMETHING THEY WANNA SAY, AND YOU BETTER LISTEN, UH, AND AND PROVIDE CONDUIT FOR THEM TO, TO BRING THAT INFORMATION TO YOU.
THERE'S PEOPLE THAT NEED TO BE INVOLVED.
UH, MAYBE THEY'RE CRITICAL TO, UH, SOMETHING ALONG THE WAY.
MAYBE THEY'RE, UH, KEY TO UNDERSTANDING THE MARKETPLACE.
THEN YOU HAVE THE PEOPLE THAT ARE, UH, COLLABORATORS.
UH, AND THESE ARE POTENTIALLY, UH, THE COUNTY OR TDO OR, UH, VARIOUS DIFFERENT VERTICAL DEVELOPERS THAT MAY BE POSSIBLE, UH, PARTNERS ON THIS PROJECT.
AND THEN YOU HAVE THE PEOPLE LIKE YOURSELVES WHO NEED TO BE EMPOWERED TO MAKE GOOD DECISIONS AS YOU GO.
THERE'S DIFFERENT TOOLS THAT WE USE TO ENGAGE EACH OF THOSE GROUPS.
AND AT THE MASTER PLANNING PHASE, WE'RE WORKING ON ALL FIVE OF THOSE, THOSE COLUMNS, UH, SIMULTANEOUSLY.
AS YOU MOVE INTO IMPLEMENTATION, THE FOCUS STARTS TO GO TO BOTH ENDS OF THAT SPECTRUM.
YOU STILL WANT TO SUPPORT DECISION MAKERS, YOU WANT THEM TO FEEL CONFIDENT.
YOU WILL HAVE MULTIPLE ELECTION CYCLES.
SO YOU WANT THEM TO UNDERSTAND THIS PROJECT ON THE OTHER SIDE, ON THE LEFT SIDE, YOU NEED TO KEEP THE IMMUNITY ENGAGED.
YOU NEED TO BE TRANSPARENT ABOUT THE DECISIONS YOU'RE MAKING.
YOU MAY ACTIVATE THE SPACE ON A TEMPORARY BASIS JUST SO THEY CAN GET IN THERE AND START TO FEEL THE EXCITEMENT AROUND THIS PROJECT.
AND THEN THE OTHER THING YOU'RE WANTING TO DO IS ALSO TEST SOME OF YOUR IDEAS ON THE MARKETPLACE, WHICH IS YOUR COMMUNITY.
SO WITH THAT, I'LL TURN IT BACK OVER TO TERRY, I BELIEVE.
QUESTION TWO WAS HOW YOU WOULD PROPOSE THE FINANCING AND PAYMENT STRUCTURE TO BE IN PARTNERSHIP WITH ATDC AND POSSIBLY THE CITY.
UH, I'M GONNA SOUND LIKE A LAWYER.
I USED TO BE ONE, SO FORGIVE ME.
BUT, BUT AS WE SAID, I SAID THE, THE, THE CORRECT ANSWER IS THAT DEPENDS
AND WHAT I MEAN BY THAT, WHAT ARE YOUR NEEDS AS, AS UNIQUE AS A MIXED USE SITE IS UNIQUE OR THE NEEDS OF A PARTICULAR LANDOWNER? WE'VE HAD 'EM, SOME SAY, I NEED CASH, I WANT IT TODAY.
SO WE, WE BUY THE LAND AND WE TAKE A HUNDRED PERCENT OF THE RISK AND A HUNDRED PERCENT OF THE UPSIDE.
I KNOW THAT'S NOT WHAT YOU WANT HERE.
WE'VE HAD AT THE OTHER END OF THE, OF THE SPECTRUM WHERE A LANDOWNER WANTS, UH, MAINTAIN A LOT OF CONTROL.
AND SO WE PUT TOGETHER A STRUCTURE WHERE WE SHARE THE REVENUES AND WE SHARE THAT UPSIDE.
SO WE'RE PERFECTLY ALIGNED TO MAXIMIZE THE VALUES AND GO FORWARD, BUT THEY STILL OWN THE LAND MOST OF THE TIME.
WHAT WE END UP DOING IN THE MIDDLE IS SOME SORT OF PARTNERSHIP TOGETHER, AND WE PUT A PARTNERSHIP TOGETHER WHERE IT, AND EVEN THOSE, THE, THE VARIABLES ARE, UH, HOW DO YOU, HOW DO YOU WANT TO FINANCE IT? WE ARE HAPPY TO FINANCE IT AND DO IT OURSELVES.
THAT AFFECTS THE RETURNS THAT WE SHOULD GET.
WE, UH, WHO, WHO SIGNS THE NOTES? I'LL GO TO THE NEXT SLIDE.
AS WE DO EACH PHASE, WE ADD VALUE.
THAT'S THE PURPOSE OF THAT SLIDE.
BUT WE ASK ARE, ARE, ARE, ARE WE PROVIDING, WHAT'S THE SIZE OF THE PROJECT? UH, WHAT'S THE DEBT GONNA BE LIKE? WHO SIGNS THAT DEBT? WE DO ALL OF THAT STUFF REGULARLY.
IT DEPENDS UPON WHAT YOUR NEEDS ARE.
A GOOD EXAMPLE WOULD BE, AND I'LL USE A AN EXAMPLE OF PLUM CREEK.
I STARTED IN PLUM CREEK AS THE FIRST HOME BUILDER, 21 YEARS AGO, ABOUT EIGHT YEARS AGO.
THE MASTER DEVELOPER AND THE LANDOWNERS PARTED WAYS BECAUSE THEY WERE NOT HAPPY WITH THE STRUCTURE.
AND THEY CAME TO OUR COMPANY AND SAID, WOULD YOU TAKE IT OVER? AND THE REASON THEY TOOK IT OVER, IS THAT THEY HAD ALWAYS CARRIED DEBT ON THE PROJECT FOR MANY YEARS.
AND SO WHILE THEY WERE SHOWING PAPER PROFITS, THEY WEREN'T GETTING ANY CASH, THE CASH WAS GOING BACK INTO THE NEXT PHASE, AND YET THEY WERE PAYING TAXES ON IT, BUT THEY WEREN'T GETTING IT.
THEY HAD TWO DISTRIBUTIONS IN 15 YEARS.
SO WE UNDERSTOOD THAT NEED WAS, THEY WANTED REGULAR DISTRIBUTIONS.
THE FAMILY WAS GETTING OLDER, THEY WANTED TO SEE IT.
AND SO NOW WE'VE DONE OVER A HUNDRED MILLION DOLLARS WORTH OF SALES.
WE'VE CREATED A BILLION AND A HALF DOLLARS WORTH OF VALUE, AND OUR PEAK DEBT HAS BEEN 4 MILLION.
AND WE'VE DISTRIBUTED THE GREAT BULK OF THAT MONEY TO THE CITY.
I MEAN, EXCUSE ME, TO OUR, TO OUR PARTNER LANDOWNERS.
AT THE SAME TIME, WE'VE CREATED A DISTRICT THAT WILL REIMBURSE THEM FOR SOME OF THE INFRASTRUCTURE COSTS.
THEY ARE VERY HAPPY THAT WAS RIGHT FOR THAT STRUCTURE HERE.
I, I UNDERSTAND THAT THERE'S A NOTE AGAINST THE PROPERTY.
WE PROBABLY NEED TO DESIGN SOMETHING THAT PROVIDES A, A, A A, AN IMMEDIATE SALE THAT WOULD BE ABLE TO REDUCE SOME OF THAT DEBT DOWN AND REDUCE THE PRESSURE WITHOUT COMPROMISING THE QUALITY OF THE PROJECT.
BUT THAT WOULD BE THE WAY WE WOULD BE THINKING ABOUT STRUCTURING IT TO ACCOMMODATE WHAT YOU HAVE ON THE PROPERTY TODAY AND YET, AND YET MOVE FORWARD.
UH, THERE ARE DIFFERENT STRUCTURES, AND THIS IS THE LITTLE TABLE YOU SEE THERE IS SIMPLY WE CAN BUY IT AND TAKE ALL OF THE RISK.
IN THE MIDDLE, WE DO A, A PARTNERSHIP TOGETHER.
AND ON THE RIGHT HAND SIDE, WE'VE HAD PEOPLE SAY, WE WANNA DO IT ALL.
THAT REQUIRES THE, THE, THE LANDOWNER OR THE CITY OR WHOEVER'S DOING THAT TO TAKE ON MUCH MORE RISK.
AND USUALLY WE SIT, WE END UP IN THE MIDDLE.
IF YOU'RE GONNA MANAGE THE PROPERTY CORRECTLY AND GIVE IT THE FULL ATTENTION, YOU'RE IN ESSENCE CREATING A LITTLE COMPANY.
IF WE'RE DOING IT AS YOUR PARTNER, WE'RE CREATING A COMPANY IN A COMPANY WHERE WE HAVE A SENIOR PERSON, BOB, OR MYSELF BEING
[02:05:01]
THE MANAGER WHO'S HELPING UNDERSTAND AND AVOID THE PITFALLS.WE HAVE A SENIOR PERSON LIKE STEVEN, WHO'S MANAGING THE ENTITLEMENT PROCESS AND HAS DONE IT FOR YEARS WHEN IT GOES INTO DEVELOPMENT.
