* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. BY THE 20TH, [00:00:01] AND THE TIME IS 2:00 PM AND I'M THE CHAIR OF [Economic Development Committee] THE ECONOMIC DEVELOPMENT COMMITTEE, VICE MAYOR PRO TEM MARTHA CASTEX TATUM. CALLING THIS MEETING TO ORDER. WANT TO WELCOME ALL OF THE COMMITTEE MEMBERS AND STAFF AND GUESTS IN ATTENDANCE. UH, TODAY WE HAVE IN CHAMBERS COUNCIL MEMBER AMY PECK, AND COUNCIL MEMBER SALLY ALCORN. WE ALSO HAVE STAFF FROM DISTRICT C, UH, STAFF FROM THE AT LARGE ONE MIKE KNOX OFFICE, UH, STAFF FROM AT LARGE TWO DAVID ROBINSON'S OFFICE, AND ALSO STAFF FROM AT LARGE FOUR COUNCIL MEMBER, UH, LETICIA PLUMBERS ALL OFFICE. UM, TODAY WE, UH, HAVE TWO PRESENTATIONS. UH, THE FIRST ONE ON OUR AGENDA FROM THE OFFICE OF ECONOMIC DEVELOPMENT. WE WILL HAVE STAFF ANALYSTS JENNIFER CURLEY, AND SHE WILL BE PRESENTING AN UPDATE ON OUR FINANCIAL POLICIES IN THE FY 2023 TURS BUDGET SCHEDULES. UH, MS. CURLEY, IF YOU'RE READY, WE'RE READY FOR YOUR PRESENTATION. YES, YES, MA'AM. GOOD AFTERNOON, EVERYONE. UM, MY NAME IS JENNIFER CURLEY. I'M WITH THE OFFICE OF ECONOMIC DEVELOPMENT. I'M A EXECUTIVE STAFF ANALYST. UM, TODAY I'LL BE REPORTING ON EACH ACTIVE PROJECT THE CITY HAS PROVIDED AN INCENTIVE FOR, ALONG WITH THE FISCAL 2023 TURS BUDGET SCHEDULE. SLIDE TWO, SLIDE THREE, PLEASE. THE CITY'S FINANCIAL POLICIES WERE FORMALIZED IN 1987 WITH THE ATTEMPT TO PROMOTE SOUND FINANCIAL PRACTICES, ENHANCE THE CITY'S FINANCIAL POSITION WITH RATING AGENCIES, AND OFFER GUIDANCE IN THE MANAGEMENT AND CONDUCT OF THE FISCAL AFFAIRS OF THE CITY. FINANCIAL POLICIES IS AN INTEGRATED FRAMEWORK WITHIN WHICH THE MAYOR, CITY COUNCIL, CITY CONTROLLER, FINANCIAL DIRECTOR, FINANCE DIRECTOR, AND ALL DEPARTMENT DIRECTORS, SHALL DEFINE AND ADHERE A PRESENCE OF INTEGRITY, ETHICS, COMPETENCE, AND A POSITIVE INTERNAL CONTROL ENVIRONMENT. SECTION M OF THE FINANCIAL POLICIES INCLUDES A REQUIREMENT TO REPORT TO THE ECONOMIC DEVELOPMENT COMMITTEE DETAILING THE PROGRESS OF EACH ACTIVE PROJECT IN WHICH THE CITY HAS PROVIDED AN INCENTIVE THROUGH THE TAX ABATEMENT AND CHAPTER THREE 80 PROGRAMS. THIS REPORT WILL BE PUBLISHED PROMINENTLY ON THE CITY'S WEBSITE WITHIN 30 DAYS OF PRESENTATION. A FULL LIST OF ECONOMIC DEVELOPMENT POLICIES IS LOCATED IN THE 2023 ADOPTED BUDGET BOOK. THE ACTIVE TAX ABATEMENTS WILL BE PRESENTED FIRST, FOLLOWED BY THE CHAPTER THREE 80 AGREEMENTS, THEN THE TZ NOMINATIONS. ALL OF THE AGREEMENTS HAVE BEEN APPROVED BY CITY COUNCIL. SLIDE FIVE, PLEASE. THE TAX ABATEMENT PROGRAM WAS ESTABLISHED IN 1988 BY ORDINANCE 1988 DASH 1 0 4. THE PROGRAM GUIDELINES ARE INCLUDED IN CHAPTER 44. ARTICLE FOUR OF THE CITY'S CODE OF ORDINANCES STATE LAW REQUIRES THAT TAX ABATEMENT GUIDELINES AND, AND CRITERIA EXPIRE AFTER TWO YEARS AND LIMITS THE TERM OF THE AGREEMENTS TO 10 YEARS. THERE HAVE BEEN MULTIPLE AMENDMENTS TO THE GUIDELINES SINCE 1988. THE MOST RECENT AMENDMENT WAS IN DECEMBER OF 2020 TO INCLUDE THE GREEN STORMWATER INFRASTRUCTURE TAX ABATEMENT PROGRAM, AND AN INCREASE TO THE FEE FOR TRADITIONAL LEAD AND GREEN STORMWATER TAX ABATEMENT APPLICATION. THE PROGRAM WAS RENEWED BY CITY COUNCIL IN MAY OF 2022 CURRENTLY. NEXT SLIDE, PLEASE. CURRENTLY, THERE ARE NINE ACTIVE TAX ABATEMENTS. THE NEXT TWO SLIDES SHOW THE ABATEMENT THE YEAR THE AGREEMENT WAS THE YEAR THE AGREEMENT WAS EXECUTED, THE LOCATION OF ABATEMENT BY A COUNCIL DISTRICT, THE COMMITMENT COMMITTED VERSUS ACTUAL INVESTMENT BY THE COMPANY, THE MARKET VALUE OF THE PROPERTY, AND THE JOBS C CREATED OR RETAINED. SO, FOR EXAMPLE, ON THIS PARTICULAR SLIDE, WE'RE LOOKING AT HALLIBURTON. SO THIS PARTICULAR AGREEMENT WAS EXECUTED IN 2015. THE LOCATION OF THE COMPANY IS IN DISTRICT B. THE INVESTMENT THEY COMMITTED WAS 145 MILLION. THE ACTUAL INVESTMENT WAS ONE 50, UH, 154 MILLION. THE CURRENT MARKET VALUE OF THEIR PROJECT SITE IS 1 192 0.6 MILLION, AND THEY AGREED IN THEIR AGREEMENT TO RETAIN 2,700 JOBS. AND THEY HAVE RETAINED THOSE 2,700 JOBS. BUT ALSO, UM, AT THIS PARTICULAR POINT AS OF, UM, THE LAST REPORTING PERIOD, THEY HAVE ACTUALLY, UM, HIRED 549 NEW POSITIONS. NEXT SLIDE, PLEASE. SO HERE'S THE SAME INFORMATION FOR THE OTHER FIVE AGREEMENTS, AGAIN, BY COUNCIL DISTRICT [00:05:03] SKASKA ON THE LIST IS THE ONLY GREEN, UM, AGREEMENT WE HAVE THUS FAR. NEXT SLIDE, PLEASE. THIS PARTICULAR SHOT SIDE SLIDE SHOWS ALL OF THE AGREEMENTS. AND IN THAT FIRST COLUMN WHERE IT SAYS ECONOMIC VALUE, THAT IS THE PROJECTION WE DID AT THE TIME OF THE AGREEMENT WITH REGARD TO THE IMPROVEMENT VALUE. AND THAT WAS THE ESTIMATE OF THE GROWTH IN THE ECONOMIC GROWTH CO, UM, COLUMN. THAT'S ACTUALLY SHOWING WHERE THEY ARE NOW WITH A PROJECTION. UM, THAT IS, THAT, THAT INCLUDES THE, LET ME START OVER AGAIN ON THAT ONE. SO, WHAT ECONOMIC GROWTH IS, IS INCLUDING ACTUALS WHERE THEY ARE CURRENTLY AS WELL AS A PROJECTED GROWTH TO THE END OF THEIR PERIOD. SO, FOR EXAMPLE, WHEN YOU'RE LOOKING AT THIS PARTICULAR SLIDE AND YOU'RE LOOKING AT KROGER CURRENTLY AS OF 2020, THEIR, THEIR VALUE IS AT 13.5 MILLION. AND THEIR PARTICULAR AGREEMENT ENDS IN 2026. AND SO WHAT WE DID WAS TAKE THE CURRENT VALUE OF 13.5 AND GROW IT OUT 4% YEAR OVER YEAR TO GET THE PROJECTION OF 19.5, 19.8 MILLION. UM, I WANNA NOTE ON THIS PARTICULAR SIDE, AT THE VERY BOTTOM, WE'RE TALKING ABOUT, UM, THE CANON ACCELERATOR WE'RE TALKING, WHICH IS THE BRIMORE FOUNDERS DISTRICT AGREEMENT. THE NOTE SAYS ONLY PHASE ONE OF THE MULTIPLE PHASE PROJECT HAS BEEN COMPLETED, WHICH INCLUDES THE CANNON ACCELERATOR CONSTRUCTION AND PROCESS FOR 52 ACRE. THE CONSTRUCTION IS CURRENTLY IN PROCESS FOR 52 ACRE MIXED USE DEVELOPMENT. IT'S NOT 52, IT'S 32. SO I JUST WANTED TO MAKE SURE I POINT OUT THAT CORRECTION ON THE SLIDE. THANK YOU. NEXT SLIDE, PLEASE. THE CITY'S CHAPTER THREE 80 PROGRAM WAS CREATED IN 1999 BY ORDINANCE 1999 DASH 74, AND IT HAS BEEN USED TO REIMBURSE FOR PUBLIC INFRA INFRASTRUCTURE OR TO LEVERAGE THE STATE'S ECONOMIC DEVELOPMENT PROGRAMS. THE PRIVATE BUSINESS OR DEVELOPER FUNDS THE PUBLIC IMPROVEMENTS IN ADVANCE, AND IT'S REIMBURSED OVER TIME FROM THE NEW INCREMENTAL PROPERTY TAXES. THESE AGREEMENTS ARE TYPICALLY PERFORMANCE DRIVEN. THE PROJECT ONLY RECOVERS IF IT IF IT PERFORMS AS PLANNED. THE DEVELOPER ASSUMES THE RISK IF THEY FAIL TO PERFORM. PUBLIC INFRASTRUCTURE IS CONVEYED TO THE CITY AND BECOMES A CITY OWNED ASSET. UM, THREE 80 PROGRAMS INCENTIVIZE JOB CREATION OR PUBLIC ACCESS TO PRIVATE SPACE. SLIDE 10, PLEASE. THE INFORMATION FOR THE CHAPTER THREE 80 AGREEMENTS IS DISPLAYED LIKE THE TAX ABATEMENT INFORMATION. SO, FOR