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TIME IS TWO O'CLOCK.I AM COUNCIL MEMBER ROBERT GALLEGOS, PRESIDING CHAIR OF THE ECONOMIC DEVELOPMENT COMMITTEE.
UH, WELCOME TO ALL COMMITTEE AND COUNCIL MEMBERS, STAFF AND GUESTS IN ATTENDANCE.
UH, WE HAVE COUNCIL MEMBER AMY PECK IN THE CHAMBER.
UH, WE HAVE COUNCIL MEMBER CAROLYN'S EVAN SHABAZZ, VIRTUALLY, UH, WE HAVE STAFF FROM COUNCIL MEMBER ABBY CAYMAN'S OFFICE, AND WE HAVE STAFF FROM COUNCIL MEMBER PLUMMER'S OFFICE.
AND WE HAVE STAFF FROM COUNCIL MEMBER HUFFMAN'S OFFICE, AND WE HAVE STAFF FROM COUNCIL MEMBER KNOX'S OFFICE.
THA THA THANK YOU FOR JOINING US TODAY.
UH, THIS MEETING IS BEING HELD IN HYBRID MODE, IN PERSON AND VIRTUAL, AND WILL BE OPEN TO THE PUBLIC.
THE CHAIR AS PRESIDING OFFICER OF THE COMMITTEE WILL BE PHYSICALLY PRESENT IN THE CHAMBER COUNCIL MEMBERS AND STAFF.
PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATIONS IF YOU WOULD LIKE TO ASK A QUESTION AND OUR PRESIDENT IN THE CHAMBER REQUEST TO SPEAK, OR IF YOU ARE JOINING US VIRTUALLY TYPE REQUEST TO SPEAK IN THE CHAT POD AND YOU WILL BE RECOGNIZED IN ORDER WHEN YOU ARE RECOGNIZED.
PLEASE REMEMBER BEFORE YOU BEGIN SPEAKING TO UNMUTE YOUR MICROPHONE AND ENSURE YOUR CAMERA IS ON.
YOU'LL BE ADVISED WHEN THE TWO MINUTES HAVE EXPIRED, UH, COUNCIL MEMBERS ATTENDING VIRTUALLY, PLEASE USE THE CHAT POD IF YOU'RE EXPER, IF YOU'RE EXPER, IF YOU EXPERIENCE ANY PROBLEMS. THERE ARE NO PUBLIC SPEAKERS WHO HAVE SIGNED UP TO SPEAK TODAY.
IF THERE ARE ANY PUBLIC SPEAKERS PRESENT HERE IN THE CHAMBER WHO WISH TO SIGN UP TO SPEAK, THERE IS A SIGNUP SHEET IN AT THE FRONT TABLE ON YOUR RIGHT.
PUBLIC SPEAKERS WILL HAVE A CHANCE TO SPEAK AFTER THE CONCLUSION OF THE PRESENTATION.
ANY QUESTIONS CAN BE EMAILED TO DISTRICT K@HOUSTONTX.GOV.
THAT'S DISTRICT K@HOUSTONTX.GOV.
AND WE'LL BE FORWARDED TO THE RESPECTIVE DEPARTMENTS AND THE RESPONSES WILL BE DISTRIBUTED.
ANY MEMBERS OF THE PUBLIC JOINING VIRTUALLY, PLEASE USE THE CHAT POD TO POST YOUR QUESTIONS ON THE AGENDA.
FIRST ON THE AGENDA IS CHIEF DEVELOPMENT OFFICER ANDY EKIN, DEPUTY DIRECTOR GWENDOLYN TELSON BELL, WHO IS JOINING US VIRTUALLY AND OFFICE OF ECONOMIC DEVELOPMENT STAFF ANALYST ANDREW BUSCAR, WILL PRESENT ON THE TAX INCREMENT REINVESTMENT ZONE, UH, FINANCIAL POLICY.