AND THEN WE HAVE MEGAN THAT WILL HELP WITH THAT PROCESS.
ALL OF THOSE PEOPLE PLUS THE ACCOUNTING, PLUS THE, YOU KNOW, OFFICE OVERHEAD.
THAT'S ALL A, THAT'S ALL A LITTLE COMPANY.
BUT I JUST WANT YOU TO UNDERSTAND THERE IS AN EXPENSE THERE.
THAT'S WHAT WE ABSORB WHEN WE DO THAT AND PROVIDE THOSE SERVICES IF THAT GOES FORWARD.
IF YOU DON'T HAVE THAT, YOU'RE NOT GETTING YOUR FULL ATTENTION.
THAT'S WHAT THAT, THAT, AND THAT WOULDN'T BE FAIR TO OUR PARTNERS.
SO THAT'S, THAT'S JUST A A A LITTLE SIDE NOTE THERE.
UM, DEVELOPMENT SCENARIOS, ONCE AGAIN, WE, WE, WE, I JUST MENTIONED THIS, WE TALK ABOUT, WE BUY THE PROPERTY DIRECTLY.
WE DO A DEVELOPMENT MANAGEMENT OR WE DO A TRUE PARTNERSHIP.
THAT'S THE GREAT MAJORITY OF OUR PROJECTS, DEPENDING UPON THE SIZE OF THE PROJECT THAT DETERMINES THE TYPE OF CAPITAL WE RAISE.
IF IT'S A SMALLER PROJECT, WE'LL WE'LL DO IT OURSELVES.
WE DO THAT WITH DEBT AND EQUITY OURSELVES.
IF IT'S A LITTLE BIT LARGER PROJECT, WE HAVE A GROUP OF PARTNERS THAT INVEST WITH US AND HAVE BEEN DOING IT THROUGH THE YEARS.
I CAN TELL YOU NAMES, YOU WOULD KNOW THEM, BUT FOR CONFIDENTIALITY REASONS WE DON'T.
I GIVE SOME EXAMPLES THERE WHERE I THINK THE LARGEST ONE WE'VE DONE WITH PREFERRED PARTNERS IS A $67 MILLION CONDO PROJECT THAT SOLD FOR A HUNDRED MILLION DOLLARS OVER TIME.
THAT WAS ALL DONE WITH LOCAL PARTNERS THAT WE DO BUSINESS.
WHEN THEY GET BIGGER, THEN WE START LOOKING FOR INSTITUTIONAL PARTNERS, THE $525 MILLION PROJECT.
WE HAVE A PARTNER THAT WANTS TO BUILD AND OWN THAT PROJECT.
AND SO WE ARE STRUCTURING IT IN THAT MANNER AND WE'RE BUILDING IT AND OWNING IT AND, AND LOOKING AT IT AS A LONG-TERM ASSET FOR THEIR BENEFIT IN OURS.
UH, THE $600 MILLION PROJECT, THAT'S A CAPITAL PARTNER THAT WILL BE A MORE OF A MIXED USE PARTNER, WILL PROBABLY GO FASTER, UH, IN THE LONG RUN.
AND THEN THE $200 MILLION MASTER PLAN COMMUNITY, THAT'S WHERE WE'RE PARTNERING WITH THE LANDOWNER, KEEPING THE DEBT LOW.
AND THEN THE LAST PROJECT, THAT'S THE NEW ONE WE'RE DOING WHERE WE WERE DOING IT WITH THE LANDOWNER PARTNER.
IT'LL BE DONE IN A SIMILAR MATTER, VERY LOW DEBT, UH, AS WE GO FORWARD AND, AND DEVELOP THAT OUT.
I'LL MOVE ON TO THE NEXT QUESTION, LAST QUESTION.
SO CHANEY HAD ASKED US WHAT OUR INITIAL PLANS AND THOUGHTS WERE AND HOW TO BEST LEVERAGE THE LAND FOR THE MOST IMPACTFUL AND EFFICIENT USE.
I THINK IT'S A VERY FAIR QUESTION, ONE THAT SHOWS THAT YOU'RE ENERGETIC AND EXCITED ABOUT MOVING FORWARD.
SO WHEN WE TOOK SOME, UH, TIME TO, TO THINK ABOUT THIS, AND SO OUR, OUR INITIAL STEPS ARE REALLY CENTERED AROUND THE IDEA OF, OF WORKING WITH YOU TO GET TO THE DEVELOPMENT AGREEMENT OR THE DEVELOPMENT COMPANY AS TERRY DESCRIBED, SO THAT WE CAN UNDERSTAND ROLES AND RESPONSIBILITIES IN TERMS AND MOVE FORWARD.
THAT'S, UH, CERTAINLY VERY, VERY IMPORTANT.
OUR GOAL HERE IS A WIN-WIN SITUATION.
UM, WE'RE VERY CLEAR ON THAT AS PART OF THE CORE VALUES, UH, OF, OF OUR COMPANY.
UM, WE IMMEDIATELY THEN WENT TO START THE ANALYSIS, PLANNING AND ENGAGEMENT PROCESS.
SO THAT WOULD INCLUDE, UH, INTERVIEWING AND SELECTING CONSULTANTS, UH, DETERMINING OUR STAKEHOLDER ENGAGEMENT STRATEGY AS, AS REBECCA HAD HAD DESCRIBED EARLIER, EARLIER ON, AND WORKING TOWARD, UM, THE ULTIMATE ENTITLEMENT OF THE PROPERTY THAT IS SUPPORTED OUTTA THAT MASTER PLANNING PROCESS.
ALSO, WITH THAT IS INVESTIGATING THE MARKET KNOWLEDGE OF THE FIRST PHASE.
I AS DISCUSSED EARLIER, WE ALSO BELIEVE THAT THAT, UH, FOOD, BEVERAGE, GROCERY, ENTERTAINMENT ARE ALL ITEMS THAT ARE LIKELY TO HAPPEN EARLY.
UM, SO WE NEED TO UNDERSTAND WHAT THAT REALLY MEANS AND WHO ARE THE POTENTIAL PARTNERS, WHICH GROCERY STORES MAKE MOST SENSE FOR THIS AREA.
WE'RE INTERESTED IN FINDING OUT WHO THE RIGHT GROCER IS FOR THIS AREA, NOT A PRE-SELECTED GROCER FOR THIS AREA.
AND THEN ULTIMATELY, HOW DOES THE ACTIVITY THAT'S HAPPENING AT MEGA SITES START TO INFLUENCE THIS? THERE ARE OTHER DEVELOPMENT ACTIVITIES THAT ARE HAPPENING ALONG THE 79 CORRIDOR THAT WE NEED TO UNDERSTAND AND TAKE ADVANTAGE OF.
AND THEN FINALLY, UM, THE DISCUSSION ABOUT, UH, TDOT AND THE COUNTY AND THE EASTERN IMPROVEMENTS WITH COUNTER ROAD 1 32 AND 79 IN THE OVERPASS.
THAT IS TO US ONE OF THE MORE CRUCIAL ITEMS TO UNDERSTAND WHAT THE ULTIMATE MASTER PLAN IS.
WHAT'S THE TIMING OF THAT PROJECT? HOW REALISTIC IS IT? WHEN'S THE CONSTRUCTION GOING TO HAPPEN? HOW CAN THIS PROJECT BE A PART OF THAT DESIGN PROCESS? BECAUSE WHAT WE HAVE SEEN SO FAR, IT DOES DIRECTLY IMPACT THE ACCESSIBILITY AND VISIBILITY OF, OF THIS SPECIFIC PROPERTY.
AND THEN FINALLY, WITH THE TSS, WE UNDERSTAND THAT THE TSS TWO, UH, BOARD HAS NOT FORMALLY ADOPTED THE PLAN AND RECOMMENDED IT TO COUNCIL, BUT WE THINK THAT THE TURFS IS AN INCREDIBLE OPPORTUNITY FOR THIS AREA.
AND THE REASON WHY IN PARTICULAR IS THAT WITH THE LAND CURRENTLY BEING OWNED BY HEDC, IT ACTUALLY HAS A $0 TAX BASE.
SO IN THE SPIRIT OF TAX INCREMENT REINVESTMENT FINANCING OR REINVESTMENT ZONE FINANCING
[02:10:01]
IS THAT IF YOUR BASE IS ZERO AND WE BRING IN, IN PHASE ONE, LET'S CALL IT A $30 MILLION, $40 MILLION RETAIL DEVELOPMENT, YOUR TAX BASE OF ASSESSED VALUE WENT FROM ZERO TO $40 MILLION LIKE THAT.AND SO THAT STARTS TO GENERATE LEVERAGE CAPACITY FOR THE T TO START DOING AMAZING EFFORTS LIKE PARKS, STREETSCAPES, UH, IMPROVEMENTS THAT ARE TRULY PEDESTRIAN AND, AND PUBLIC AMENITIES THAT MAY HAVE NOT EVER BEEN SEEN BEFORE.