EXAMPLE, IF WE'RE LOOKING AT THE TOP LINE, WHICH IS IN TOWN HOMES, THE COUNCIL DISTRICT IS A, THE TYPE OF AGREEMENT IS AN INFRASTRUCTURE AGREEMENT CURRENT. THE STATUS COLUMN REFERS TO WHERE WE ARE NOW WITH THAT PARTICULAR PROJECT. IT'S AN ACTIVE PROJECT. WE ARE ACTIVELY REIMBURSING THAT PROJECT, BUT THERE'S STILL SOME CONSTRUCTION ELEMENTS THAT ARE PENDING FOR THAT PARTICULAR PROJECT. THE, UM, IN INVEST, THE INVESTMENT THAT THEY, UM, ESTIMATED AT THE BEGINNING OF THIS AGREEMENT WAS 290 MILLION. IT, THE, THERE IS NO REQUIREMENT FOR THEM TO ACTUALLY MEET THAT INVESTMENT REQUIREMENT IN THE AGREEMENT. UM, RIGHT NOW, THEIR MARKET VALUE FOR THE AREA THAT THEY HAVE BUILT OUT IS 139.9 MILLION. THERE WERE NO JOBS THAT WERE ASSOCIATED. THERE WAS NO JOB COMMITMENT WITH THIS PARTICULAR AGREEMENT. NEXT SLIDE, PLEASE. THIS PARTICULAR SLIDE SHOWS THE COMPANY THEN THE TYPE OF REIMBURSEMENT AGREEMENT. SO NOT ALL OF THE AGREEMENTS ARE, UM, REIMBURSED THROUGH ADVIL. ALARM TAXES, SOME OF THE AGREEMENTS HAVE SALES TAX REIMBURSEMENT COMPONENT, AND SOME OF THE AGREEMENTS HAVE A MIXED BEVERAGE COMPONENT. SO THIS, THIS PARTICULAR SLIDE WILL TELL YOU WHAT TYPE OF REIMBURSEMENT THIS PARTICULAR, THESE PARTICULAR AGREEMENTS WILL RECEIVE. NEXT SLIDE PLEASE. THIS PARTICULAR SLIDE IS SHOWING THE COMMUN COMMUNITY BENEFITS PORTION OF THE AGREEMENT. COUNCIL JUST APPROVED THE MEOW WOLF AGREEMENT, UM, IN MAY OF 2022. AND THAT INCLUDES THE TYPE OF, THEY INCLUDES HIGHER, AT LEAST 25% OF THE WORKFORCE FROM THE LOCAL COMMUNITY, WHICH IS FIFTH WARD AND DENVER, DENVER HARBOR. PARTNER WITH SCHOOLS AND COLLEGES TO FOSTER ART EDUCATION, INCLUDING HOLDING EVENT EVENTS, TRAINING FOR EDUCATION, PARTICIPATING WORKFORCE DEVELOPMENT PROGRAMS. DONATE FREE TICKETS TO THE AREA SCHOOLS [00:10:01] FOR FIELD TRIPS, CREATE OR COMMISSION PUBLIC ART ON SITE OR NEARBY, MAKE GOOD FAITH EFFORT TO AWARD AT LEAST 10% OF CONTRACTS OR SUPPLY AGREEMENTS TO MWBE, REGISTERED WITH THE CITY CERTIFIED FIRM DIRECTORY AND UTILIZE LOCAL CONTRACTORS. NEXT SLIDE PLEASE. FINALLY, WE GET TO THE TEXAS ENTERPRISE ZONE PROGRAM, WHICH IS ADMINISTERED BY THE STATE OF TEXAS. THE STATE WILL REIMBURSE STATE SALES AND USE TAX FOR QUALIFYING PROJECTS. LOCAL MUNICIPALITIES ARE ALLOCATED NINE NOMINATIONS PER BIENNIUM. NOMINATIONS DO NOT REQUIRE ANY FUNDING FROM THE LOCAL MUNICIPALITY. THE COUNTY CAN O ONLY NOMINATE A PROJECT THROUGH AN INTER-LOCAL AGREEMENT WITH THE CITY IN WHICH THE PROJECT IS LOCATED. THE NEXT BIENNIUM BEGINS SEPTEMBER, 2023. NEXT SLIDE, PLEASE. THIS IS A LIST OF ALL OF THE CURRENT AND ACTIVE TAX, UM, ENTERPRISE ZONE NOMINATIONS. WE HAVE 10 ACTIVE, UM, AGREEMENTS RIGHT NOW. WE ARE CURRENTLY IN THE STATE'S FISCAL YEAR 2022 THROUGH 2023 BIENNIUM FOR THE CURRENT ROUND OF NOMINATIONS. THE MOST RECENT NOMINATION WAS VILLAGE MD, BUT THE NOMINATION HAS NOT BEEN APPROVED BY THE STATE. NEXT SLIDE, PLEASE. ARE THERE ANY QUESTIONS WITH REGARD TO REGARDS TO THE TAX ABATEMENT T ZS OR CHAPTER THREE 80 AGREEMENTS? YOU SAID WE HAVE 10 ON THIS LIST OF TEZ, UM, PROJECTS, IF WE ARE ONLY ALLOWED NINE IN THE BIENNIUM. IS THERE SOME OVERLAP ON THIS? YES, THERE'S SOME OVERLAP ON THIS BECAUSE WE'RE, WE'RE, SOME OF THESE WILL FALL OUT OFF THE LIST BECAUSE THEY'LL EXPIRE. THESE WERE NOMINATED IN PRIOR, UM, BIENNIUMS. SO FOR EXAMPLE, ANHEUSER BUSCH WAS NOMINATED, UM, IN THE PREVIOUS BIENNIUM. OKAY. AND THEY'LL BE ON UNTIL FOR HOW LONG? UH, ASK ME THAT QUESTION AGAIN PLEASE. HOW, HOW LONG WILL THEY BE, UM, PARTICIPATING IN THE, IN THE PROGRAM? IN THE, IN ANHEUSER-BUSCH? MM-HMM . I'LL HAVE TO NINE YEARS. FIVE YEARS. FIVE YEARS. FIVE. OKAY. EIGHT. ANY, ANY OTHER QUESTIONS? I DID HAVE ANOTHER QUESTION. UM, IF A DEVELOPER FAILS TO PERFORM, I KNOW THAT, UM, THE INFRASTRUCTURE IS CONVEYED TO THE CITY AND BECOMES A CITY ASSET. HAVE WE HAD ANY INSTANCE WHEN A DEVELOPER HAS FAILED TO PERFORM ON A, LIKE A THREE 80 AGREEMENT? I'M THINKING ABOUT YOUR QUESTION. UM, WE HAVEN'T HAD A SITUATION WHERE A DEVELOPER FAILED TO BUILD THE SITE OUT. WHAT WE HAD IN THAT PARTICULAR SITUATION IS THE INVE, THE DEVELOPER HAS NOT SUBMITTED THEIR DOCUMENTS FOR REIMBURSEMENT, SUBMITTED A DOCUMENT FOR REIMBURSEMENT. REIMBURSEMENT. OKAY. SO THEY ACTUALLY, YOU KNOW, GAVE US, UM, INFRASTRUCTURE, BUT THEY HAVEN'T SUBMITTED REIMBURSEMENT FOR REIMBURSEMENT BECAUSE THEY JUST DON'T HAVE THEIR PAPERWORK TOGETHER. THEY, THEY, I SHOULDN'T SAY THEY DON'T HAVE IT TOGETHER. THEY HAVEN'T BEEN ABLE TO PROVIDE THE PAPERWORK TO US IN ORDER TO, FOR US TO APPROVE THE REIMBURSEMENT TO THEM. OKAY. AND I KNOW RECENTLY WE HAVE BEEN TALKING ABOUT THE IMPORTANCE OF CIRCLING BACK, UM, WITH THESE PROJECTS AND MAKING SURE THAT WE GET REPORTS ON JOB CREATIONS AND THOSE TYPES OF THINGS. I WANNA MAKE SURE THAT WE DON'T LOSE SIGHT OF THAT AND THAT, UM, WE CAN MAKE SURE THAT AS WE PUT THESE DEVELOPMENT AGREEMENTS AND COMMUNITY BENEFITS AGREEMENTS TOGETHER, THAT WE ALSO SCHEDULE TIME IN THESE COMMITTEE MEETINGS WHEN WE DO THESE REPORTS TO FOLLOW UP AND MAKE SURE THAT, UM, WE REPORT BACK. BECAUSE A LOT OF TIMES WE SEE IT ON THE FRONT END, BUT WE NEVER KIND OF CIRCLE BACK ON THE BACK END TO MAKE SURE THAT IT HAPPENED. IT, IT'S GOOD FOR US AS ELECTED OFFICIALS TO KNOW THAT WHAT WE COMMITTED TO AND WHAT WE VOTED ON ACTUALLY HAPPENED. SO AS WE ARE OUT AND TALKING TO PEOPLE ABOUT THIS, BECAUSE, YOU KNOW, THERE, THERE'S A GROUP OF PEOPLE THAT, YOU KNOW, QUESTION WHY WE EVEN CONTINUE TO DO THESE. I WANT TO BE ABLE TO BE ABLE TO SAY, WELL, WE DID IT. WE AGREED TO THIS AS A COMMUNITY BENEFIT, AND IT HAPPENED. YES. BUT, BUT WE WOULD [00:15:01] NEED THAT INFORMATION FROM THE ECONOMIC DEVELOPMENT DEPARTMENT TO CIRCLE BACK AND SEE THE FULL PICTURE. SO I WILL TELL YOU THAT FOR THE TAX ABATEMENT, EACH OF THOSE COMPANIES HAVE TO FILL OUT A REPORT FOR, FOR THE APPRAISAL DISTRICT IN ORDER TO RECEIVE THE ABATEMENT. SO WE GET AN UPDATED APPLICATION, WHICH SHOWS THEIR CURRENT EMPLOYEES EVERY YEAR WITH REGARD TO THE CHAPTER THREE 80 AGREEMENTS THAT HAVE A, AN EMPLOYMENT COMPONENT. IN ORDER FOR US TO PROCESS THE REIMBURSEMENT, THEY HAVE TO SHOW AND DEMONSTRATE THAT THEY DID HIRE PEOPLE, HIRE AT LEAST THE MINIMUM REQUIRED IN THE AGREEMENT. SO YOU GET THAT INFORMATION. YES. AND I TRUST THAT YOU GET THAT INFORMATION AND THAT YOU ARE VALIDATING THAT INFORMATION. BUT IT'D BE GREAT FOR US TO GET THAT INFORMATION FOR OUR OWN. AND YOU MAY SEND IT IN THE MIDST OF 5,000 EMAILS, BUT I JUST WANT US TO HIGHLIGHT IT AND AMPLIFY IT IN A MEETING SO THAT, UM, NOT ONLY DO YOU