UH, IF YOU ALL WILL PROCEED WITH THE PRESENTATION AND PLEASE INTRODUCE YOURSELVES FOR THE RECORD.
UM, I'LL OPEN WITH A BACKGROUND ON WHY, UH, WE'RE DOING THIS AND HOW IT RELATES TO RECENT, UH, ACTIONS THAT WE'VE TAKEN WITH THE JURORS.
UM, YOU RECALL THAT, UH, LAST FALL AS WE WERE BRINGING THE TURS BUDGET FORWARD, QUESTIONS AROSE ON POLICIES THAT WE HAD FOR T UH, SPECIFICALLY THOSE POLICIES RELATED TO WHEN DID WE ANNEX TERRITORY TO A TURS? UH, WHEN DID WE LIFE EXTEND THE TURS? WHEN DID WE ROLL UP A TURS, FOR EXAMPLE, A SERIES OF QUESTIONS.
UH, WE RESPONDED TO SOME QUESTIONS ON THE IMPLICATIONS IF WE WERE TO ROLL UP TOURS.
WHAT WERE THE FINANCIAL IMPLICATIONS TO THE CITY AND WHAT THE MAYOR SHOWED.
WHAT WE SHOWED AT THAT TIME WERE THE VERY SIGNIFICANT, UH, IMPACT ON THE CITY.
IN SOME CASES, OVER $200 MILLION NEGATIVE IF WE WERE IN THE CASE THAT WE LOOKED AT WITH BOTH TSI AT MIDTOWN AND THE UPTOWN TOURS.
THAT SAID, WHAT WE COMMITTED TO COUNCIL AT THAT TIME WAS WE WOULD REVIEW ALL OF OUR TOURS POLICIES, UH, BECAUSE ONE OF THE CRITIQUES WAS WE HADN'T PUT IT IN WRITING, AND WE HADN'T DESCRIBED HOW WE WOULD DEAL WITH UNIQUE SITUATIONS AS THEY EMERGE.
IT WOULD BE FAIR TO SAY THAT OVER TIME WE HAVE DONE THINGS ON A CASE BY CASE BASIS, UH, MADE WHAT I BELIEVE ARE SOUND BUSINESS DECISIONS ON THOSE CASE BY CASE DECISIONS.
BUT WHAT WE ASKED FOR AND THE MAYOR ASKED US TO PUT TOGETHER WAS A COMPREHENSIVE LOOK OF HOW WE WOULD DEAL WITH ALL 27 TURS AS WE HAVE IN A SYSTEMATIC WAY.
UH, WE HAVE ACTUALLY, UH, YOU HAVE REVIEWED COUNCIL ALL THE COUNT TURS BUDGETS FOR LAST YEAR EXCEPT THREE.
UH, THOSE THREE HAVE IMPLICATIONS FOR THE THINGS THAT I'VE JUST TALKED ABOUT.
AT LEAST TWO OF THEM DID THAT RELATE TO BUFFALO BAYOU EAST, THE FIFTH WARD TOURS, AND THE EAST END TOURS, WHERE WE DO HAVE SOME PROPOSED ACTIONS WE WILL BE BRINGING FORWARD.
BUT WE FIRST WANTED COUNSEL TO REVIEW, UH, WHAT THE POLICIES WERE TO DO THAT.
WE HAVE REVIEWED THIS WITH THE MAYOR.
UH, THE MAYOR WILL BE SUPPORTIVE.
WHAT WILL HAPPEN AS A RESULT OF THIS ACTION, AND I'LL GET INTO THE PRESENTATION IN A SECOND, IS A RELATIVELY STRAIGHTFORWARD, SIMPLE
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ADDITION TO THE FINANCIAL POLICIES OF THE CITY WILL BE MADE.WE DID HAVE A SECTION ON ECONOMIC DEVELOPMENT.
WE BELIEVE WHAT WE'RE GOING TO SHOW YOU TODAY IN FAIR DETAIL, UH, IS EXACTLY WHAT THOSE POLICIES WOULD BE AND HOW THEY WOULD BE IMPLEMENTED ACROSS THE CITY.