OUR BRICK AND MORTAR DISTRICT AND, AND THE PLUM CREEK AREA IN KYLE, UH, WE WORKED CLOSELY WITH THE CITY TO CREATE AAT IN THAT SPECIFIC AREA.
AND THATT TO DATE HAS BUILT $15 MILLION OF PARKS IN TWO YEARS BECAUSE THEY HAVE THAT MONEY AVAILABLE TO THEM BECAUSE OF THE C VALUE THAT WE'VE PUT ON THE GROUND THAT TERRY MENTIONED EARLIER.
SO WE REALLY THINK THIS IS A WONDERFUL OPPORTUNITY TO REALLY GET THE TOURS, UH, TO, UH, PROCESS MORE ENGAGED AND GET THAT TO BE, UH, A PART OF THE OVERALL OVERALL DEVELOPMENT.
UM, SO WITH THAT, I'LL, I'LL CONCLUDE.
I KNOW THAT YOU WILL ASK US FOR, UH, CLOSING COMMENTS.
SO WE WILL WAIT THAT, UH, UNTIL THE END AND WE'LL OPEN IT UP TO QUESTIONS.
YEAH, I THINK WE GOT ABOUT FIVE MINUTES AND I'LL GIVE YOU THE LAST TWO TO, TO GREAT.
I THINK YOU GET ALL THE QUESTIONS FROM ME, SO YEAH, I'D AGREE.
UM, I APPRECIATE YOUR, YOUR KNOWLEDGE ON, ON OUR CHALLENGES AND, AND YOU KNOW, THE DIFFERENT NUANCES FOR THE STRATEGY FOR THIS.
I THINK IT SHOWS A LOT OF, UH, IT GIVES US A LOT TO THINK ABOUT AS WELL, JUST FOR ME SPECIFICALLY THROUGH YOUR PRESENTATION.
SO I APPRECIATE, I APPRECIATE IT.
I'LL GIVE AARON, AARON, DO YOU HAVE ANYTHING AT ALL? NO, YOU COVERED A LOT OF THE QUESTIONS I HAD, SO I APPRECIATE THE THOROUGH, UH, PRESENTATION.
I'LL TURN IT OVER TO YOU THE LAST TWO MINUTES.
I KNOW THAT, UH, WE'VE ALL RAN A BIT BIT LONG TONIGHT, SO, UH, CERTAINLY, CERTAINLY APPRECIATE YOUR TIME.
YOU KNOW, MY, MY CONCLUDING THOUGHT IS THIS, IS THAT, UH, YOU KNOW, JUST BETWEEN TERRY AND REBECCA AND I, WE, WE WERE DISCUSSING TONIGHT THAT BETWEEN, UH, THE THREE OF US, WE HAVE BEEN FORTUNATE TO BE A PART OF OVER 40 MIXED USE DEVELOPMENT PROJECTS.
THE ONE THAT IS, UH, NEAR AND DEAR TO ME AS IT RELATES TO CENTRAL TEXAS IS THAT I SPENT 10 YEARS WORKING ON DOMAIN NORTHSIDE, UM, AS ONE OF THE LEAD DESIGN PRINCIPLES ON THAT PROJECT FOR, FOR MANY YEARS, UH, BEFORE JOINING TERRY AND BOB AT, UH, AT, AT MO MARK.
AND, UM, CERTAINLY YOU'VE HEARD REBECCA WITH HER EXPERIENCE AT BELL BOULEVARD IN IN CEDAR PARK.
SO OUR, OUR FINAL THOUGHTS, UM, REALLY ARE THIS, IS THAT WE HAVE A THOROUGH UNDERSTANDING OF HOW TO CREATE A WALKABLE, SAFE, DESTINATION ORIENTED MIXED USE DEVELOPMENT.
I MEAN, THAT IS, THAT IS WHAT WE DO AND WE LOVE DOING IT AND WE LOVE SEEING IT BUILT, AND WE LOVE GOING TO THAT PLACE AND BEING ABLE TO SEE THE JOY THAT IT BRINGS PEOPLE.
I MEAN, THAT IS, THAT'S, THAT IS THE VALUE ADD FROM OUR SIDE.
UM, WE BELIEVE THAT WE SHARE THE SAME VALUES AS YOU, AS TERRY MENTIONED EARLIER, WE HAVE THE LOCAL KNOWLEDGE OF THE TEXAS MARKET.
AND OUR LOCAL KNOWLEDGE, UM, REALLY IS BORN BECAUSE WE EXCLUSIVELY DO WORK IN, IN CENTRAL TEXAS.
UM, SO THAT MEANS THE PARTNERS AND THE PEOPLE WE KNOW THAT ARE SPECIALIZED USERS WE KNOW VERY WELL.
SO WE CAN TALK ABOUT MULTIPLE GROCERS AS AN EXAMPLE INSTEAD OF ONES THAT WE'RE SPECIFICALLY REPRESENTING OR, OR CONTRACTED TO, BECAUSE WE HAVE THOSE, THOSE RELATIONSHIPS.
WE HAVE EXTENSIVE EXPERIENCE WITH PUBLIC-PRIVATE PARTNERSHIPS AND TOURS, WHICH I THINK IS OF VALUE HERE WITH THE OPPORTUNITY THAT YOU HAVE WITH YOUR TOURS.
UM, AS TERRY MENTIONED, FOUR DECADES, 120 PLUS YEARS OF COLLECTIVE EXPERIENCE.
SO WE, WE BRING THAT, UH, THAT KNOWLEDGE, BUT ALSO HUMBLENESS THAT WE'VE MADE MISTAKES IN THE PAST AND WHAT WE HAVE WE LEARNED FROM THAT, AND HOW ARE WE GOING TO, UH, BETTER OURSELVES AND BETTER OUR DEVELOPMENTS AS A RESULT OF THAT.
UM, WE BELIEVE IN A STAKEHOLDER ENGAGEMENT PROCESS.
WE WANT TO BE PARTNERS WITH YOU ALL IN THIS DISCUSSION AND HELP UNDERSTAND AND HELP OPEN UP THIS DISCUSSION, UM, AS YOU SEE FIT TO WHATEVER, UM, FRAMEWORK OF STAKEHOLDERS THAT REBECCA DISCUSSED EARLIER FROM THE INFORM ALL THE WAY TO THE EMPOWER SIDE.
UM, SERVING IS TRUE TO THE CORE AS TERRY MENTIONED EARLIER.
AND THEN FINALLY, IT IS ALL ABOUT WIN-WIN SOLUTIONS.
WE BELIEVE THAT REAL ESTATE IS DRIVEN BY DESIGN
[02:15:01]
AND WE'RE HERE TO HELP AND SERVE OUR COMMUNITIES.I THINK WE'VE HEARD FOUR VERY, VERY GREAT PRESENTATIONS TONIGHT.
THERE'S A LOT TO UNPACK AND, UM, A LOT TO DISCUSS, UM, AS A BOARD.
AND, UM, I KNOW THAT YOU'LL PROBABLY HEARING NEXT STEPS FROM CHENEY AND, AND YOU KNOW, HOW WE'RE LOOKING TO GO FORWARD.
WE REALLY, REALLY APPRECIATE IT AND WE'RE MISSING TWO OF OUR BOARD MEMBERS, SO I WANNA GIVE THEM AN OPPORTUNITY TO KIND OF GET BROUGHT INTO THE CONVERSATIONS TOO.
SO WITH THAT, WE WILL GO INTO EXECUTIVE SESSION.
THE BOARD WILL NOW RECESS THE OPEN MEETING AND CONVEY INTO THE EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 ATTORNEY CONSULTATION 5 5 1 0.087 ECONOMIC DEVELOPMENT AND 5 5 1 0.072 REAL PROPERTY TO DELIBERATE AND SEEK IT.
LEGAL ADVICE REGARDING THE SPINE ROAD CONSTRUCTION PROJECT, THE MASTER DEVELOPMENT OF THE COTTONWOOD PROPERTIES AND THE VALUATION AVAILABLE CORPORATE FUNDS FOR INCENTIVES.
VICE CHAIR, THE TIME IS NOW 10 15 AND WE'VE EXITED EXECUTIVE SESSION, NO ACTION TAKEN IN EXECUTIVE SESSION.
WE'RE GONNA RECALL AGENDA ITEMS SEVEN ONE AND 7 2 7 1 IS TO DISCUSS AND CONSIDER ACTION REGARDING PRESENTATIONS FROM MASTER DEVELOPERS FOR THE MASTER DEVELOPMENT OF THE COTTONWOOD PROPERTIES.
SO, UM, THE BULK OF TONIGHT'S MEETING WAS THE FOUR PRESENTATIONS FROM THE MASTER DEVELOPERS.
UH, WE ALL HAD SCORECARDS AND EVALUATION SHEETS TO HELP US COMPRISE OUR THOUGHTS AND FEEDBACK.
UM, WHAT I WOULD ASK OF THE BOARD IS THAT WE DISCUSS THOSE OPENLY AND HONESTLY, THIS IS AN IMPORTANT DECISION, UM, AND AT LEAST NARROW DOWN THE POOL IF WE FEEL STRONGLY, IF Y'ALL FEEL STRONGLY RATHER, UM, ABOUT ONE, UH, GROUP, YAY OR NAY.