THE, THE CITY KNOWS, BUT PEOPLE WHO LOOK AT THESE PROJECTS ALSO KNOW THAT WHAT THEY COMMITTED TO, WHAT WE COMMITTED TO ACTUALLY TOOK PLACE. OKAY. NOTED. MA'AM. ANY OTHER QUESTIONS, COMMENTS? OKAY. I WANT TO ALSO WELCOME STAFF FROM COUNCIL MEMBER MARTIN'S OFFICE AND COUNCIL MEMBER CAYMAN FOR BEING PRESENT. TODAY'S MEETING. OKAY. UH, WE ARE READY, UH, TO MOVE TO THE ECONOMIC DEVELOPMENT DIRECTOR, DEPUTY DIRECTOR. WELL, I HAVEN'T GONE THROUGH THE OH, BUDGET SCHEDULE. I'M MOVING RIGHT ALONG HERE. SCHEDULE. YEAH, YOU MOVING IN QUICKLY. IT'LL BE SO SORRY. NO, IT'S OKAY. IT'LL TAKE MOMENT. LET'S GO OVER THE TUR SCHEDULE. IT'LL, IT'LL JUST TAKE A MOMENT. MA'AM. AS YOU MAY BE AWARE, TAX INCREMENT REINVESTMENT ZONES ARE AUTHORIZED BY CHAPTER THREE 11. THE TEXAS TAX CODE T ARE CREATED BY THE CITY TO ENCOURAGE THE REDEVELOPMENT OF UNDERDEVELOPED OR UNDEVELOPED COMMERCIAL AREAS. MOST OF THE T BOARDS HAVE APPROVED THEIR BUDGETS AT THIS PARTICULAR POINT IN TIME. OUR PROCESS IS ONCE THEY SUBMIT THOSE BUDGETS, UM, TO THE CITY, WE SCHEDULE MEETINGS TO REVIEW THOSE BUDGETS WITH PUBLIC WORKS. NOW WE'RE READY TO GO AHEAD AND START, UM, UM, UM, GETTING A PLAN TOGETHER TO PUT THESE BUDGETS ON CITY COUNCIL'S, UM, AGENDA. AND SO THIS PARTICULAR, UM, IF YOU GO TO PAGE 18 OF THE PRESENTATION, WE START, WE'RE GOING TO START PUTTING BUDGETS ON CITY COUNCIL'S AGENDA AUGUST 23RD. OKAY. OKAY. SO SOME OF THIS MAY SWITCH AROUND 'CAUSE SOMETIMES TSS WANNA GO EARLIER THAN WHAT WE HAVE LISTED HERE. BUT GENERALLY THIS IS OUR, OUR PLAN AND IT IT'S THE PLAN THAT WE HAD YET LAST YEAR. SO WE DIVIDED ALL OF THE T UP IN EIGHT GROUPS AND WE'LL TAKE ABOUT THREE OF THEM PER WEEK. THAT'S CORRECT. THAT WAY WE'RE NOT CLOUDED, WE'RE NOT TAKING OVER THE AGENDA. OKAY. WITH T BUDGETS. YES. OKAY. UH, WE HAVE A QUESTION FROM COUNCIL MEMBER CAYMAN. THANK YOU, CHAIRWOMAN. UM, I, IF ANY TS ARE LISTENING, AT LEAST FOR DISTRICT CI JUST WANTED TO PUT EVERYONE ON NOTICE. I KNOW THAT WE HAVE OUR PROPOSED FY 23, UM, BUDGETS COMING FORWARD. UM, OUR MONTROSE TOURS IS UP, IS ONE OF THE FIRST ONES, WHICH IS TERRIFIC. AND THEY'RE A PERFECT EXAMPLE OF THIS. BUT, UM, I'M, I JUST WANTED IT TO BE IN THE RECORD CHAIR THAT, UM, AS FAR AS IT RELATES TO DISTRICT C, UM, I'M SPECIFICALLY GONNA BE LOOKING FOR WHAT INVESTMENTS, UM, IN TERMS OF SIDEWALK INFRASTRUCTURE, NEIGHBORHOOD IMPROVEMENTS, ET CETERA. UM, SOME OF OUR TOUR ARE DOING AND WANTING TO SEE THAT INFORMATION. OKAY. NOTED. THANK YOU. COUNCIL MEMBER CAYMAN, UH, COUNCIL MEMBER ALCORN, DO YOU HAVE A QUESTION? YES, THANK YOU. AND I ALSO WOULD LIKE TO KNOW ABOUT, UM, YOU KNOW, I'VE BEEN FOCUSED ON SIDEWALK FUNDING. SO IF THE, TO THE EXTENT THAT THAT CAN BE REALLY BE LAID OUT IN EACH OF THE BUDGETS ON HOW MUCH, UH, T ARE INVESTING IN, IN SIDEWALK INFRASTRUCTURE, UH, I'D BE INTERESTED IN THAT. AND THIS ISN'T REALLY RELATED TO THE SCHEDULE, BUT, UM, IT'S COME TO MY ATTENTION A COUPLE TIMES AND I HAD A DISCUSSION WITH, UH, ANDY ICKEN ABOUT, UH, SOMETIME BACK IS WHEN THERE, THE, THE CITY I THINK DOES A GOOD JOB, ESPECIALLY WITH THE NEW KIND OF FOCUS IN PUBLIC WORKS OF COMMUNITY ENGAGEMENT ON PROJECTS. BUT SOMETIMES IF IT'S A TS LED PROJECT, UH, COMMUNITIES, UH, AREN'T, DON'T FIND OUT ABOUT THE PROJECT TILL IT'S LIKE READY RIGHT OUTSIDE THEIR DOOR BEING CONSTRUCTED OR WHATEVER. AND WE TALKED ABOUT PERHAPS ESTABLISHING SOME KIND OF THRESHOLD OF INVESTMENT BY WHICH, UH, IT WOULD TRIGGER SOME KIND OF COMMUNITY MEETING OTHER THAN JUST THE REGULAR TOURS, MEETING THE TOURS, YOU KNOW, THAT NOBODY REALLY KIND OF KNOWS ABOUT OR WHATEVER. SO I DON'T KNOW IF THERE'D BEEN ANY MORE DISCUSSIONS ON THAT, BUT I WOULD BE AN ADVOCATE FOR, UM, [00:20:01] ESPECIALLY, YOU KNOW, JUST PROJECTS THAT, THAT THE COMMUNITY MIGHT NOT KNOW ABOUT. I MEAN, I'M SURE THE COUNCIL MEMBERS DO A GREAT JOB OF TELLING THEM ABOUT PROJECTS THAT ARE COMING UP, BUT, UH, THE MORE PUBLIC ENGAGEMENT, THE BETTER, KIND OF THE SAME PHILOSOPHY THAT OUR PUBLIC WORKS DEPARTMENT USES WHEN THEY GO AND DO A PROJECT AND GET SOME COMMUNITY INPUT. I'D LIKE THE TOURS TO DO THAT AS WELL. OKAY. UH, AND COUNCIL MEMBER CRO, I THINK THAT'S A GREAT POINT. I KNOW THAT OUR TOURS IN, UM, DISTRICT A, WE SCHEDULE, UM, DISTRICT A DAYS AND THEY ARE AT A LOT OF THE MEETINGS THAT WE HAVE IN THE COMMUNITY. BUT THE ENGAGEMENT AND, UM, MAKING SURE THAT WE ARE LETTING PEOPLE KNOW ABOUT WHAT'S HAP WE CAN NEVER DO IT ENOUGH. SO I, I, I AGREE. COUNCIL MEMBER PE THANK YOU, CHAIR. THANK YOU FOR THE PRESENTATION. UM, AS FAR AS THE TS UM, BUDGET SCHEDULE IS CONCERNED, I KNOW WE'VE BEEN DOING THIS FOR QUITE A WHILE WITH THE DIFFERENT GROUPS OF TS GOING THROUGH THIS PROCESS, BUT IS THERE A REASON WHY LIKE ALL THE TSS AREN'T TAKEN UP AT THE SAME TIME OR EARLIER IN THE FISCAL YEAR? BECAUSE ISN'T IT THE CASE THEN THAT SOME OF THE T ARE SPENDING MONEY ON BUDGETS THAT HAVEN'T BEEN APPROVED BY CITY COUNCIL? SO I GUESS I'M JUST WONDERING WHAT, LIKE, WHY THE TIMELINE IS BUILT THIS WAY. SO THE TSS ARE USING THEIR CURRENT BUDGET TO SPEND ON, SO THE BUDGET THAT COUNCIL AUTHORIZED LAST YEAR, THEY PER THE REDEVELOP, SORRY, PER, PER THE TRI-PARTY AGREEMENT, THAT ALLOWS THEM TO CONTINUE TO SPEND AGAINST THAT PARTICULAR BUDGET UNTIL WE PASS A NEW ONE. SO TECHNICALLY WHAT THEY'RE SPENDING MONEY ON IS THE OLD BUDGET THAT WE APPROVED PROBABLY AROUND AUGUST OR SEPTEMBER OF LAST YEAR. UM, THE REASON WHY WE DON'T DO ALL OF THE BUDGETS AT THE SAME TIME IS BECAUSE WE GOT FEEDBACK THAT IT KIND OF, UM, TOOK OVER THE AGENDAS. AND SO THAT'S WHY WE BROKE IT DOWN INTO THREE OR FOUR PER AGENDA. ALSO, UM, IF THERE ARE SOME CHANGES AT THE LAST MINUTE, IT GIVES SOME OF THE TS, UM, ROOM OR TIME ENOUGH TO CHANGE AROUND THEIR BUDGET BEFORE THEY HAVE TO GO TO GO TO CITY COUNCIL FOR IT. YOU, YOU ASKED ME ANOTHER QUESTION, I APOLOGIZE. WELL, I GUESS A FOLLOW UP TO THAT, DO THE TS KNOW THAT THE MONEY THAT THEY'RE SPENDING BEFORE COUNCIL APPROVES IT AS PART OF THEIR CURRENT BUDGET? BECAUSE I'VE BEEN IN TOURIST MEETINGS WHERE IT SEEMS LIKE THEY'RE NOT AWARE AND THEY'RE JUST WAITING FOR CITY COUNCIL TO APPROVE THE BUDGET BEFORE THEY'RE SPENDING ANY NEW MONEY. WELL, THEY CAN, UH, THEY CAN SPEND AGAINST THE OLD BUDGET. WHEN I'VE LOOKED AT THE BOARD BOOKS, IT'S USUALLY THEY HAVE THEIR OLD BUDGET SCHEDULE ACTUALLY IN THE, IN THE BOARD BOOKS. AND WHEN THEY, WHEN WE APPROVE A NEW BUDGET, THEN THE, THEIR ACCOUNTANT PERSON CHANGES OUT THAT BUDGET SCHEDULE TO MATCH THE, THE NEW BUDGET. SO THEY'RE SPENDING, OR SHOULD BE SPINNING, THEY SHOULD BE AT THIS PARTICULAR POINT IN, IN TIME, THEY SHOULD BE SPENDING AGAINST THEIR 2022 BUDGET. AND THEY, AND THEY'RE ALLOWED TO PER THE, PER THE AGREEMENT, SO THEY DON'T HAVE TO STOP SPENDING IF, IF THAT'S AN ISSUE. 