SO LET ME GO TO THE NEXT CHART FIRST.
UH, TAX INCREMENT ZONES ARE SOMETHING THAT YOU'VE ALL TALKED ABOUT AND ONE THAT, UH, WE'VE HAD TO, UH, DESCRIBE MANY TIMES IN TERMS OF POLICIES, HOW THEY'RE RELATED, HOW THEY ARE CREATED, AND WE'VE HAD A NUMBER OF TUTORIALS FOR COUNCIL THAT WE HAVE BROUGHT TOGETHER TO DESCRIBE THE BASICS OF IT.
UH, THEY'RE NOT SIMPLE, UH, AND IN MANY CASES, THEY COULD STATE BACK IN THIS CITY TO WELL OVER 30 YEARS SINCE THEY WERE CREATED FIRST AT THAT TIME, AND EACH ONE WAS CREATED FOR ITS OWN VERY SPECIFIC PURPOSE.
UM, I'M GONNA TALK FIRST ABOUT THE BACKGROUND OF THE TOURS AND THE FOUNDATION THAT IS LAID IN STATE LEGISLATION THAT HAD US CREATE THAT.
AT THE TIME THAT STATE LEGISLATION WAS DONE, UH, THE POLICY GOALS HAVE BEEN TO DEAL WITH EACH TAX INCREMENT ZONE.
UH, AS WE'VE DONE THAT, HOW WE'VE DONE THE METHODOLOGY, WE DID THIS ONCE BEFORE THAT COUNCIL SHOULD BE AWARE OF, AND THAT WAS WHEN RIGHT AFTER MAYOR TURNER CAME IN OFFICE, THERE WAS A NUMBER OF CRITIQUES THAT RELATED TO THE IMPLICATIONS OF TS IS GROWING AT A FASTER RATE IN THE CITY, AND THEREFORE THE GENERAL FUND HAVING TO PICK UP INCREMENTAL COSTS RELATED TO THE SUCCESSFUL ECONOMIC DEVELOPMENT.
UH, THAT'S WHEN WE CREATED AND WE CAME TO COUNCIL AT THAT TIME, THE MUNICIPAL SERVICE CHARGE.
SO IN THE GENERAL FUND OF THE CITY, UH, TODAY, THAT NUMBER IS $22 MILLION COMES OUT OF THE ROUGHLY A HUNDRED MILLION DOLLARS INCREMENT TO PAY FOR POLICE AND FIRE AND BASIC SERVICES.
IN FACT, IN EFFECT, BY THE GROWTH OF TERRA, UH, I WILL POINT OUT THAT OUR ANALYSIS OVER TIME HAS SAID THAT WHILE THE CITY, AND I'LL USE A LONG PERIOD OF TIME, LIKE 25 YEARS, THE CITY HAS GROWN AT A 4% ECONOMIC DEVELOPMENT RATE.
TS ACROSS THE CITY HAVE GROWN AT AN 8% ECONOMIC RATE.
UH, AS SUCH, WHILE THAT IS SUCCESSFUL AND GENERATES INCREMENTS FOR THAT, IT ALSO CALLS ON BASIC SERVICES, UH, LIKE POLICE, LIKE FIRE, LIKE SOLID WASTE, UH, WHICH ARE, AS THE AT VALOREM TAX GROWS DO NOT ACCRUE TO THE GENERAL FUND.
THE TURS, TYPICALLY, AS WE HAVE MANAGED THEM, TAKES THEIR INCREMENT, DOES NOT USE IT FOR OPERATING PURPOSES.
WE DO NOT USE CHARGES FOR MANAGEMENT.
WE USE IT FOR CAPITAL INVESTMENT BECAUSE THAT'S THE FOUNDATION IN THIS, IN THE STATE LAW.
I'LL COME BACK TO THE, THE BASIC BACKGROUND ON THE NEXT PAGE.