I THINK LET'S START WITH ELIMINATION.
UM, JUST TO KIND OF NARROW THINGS DOWN WOULD BE MY RECOMMENDATION.
UM, AND THEN TALK THROUGH THE OTHER CANDIDATES.
UH, I WOULD ALSO ASK THAT ASHLEY BAILEY PROVIDE HER COMMENTS AS WELL.
I KNOW SHE SPOKE WITH THE CITY ENGINEER PRIOR TO HIM LEAVING THIS EVENING AND WAS ABLE TO GATHER HIS THOUGHTS.
SO I THINK THAT'S SOME VALUABLE INSIGHT, UM, FOR THE BOARD TO CONSIDER AS WELL.
DID YOU WANT TO START THIS JUST LIKE ONE THROUGH FOUR AND JUST KIND OF GO THROUGH? UH, I WOULD SAY LET'S HAVE ASHLEY TALK THAT WAY.
WE CAN GET HER THOUGHTS AND MATT'S THOUGHTS AND SHE'S GETTING COMFORTABLE BACK THERE.
SO
YEAH, I JUST THINK THAT'S VALUABLE, UH, STAFF INSIGHT FOR THE BOARD TO CONSIDER.
UM, BEFORE WE START OUR DISCUSSIONS, GOOD EVENING FOR THE RECORD.
ASHLEY BAILEY, DEVELOPMENT SERVICES DIRECTOR, UM, ENLISTING TO THE PRESENTATIONS.
WHAT I CAN TELL YOU IS THAT THE PRESENTATION NUMBER ONE AND PRESENTATION NUMBER FOUR SEEMED TO ALIGN MOST WITH THE COMPREHENSIVE PLAN AND IT SEEMED LIKE THEY ALSO ALIGNED MOST WITH WHAT WE HAD BEEN LOOKING FOR IN THAT COMPREHENSIVE PLAN.
CERTAINLY I THINK THAT IT'S NO SECRET THAT WE HAVE A LOT OF RESIDENTIAL COMING IN, BUT WHAT WE'RE LOOKING FOR, AND CERTAINLY WHAT WAS REITERATED IN THE COMPREHENSIVE PLAN AND THROUGH ALL OF THE PUBLIC COMMENTARY THROUGH THE COMPREHENSIVE PLAN THAT TOOK ABOUT A YEAR TO GAIN OR ACTUALLY REALLY OVER A YEAR, UM, WAS THAT WE NEED THE ATTAINABLE HOUSING, BUT MAYBE LESS SINGLE FAMILY TRADITIONAL, UM, THAT WE ARE LOOKING FOR SOME MIXED USE, BUT REALLY WHAT WE'RE LOOKING FOR IS, UM, AREAS WHERE YOU CAN LIVE, BUT THAT YOU CAN HAVE THOSE WALKABLE MOMENTS.
UM, SO, AND IT WAS REALLY THAT VILLAGES ON VILLAGES CONCEPT.
UM, AND SO BEING THAT THAT WAS JUST ADOPTED BACK IN DECEMBER AND WE'RE NOT EVEN A YEAR OUT FROM THAT, UM, IN LISTENING TO BOTH OF THE, UM, REALLY THOSE BOOKENDED, UM, PRESENTATIONS, I THINK THOSE WERE THE TWO THAT REALLY, UM, HIT STAFF THE MOST OF ALIGNING WITH WHAT WE HAD BEEN LOOKING FOR.
AND THAT'S WHAT WE'D BE LOOKING FOR.
EVEN JUST SAYING, YOU KNOW, THESE WERE THE MODERATE LEVEL, WE'RE NOT REALLY LOOKING FOR THOSE HIGH RISE.
WE'RE NOT LOOKING FOR THOSE TRADITIONAL MULTIFAMILY.
UM, AND THEN EVEN HEARING THAT THEY WERE SAYING, YOU KNOW, WE WOULD BE LOOKING FOR WHAT WOULD FIT INTO THAT, KNOWING THAT WE HAD SAID WE DO WANT RETAIL, WE DO WANT GROCERS.
UM, BUT WHAT FITS INTO THAT KNOWING THAT WE COULD ACTUALLY GET A WALKABLE GROCER, UM, POINTING OUT THAT YOU COULD GET A WALKABLE HEV, YOU COULD GET THE WALKABLE, UM, SPROUTS AND MAKING SURE THAT YOU CAN MAKE THOSE, UM, YOU COULD GET THOSE TOUCHES THAT WOULD BRING WHAT WE NEED, BUT ALSO WHAT WOULD BE GOOD FOR THE AREA AS A WHOLE AND MAKE IT BE, UM, USABLE AND LONG TERM.
SO I THINK THAT'S WHERE WE, THAT'S WHAT I'M KIND OF FEELING ON THAT ASPECT.
KIND OF WROTE A FEW DOWN AND SOME OF 'EM WERE JUST LIKE, THAT'S
[02:20:01]
THAT'S KIND OF A MISS.US, I WAS SURPRISED ON HOW SOME FOCUSED THAT THEY THOUGHT THAT THAT WAS OUR PRIORITY.
OUR TOP PRIORITY IS SINGLE FAMILIES AND FIVE PLEXES AND QUAD PLEX PLEXES AND, AND, AND, AND I DIDN'T GET A FEEL THAT THEY UNDERSTOOD THE NEEDS OF THE CITY AND THE TRAFFIC AND THE CONGESTION.
AND THEY'RE MENTIONING THINGS LIKE 5,000 HOMES AND IT'S LIKE, WOW, THAT, THAT DOESN'T MAKE THAT, TO ME, IT DOESN'T MAKE THAT PROJECT FEEL SPECIAL IN MY, MY MY PERSONAL OPINION.
I THINK I WILL SAY THAT I THINK WE HAVE ABOUT 5,000 HOMES IN THE QUEUE, OR AT LEAST RESIDENTIAL PROJECTS IN THE QUEUE.
SO KNOWING THAT WE WOULD ADD THAT WITH KNOWING JUST WHERE WE ARE WITH 79 AND THE REST, THAT'S A LOT COMING IN.
UM, I KNOW THAT ATTAINABLE HOUSING CERTAINLY, UM, LOOKING AT SOME OF THAT BEING FOR OWNERSHIP WOULD BE A VERY BIG DEAL BECAUSE RIGHT NOW WE ARE SEEING A LOT OF THE RENTAL PROJECTS.
SO, UM, CERTAINLY THE ASPECTS, NOT THAT THAT'S SOMETHING THAT WE CAN ALWAYS CONTROL, BUT CERTAINLY HAVING SOME OF THOSE OWNERSHIP OPPORTUNITIES MM-HMM.
I KNOW THAT, I THINK THAT WAS ACTUALLY ON THE SECOND, UM, ON THE SECOND PRESENTATION.
BUT I DO STILL THINK THAT IS A BIGGER DEAL.
WE HAVE SOME PROJECTS COMING FORWARD THAT ARE GOING TO BE A LITTLE BIT MORE SIMILAR TO THAT, THAT ARE GONNA BE THE ATTAINABLE OWNERSHIP PRODUCT.
UM, NOT HERE, OBVIOUSLY THIS ONE ISN'T HERE YET, BUT CERTAINLY ANYTHING THAT'S GONNA HAVE THAT ATTAINABLE LEVEL.
BUT, UM, TAKE A LOOK AT WHAT WE HAVE IN THE COMPREHENSIVE PLAN BECAUSE IT DEFINITELY, ON OUR MIXED USE, IT'S NOT ALWAYS JUST GOING TO BE THAT MULTI-STORY WITH THE RETAIL ON THE BOTTOM.
IT DEFINITELY HAS THAT WALKABLE LEVEL.
IT'S NOT MULTI-FAMILY THAT'S GONNA BE GATED.
IT DEFINITELY HAS THAT KIND OF MIDDLE SIZE OF JUST MORE OF A COTTAGE LEVEL THAT'S GONNA HAVE THAT WALKABLE LEVEL.
I THINK DEFINITELY SOME OF THE, UM, SOME OF JUST THE, UM, EXAMPLES THAT YOU WERE GIVEN IN THAT FIRST PRESENTATION AND IN THAT LAST PRESENTATION DEFINITELY SHOWED THE LOOK AND THE FIELD THAT WERE ACTUALLY GIVEN IN THE COMPREHENSIVE PLAN, WHICH IS PRETTY IMPORTANT.
AND THE PICTURES AND THE EXAMPLES THAT WERE GIVEN IN THE COMPREHENSIVE PLAN ARE ACTUALLY THINGS THAT WERE CHOSEN BY THE CITIZENS WHEN WE WERE SAYING, WHAT LOOKS BETTER TO YOU? RIGHT.
AND BY THAT, UM, THE BOARD THAT WAS CHOSEN BY COUNCIL WHEN WE DID THE COMPREHENSIVE PLAN, SO I THINK THAT WAS KIND OF IMPORTANT TOO, IS KINDA LOOKING AT THOSE PHOTOS AND BEING LIKE, OKAY, YOU'VE ACTUALLY DONE YOUR HOMEWORK.