'CAUSE TYPICALLY THEIR PROJECTS ARE THE SAME, UM, UNLESS THEY'VE FINISHED A PROJECT OUT. UM, BUT WE'LL LOOK AT THAT PROCESS TO SEE IF WE CAN DO IT. THE OTHER, I'M SORRY, THE, THE OTHER, UM, TO ANSWER YOUR OTHER QUESTION OF WHY THE BUDGET COMES ON COMES THE BUDGET PROCESS RETURNS, THIS COMES LATER. WE WANT TO FINISH UP THE CITY BUDGET FIRST AND THEN THE CAPITAL IMPROVEMENT BUDGET. SO ONCE THOSE TWO BUDGETS HAVE BEEN APPROVED BY COUNCIL, THEN WE START LOOKING AT, UM, PUTTING THE TUR BUDGETS UP. THANK YOU. ANY OTHER QUESTIONS? I, IF NOT, THANK YOU MS. CURLEY. WE APPRECIATE YOUR PRESENTATION. WE WILL MOVE ON TO THE NEXT PRESENTATION BY DEPUTY DIRECTOR GWEN TILLSON BELL AND STAFF ANALYST ANDREW BUSKER. UH, THEY WILL BE PRESENTING ON A PROPOSAL TO CONSIDER A TAX ABATEMENT REINVESTMENT ZONE AND AGREEMENT FOR FULFILLMENT FACILITY. SO DEPUTY DIRECTOR, WE ARE READY FOR YOUR PRESENTATION. GREAT. CAN I, NEXT SLIDE. SO THE PROPOSAL THIS AFTERNOON IS ON IS TO CONSIDER A TAX ABATEMENT FOR WAYFAIR, UM, LLC. UH, THE PROJECT IS LOCATED AT 15,550 MILLNER ROAD. UH, NEXT SLIDE PLEASE. [00:25:01] SO, AS YOU KNOW, EVERY TWO YEARS, UH, THE CITY COUNCIL APPROVES THE TAX ABATEMENT ORDINANCE TO ALLOW US TO CONTINUE TO PARTICIPATE IN THE TAX ABATEMENT PROGRAM. AND THE LAST, UH, RENEWAL WAS IN MAY OF 2022, UM, WHERE WE RENEWED FOR THE NEXT TWO YEARS, UH, THE ABILITY TO PARTICIPATE IN TAX ABATEMENT, UH, AGREEMENTS, UM, JUST TO WANNA, UM, RECAPTURE JUST A COUPLE OF COMMENTS ABOUT THE ORDINANCE. UM, IT DOES ALLOW THE CITY TO PARTICIPATE FOR UP TO 90% OF PROPERTY TAXES ON BUSINESS PROPERTY AS WELL AS REAL ESTATE PROPERTY THAT INCLUDES MACHINERY, EQUIPMENT STRUCTURES, UM, AND IT ALLOWS THAT 90% FOR PROJECTS THAT ARE LOCATED IN TEXAS ENTERPRISE ZONES. I THINK THAT'S REALLY IMPORTANT, UM, BECAUSE TEXAS ENTERPRISE ZONES ARE DESIGNATED BECAUSE THEY'VE GOT 20% OR HIGHER POVERTY RATES. AND SO IT ALLOWS US TO PARTICIPATE AT A HIGHER LEVEL IN AN ATTEMPT TO ATTRACT INVESTMENT TO HIGH POVERTY COMMUNITIES. UM, THE, UH, ORDINANCE ALSO REQUIRES, I THINK JENNIFER TOUCHED ON IT A LITTLE BIT EARLIER, THE, UM, ABILITY FOR THESE PROJECTS TO CONTRIBUTE COMMUNITY BENEFITS. UM, SECTION 44, 1 20 HAS HAD MANY ITERATIONS OF COMMUNITY BENEFITS. AND I THINK THOSE, THOSE BENEFITS HAVE STRENGTHENED EVERY TWO YEARS, EVERY TIME WE'VE RENEWED THE, THE ORDINANCE. BUT IN SUMMARY, IT DOES REQUIRE, UM, COMPANIES TO PARTICIPATE IN JOB TRAINING PROGRAMS, PROVIDE ON THE JOB TRAINING, UM, AS WELL AS INTERNSHIPS, LOCAL HIRING REQUIREMENTS. ALL OF THOSE BENEFITS ARE INTENDED TO MAKE SURE THAT THE COMMUNITY IN WHICH THESE PROJECTS ARE LOCATED ARE ALSO BENEFITING FROM, UH, FROM THE INVESTMENT THAT THESE COMPANIES ARE MAKING. SO, UH, FOR A FULL LIST OF THE REQUIREMENTS, AND WE ARE GONNA BE WORKING WITH WAYFAIR TO MAKE SURE THAT WE NEGOTIATE CONSISTENT WITH THE ORDINANCE. UM, BUT A FULL LIST OF THOSE, UM, GUIDELINES ARE, UM, INDICATED IN SECTION 44, 1 20 OF THE TAX ABATEMENT ORDINANCE. NEXT SLIDE PLEASE. SO TO SHARE A LITTLE MORE INFORMATION ABOUT WAYFAIR, THEY ARE AN INTERNATIONAL COMPANY THAT SPECIALIZES IN, UM, HOME GOODS AND PRODUCTS SUCH AS FURNITURE. UM, THAT IS AN E-COMMERCE. SO YOU ORDER IT ONLINE AND THEY SHIP IT RIGHT TO YOU. UM, THEIR HEADQUARTERS IN BOSTON, MASSACHUSETTS, AND THEY ALSO HAVE A CORPORATE OFFICE IN BERLIN, GERMANY. UM, OVERALL WORLDWIDE, THEY EMPLOY ABOUT 18,000 PEOPLE. ABOUT 3000 OF THAT ARE, UM, SOFTWARE ENGINEERS. AND THE REMAINING ARE THEIR OTHER SUPPORT STAFF, WHETHER THAT'S FULFILLMENT OR CUSTOMER SERVICE, ET CETERA. UM, SO SINCE THEY ARE A GLOBAL COMPANY, UH, THEY HAVE FULFILLMENT CENTERS ALL OVER THE WORLD, INCLUDING IN 23 STATES, UM, UH, ALREADY AS PRACTICE FOR THEIR ORGANIZATION. UM, THEY HAVE A PRETTY ROBUST, UH, DIVERSITY EQUITY INCLUSION INTERNALLY. AND THEY ALSO WORK WITH SUPPLIERS TO ENSURE THAT THEY HAVE A DIVERSE SUPPLIER BASE THAT'S, UH, SUPPORTING, UH, MINORITY AND WOMEN BUSINESSES. UM, THEY ALSO PARTNER WITH, UH, SEVERAL DIFFERENT, UH, WORKFORCE ORGANIZATIONS TO ENCOURAGE ECONOMIC, UM, WORKFORCE DEVELOPMENT, UH, WITHIN THEIR EMPLOYEES, UM, AND EXTERNALLY, UH, IN THE COMMUNITY. NEXT SLIDE PLEASE. SO THE SITE THAT THEY'RE INTERESTED IN HOUSTON IS IN NORTH HOUSTON, UH, DISTRICT B, AND IT IS JUST SOUTH OF, UH, BUSH INTERNATIONAL AIRPORT. UH, SO HERE ON THE MAP WE HAVE, UM, THE GREEN, UH, LITTLE WAY POINT THERE IS THE INDUSTRIAL PARK THAT WOULD BE LOCATED IN, WHICH IS PROLOGIS, UH, PRESIDENT'S PARK. UH, NEXT SLIDE PLEASE. SO A LITTLE BIT ABOUT THE PROJECT, UH, A DESCRIPTION. SO CURRENTLY, UM, THE SITE THAT IS BEING PROPOSED FOR THIS DEVELOPMENT, UH, IS A GREENFIELD, IT'S UNDEVELOPED. UM, THE LAND VALUE IS ABOUT 8 MILLION, WHICH MEANS THE CITY IS COLLECTING ABOUT 44,000 IN ANNUAL, UH, PROPERTY TAXES. UM, THIS IS GOING TO BE A 1.2 MILLION SQUARE FOOT FACILITY. SO IF YOU CAN JUST IMAGINE THIS IS A PRETTY SUBSTANTIAL, A VERY SUBSTANTIAL, UM, PROJECT THAT IS GOING TO BE LOCATED IN A BUSINESS PARK. NOW, THE BUSINESS PARK, UM, THIS PROJECT IS GOING TO TAKE UP ABOUT 70 ACRES, BUT THE ENTIRE BUSINESS PARK IS ABOUT 187 ACRES. IT'S, UH, THE NAME OF THE BUSINESS PARK IS, UM, PRESIDENT'S PARK. AND, YOU KNOW, WE'VE BEEN COMPETING FOR REALLY HIGH END INDUSTRIAL PROJECTS. UM, IN ADDITION TO THIS PROJECT, UM, PROLOGIS, WHO IS THE OWNER DEVELOPER OF THE PRESIDENT'S PARK, HAS ATTRACTED ANOTHER LARGE E-COMMERCE COMPANY. UM, AND TOGETHER WITH THIS PROJECT, WE'RE LOOKING AT UPWARDS OF A THOUSAND NEW JOBS COMING INTO THE COMMUNITY, WHICH IS VERY, VERY IMPORTANT THAT WE CONTINUE TO MAKE SURE THAT WE'RE PROVIDING JOBS FOR ALL HOUSTONIANS, UM, REGARDLESS OF THEIR SKILLS LEVEL, EDUCATIONAL LEVEL. SO WE THINK THAT THIS IS A REALLY STRONG PROJECT FOR THE GREENS POINT OR NORTH HOUSTON COMMUNITY. UM, THE INVESTMENT IS APPROXIMATELY 150 MILLION. NOW THAT'S A SHARED INVESTMENT, UM, BY BOTH WAYFAIR AND PRO [00:30:01] LODGES, AS I MENTIONED, AS THE OWNER AND DEVELOPER. PRO LODGES IS GOING TO BE MAKING THE INVESTMENT IN THE BUILDING AND EXECUTE A LEASE AGREEMENT THAT'S PRETTY COMMON FOR INDUSTRIAL PROJECTS. AND THEN, UM, WAYFAIR IS GOING TO BE INVESTING A SIGNIFICANT AMOUNT, UH, ALSO IN THE TENANT IMPROVEMENTS AND TO BUILD OUT THE SHELL, UH, UH, IF YOU WILL. BUT THE COMBINED INVESTMENT IS APPROXIMATELY 150 MILLION, AND THAT INCLUDES THE, THE LAND