IT'S, UH, IT, IT IS AN ECONOMIC DEVELOPMENT TOOL, BUT LET ME MAKE THE POINT THAT IT IS NOT AN ALL ENCOMPASSING ECONOMIC TOOL, AND IT IS NOT APPLICABLE TO EVERY PART OF THE CITY.
UH, THE TOOL ITSELF, WHEN WE CAN SPUR ECONOMIC DEVELOPMENT ALLOWS THAT TO HAPPEN.
WHAT WE HAVE DONE WITH THOSE INCREMENTS IS TO CREATE ROADS AND DRAINAGE AND PARKS IN AREAS THAT FACILITATE GROWTH.
UH, THAT REALLY CUTS ACROSS ALL OF THE TOURS PLANS.
YOU AS CITY COUNCIL, REVIEW THOSE BUDGETS AND CAPITAL PLANS EVERY YEAR WHILE THE TOURS BOARD RECOMMENDS THEM, EVALUATES THEM, VETS THEM ONE WAY OR ANOTHER.
THE FINAL DETERMINATION IS CITY COUNCIL.
UH, NO TURS BUDGET IS APPROVED WITHOUT A, A VOTE FROM CITY COUNCIL.
WE HAVE BEEN SUCCESSFUL OVER MANY YEARS BRINGING THOSE BUDGETS TO YOU AND UP GETTING THEM APPROVED BY CITY COUNCIL.
BUT THE BASIC CORE OF THIS IS NO DIFFERENT THAN THE CITY BUDGET.
UH, IT'S BROUGHT TO YOU FOR CONSIDERATION, AND YOU AS CITY COUNCIL GET TO VOTE THOSE BUDGETS UP AND DOWN.
I KNOW THERE'S OFTEN A LOT OF DIALOGUE AND MANY COUNCIL MEMBERS PARTICIPATE INTS MEETINGS, WHICH ARE OPEN MEETINGS.
UH, WE CERTAINLY CREATE A LOT OF PUBLIC FORUMS AND THE TOURS, BOARD MEETINGS THEMSELF ARE SUBJECT TO THE OPEN MEETINGS ACT AND HAVE THAT VIRTUE OF THAT TOO.
IT IS, AS I SAID EARLIER, GROUND IN STATE LEGISLATION.
UH, WE DID IT A LITTLE DIFFERENTLY THAN SOME OTHER PARTS OF THE STATE.
DALLAS, FOR EXAMPLE, HAS WELL OVER A HUNDRED TS, BUT THEY DID IT ON A PROJECT BY PROJECT BASIS.
WE'VE DONE IT ON A GEOGRAPHICAL BASIS.
YOU'LL SEE IN THE POLICY CHANGES WE HAVE, THERE'S A THOUGHT PROCESS THAT MAY HAVE US RECONSIDER SOME OF THAT IN THE FUTURE.
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WHAT HAS BEEN THE MOST IMPORTANT CONSTRAINT WE HAVE FACED, AND WE'VE TALKED TO COUNCIL MEMBERS ABOUT THIS, IS STATE LAW PROHIBITS MORE THAN 25% OF THE AVALOR TAX BASE IN THE CITY FROM BEING WITHIN A TURS.WE ARE CLOSE TO THAT NUMBER NOW, IT VARIES A LITTLE BIT, UM, AND IT ONLY COMES INTO VIEW WHEN WE LOOK AT CREATING NEWTS.
IF THE TURS ITSELF WERE TO CONTINUE TO GROW AND WE DON'T MAKE ANY CHANGES, UM, IT COULD GROW ABOVE 25%, BUT IT ONLY IMPACTS US IF WE WERE LOOKING TO ADD GEOGRAPHIC GEOGRAPHY TO THE CITY AND CALL THEM.
T WE MADE A CHOICE LAST FALL TO HAVE VERY MINOR CHANGES, BUT A VERY SIGNIFICANT TUR WAS ADDED.