AND THEN CERTAINLY ON SOME OF THOSE IS ACTUALLY REACHING OUT TO THE NEIGHBORS AND JUST SAYING, WHAT DO YOU WANT? RIGHT.
BECAUSE I THINK THAT'S ONE THING THAT WE DIDN'T DO WHEN THAT PROJECT ORIGINALLY CAME FORWARD.
IT WAS, WE'VE ALREADY DECIDED NOW, NOW COME TELL US WHAT YOU THINK.
AND I THINK REALLY INVOLVING EVERYBODY AND SAYING, HEY, THIS IS GONNA CHANGE.
I MEAN, THIS REALLY DOES CHANGE A LOT OF THINGS.
I MEAN, IT'S KINDA LIKE, IT JUST, IT CHANGES EVERYTHING AND, AND GROWTH IS INEVITABLE, BUT IT JUST, YOU CAN SHIELD THE LIGHT, BUT THERE'S STILL A GLOW ABOUT IT.
SO, UM, THIS JUST CHANGES A LOT FOR HUDU.
AND THIS IS A REALLY IMPORTANT AREA, AND THIS IS ALSO ONE OF REALLY THE LAST COMMERCIAL AREAS ON THE NORTH SIDE, UM, FOR 79.
SO THAT'S WHERE WE GOTTA GET IT RIGHT.
BUT I THINK ONE IN FOUR ARE REALLY GONNA BE, THEY SAID THE RIGHT THINGS.
UM, AND CERTAINLY THE IDEA THAT THEY'RE NOT JUST GONNA GO OUT AND BE LIKE, COOL, WE BUILT IT.
UM, I THINK THAT'S GONNA BE IMPORTANT.
I THINK THEY KEPT, UH, BOTH SAID 10 TO 12 YEARS.
AND SO THAT JUST GAVE ME THE, THAT IDEALLY THAT THE FORESIGHT.
UM, AND I AGREE ONE IN FOUR, FOUR FOR ME WAS MORE OF A, ALMOST LIKE A PERSONAL INTO DETAIL IN ANSWERING THE THREE QUESTIONS THAT YOU HAD PRESENTED TO THEM.
UH, THEY KIND OF WENT IN DETAIL TO THAT AND WHAT 100% LOOKS VERSUS MIDDLE TO, UH, OVER HERE AND JUST SEEMED LIKE THEY WOULD BE REALLY, UH, WANTING TO PARTNER UP AND LISTEN TO OUR STAKEHOLDERS.
I THINK ONE, UH, MIDWAY FOR ME WAS I THINK THEY JUST HAD A LOT MORE ASSETS THAT THEY COULD UTILIZE AND BRING IN, UH, DEPENDING ON WHAT THE CITY, UH, IS LOOKING FOR.
I THINK, UH, EVERYBODY'S POINTS WERE ARE ARE THE SAME POINTS THAT I ECHO.
UH, SAME THING WITH YOU, UM, ASHLEY, UM, MG REALTY INVESTMENTS, UM, YOU KNOW, I THOUGHT THAT WAS MORE PERSONABLE.
UM, I FELT LIKE THEIR KNOWLEDGE ABOUT OUR CHALLENGES AND THEN, UM, WELL FIRST THEIR KNOWLEDGE ABOUT OUR CHALLENGES WAS VERY, UH, COMFORTING BECAUSE LIKE YOU SAID, THEY DID THEIR HOMEWORK, THEY DID THEIR RESEARCH.
UM, IT'S NOT SOMETHING WHERE WE'RE HAVING TO COME TO THE TABLE AND, YOU KNOW, SPILL OUR GUTS.
THEY, THEY KIND OF UNDERSTAND.
UM, AND THEY'RE ABLE TO, YOU KNOW, MANEUVER THAT.
UM, I DID APPRECIATE THEIR STRATEGY.
I THOUGHT THEIR STRATEGY ON HOW TO, UM, UM, DEVELOP, YOU KNOW, THAT 12 TO 15 YEAR OUTLOOK.
I THOUGHT THAT WAS VERY SOUND AND COMPREHENSIVE.
AND SO, UM, I REALLY LIKED MG REALTY INVESTMENTS AND TERRY AND STEVEN, AND I FORGOT THE LADY.
SHE, SHE DID, THEY DID A GREAT JOB, UM, MIDWAY.
I THOUGHT THEY DID A GREAT JOB AS WELL AS FAR AS, UM, TALKING ABOUT,
[02:25:01]
YOU KNOW, NOT MOVING TOO FAST AND, AND, UM, YOU KNOW, I UNDERSTANDING THAT, YOU KNOW, JUST EYEBALLING OUR PROPERTY, UM, YOU KNOW, A RISK THAT THEY HAD MENTIONED WAS, YOU KNOW, THERE'S A FLOODPLAIN THERE AND WE'LL HAVE TO, WE'LL HAVE TO DEFINITELY, UH, MAKE SURE THAT WE, UH, YOU KNOW, UH, MITIGATE THAT POTENTIAL RISK.AND SO I WAS VERY APPRECIATIVE FOR, YOU KNOW, THEM AND THEIR, THEIR OVERSIGHT OF THE PROPERTY AS WELL.
UM, AND SO ONE IN FOUR, I FEEL LIKE IT'S, YOU KNOW, ONE A AND ONE B.
UM, THE OTHER TWO, YOU KNOW, THERE WAS, THERE WAS JUST SOME, YOU KNOW, SOME CAUSE TO PAUSE.
UM, YOU KNOW, I I I FELT LIKE, YOU KNOW, THERE WAS A LOT OF RELIANCE, RELIANCE ON, ON, YOU KNOW, WHO THEY KNOW AND KIND OF BEING A MIDDLEMAN AND THEN, UM, YOU KNOW, NOT TARGETED TO THE RIGHT DEMOGRAPHIC AS FAR AS, UM, EVERYONE THAT, YOU KNOW, CALLS HU HOME.
AND SO, UM, JUST SOME CAUSE TO PAUSE ON BOTH OF THEM.
BUT, UM, YOU KNOW, LIKE I SAID, MIDWAY AND MG REALTY INVESTMENTS, IT'S KIND OF ONE AND ONE, ONE A AND ONE B FOR ME.
I THINK THAT, UM, MIDWAY AND THEIR EXPERIENCE OF 55 YEARS IN MIXED USE, UM, IS REALLY IMPORTANT IN THE FACT THAT THEY'VE DEVELOPED 1600 ACRES PRIOR.
AND THEN, UM, WHEN WE WERE TALKING TO COTTONWOOD WITH CSW AND JLL, THEIR LARGEST WAS 203 ACRES THAT THEY'VE DEVELOPED.
SO MAYBE THEY HAVEN'T HAD, UM, THAT MANY DEVELOPMENTS IN THE MIXED USE THAT WE'RE LOOKING FOR.
UM, MOER THEIR LARGEST WAS 22 ACRES.
AND THE FACT THAT THEY WERE SAYING THAT THEY'VE PROVIDED 3,500 JOBS IN A FIVE YEAR SPAN, THAT REALLY HIT HOME TOO BECAUSE, UM, WE WANNA MAKE SURE THAT WE'RE, WE, YOU KNOW, BEING, UM, LIAISONS FOR OUR CITIZENS AS WELL AND THAT THEY'RE, UM, IMPORTANT IN THE DEVELOPMENT.
UM, THE FACT THAT THEY KNOW ABOUT TOURS AND THEY HAVE SOME HISTORY WITH THAT IS IMPORTANT AS WELL.
AND MIDWAY WITH THEIR, UM, THEIR GROWING SPACE AND WANTING TO BE AN INVESTOR, NOT JUST A MERCHANT, I THINK REALLY HIT HELPED WITH ME AND WANTING TO DEVELOP A RELATIONSHIP.
UM, I, I'LL AGREE WITH, WITH THE COMMENTS, UH, ON MO MARK.
HOWEVER, AS FAR AS MIDWAY GOES, I WAS A LITTLE DISAPPOINTED AT THEIR PRESENTATION.
UH, I HAD HOPED TO SEE, UH, A LITTLE BIT, A LITTLE BIT OF THOUGHT PUT INTO THE PROPERTY ITSELF, WHICH THE OTHER THREE PRESENTATIONS DEFINITELY SHOWED.
UH, OR, AND THEN SOME ATTENTION PAID TO THE ISSUES THAT WE'RE GONNA BE FACING.
YOU KNOW, THERE'S COUNTY ROAD 1 32, THERE'S THE 79 EXPANSION.
UM, AND IT DIDN'T SEEM LIKE THEY CAME PREPARED TO TALK ABOUT THOSE ISSUES.
IT WAS A VERY GENERAL PRESENTATION.
UH, I MEAN THEY WERE KIND OF SHOWING EXISTING PROJECTS THAT ARE THERE IN PROGRESS OR PROJECT THEY'VE DONE, BUT NOTHING TAILORED SPECIFICALLY TO COTTONWOOD, WHICH THE OTHER THREE PRESENTATIONS ABSOLUTELY PRESENTED.
SO I WAS PRETTY DISAPPOINTED WITH MIDWAY IN THAT SENSE THAT THEY DIDN'T REALLY COME PREPARED TO TALK ABOUT COTTONWOOD.