VALUE. UH, THEY INTEND TO BEGIN CONSTRUCTING THE PROJECT LATER ON THIS FALL. UM, THE, THE SHELL IS MOST LIKELY GOING TO BE CONSTRUCTED SUMMER, SOMETIMES AROUND SUMMER OF NEXT YEAR. AND AT THAT POINT, WAYFAIR, UH, WILL GO THEN GO IN AND START MAKING, UH, ALL OF THE IMPROVEMENTS TO THE BUILDING. AND THAT COULD TAKE ANOTHER SIX OR SEVEN MONTHS. AND SO WE ANTICIPATE THAT THE PROJECT IS GOING TO BE OPERATIONAL, UM, EARLY IN 2024. AND I MENTIONED EARLIER THE FACT THAT THIS IS, UH, LOCATED IN A TEXAS ENTERPRISE ZONE, IT MEANS THAT AT LEAST 20% OF, UM, THE POPULATION WITHIN THE CENSUS BLOCK GROUP IS, UH, POVERTY. SO AGAIN, WE'RE BRINGING JOBS, THE RIGHT KINDS OF JOBS INTO THE COMMUNITY SO THAT THERE IS GOOD ALIGNMENT BETWEEN PROJECTS AND THE WORKFORCE POPULATION. UM, THIS PROJECT IS GOING TO CREATE ABOUT 400 JOBS. AND OF THOSE 400 JOBS, APPROXIMATELY 357 OF THOSE JOBS WILL BE W WAREHOUSE STAFF. SO, UM, AGAIN, PROVIDING, UH, ON THE JOB TRAINING, UM, WAYFAIR HAS, UH, A VARIETY OF DIFFERENT TYPES OF TRAINING PROGRAMS. THEY, UM, ALSO PROVIDE, UM, UPSKILLING SO THAT IF SOMEONE COMES IN AND WORK IN WAREHOUSE, BUT THEN THEY WANT TO WORK IN ONE OF THE, THE LARGE, UH, UM, UM, UM, MACHINERY OPERATING SOME OF THE LARGE, UM, COMPLEX MACHINERY. THEY PROVIDE, UM, JOB ON THE JOB TRAINING AND SPECIALIZED TRAINING AND GET, AND ALSO CERTIFICATIONS TO ALLOW A PERSON TO UPSKILL AND TO MOVE INTO HIGHER PAYING POSITIONS. THE MINIMUM, UM, PAY FOR THESE JOBS WILL BE 16, 25 AN HOUR. AND I KNOW THAT WE'VE BEEN HEARING A LOT FROM A VARIETY OF ORGANIZATIONS THAT HAVE EXPRESSED CONCERN ABOUT PROJECTS THAT ARE COMING IN THAT ARE NOT MEETING WHAT'S CONSIDERED TO BE A SUSTAINABLE WAGE OF ABOUT $15 AN HOUR. AND SO THIS PROJECT IS GOING TO PAY, UH, AT A MINIMUM OF $16 AND 25, UH, CENTS PER HOUR. UM, NEXT SLIDE PLEASE. SO, JUST IN TERMS OF, UM, GIVING A LITTLE BACKGROUND IN TERMS OF HOW WAYFAIR CAME TO, UM, IDENTIFY THE HOUSTON SITE, WE WORKED VERY CLOSELY WITH SITE SELECTION CONSULTANTS, UM, AND WAYFAIR AS AN INTERNATIONAL COMPANY WAS LOOKING TO INCREASE HIS FOOTPRINT IN THIS REGION, UH, ACTUALLY IN THE US. UM, BUT THEY WERE FOCUSING ON THIS U UH, ON THIS REGION, THE, THE SOUTH SOUTHWEST REGION. AND THEY'D IDENTIFIED POTENTIAL SITES IN OKLAHOMA, LOUISIANA, AND THEY IDENTIFIED TWO SITES IN TEXAS, UH, HOUSTON BEING ONE SITE. THE OTHER SITE WAS BROOKSHIRE, TEXAS. UM, AND SO IN THE END, THE FINAL TWO CONTENDERS FOR THE PROJECT IS HOUSTON AND BROOKSHIRE. UM, NEXT SLIDE. SO I WANNA JUST TALK ABOUT THE TWO SITES AND GIVE SOME, UH, COMPARISONS, UM, SO THAT WE UNDERSTAND WHY IT'S IMPORTANT THAT WE ARE ABLE TO PRESENT AN INCENTIVE. SO THE CITY OF BERKSHIRE, UM, THE LOCATION THAT, THAT WAYFAIR CONSIDERED HAS AN EXISTING TAX ABATEMENT REINVESTMENT ZONE. AND WE ARE VERY FAMILIAR WITH OUR TAX INCREMENT REINVESTMENT ZONE. BUT THE TAX ABATEMENT REINVESTMENT ZONE SERVES, UH, A VERY SIMILAR PURPOSE, WHICH IS TO PROVIDE INCENTIVES OR TO INDUCE, UM, INVESTMENT WITHIN CERTAIN GEOGRAPHIES OR IN CERTAIN ZONES. WHAT THAT MEANS IS IF THE PROJECT LOCATES WITHIN THE ZONE, AND THIS ZONE HAPPENS TO BE A SMALL BUSINESS PARK IN BROOKSHIRE, BUT IF PROJECTS LOCATE IN THE ZONE, THE ZONE IS ALREADY IN PLACE, UM, THE COMPANY SIMPLY HAVE TO EXECUTE, UM, AN AGREEMENT, A TAX ABATEMENT AGREEMENT, BUT IT'S A WAY THAT THEY ENTICE AND INDUCE, UH, AND ATTRACT INVESTMENTS. AND THEY'VE ALREADY ATTRACTED SOME INVESTMENTS, UH, IN THEIR BUSINESS PARK. UM, THE TERM FOR THE BERKSHIRE ABATEMENT IS SEVEN YEARS. UM, AND WE CALCULATED BASED ON THE INVESTMENT, WHAT THAT ABATEMENT WOULD LOOK LIKE OVER THE COURSE OF SEVEN YEARS, AND IT'S ABOUT 2.3 MILLION, UH, IN A TAX INCENTIVE. THEY WERE GOING TO PROVIDE THE ABATEMENT ON THE FACILITY. AND, UM, THEY ALSO CONSIDERED THE COST FOR THE WAGE, UH, UH, HOURLY EMPLOYEES. AND BROOKSHIRE IS A VERY DIFFERENT MARKET FROM THE CITY OF HOUSTON. THEY WERE, THE WAGE, UM, FOR THE BROOKSHIRE AREA WAS ABOUT 1525, UH, AN HOUR. SO CONTRAST ACT TO THE HOUSTON SITE, THE SITE THAT WE'RE TALKING, UH, DESCRIBING DOES NOT CURRENTLY HAVE AN ABATEMENT REINVESTMENT ZONE IN PLACE. UM, AND WE HAVE THE ABILITY TO ENTER INTO UP TO A 10 YEAR TAX ABATEMENT. UM, THEY ARE GOING TO BE MAKING, UM, GETTING THE ABATEMENT ON THE IMPROVEMENTS. UM, BUT WE ALSO WANNA EMPHASIZE THAT WITH THE ABATEMENT BEING APPLIED TO THE BROOKSHIRE SITE, IT MADE THE HOUSTON SITE 1.2 MILLION HIGHER IN COST. [00:35:01] SO AGAIN, WE HAVE TO CONSIDER THE FACT THAT WE ARE COMPETING WITH AN EXISTING ABATEMENT THAT'S IN PLACE. THE LABOR MARKET HERE IN HOUSTON IS SLIGHTLY DIFFERENT. AGAIN, WE ARE IN NORTH HOUSTON, AND SO IT'S NOT DRAMATICALLY DIFFERENT, UM, FROM BROOKSHIRE, BUT IT IS SLIGHTLY HIGHER. SO THE HOURLY REQUIREMENT, UM, IS $16 AND 25, UH, CENTS AN HOUR. AND WHEN YOU PRO WHEN YOU FORECAST OR, UH, OR CALCULATE THAT $1 DIFFERENTIAL OVER A 10 YEAR PERIOD FOR ABOUT FOUR HUNDRED, THREE HUNDRED AND EIGHTY SEVEN TO 400 PEOPLE, THE COST DIFFERENTIAL IS ABOUT 10 MILLION. THAT INCLUDES, UH, ESCALATIONS, UM, IN WAGES OVER THE COURSE OF THE 10 YEARS, INCLUDES BENEFITS, UM, AS WELL AND, AND OTHER COMPENSATION FACTORS. SO AGAIN, SO WE'RE COMPETING WITH THE FACT THAT THERE'S A $1.2 MILLION COST DIFFERENTIAL IN THE FACILITY AS WELL AS A $10 MILLION INCREASE BASED ON THE LABOR MARKET. AND SO THE QUESTION IS THEN WHY ARE THEY INTERESTED IN THAT IN THE SITE HERE IN HOUSTON? THERE ARE OTHER FACTORS THAT INFLUENCE DEVELOPERS AND BUSINESSES' DECISION IN TERMS OF WHERE TO LOCATE COST BEING ONE OF THOSE FACTORS. BUT IT'S NOT THE ONLY FACTOR. SO FOR INSTANCE, THEY RECOGNIZE THAT GIVEN THE UNEMPLOYMENT RATES IN NORTH HOUSTON AND OTHER PARTS OF UNDERSERVED COMMUNITIES IN HOUSTON, THAT THIS PROJECT IS GOING TO HAVE A VERY STRONG POSITIVE IMPACT ON THE ECONOMY AND ON THE PEOPLE THAT ARE IN NORTH HOUSTON. SO THEY LOOKED AT THE ECONOMIC AND SOCIAL IMPACT THAT THIS PROJECT IS GOING TO HAVE FOR THAT LOCATION, AND IT WAS VERY STRONG. UM, THEY ALSO CONSIDERED THE FACT THAT ANDREW MENTIONED THAT DEI IS VERY IMPORTANT TO THIS COMPANY AND THEY RECOGNIZE THAT COMING INTO THE COMMUNITY ALSO GIVES THEM ACCESS TO A BROADER, MORE DIVERSE LABOR POOL AND A LARGER LABOR POOL. THAT'S VERY IMPORTANT FOR COMPANIES THAT ARE HIRING THOSE NUMBERS AT THAT QUANTITY BECAUSE IT HELPS THEM TO BE ABLE TO MANAGE AND REALLY, UM, MITIGATE RISK WHEN IT COMES TO TURNOVER. SO THE LARGER YOUR POPULATION POOL, THE BETTER YOU'RE ABLE TO HIRE WHEN YOU DO HAVE THE OCCASIONAL, UH, INSTANCES OF TURNOVER. UM, AND ALSO, YOU KNOW, THEY'RE IN THE GROWTH MODE. SO