THE TMC TURS AT THAT TIME, UH, THERE WASN'T A LOT OF TAX INCREMENT IN THAT TURS, UH, THERE WILL BE AS TM C3 GOES, BUT THAT'S, THAT'S SORT OF THE PREDICATE AND THE BACKGROUND BEYOND THAT.
UH, LET ME ASK ANDREW TO GO PICK UP FROM HERE AND TALK ABOUT SOME OF THE SPECIFICS.
I, I, I'M SORRY FOR INTERRUPTING YOU.
I'D LIKE TO ACKNOWLEDGE WE, UH, WE'VE BEEN JOINED BY COUNCIL MEMBER ALCORN IN THE CHAMBER COUNCIL MEMBER JACKSON IN THE CHAMBER.
WE HAVE COUNCIL MEMBER ROBINSON JOIN US VIRTUALLY.
UH, AND WE HAVE STAFF FIRM, UH, COUNCIL MEMBER CISNEROS JOIN US AS WELL, SO, OKAY.
SO WHEN WE MOVE TO THE NEXT SLIDE, YOU'LL SEE A LOT OF WHAT INDIA'S BEEN TALKING ABOUT IN A VISUAL EXAMPLE.
SO WHEN EURS IS CREATED, A BASE VALUE IS SET FOR THAT GEOGRAPHIC AREA, AND THAT BASE VALUE IS DESIGNED TO ENSURE THAT THE TAXING JURISDICTION MAINTAIN THEIR EXISTING REVENUE AMOUNTS.
THEN WITH TIFF OR WITH OUR TS PROGRAM, THE PROPERTY VALUES SHOULD INCREASE FASTER THAN THEY WOULD IN THE ABSENCE OF TIFF BECAUSE OF THE INCREASED INVESTMENT IN THE AREA.
SO AS YOU SEE ON THIS GRAPH, THE BLUE LINE WOULD BE THE CITY OF HOUSTON CONTINUING ALONG AT THAT, UH, 4% GROWTH, WHEREIN THE TS AS WE'RE SEEING THAT 8% GROWTH.
SO WHEN WE WERE LOOKING AT DESIGNING, UM, THESE PROPOSED CHANGES TO TERRACE PROGRAM, THERE WERE, UH, FIVE GOALS, UH, THAT WERE GUIDING THIS DEVELOPMENT.
AND SO THOSE ARE GOVERNANCE, FINANCIAL RESPONSIBILITY, EQUITY, COMPLIANCE, AND TRANSPARENCY.
AS WE DEVELOPED THIS POLICY, EVERY CONSIDERATION, UH, REFLECTED AT LEAST ONE OF THESE POLICY GOALS.
I KNOW WE ALL LOVE METHODOLOGY SO MUCH, SO I'LL KEEP THIS BRIEF.
UH, FIRST WE LOOKED AT EXISTING PRACTICES IN AREAS WHERE ADDITIONAL CLARITY MIGHT BE HELPFUL AND MOVING FORWARD.
THEN WE LOOKED AT, UH, STATEWIDE AND NATIONAL EXAMPLES, UH, TO COMPARE OUR PRACTICES.
AND THEN FINALLY, WE VETTED THE PROPOSAL WITH INTERNAL AND EXTERNAL STAKEHOLDERS.
SO NOW, UH, DEPUTY DIRECTOR GWEN TILLSON, UH, WILL GUIDE US THROUGH THE PROPOSED POLICY.
SO THE, THERE WAS A GUIDING PHILOSOPHY THAT WE REFER TO, UM, ON A REGULAR BASIS AS WE WERE RESEARCHING AND DEVELOPING THESE POLICIES.
UM, AND BASICALLY IT'S THAT A TOUR SHOULD ACT AS AN IMPERMANENT CATALYST FOR PLACE-BASED PRIVATE INVESTMENT THROUGH THE CONSTRUCTION OR IMPROVEMENT OF PUBLIC INFRASTRUCTURE WITHOUT COMPROMISE, UH, OF THE CITY'S ECONOMIC NEEDS.