THEY CAME PREPARED TO, WELL, I MEAN THEY ALL CAME PREPARED TO SELL THEMSELVES, BUT THAT SEEMS LIKE THAT'S THE ONLY THING THEY GET, THEY CAME TO DO, WAS TO SELL THEMSELVES.
I, I HAD WANTED TO HEAR MORE ABOUT OUR PROPERTY AND, AND AT LEAST SOME THAT THEY'VE PUT SOME THOUGHT INTO HOW THEY THINK MAYBE THIS PROPERTY SHOULD, SHOULD DEVELOP.
OBVIOUSLY THEY'RE GONNA GET SOME INPUT IN AND YOU KNOW, THEY COMMUNICATED THAT AND THAT'S PERFECTLY FINE, BUT WE'RE EMPLOYING THEM TO GENERATE IDEAS.
I MEAN, THEY'VE DONE OTHER PROJECTS.
I DON'T, I DON'T INTERACT WITH THOSE PROJECTS.
I ABSOLUTELY AM GOING TO INTERACT WITH COTTONWOOD BECAUSE I LIVE HERE.
SO I DEFINITELY, BECAUSE THEY, I THINK WHAT YOU GOT SO CAUGHT UP IN NOT SAYING YOU, BUT WHAT I GOT SO CAUGHT UP IN IS THEIR EXPERIENCE.
THE EXPERIENCE WAS GREAT, BUT I THINK TO YOUR POINT, UM, AND WHAT MO MARK SHOWED WHERE THEY HAD THE THREE QUESTIONS THAT CHENEY HAD PROVIDED.
IT SEEMS LIKE EVERYBODY GOT THOSE THREE QUESTIONS, SO I'M TOTALLY AGREEING THAT THEY DID.
AND TO THEIR CREDIT, MO MARK WAS THE ONLY PRESENTATION I SAW WHERE THEY DIRECTLY ADDRESSED THE QUESTIONS THAT CHENEY SENT OUT.
STAKEHOLDERS, WHAT THE MEGA SITE WOULD DO TO THAT PROPERTY ACROSS THE STREET.
T ANALYZING THE COUNTY PLANNING AND JUST THE MARKETING.
IT, I JUST FEEL LIKE MO MART PUT A LOT OF THOUGHT INTO THE PROPERTY SPECIFICALLY.
AND NOT JUST A GENERAL, HEY YEAH, WE'RE SOME MIXED USE DEVELOPMENT AND WE DID THIS AND THAT AND THE OTHER, AND WHICH IS ALL FINE AND DANDY.
I, I, I, I THAT'S WHAT THEY DO.
WHAT AARON SAID TOO, WITH THE TRI, I MEAN, THEY BROUGHT
[02:30:01]
UP THE TRI YEAH, THEY BROUGHT UP THE TURS AND, AND I MEAN IF, IF WE HAD TO PICK TONIGHT, AND I'M NOT SAYING WE'RE DOING THATYOU GOT YOUR COMMENTS? YEAH, I THINK I'M
SO FOR ME IT WAS ALL ABOUT THEIR PR THEIR PAST PROJECTS, AND DID THAT PAST PROJECT LOOK SIMILAR TO SOMETHING THAT I ENVISIONED FOR THAT PROPERTY? AND FOR ME, MIDWAY STOOD OUT BECAUSE IF YOU LOOK AT THEIR PROJECTS, THEIR, THEIR PROJECTS WERE CITY CENTER.
THAT'S, THAT'S WHAT I WAS DOING ON MY PHONE, WAS LOOKING AT WHAT THEIR ACTUAL PROJECTS LOOK LIKE.
AND IF YOU LOOK UP CITY CENTER, YOU CAN ACTUALLY SEE BUILDINGS, YOU CAN SEE REAL PEOPLE.
NOT RENDERINGS, NOT DRAWINGS, NOT, THIS IS WHAT I THINK IT'LL LOOK LIKE.
'CAUSE THAT'S, THAT'S, THAT'S FINE AND DANDY UNTIL YOU ACTUALLY PUT IT ON THE GROUND.
I MEAN, BUT IF YOU LOOK AT COLLEGE STATION THAT HE GAVE A LOT OF SPECIFIC PROJECTS WERE EXACTLY HOW HE DESCRIBED IT.
IT WAS THE ENTIRE COMMUNITY COMING IN HIM USING THE REFERENCE OF HOW MANY, HOW MANY DIFFERENT EVENTS THAT HE PUTS ON.
HE PUT ON 500 PLUS EVENTS WITHIN THESE LITTLE PROJECTS AND PEOPLE COMING TOGETHER AND GETTING TOGETHER.
THAT, YOU KNOW, WHEN I LOOK AT THIS PROJECT AND I THINK ABOUT HOW SPECIAL IT COULD BE, THAT'S HOW I ENVISION IT.
I ENVISION A EXACTLY WHAT HE CALLED IT.
WAS IT A DISTRICT? HE CALLED IT A DISTRICT.
LIKE WE DON'T WANT PEOPLE TO SAY, I'M GONNA GO EAT AT CHILI'S.
WE WANT PEOPLE TO, NOT CHILI'S, BUT YOU KNOW, WE WANT PEOPLE TO SAY, I'M GONNA GO EAT AT THE DISTRICT, OR I'M GONNA GO EAT THE COTTON OPTIONS.
YOU KNOW, THE, THE PROPERTIES.
AND, AND IF YOU LOOK AT ALL THOSE PROJECTS, IT'S EXACTLY WHAT HE SAID.
YOU GET DONE WITH DINNER, YOU WALK UP THE STREET AND GO GET COFFEE, YOU JUST WALK RIGHT THERE.
I CAN'T THINK OF A SINGLE UNIQUE PROPERTY THAT WE HAVE IN HU CURRENTLY WHERE THAT YOU'RE NOT STANDING IN A PARKING LOT SOMEWHERE.
UM, IT, IT, IT, THAT'S WHAT REALLY RESONATED TO ME.
WHEN YOU LOOK AT, UM, MO MARK, ALTHOUGH THEY HAVE A LOT OF EXPERIENCE AND THEY DID ADDRESS, I, I'LL GIVE THEM CREDIT FOR ADDRESSING THE THREE QUESTIONS AND WALKING THROUGH EVERYTHING.
THEIR EXAMPLES WERE PLUM CREEK MORTAR DISTRICT AND THE BELL DISTRICT.
AND IF YOU LOOK AT IT, IF YOU GO GOOGLE THOSE, THEY'RE ALL RENDERING ARTS.
UM, PLUM CREEK LOOKS LIKE A HUGE RESIDENTIAL NEIGHBORHOOD.
SO I WOULD ENCOURAGE YOU GUYS TO GO BACK AND LOOK AT WHAT THEY CURRENTLY HAVE DONE.
'CAUSE I THINK THAT YOU WILL SEE THAT WHAT THEY'VE SAID AND WHAT THEY'VE DONE DOESN'T REFLECT THAT.
NOW THEY MAY TAKE DIRECTION FROM US AND THEY MAY DO WHAT WE WANT.
BUT, YOU KNOW, IF YOU LOOK AT THEIR CURRENT INVENTORY OF WHAT THEY'VE DONE, I DON'T THINK IT MATCHES TO WHAT I ENVISION AT THAT PROPERTY.
I LOOK AT YOU LOOK AT THE JLL PARTNERSHIP.
THERE, THERE, THERE WAS SOME LACK IN THEIR PRESENTATION.
BUT I MEAN, THEY WORK WITH JLLI MEAN, THEY, THEY HAVE THE HUGE ROLODEX.
THEY, TO ME, THEIR, THEIR EXPERIENCE IN AND THEIR CONTACTS IS SOMETHING THAT I WOULD PUT MY MONEY INTO BECAUSE I KNOW THAT THEY CAN PROBABLY, UM, BE ABLE TO PARTNER WITH US TO GET WHAT WE TRULY ENVISION FOR THAT PROPERTY.
SO THOSE ARE, THOSE WOULD BE MY TWO PICKS.
UM, THE CSW AND MIDWAY AND, AND THOSE FOR THOSE REASONS, 'CAUSE AGAIN, IF YOU REALLY GO BACK AND LOOK AT WHAT THEY'VE ACTUALLY DEVELOPED IN THE LAST, THEY'VE GOT A LOT OF EXPERIENCE.
BUT IF YOU LOOK AT WHAT THEY'VE DEVELOPED IT, IT MAY SHOCK YOU.
UM, SO IN PREPARATION FOR THIS MEETING, THERE'S A COUPLE DIFFERENT WAYS THAT I WOULD PROPOSE WE GO ABOUT ANY FURTHER DELIBERATIONS.
UM, HAPPY TO HEAR FROM THE BOARD IF YOU GUYS HAVE IDEAS TOO.
BUT JUST GOING OFF OF THE EVALUATION SCORECARD SHEETS, UM, IS THERE ANYONE I DIDN'T HEAR A LOT OF TALK ABOUT RED OAK.
DO YOU FEEL COMFORTABLE ELIMINATING RED OAK FROM OKAY.