THE 1.2 MILLION FACILITY SQUARE, UH, SQUARE FOOT FACILITY IS THE FIRST, BUT IT ALSO ALLOWS THEM TO CONSIDER EXPANSION AND GROWTH AT THAT LOCATION. AND WHEN YOU'VE GOT A A ON A SITE THAT'S 187 ACRES, YOU HAVE THE POTENTIAL TO EXPAND AT THAT EXISTING SITE AND NOT HAVE TO RELOCATE WHEN YOU'RE CONSIDERING EXPANSION. UM, OPTIONS. THEY ALSO HAVE AN EXISTING RELATIONSHIP WITH PROLOGIS. UM, THEY'VE ENTERED INTO, UH, LEASE AGREEMENTS FOR SMALLER PROJECTS. AND SO THEY HAVE A TENANT, UM, RELATIONSHIP ALREADY WITH PROLOGIS, AND THEY RECOGNIZE THE PROFESSIONALISM AND THE VALUE THAT THEY'RE GETTING WITH WORKING WITH AN EXISTING PARTNER. SO THAT ALSO CAME INTO, INTO PLAY. AND ALSO THEY'VE BEEN, UH, ABLE TO WORK WITH THEM TO NEGOTIATE MORE FAVORABLE LEASE TERMS. SO FOR INSTANCE, THEY'RE ABLE TO NEGOTIATE A LONGER TERM LEASE WITH TWO, UM, FIVE YEAR OPTIONS FOR RENEWAL. UM, AND ALSO I THINK PROLOGIS HAS BEEN VERY GENEROUS IN CONSIDERING, UH, CREDITS FOR TENANT IMPROVEMENTS. SO IN SPITE OF THE FACT THAT THERE IS SOME COST DIFFERENTIAL, THERE ARE MANY OTHER FACTORS THAT ARE INFLUENCING THEIR DECISION TO CONSIDER THE HOUSTON SITE. UM, NEXT SLIDE PLEASE. SO THE PROPOSED ABATEMENT, UM, WOULD GO INTO EFFECT JANUARY 1ST, 2025. AND THAT IS, UM, BASICALLY THE JANUARY AFTER THE PROJECT IS FULLY CONSTRUCTED AND OPERATIONAL. I I MENTIONED EARLIER THAT THE TIMELINE IS ABOUT, UH, MID 2024 FOR THE PROJECT TO BE OPERATIONAL. SO THE ABATEMENT WOULD GO INTO EFFECT, UH, BEGINNING JANUARY. UM, IT WILL, WE ARE RECOMMENDING A 90% ABATEMENT, UM, BOTH ON THE REAL ESTATE PROPERTY EXCLUDING LAND. SO THAT'S JUST ON THE BUILDING IMPROVEMENT AS WELL AS THE MACHINERY EQUIPMENT AND OTHER PERSONAL PROPERTIES. ANY COMPUTER OR ANY OTHER TECHNOLOGY THAT'S BEING USED WOULD ALSO BE SUBJECT TO THE ABATEMENT. AND JUST TO GIVE YOU A QUICK CALCULATION, WE CALCULATED THAT THE FIRST YEAR ABATEMENT WOULD BE APPROXIMATELY 335,000, BUT WE JUST KIND OF DID A, A ROUGH AVERAGE OVER THE 10 YEARS, AND IT WOULD BE ABOUT THREE POINT 336,000, UM, PER YEAR, UH, ON AVERAGE OVER THE 10 YEARS. AND SO THE MAXIMUM THAT WE WOULD ABATE IS ABOUT, UH, 3.36 MILLION. AND AGAIN, WHEN WE LOOKED AT, YOU KNOW, THE VALUE OF THAT 3.36 AND WHAT ARE WE DRAWING DOWN, ONE IS I MENTIONED EARLIER THAT THERE IS A 1.2 MILLION COST DIFFERENTIAL BETWEEN THE TWO FACILITIES. SO THAT 3.36 IS TO, TO OFFSET THAT DIFFERENCE SO THAT NOW WE'RE COMPETING EQUALLY IN TERMS OF THE FACILITY COSTS AND ALSO TO CONTRIBUTE, UM, AT LEAST 2 MILLION TOWARDS THE LABOR DIFFERENTIAL. UM, IT'S NOT, YOU KNOW, WE DON'T FEEL LIKE WE NEED TO TRY TO COMPETE AND DRAW DOWN BECAUSE THERE ARE SO MANY OTHER POSITIVE FACTORS THAT WE'RE NOT, OUR OBJECTIVE WAS NOT TO GET TO THE 10 MILLION, UH, IN LABOR DIFFERENTIAL, BUT TO CONTRIBUTE SOME TO REDUCE THAT, THAT RISK AND THAT COST, BUT THEN ALSO, UM, RECOGNIZE THAT THERE IS VALUE IN, IN SOME OF THESE OTHER INFLUENCING FACTORS THAT MAKES USE ON A STRONGER SITE. UM, THE COMPANY, AGAIN, WE TALKED ABOUT COMMUNITY BENEFITS. UM, WE WILL BE WORKING WITH THE COMPANY AND NEGOTIATING, WE'LL ALSO BE ENGAGING THE COUNCIL MEMBER, UM, TO [00:40:01] MAKE SURE THAT WE ARE, UM, WORKING WITH HER SIDE BY SIDE AS WE WORK WITH THE COMPANY TO DEVELOP. AND WE WILL BE REPORTING, UM, THE ENTIRE ABATEMENT. REMEMBER WE HAVE, WE, WE ARE REQUIRED BY, BY LEGISLATION, UM, TO PRESENT A PUBLIC HEARING. SO THIS IS, UH, GOING TO CONTINUE TO BE A VERY PUBLIC PROCESS. THIS IS JUST THE FIRST PRESENTATION ON THE PROJECT. UH, THE NEXT SLIDE PLEASE. AND SO THIS IS, UM, YOU KNOW, WE LOVE NUMBERS, BUT WE ALSO WANNA BE ABLE TO DEMONSTRATE, UM, HOW WE CAME UP WITH THOSE NUMBERS. UM, UH, SO THIS IS JUST BASICALLY A VERY CONSERVATIVE, UM, YOU KNOW, WE LOOK AT THE, UH, INVESTMENT OF 150 MILLION. WE HAVE TO MAKE SOME ASSUMPTIONS AS TO WHAT PERCENTAGE OF THAT IS ACTUALLY GOING TO BE REFLECTED ON AGE CD. A HUNDRED PERCENT IS USUALLY NOT REFLECTED BECAUSE THERE'S SOME SOFT COST INCLUDED IN THAT INVESTMENT AS WELL. AND SO FOR INDUSTRIAL PROJECTS, WE USE A STANDARD 70%. UM, AND SO THAT'S HOW THIS INFORMATION, SO YOU'LL, YOU'LL SEE THE FLOW OF THAT 70%, UM, WITH SOME VERY CONSERVATIVE GROWTH NUMBERS. UM, WE ALSO HAD TO CONSIDER DEPRECIATION. WE USUALLY DON'T HAVE TO CONSIDER DEPRECIATION WITH MOST OF OUR ABATEMENT AGREEMENTS BECAUSE MOST OF THEM ARE ON BUILDING IMPROVEMENTS ONLY, BUT IN THIS CASE, WE'RE USING AND INCLUDING MACHINERY, EQUIPMENT, AND PERSONAL PROPERTY. AND SO WE HAVE TO FACTOR IN DEPRECIATION AND THEN ALSO REPLACEMENT. AND SO THIS SCHEDULE, UH, INTENDS TO REFLECT THAT, BUT YOU'LL SEE AT THE VERY LAST, UM, COLUMN THAT THE VALUE OVER THE 10 YEAR PERIOD IS ESTIMATED AT 3.36 MILLION. UM, THAT IS WRAPS UP. UM, THE, THE PLAN, UH, AS I MENTIONED IS IT'LL PROBABLY TAKE ABOUT SIX WEEKS OR SO FOR US TO FULLY NEGOTIATE AGREEMENT AND BE PREPARED TO COME BEFORE COUNCIL, UM, TO CONDUCT THE PUBLIC HEARING FOR THE CREATION OF THE REINVESTMENT ZONE AS WELL AS THE AGREEMENT. AND SO, UM, I WOULD ANTICIPATE IN ABOUT, YOU KNOW, FIVE TO SEVEN WEEKS, WE'LL BE BACK BEFORE COUNCIL WITH THE ACTUAL AGREEMENT. SO BEFORE I GO ON TO THE NEXT ITEM, ANY QUESTIONS ON THE TAX ABATEMENT PROPOSAL? WE DO HAVE A COUPLE OF QUESTIONS. SO, OKAY. ARE WE SURE THAT THE CITY OF HOUSTON ACTUALLY IS GETTING THE PROJECT OR ARE WE STILL IN, UM, CONVERSATIONS AND THEY'RE STILL TRYING TO DECIDE BETWEEN BROOKSHIRE AND HOUSTON? THEY'RE VERY CONFIDENT OF HOUSTON. UM, THEY HAVE SUBMITTED A LETTER, UM, FROM THEIR EXECUTIVE IDENTIFYING HOUSTON AS THE, THE SITE THAT THEY, UM, DESIRE. UM, BUT THEY ALSO INCLUDED IN THAT THE IMPORTANCE OF THE INCENTIVE AGREEMENT. SO OUR ABATEMENT ALLOWS COMPANIES TO CONTINUE TO PROCEED WITH ANY NEGOTIATIONS PROVIDING THEY SUBMITTED THE TAX ABATEMENT APPLICATION. SO THEY SUBMITTED THE APPLICATION AND THEY CONTINUED THEIR NEGOTIATIONS WITH PROLOGIS. OKAY. WE HAVE A COUPLE OF QUESTIONS. COUNCIL MEMBER ALCORN, THANK YOU CHAIR. THANK YOU FOR THE PRESENTATION ON THE SLIDE WITH THE, THE CHART WITH THE 10 YEAR PROJECTIONS. I JUST WANNA MAKE SURE I'M, I'M SURE UNDERSTANDING IT CORRECTLY. THERE'S 4% GROWTH, BUT THE ASSESSED VALUES DON'T GO UP. I MEAN, HOW IT LOOKS LIKE THEY GO DOWN SOME AND THEN UP AGAIN AND THAT, THAT'S REFLECTING THE DEPRECIATION. OH, OKAY. SO YEAH, AND THAT'S WHY I SAID THIS ONE'S A LITTLE BIT DIFFERENT. TYPICALLY YOU'LL SEE A SCHEDULE THAT SHOWS APPRECIATION. GOT IT. THE GROWTH, BECAUSE IT'S USUALLY BUILDING AND WE DON'T MAKE ASSUMPTIONS FOR DEPRECIATION. OKAY. BUT THIS ONE IS A LITTLE BIT UNIQUE, THAT SENSE THAT IT'S