THERE ARE A COUPLE THINGS I WANNA EMPHASIZE HERE.
THE FIRST IS THAT IT IS NOT A PERMANENT ECONOMIC DEVELOPMENT TOOL.
ANDY MENTIONED, UM, THAT WE'VE HAD A LOT OF SUCCESS AND THE ECONOMIC IMPLICATIONS OF THE TS ARE VERY POSITIVE.
UM, BUT THE TOURS SHOULD HAVE A TERMINATION UMTS WERE NEVER INTENDED TO BE IN PERPETUITY.
THE SECOND THING IS THAT THERE SHOULD ALWAYS BE A LEVEL OF PRIVATE PLACE-BASED INVESTMENT TO ENSURE THE SUCCESS OF A TOURS.
A A TOURS WITHOUT INVESTMENT, UM, IS REALLY JUST A GEOGRAPHY.
THE INVESTMENT IS VERY CRITICAL BECAUSE THAT IS WHAT DRIVES AND CREATES THE NEW REVENUE, UM, AND IT SHOULD NOT COMPROMISE THE CITY.
AND I KNOW THAT THERE HAS BEEN A LOT OF DISCUSSION AND DEBATE ABOUT, UM, WHERE IS THAT FINE LINE, WHERE THE TS ARE ADDING VALUE? UM, IT IS MEETING THE OBJECTIVE, BUT IT IS NOT TAKING AWAY FROM THE GENERAL FUND.
I MEAN, SO, YOU KNOW, WE, WE CONSIDERED THIS AND WE, WE KEPT GOING BACK AND FORTH AS WE WERE DOING RESEARCH, BUT THIS IS SORT OF WHAT GUIDED, UM, OUR RECOMMENDED POLICIES.
THIS IS, UH, WHAT WE'RE GONNA SHARE TODAY IS REALLY JUST SORT OF AN OVERVIEW, BUT THERE IS A MORE DETAILED, COMPREHENSIVE TOURS, UM, WHITE PAPER OR DOCUMENT.
UM, AND SO THE PHILOSOPHY REALLY KIND OF, UM,
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GOES FURTHER AND DESCRIBES THAT OUR FOCUS IS REALLY AROUND, UH, A SET OF ABOUT SEVEN DIFFERENT ECONOMIC DEVELOPMENT PRIORITIES, INCLUDING AFFORDABLE HOUSING, UM, SUSTAINABILITY AND RESILIENCY.WE'VE SPENT A LOT OF RESOURCES AND LEVERAGED A LOT OF THE TOURS, UH, INCREMENT AND INFRASTRUCTURE RELATED PROJECTS RELATED TO DRAINAGE, UM, AND THOSE TYPES OF IMPROVEMENTS TO MITIGATE, UH, FLOODING, UM, BUT ALSO AROUND COMPLETE COMMUNITIES, UM, BROWNFIELD DEVELOPMENT.
UM, AND SO THERE IS A MORE DETAILED DOCUMENT THAT WE'LL REVIEW WITH YOU AS WELL.
SO, AGAIN, I REFER TO THE PUBLIC POLICY DOCUMENT.
SO WHILE, UM, WE'RE JUST GOING TO BE HIGHLIGHTING AND KIND OF SPEAKING AT A VERY CONDENSED LEVEL, THE POLICY DOCUMENT ITSELF IS A VERY COMPREHENSIVE AND VERY THOROUGH DOCUMENT.
UM, THAT REALLY GETS INTO NOT ONLY THE POLICY ITSELF AS A GENERAL STATEMENT, BUT IT ALSO, UM, SPEAKS ABOUT THE BENCHMARK AND THE PRECEDENTS.
AND ANDY MENTIONED, UM, EARLIER, YOU KNOW, HOW THE CITY OF DALLAS OPERATES AST PROGRAM.