SO NARROWING IT DOWN TO THE THREE, UM, ONE OF THE OPTIONS IS TO GO OVER THE TOTAL SCORES THAT YOU GUYS HAVE FOR EACH OF THE THREE.
OR WE CAN GO OVER THE FRONT RUNNER FOR EACH SECTION AND THEN SEE WHICH, UM, DEVELOPER COMES OUT WITH THE HIGHEST SCORE, UM, THAT WAY.
AND THINGS THAT YOU PRIORITIZE WOULD SAY DIFFERENTLY.
I MEAN, THERE WERE SOME PRESENTATIONS THAT DIDN'T REALLY GO INTO CERTAIN ONES WHERE THEY WAITED FOR.
THAT WAS, THAT WAS MY CONCERN ALSO WAS THAT THERE A LOT OF THE STUFF DIDN'T GET TALKED ABOUT.
AND, YOU KNOW, WE HAVE LIMITED TIME FOR QUESTIONS, SO YOU CAN'T ASK EVERY SINGLE QUESTION THAT YOU WANT TO ASK.
IT'S, IT'S, I MEAN, THERE'S A LOT OF ZEROS.
CAN WE JUST SEE IF THERE'S A CONSENSUS ALREADY? I MEAN, WELL, I I, I, AND HELP ME IF I ASK THIS QUESTION THE WRONG WAY, ARE WE IN A POSITION TO WANT TO MAKE A DECISION WITH THE
[02:35:01]
FIVE OF US? PERSONALLY, I THINK I WOULD WANT TO HEAR MORE.I THINK THAT, YEAH, MO MARK AT LEAST DISCUSSED HOW WE COULD POSSIBLY FINANCE THINGS THE OTHERS DID NOT.
SO FOR US TO GIVE AN AWARD TO SOMEBODY AND SAY, WE DON'T EVEN KNOW HOW WE WOULD FINANCE THE PROJECT.
'CAUSE WE MIGHT GET WITH ONE OF THEM AND THEY SAY, NO, NO, NO, NO, WE BUY IT ALL.
UM, AND THAT'S, THAT'S WHAT WE DO.
UM, AND THAT MIGHT BE A, A DISAGREEMENT.
SO MY PERSONAL RECOMMENDATION WOULD BE PICK TOP TWO AND MAYBE GET A PUNCH LIST OF ITEMS OVER TO CHENEY AND MAYBE WE CAN GET THOSE ANSWERS BACK AND THEN MAKE AN INFORMED DECISION FROM THERE.
I THINK THAT'S GOOD BECAUSE I MEAN, IF WE KEEP, IF WE KEEP SITTING THERE AND TRYING TO NARROW IT DOWN, UM, WE HAVEN'T EVEN GIVEN THESE PEOPLE A VISION OR WHAT WE'RE, WHAT, WHAT WE'RE WANTING.
AND SO, SO I, I'M JUST KIND OF SITTING HERE LIKE, I MEAN, WE CAN SEE IF THERE'S A CONSENSUS, I'M GOOD WITH THAT.
BUT AT THE SAME TIME, I MEAN, I'M, I WOULD JUST HATE TO KEEP DOING THIS
I MEAN, THEY DON'T HAVE ANYTHING.
I, I I, AND JUST PERSONALLY, I STILL WOULD LIKE TO GET THE OTHER INPUT FROM THE OTHER TWO BOARD MEMBERS ALSO AND GIVE THEM AN OPPORTUNITY TO CHIME IN.
I KNOW, I KNOW TREASURER COLEMAN HAS VERY STRONG OPINIONS ABOUT, I MEAN HE, YEAH.
HE, HE WENT TO THE TROUBLE OF TYPING UP AN EMAIL AND MM-HMM.
I HEARD TREVOR TREASURER COLEMAN.
I'M LIKE, WHO IS THAT? UM, I KNOW HE FEELS STRONGLY ABOUT THIS, THIS WHOLE PROJECT.
SO I, I WOULD AGREE THAT WHILE I, I THINK WE ALL HAVE SOME PICKS, I THINK THEIR INPUT IS, IS WARRANTED.
AND ONCE AGAIN, STOP ME IF I MAKE SOMETHING UP, BUT I WOULD BE EVEN WILLING TO MAYBE CALL A SPECIAL CALL MEETING FOR A FUTURE AGENDA FIRST TO COME IN,
SO DOES THE BOARD WANT TO MOVE FORWARD WITH THESE THREE? DO YOU WANNA NARROW IT DOWN TO TWO? I'D SAY TWO.
I WILL LEAVE THE BOARD TO DISCUSS AND NARROW IT DOWN TO THOSE TWO.
SO I THINK I HEARD MIDWAY OUT OF EVERYBODY, OTHER THAN YOU'RE IN NAY POSSIBLY ON MIDWAY.
DO YOU, ARE YOU AT LEAST FOR THE TOP TWO? YEAH, MIDWAY WOULD BE ONE OF MINE.
AND THEN IT COMES DOWN TO JL AND J ALLEN.
J UH, OR C-S-W-S-W AND MO MARK MO MAR.
I'M A NE MOAR, BUT I, I WOULD BE IN FAVOR OF MO MARK, FAVOR OF MO MAR.
I WOULD BE IN FAVOR OF MO MARK.
AND AGAIN, I'D LIKE TO LET ASK MORE QUESTIONS.
UH, DO YOU HAVE A QUICK QUESTION? CHENEY, WERE ALL THESE QUESTIONS PRESENTED TO ALL OF THE COMPANIES? THE QUESTIONS THAT THE MO MARK ANSWERED? UH, SO THE QUESTIONS THAT MO MARK ANSWERED, I WILL SHARE.
UM, NOT ALL OF THE COMPANIES REACHED OUT FOR ANY ADDITIONAL DETAILS SINCE THE FIRST, UM, WOW.
YOU'RE LIKE THEY ANSWERED BUT, BUT THEY, BUT THEY CALLED I GET IT.
SO, SO THERE WERE SOME ADDITIONAL CONVERSATIONS AND ADDITIONAL INQUIRIES MADE FROM SOME OF THE DEVELOPERS.
AND SO, UM, AT THOSE OPPORTUNITIES I DID PROVIDE THE RELATIVELY THE SAME CONVERSATION WITH THOSE, UM, DEVELOPERS.
SO THEY TOOK AWAY WHAT THEY TOOK AWAY FROM IT, UH, AND PULLED OUT THOSE PRIORITIES AND, AND POSED THOSE AS QUESTIONS I WAS THINKING THE WHOLE TIME.
SO CHENEY, YOU FEEL GOOD ABOUT THE, THE, UH, DIRECTION WE'VE GIVEN YOU ON THAT? YES.
SO AS I UNDERSTAND IT, THE DIRECTION IS TO NARROW IT DOWN TO MIDWAY AND MO MARK AND THE BOARD WILL BE PROVIDING ADDITIONAL FOLLOW-UP QUESTIONS AND WE'LL PROVIDE AN OPPORTUNITY FOR TREASURER COLEMAN AND CHAIR CARLSON TO VIEW THE PRESENTATIONS AND PERHAPS DO THEIR OWN SCORECARD IF THEY WANT.
UM, BUT JUST PROVIDE THEIR FEEDBACK AS WELL.
IS THAT GENERALLY'S CORRECT? I THINK THAT'S RIGHT.
AND MAYBE WOULD IT BE, WOULD IT BE POSSIBLE FOR US TO GIVE YOU MAYBE A LITTLE MORE DIRECTION TO THEM VERSUS THEM JUST BEING GENERAL MAYBE? YEAH, WE'LL GIVE THEM MORE, SOME SPECIFICS.
UM, I, I WILL SAY TO THAT POINT, UM, SEVERAL OF THE COMPANIES EXPRESSED GREAT CONCERN ABOUT SHARING THINGS IN PUBLIC THAT THEY VIEWED EITHER AS, UM, TRADE SECRET LEVEL TYPE CREATIVE PROCESSES, UM, AS WELL AS THEIR FINANCING STRUCTURE, WHERE THEIR FUNDING COMES FROM, WHO THEIR PARTNERS ARE, THINGS LIKE THAT.
UM, 'CAUSE ESPECIALLY FOR THE FOLKS THAT HAVE PRIVATE FUNDING THAT IS TYPICALLY KEPT PRIVATE
AND SO I DON'T KNOW WHAT LEVEL OF INFORMATION OR DETAIL
[02:40:01]
YOU'RE GONNA GET, UM, IN A SETTING SUCH AS THIS.SO I WOULD DEFER TO LEGAL, LEGAL AS FAR AS WHAT, HOW TO, HOW BEST TO ACHIEVE THAT FAR AS THE, THAT INFORMATION FINANCIALS.
AGAIN, THIS IS SOMETHING YOU CAN, THEY CAN BE PASSED OUT IN OPEN SESSION AND THEN COLLECTED AFTER YOU GUYS LOOK AT IT.
WHAT ABOUT, BUT AGAIN, THAT WOULD BE UP TO THE PEOPLE PROVIDING THAT INFORMATION, WHETHER OR NOT THEY'RE OPEN TO THAT SORT OF DISCLOSURE.