GOT MACHINERY, EQUIPMENT, AND THEN THE COLLECTED REVENUE BY THE CITY IS THAT OUR COLLECTED TAX. SO THAT, THAT MEANS THAT'S THE 10% THAT WE WOULD COLLECT. SO WE'LL MAKE OVER 10 YEARS, WE'LL MAKE 1.9 MILLION. WE'LL ABATE 3.3 MILLION. CORRECT. AND WE'RE GETTING RIGHT NOW 40 44,000 THOUSAND. OKAY. THANK 44,000. YOU'RE WELCOME. I DON'T, AND I DON'T KNOW IF YOU KNOW THE ANSWER TO THIS, BUT, UM, THERE WAS SOME LEGISLATION GOING BACK AND FORTH ABOUT E-COMMERCE BUILDINGS AND WHETHER THE TAXES SHOULD BE PAID TO THE E-COMMERCE BUSINESS OF ORIGIN OR DESTINATION. WILL THAT HAVE ANY EFFECT IF LEGISLATION PASSES WHERE THE POINT OF DESTINATION GETS THE TAXES INSTEAD OF POINT OF ORIGIN FOR A COMPANY LIKE WAYFAIR? UM, I WOULD HAVE TO TO DO A LITTLE RESEARCH, BUT I WOULD IMAGINE THE ANSWER IS YES. I THINK CITIES ARE MORE AND MORE E-COMMERCE BUSINESSES ARE LOCATING, UH, IN, IN, IN, IN MARKETS. AND WE'RE STARTING TO SEE A TRANSITION FROM RETAIL HARD, UM, SHELL RETAIL TO E-COMMERCE. UM, AND THERE IS AN OPPORTUNITY TO GENERATE SALES TAXES. SO, UM, WE WILL CONTINUE TO FOLLOW THAT LEGISLATION. AND AT THE POINT THAT A DECISION IS MADE, WE WILL DETERMINE THE IMPLICATIONS OF THAT LEGISLATION IN OUR ABILITY TO COLLECT SALES TAXES. YES, COMPANIES LIKE WAYFAIR AND AMAZON, YOU KNOW, THOSE CITIES THAT DO ALL THESE ABATEMENTS TO ATTRACT THOSE COMPANIES TO THEIR CITIES, IF LEGISLATION PASSES AND THEY START, UM, COLLECTING THOSE AT THE [00:45:01] POINT OF DESTINATION, THAT COULD HAVE A SERIOUS IMPACT ON THE REVENUE STREAM. SO, WELL, YOU KNOW, THAT THAT HAS BEEN, UM, SORT OF A DEBATE. UM, YOU KNOW, WE'VE BEEN WORKING WITH THESE E E-COMMERCE AND THE LEGISLATION HAS STILL NOT SETTLED. UM, I THINK WE ALSO HAVE TO CONSIDER THE OTHER VALUE EE EVEN IN THE EVENT THAT THAT DOES HAPPEN. AND WE HAVE TO CONSIDER THE SALES TAX IMPLICATIONS. WE ALSO LOOK AT THE ECONOMIC IMPACT OF THE JOBS AND WHAT THOSE JOBS AND HOW THE ECONOMY BENEFITS FROM THE JOBS AND BENEFITS THE INDIVIDUALS. AND SO I THINK IT BECOMES A KIND OF A, YOU HAVE TO BALANCE, UM, THE COST ASSOCIATED WITH DOING BUSINESS WITH E-COMMERCE AND THE VALUE AND THE BENEFIT. AND I THINK THAT'S WHY IT'S IMPORTANT THAT WE LOOK AT SORT OF THE, THE GLOBAL IMPACT. UM, BUT WE CERTAINLY WOULD. YOU, YOU MAKE A GREAT POINT. AND SO WE CERTAINLY WOULD WANNA CONTINUE TO FOLLOW THAT TO SEE, UM, HOW IT IMPACTS. I WOULD IMAGINE THAT IT WOULD AFFECT PROJECTS MOVING FORWARD THAT IT WOULD NOT AFFECT PROJECTS THAT HAVE ALREADY BEEN CONSTRUCTED AND IN OPERATIONS, BUT THAT MAY HAVE AN IMPACT ON FUTURE DEVELOPMENT, BUT WE'LL, WE'LL, WE'LL, WE'LL MONITOR THE LEGISLATION. OKAY. UH, COUNCIL MEMBER CAYMAN, THANK YOU SO MUCH, CHAIR. UM, IN TERMS OF MONITORING, JUST TO PIGGYBACK ON, UM, WHAT YOU SAID, AND, UM, DEPUTY DIRECTOR, THANK YOU SO MUCH FOR THE PRESENTATION AND ALL THE WORK THAT, UH, THE DEPARTMENT IS DOING. UM, DO WE MONITOR, LET'S SAY WE DO NOT GET, UM, SOMEBODY TO RELOCATE HERE, SOMEBODY THAT WE HAVE SOUGHT OUT WITH THESE PROPOSALS ARE, DO WE MONITOR OR INQUIRE AS TO THE REASONS FOR THAT? DO WE TRACK THAT? WE, UM, WE WORK PRIMARILY WITH SOME OF OUR OTHER REGIONAL PARTNERS WHEN WE'RE COMPETING THROUGH THE GOVERNORS, THE R-F-I-R-F-P PROCESS WHEN WE'RE COMPETING EARLY ON. AND FOR SOME REASON THEY DO NOT SELECT HOUSTON. WE DO GO BACK AND TRY TO DO A SURVEY TO GET INFORMATION TO FIND OUT WHY HOUSTON DIDN'T COMPETE WELL FOR PROJECTS THAT WE TAKE BEFORE COUNCIL LIKE THIS. AND LIKE WE HAD THE MAYOW WOLF, THAT WAS A PROJECT THAT WAS LOOKING AT VARIOUS LOCATIONS. UM, WE HAVE BEEN, UM, SUCCESSFUL AT THOSE PROJECTS LOCATING HERE IN HOUSTON. UM, WE GO THROUGH A VERY THOROUGH DUE DILIGENCE PROCESS TO ENSURE THAT WE HAVE, UM, THE, WHAT IT TAKES TO BE ABLE TO ATTRACT THE PROJECT ONCE WE GET TO THIS POINT. SO, UM, TO ANSWER YOUR QUESTION, WE DO FIND OUT AND GET INFORMATION, BUT IT'S FOR PROJECTS THAT WE DON'T EVEN GET AN OPPORTUNITY TO COMPETE FOR THROUGH AN RFI PROCESS. UM, FORTUNATELY WE'VE BEEN SUCCESSFUL IN ATTRACTING ALL OF THE PROJECTS THAT WE'VE PRESENTED, UM, BEFORE A COUNCIL. I THINK EVERYONE IS NOW AWARE THAT THE MEOW WOLF ANNOUNCED THAT IT IS DEFINITELY COMING TO HOUSTON. MM-HMM . YEAH. AND, AND AGAIN, THAT'S, UM, MY QUESTION IS NO INDICATION OF THE DILIGENCE AND THE WORK THAT YOU ALL DO FOR THE ONES WHERE WE DON'T, AREN'T PERHAPS ABLE TO SUBMIT, UM, OR THINGS OF THAT NATURE. UM, I'D BE INTERESTED TO KNOW JUST SOME OF THE REASONS WHY, UM, SO THAT WE AS A CITY CAN CONTINUE TO IMPROVE UPON THAT. AND I KNOW YOU ALL WORK REALLY HARD ON THAT. UM, ADDITIONALLY, IN TERMS OF WHEN WE LOOK AT, UH, BUILDING IMPROVEMENTS, PAY AND BENEFITS, ARE WE LOOKING AT AND IS PART OF THE CRITERIA, UM, FOR SPECIFICALLY BUILDINGS THEMSELVES, THE RESILIENCY FACTORS, GSI, UM, LEAD CERTIFICATION, THOSE TYPES OF THINGS THAT THE CITY UNDER THIS ADMINISTRATION HAS COME OUT REALLY STRONGLY FOR IN PUSHING? IS THAT A FACTOR OR, OR PART OF THE CONVERSATION OR CRITERIA? AS PART OF OUR DISCUSSIONS? ONCE, UH, A COMPANY SUBMITS FOR AN ABATEMENT, WE DO TALK ABOUT THE VARIOUS DIFFERENT ABATEMENT OPTIONS THAT ARE NOW AVAILABLE THROUGH OUR OFFICE. UM, AND TO ENCOURAGE, UH, THE USE OF, UH, GREEN STORM WATER IMPROVEMENTS, ESPECIALLY BECAUSE THE ABATEMENT ALLOWS THAT COMPANY TO FULLY RECOVER THE COST ASSOCIATED OR THE INCREMENTAL COST ASSOCIATED WITH USING, UM, GREEN STORMWATER SYSTEM VERSUS A GRAY STORMWATER SYSTEM. SO THAT WE EXPLAIN THAT THERE IS REALLY NO COST RISK BECAUSE WE AVERT THAT COST RISK THROUGH OUR ABATEMENT. AND WE ALSO EMPHASIZE THE FACT THAT WE'VE INCREASED OUR LEAD PERCENTAGES. SO WE DO GIVE THEM THE OPPORTUNITY, AND WE'VE ALSO EXPLAINED TO THEM THAT THEY HAVE THE OPPORTUNITY TO, UM, TO APPLY FOR A TRADITIONAL TAX ABATEMENT AS WELL AS SOME OF OUR, UM, UM, GSI AND LEAD, UM, ENVIRONMENTALLY, UM, YOU KNOW, ENCOURAGING ABATEMENTS AS WELL. RIGHT. YEAH. AND, AND I, I THINK THAT'S TERRIFIC AND THANK YOU ALL FOR INCORPORATING THOSE OTHER PROGRAMS. IT'S JUST WHEN WE TALK ABOUT ONE OF THE BENEFITS, FOR EXAMPLE, IN THIS PROPOSAL OF THE BUILDING INVESTMENTS SPECIFICALLY, UM, WHETHER OR NOT WE'RE LOOKING AT BUILDING INVESTMENTS FROM THAT CONTEXT AS WELL. AND THEN ALSO ON PAY BENEFITS, ARE WE LOOKING AT, UM, FOR EXAMPLE, UH, PARENTAL LEAVE AND THINGS OF THAT NATURE? WE HAVE NOT ASKED THEM ABOUT PARENTAL LEAVE. WE'VE ASKED ABOUT THINGS LIKE, UM, TUITION REIMBURSEMENT, AND THE, THE COMPANY DOES PROVIDE THAT. UM, AND WE HAVE A LIST. I'M HAPPY TO GO BACK TO ASK THEM IF THEY DO HAVE THAT, BUT THAT'S USUALLY NOT ONE OF THE QUESTIONS THAT WE ASK