WE RESEARCH NOT ONLY LOCAL, BUT WE DID AER STATEWIDE AS WELL AS, UM, NATIONAL REACH WHEN IT CAME TO DEVELOPING OUR POLICIES.
AND ALL OF THAT INFORMATION IS INCLUDED IN THIS MORE COMPREHENSIVE DOCUMENT.
UM, I AM HAPPY TO MEET WITH ANY OF THE COUNCIL MEMBERS THAT WOULD LIKE TO SIT AND REVIEW THE MORE THOROUGH DOCUMENT, BUT I JUST WANTED TO PUT THE TABLE OF CONTENTS JUST TO KIND OF MAKE IT VERY CLEAR THAT THIS WAS NOT A, A VERY QUICK PROCESS.
IT WAS A VERY THOROUGH PROCESS, AND I BELIEVE WE, UM, HAVE DEVELOPED A, A, A DOCUMENT, UM, THAT, UH, WE COULD VET A DOCUMENT THAT I THINK IS GOING TO DEMONSTRATE, UM, A LOT OF THOUGHT AND EFFORT WENT INTO PUTTING TOGETHER THIS DOCUMENT.
AND SO I'M GONNA FOCUS PRIMARILY ON THE SAME ITEMS THAT YOU WOULD FIND IN THE DOCUMENT, UH, IN THE POLICY DOCUMENT.
BUT WE'RE GONNA TALK ABOUT EVERY ASPECT OF THET, UM, FROM CREATION, LIFE EXTENSIONS, TERMINATIONS, THE BOUNDARY ADJUSTMENTS, UH, WHICH WE REFER TO AS ANNEXATIONS OR DE ANNEXATIONS.
UM, NON-CONTIGUOUS TS IS, UH, SOMETHING THAT THE LEGISLATION ALLOWS.
WE HAVE ONLY CREATED ONE NON-CONTIGUOUS TS AND WE'LL SPEAK MORE ABOUT THE OPPORTUNITIES THAT WE BELIEVE MIGHT BE PRESENTED IF WE EXPLORE THIS OPTION FURTHER.
WE'LL ALSO TALK SOME ABOUT THE TOURIST PERFORMANCE.
YOU KNOW, WE WANNA MAKE SURE THAT THE TOUR ARE OPERATING EFFICIENTLY AND EFFECTIVELY, AND THAT THEY'RE MEETING THE INTENT INTENDED OBJECTIVE THAT IS DESCRIBED IN THE PROJECT PLAN.
AND SO WE'LL SPEAK MORE ABOUT THE ROLE THAT OUR OFFICE WILL PLAY, UM, MORE, UM, PROACTIVELY TO ENSURE THAT THE CHURCHES ARE ACHIEVING THIS OBJECTIVE AND ARE BEING SUCCESSFUL.
UM, ANDY MENTIONED THE PROCESS, THE ANNUAL BUDGET AND CAPITAL REVIEW PROCESS.
UH, THE FACT THAT IT COMES TO COUNCIL EVERY YEAR.
UM, THE FACT THAT WE MEET WITH PUBLIC WORKS AS WELL AS THE DISTRICT COUNCIL MEMBERS AND AT LARGE COUNCIL MEMBERS AT REQUEST.
UM, BUT THERE'S MORE WORK THAT WE BELIEVE THAT WE COULD DO TO ENSURE, UM, TRANSPARENCY.
AND THEN ALSO WHEN IT COMES TO ISSUING DEBT, UM, THE PRESENTATION THAT WE GAVE A COUPLE MONTHS AGO REALLY KIND OF HONED IN ON THE ABILITY OF S TO ISSUE DEBT, BUT THEN WHAT HAPPENS IN THE EVENT THAT A TOURISM DISSOLVE OR A TOURISM IS TERMINATED WHEN THERE IS EXISTING DEBT? AND SO WE SPENT SOME TIME LOOKING AT, UM, THE, THE POLICY THAT IS GOING TO REALLY HELP US TO STREAMLINE AROUND DEBT AUTHORIZATIONS AND ISSUANCES.