WELL, WHAT, WHAT, WHAT ABOUT USING THE, YOU KNOW, THE EVALUATION SCOREBOARD KIND OF DOCUMENT THAT, UM, WE WERE PROVIDED.
UM, MAKING SURE THAT THEY'RE KIND OF HITTING ALL OF THOSE POINTS SO THAT WE COULD BETTER EVALUATE THEM.
YEAH, I'D BE HAPPY TO JUST, UM, SEND ALL OF THOSE QUESTIONS OR THOSE TOPICS RATHER AND HAVE THEM ELABORATE ON EACH OF THOSE TO PROVIDE A SUMMARY.
WHAT ABOUT COUNSEL? WHAT IF, WHAT IS THEY PRESENTED TO? THREE OF US, RIGHT? UNDER A QUORUM.
SO, YEAH, SO, UH, THAT WOULD BE, UH, MOTION CLOSED DOORS.
SO A MOTION TO THAT IS A POSSIBILITY.
MOTION TO SET UP A COMMITTEE AND THEN YOU WOULD NAME COMMITTEES, NAME PEOPLE FOR THE COMMITTEES TO MEET WITH THESE PEOPLE, AND THEN TO DISCUSS AND REVIEW MATERIAL.
YOU GUYS, YOU GUYS FEEL COMFORTABLE WITH THAT? LIKE IF YOU, IF YOU MET WITH LET'S SAY ONE OF THE GROUPS MIDWAY AND, AND YOU KNOW, I DON'T KNOW, AM I, THIS IS TOO COMPLICATED, CHANEY, I THINK, I THINK, UM, IT IS NOT, BUT I DO WANNA CAUTION THE BOARD THAT IF WE PURSUE THAT, UM, TO HAVE ALL SEVEN MEMBERS MEET SEPARATELY.
BUT TO HAVE THAT CONSISTENCY SO EVERYONE GETS AN OPPORTUNITY HERE FROM BOTH.
WE'RE LOOKING AT SIX MEETINGS BECAUSE THREE AND THREE LEAVES.
SO IT'S THREE MEETINGS AND THREE MEETINGS.
SO IT'D BE SIX MEETINGS TO SET UP THREE MEETINGS AND THREE MEETINGS TOTAL.
SO, UM, JUST, I JUST WANNA BE MINDFUL THAT'S A LOT ON THESE FOLKS TOO, TO ACCOMMODATE.
NOT THAT, NOT THAT I'M SAYING THEY AREN'T, THEY WOULDN'T BE WILLING.
BUT ALSO THE TIME FOR STAFF TO SET THAT UP FOR YOU GUYS OVER, OVER THE FOLLOWING WEEKS.
UM, JUST BEING CONSIDERATE OF THE, I THINK THE TIMELINE FOR THAT AND WHAT THAT WOULD THINK IT BE ENCOMPASS.
I THINK IF YOU'RE, I THINK IT WOULD BE APPROPRIATE TO DO A COMMITTEE, SINCE EVERYONE HAS OFFERED UP THEIR OPINION ON TWO, I WOULD BE ALL IN FAVOR OF DOING A COMMITTEE OF THREE.
AND HAVING THAT COMMITTEE THEN PICK THE PERSON AND MOVING FORWARD.
I THINK, YOU KNOW, I FEEL LIKE, AND I'M JUST SPEAKING FOR MYSELF, I FEEL LIKE MY VOICE HAS BEEN HEARD AND I'M GOOD WITH THE DIRECTION THAT WE'RE MOVING IN.
AND I WOULD TRUST, YOU KNOW, SOMEONE ELSE TO MAKE THE DECISION ON, HEY, THIS IS WHO WE SHOULD GO WITH AND HERE'S THE REASONS WHY.
OR, OR I WOULD LIKE TO SEE THE COMMITTEE SET UP AND THEN MEET WITH THE BOTH.
AND THEN COMMITTEE COMES, COMES BACK AND GIVE SOME MORE IN DEPTH DETAIL.
SO COMMITTEE OF THREE MEET WITH THIS.
TWO MEETINGS FOR THE COMMITTEE.
THE COMMITTEE MEETS WITH COMMITTEE CAN MAKE A SUGGESTION.
THE COMMITTEE MEETS RECOMMENDATION.
RECOMMENDATION BECAUSE I MEAN, THAT'S, THAT'S WHAT I COULD, I COULD, I COULD GET BEHIND THAT.
THAT'S WHAT WE'RE UP HERE ABOUT THAT, SIR.
SO THE MOTION, IF I UNDERSTAND CORRECTLY, WHAT YOU WANT TO DO, IT SOUNDS LIKE, UH, SOMEONE POTENTIALLY COULD MAKE A MOTION TO FORM A THREE MEMBER COMMITTEE TO FURTHER PURSUE, UM, THE TWO, UH, MASTER DEVELOPERS.
SO I'LL MAKE, I'LL MAKE A MOTION TO, I'LL MAKE A MOTION TO, UM, HAVE THE CHAIR OR VICE CHAIR MA MAKE A THREE PERSON, UH, UH, UH, MASTER DEVELOPER EVALUATION COMMITTEE TO THEN MEET WITH BOTH MIDWAY AND, UH, MO MARK AND OFFER THEIR RECOMMENDATION TO THE BOARD, UM, FOR CONSIDERATION AND POSSIBLE ACTION ON AWARDING A MASTER DEVELOPER CONTRACT TO, DID I SAY THAT SLOW ENOUGH? YES.
IS THAT GOOD ENOUGH? THE WAY, THE WAY YOU STATED IT IS YOUR INTENTION IS TO HAVE THE, UH, CHAIRMAN, OR WAS IT THE VICE CHAIRMAN? SELECT.
SO IT'S THE CHAIR OR VICE CHAIR OR CHAIR OR VICE CHAIR.
MAKE THAT COMMITTEE OF THREE, A THREE MAN COMMITTEE.
FROM THERE THEY WOULD MEET WITH BOTH MIDWAY AND MO MARK OFFER THEIR RECOMMENDATION TO THE BOARD FOR CONSIDERATION AND POSSIBLE ACTION ON AWARDING THE MASTER DEVELOPER CONTRACT.
SO ONCE THEY MAKE THEIR YEAH, I WAS, WE CAN TAKE ACTION OFF OF WHAT? I WAS JUST CLARIFYING WHETHER YOU WERE MEANT VICE CHAIR OR A CHAIRMAN OR EITHER OR.
WE HAVE A MOTION ON THE FLOOR.
DO WE HAVE A SECOND? A SECOND.
ANY DISCUSSION? ROLL CALL PLEASE.
[02:45:03]
SECRETARY CLANCY.DISCUSS AND CONSIDER ACTION ON RESOLUTION R 2 23 DASH THREE TWO TO AWARD A CON, A CONSTRUCTION CONTRACT FOR THE CONSTRUCTION OF THE EAST WEST SPINE ROAD AT THE MEGASITE, AUTHORIZING THE CHAIR TO EXECUTE THE CONTRACT AS APPROVED TO FORM BY THE CORPORATE CORPORATION'S LEGAL COUNSEL.
CHAIRMAN, THERE'S NO ACTION ON THIS ONE.
AND VICE CHAIR BEFORE, UM, THE MOTION ON SEVEN ONE WAS FOR THE CHAIR OR VICE CHAIR TO CREATE THE SUBCOMMITTEE.
DO YOU INTEND TO CREATE THAT SUBCOMMITTEE OR, THAT'S A GOOD QUESTION.
UM,
UM, AND DO I HAVE ANY OTHER VOLUNTEERS? I WOULD LIKE TO RECOMMEND AARON? I WOULD, I WOULD LIKE TO VOLUNTEER.
SO THEN AARON PUT AARON ON THERE.
AND THEN I'D LIKE TO CHECK WITH DON, YOU KNOW, I, HE MISSED THIS AND I'D LIKE TO SEE IF HE WOULD WANT TO DO THAT AS WELL.
SO THAT'S THE REASON WHY I'M, I'M HESITANT TO SAY THOSE ARE THE THREE, BUT, UM, YEAH, WHO ARE THE THREE AND THEN THOSE ARE THE THREE.
AND THEN WE CAN CHANGE IF THEIR SCHEDULES DO NOT ACCOMMODATE.
IS THERE A FORMAL MOTION NEEDED FOR THAT OR WAS THE PRIOR MOTION SUFFICIENT TO CREATE THE SUBCOMMITTEE? SO THE, THE PRIOR MISSION, THE PRIOR MOTION ALLOWED FOR THE, UH, VICE CHAIR TO APPOINT THE MEMBERS AND HE APPOINTED THEM, SO.
DISCUSS AND CONSIDER ACTIONS REGARDING, NO, WE DID THAT ALREADY.
DISCUSS AND CONSIDER ACTIONS REGARDING THE MASTER DEVELOPMENT OF THE COTTONWOOD PROPERTIES.
SO NO ACTION TAKEN, RIGHT? MM-HMM.
'CAUSE WE DID THAT LAST NIGHT.
WELL THEN WITH NO OTHER BUSINESS, UH, THIS MEETING IS ADJOURNED AT 10:47 PM YOU SHOULD CHANGE.