SPECIFICALLY ABOUT PARENTAL LEAVE. SO [00:50:01] I WOULD JUST, UM, AND I KNOW THIS ONE IS MOVING FORWARD. AGAIN, I'M NOT OPPOSED TO THIS AT ALL. I THINK WHATEVER WE CAN DO TO BRING BUSINESS TO THE CITY OF HOUSTON, UM, AND JOB GROWTH AND ECONOMIC DEVELOPMENT WE SHOULD BE DOING, I WOULD ASK RESPECTFULLY IF WE CAN INCLUDE THAT IN OUR LIST OF QUESTIONS. UH, I WOULD BE VERY APPRECIATIVE OF THAT. ABSOLUTELY. WE DO HAVE AN APPLICATION, A COUNCIL MEMBER, WE CAN CERTAINLY ADD TO THE APPLICATION TO INCLUDE WHERE WE DO HAVE A LIST OF BENEFITS. WE CAN INCLUDE PARENTAL LEAVE SO THAT IF COMPANIES ARE PROVIDING THAT, THEY CAN AT LEAST, UM, UM, MAKE THAT INFORMATION CLEAR TO US IN THAT PROCESS. AND I, AND I WOULD SAY I GENERALIZED PARENTAL LEAVE, BUT ALSO, UM, PRENATAL CARE. SO IT MAY BE HELPFUL FOR ME TO OFFLINE SPEND SOME TIME TO, TO, TO GET, UM, SOME IDEAS FROM YOU IN TERMS OF WHAT ITEMS YOU'D LIKE TO SEE AS PART OF BENEFIT PACKAGES. AT LEAST WE CAN AT LEAST HAVE THAT AS PART OF OUR APPLICATION PROCESS SO THAT IT'S COMPREHENSIVE. I, I WOULD VERY MUCH APPRECIATE THAT. AND AGAIN, THANK YOU FOR ALL THE WORK THAT YOU DO. AND CHAIRWOMAN, THANK YOU FOR THE TIME. OKAY. UH, WE ARE READY FOR THE NEXT PORTION OF YOUR PRESENTATION. OKAY. SO THIS ONE IS GONNA BE BRIEF. UM, WE, UM, ARE GONNA BE PRESENTING ON THE TEXAS ENTERPRISE ZONE, UM, WHICH IS AN INTERLOCAL AGREEMENT WITH MONTGOMERY, MONTGOMERY COUNTY. UM, NEXT SLIDE, PLEASE, DIDI. SO I DON'T HAVE TO GO THROUGH, UM, A LOT OF THIS INFORMATION BECAUSE I THINK JENNIFER PROVIDE AN OVERVIEW OF THE TEXAS ENTERPRISE ZONE PROGRAM AND HOW IT WORKS AND THE NUMBER OF NOMINATIONS DURING HER PRESENTATION. THE ONLY THING THAT I DO WANNA MENTION IS ON THE LAST ITEM IS WHEN A COUNTY, SO BOTH ALL MUNICIPALITIES, CITIES, AND COUNTIES HAVE THE AUTHORITY TO NOMINATE PROJECTS FOR THE CITY. UM, WE CAN NOMINATE DIRECTLY BEFORE COUNCIL, BUT IF A COUNTY WITH THAT IS WHERE THE, THERE'S AN ETJ, UM, OF A MUNICIPALITY, THEY FIRST HAVE TO GET AN INTERLOCAL AGREEMENT APPROVED BY THE MUNICIPALITY BEFORE THEY CAN EVEN NOMINATE A PROJECT TO THE GOVERNOR'S OFFICE AS A TEZ PROJECT. UM, AND THAT WAS, THAT'S LEGISLATION THAT I THINK WAS IN PLA THAT WAS PUT IN PLACE ABOUT SIX YEARS AGO. AND SO THIS IS JUST, UM, FOR US TO, UM, ACKNOWLEDGE THAT THERE IS GOING TO BE AN INTERLOCAL AGREEMENT FOR, UH, THAT WILL ALLOW WOOD, UM, THE MONTGOMERY COUNTY TO NOMINATE WOOD FOREST BANK, UM, AS A TEXAS ENTERPRISE ZONE DESIGNATION. LET'S, WE GO TO THE NEXT SLIDE, PLEASE. OKAY. AND THEN ONE MORE PLEASE. OKAY. SO THE PROJECT SITE IS LOCATED IN OUR ETJ, SO IT IS, UM, JUST WEST OF 45 AND, UH, NORTH OF SAWDUST ROAD. AND IT, AS YOU SEE ON THE MAP HERE, THAT BLUE AREA IS DESIGNATED AS AN, UH, ENTERPRISE ZONE ACCORDING TO, UH, THE CENSUS. AND SO THIS IS AN AREA, UH, A CENSUS BLOCK GROUP THAT HAS GREATER THAN 20% POVERTY, UM, WITHIN THAT ZONE. SO WOOD FOREST BANK, UH, HAS HAD A PREVIOUS, UH, ENTERPRISE ZONE AGREEMENT THAT CAME THROUGH AS AN INTERLOCAL AGREEMENT BETWEEN THE CITY AND MONTGOMERY COUNTY. UM, THAT ENTERPRISE ZONE, I BELIEVE ENDED 2020. IS THAT CORRECT? 2020. 2020, YEAH. UM, SO THIS IS A SEPARATE INVESTMENT THAT THEY'RE, UM, PURSUING. AND SO THIS INVESTMENT WOULD CREATE 10 NEW JOBS AND, UH, THEIR GOAL IS TO RETAIN THEIR REMAINING CORPORATE OFFICE OF 673 JOBS. AND THE FOCUS OF THIS INVESTMENT IS TO PUT $155 MILLION INTO THEIR NEW BANKING SOFTWARE THAT WOULD STREAMLINE THEIR TRANSACTION PROCESSES AND PROVIDE, UM, BETTER SERVICES REALLY, FOR THEIR CUSTOMERS. LET'S SEE. SO, UM, IT'S ALL I HAVE HERE. SO NEXT SLIDE, PLEASE. AND SO THIS IS JUST KIND OF MOVING FORWARD, UM, THE TARGET DATE, WE INTEND TO HAVE THIS BEFORE COUNCIL ON AUGUST 3RD, WHICH WILL ALLOW MONTGOMERY COUNTY TO NOMINATE AND VOTE ON AUGUST 9TH AND ENOUGH TIME FOR MONTGOMERY COUNTY TO MEET THE GOVERNOR'S OFFICE. SEPTEMBER ONE, UM, APPLICATION DEADLINE. AND THAT IS USUALLY JUST IN THE FORM OF A RESOLUTION. NEXT SLIDE. THANK YOU. THAT CONCLUDES OUR PRESENTATION. WOULD THIS COUNT AS ONE OF OUR, UH, NINE? IT WOULD NOT, IT DOES NOT. IT DOES NOT. OKAY. SO BECAUSE WE ARE NOT NOMINATING, ALTHOUGH WE HAVE THE AUTHORITY TO NOMINATE IN OUR ETJ AND THIS CASE, WE ARE SIMPLY, UM, ENABLING MONTGOMERY COUNTY TO USE ITS NOMINATION. AND REMIND ME WHY, WHY WOULD THEY NEED US TO ALLOW THEM TO USE? IT'S THE, IT'S THE, THE LEGISLATION WAS WRITTEN, DRAFTED THAT WAY ABOUT SIX YEARS AGO. AND I THINK PART OF IT IS TO ENSURE THAT THERE [00:55:01] WAS COORDINATION AND COOPERATION BETWEEN THE TWO ENTITIES. BETWEEN THE TWO MUNICIPALITIES. SO WHERE YOU HAVE CIRCUMSTANCES WHERE, UM, AN ETJ OF A MUNICIPALITIES WITHIN A COUNTY IS TO ENSURE THAT THERE'S COORDINATION BETWEEN THE TWO. OKAY. IT'S, IT'S AN, IT'S AN EXTRA, IT'S AN EXTRA PROCESS. UM, BUT IT DOES NOT DRAW DOWN OUR, OUR NOMINATIONS, BUT IT SHOWS THAT WE ARE IN SUPPORT OF A PROJECT, UM, THAT IS WITHIN ADJACENT COUNTY. AND WHAT WOULD HAPPEN IF WE WEREN'T IN SUPPORT OF IT, THEN MONTGOMERY COUNTY COULD NOT NOMINATE. SO IT IS, WE, SO THIS IS MORE THAN JUST SUPPORT, IT'S ENABLING. UM, MONTGOMERY COUNTY COULD NOT, WITHOUT THE INTERLOCAL AGREEMENT IN PLACE, THEY COULD NOT. SO THAT'S WHY WE HAVE TO TAKE ACTION FIRST BECAUSE THAT INTERLOCAL AGREEMENT SERVES AS PART OF THE APPLICATION FOR THEM TO NOMINATE. WE, WE GET COMMENTS BACK AND FORTH FROM THE INVESTMENT COMMUNITY, THE DEVELOPERS WHO ARE WANTING TO DO BUSINESS IN THE COUNTY. UM, AND, AND THERE'S SOME, SOME INTEREST IN MAYBE CHANGING THAT LEGISLATION TO ALLOW COUNTIES TO NOMINATE IN THE SAME WAY THAT MUNICIPALITIES HAVE THAT ABILITY WITHOUT HAVING TO, TO GET THE INTERLOCAL AGREEMENT. BUT RIGHT NOW, AS IT STANDS, IT'S ENABLING AND MONTGOMERY COUNTY CANNOT NOMINATE EVEN THOUGH IT HAS NOMINATIONS TO UTILIZE WITHOUT THIS INTERLOCAL AGREEMENT. OKAY. ANY OTHER QUESTIONS, COMMENTS? WE'RE NOT TAKING COMPLAINTS TODAY, . I AGREE. I SUPPORT THAT . OKAY. AND WE DON'T HAVE ANY PUBLIC SPEAKERS SIGNED UP TODAY, SO IF THERE ARE NO PUBLIC SPEAKERS, UM, ASKING ONLINE, UM, THERE ARE NO OTHER COMMENTS OR QUESTIONS. I WANT TO THANK EVERYONE FOR JOINING US TODAY. THANK YOU FOR THE PRESENTATIONS. UM, BEFORE WE ADJOURN, I'D LIKE TO REMIND EVERYONE THAT OUR NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING WILL BE ON WEDNESDAY, AUGUST THE 17TH AT 2:00 PM ALSO, IF YOU'RE INTERESTED IN RECEIVING INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, PLEASE CONTACT THE DISTRICT, A OFFICE AT DISTRICT A AT HOUSTON TXT GOV. ALL RIGHT. WE ARE ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.