UH, WHAT YOU'RE HEARING TODAY HAS BEEN THOROUGHLY REVIEWED BY THE LEGAL DEPARTMENT, FINANCE DEPARTMENT, AND HAS BEEN INTERNALLY REVIEWED WITHIN THE CITY, AND WE BELIEVE IT'S MET THOSE CRITERIA.
SECOND, UH, A POINT THAT HAS NOT BEEN MADE, UH, ABOUT TS AND THE UNIQUE FEATURE THEY OFFER THE CITY, UH, BECAUSE OF THE REBUILD HOUSTON CHARTER, WE CANNOT SELL DEBT FOR INFRASTRUCTURE IN THE CITY OF HOUSTON.
AND TSAS, UH, USE THEIR INCREMENT AND YOU APPROVE ANY BOND ISSUE THAT COMES FOR ANY TSAS, BUT THEY AFFORD THE CITY THE OPPORTUNITY TO LEVERAGE FUTURE INCREMENTS INTO CAPITAL IMPROVEMENTS.
NOW, UH, WE HAVE SOME VERY RIGID STANDARDS WE WORK WITH FINANCE ON WHEN THAT DEBT IS ISSUED, BUT IT IS A UNIQUE FEATURE OF TS VERSUS THE CITY AS A WHOLE.
SO, UH, WE THOUGHT WE WOULD, UM, REPRESENT SOME OF THE INFORMATION BY USING GRAPHS WE THINK IS JUST, IT VERY CLEARLY, UM, SHOWS SOME OF THE, UH, ACTIVITIES AND TRANSACTIONS AS IT RELATES TO T.
AND SO, UM, YOU'LL NOTE ANDY MENTIONED THAT THERE ARE 27, UH, ACTIVE T THERE ARE 28 TOTAL TS THAT HAVE BEEN CREATED BY THE CITY.
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TERMINATED, UM, AS IT MET ITS, UH, OBJECTIVE AS DESCRIBED IN THE PROJECT PLAN.SO THERE ARE CURRENTLY 27 ACTIVE TOURS.
A COUPLE THINGS THAT I WANNA POINT OUT IS WHERE YOU SEE THE SIGNIFICANT NUMBER OF TOUR IS CREATED, UH, IN BETWEEN 1996 AND 2000.
AND THE REASON THAT THERE ARE SO MANY TOURISTS CREATED AT THAT TIMELINE IS BECAUSE OF A CHANGE IN THE STATE LEGISLATION, UH, IN SEPTEMBER 1ST, 1999 THAT PROHIBITED SCHOOL DISTRICTS FROM PARTICIPATING OR CONTRIBUTING ITS REVENUE TO T PRIOR TO THAT, SCHOOL DISTRICTS WAS A VERY ACTIVE JURISDICTION THAT WAS ALLOWED TO CONTRIBUTE AS REVENUE.
AND SO, UM, MANY S THAT WERE BEING CONSIDERED OR BEING CONTEMPLATED MADE THE DECISION TO PURSUE CREATION SO THAT THEY WOULD BE GRANDFATHERED AND THAT THEY WOULD BE ALLOWED TO HAVE THE SCHOOL DISTRICTS PARTICIPATE AS A TAXING JURISDICTION.
AND SO THE, THE, THE FACT THAT THERE ARE A SIGNIFICANT NUMBER IS NOT UNIQUE.
I THINK IF YOU LOOK ACROSS TEXAS, YOU WILL FIND THE SAME THING HAPPENED IN OTHER CITIES, UM, WHERE THE SCHOOL DISTRICTS REALLY WANTED TO BE, UH, A PART OF IT.
AND YOU'LL SEE THAT INCREASED, UH, IN, IN IN THAT TIMELINE.
THE OTHER THING I WANNA POINT OUT IS THE FACT THAT IN UNDER THE CURRENT ADMINISTRATION, THERE'S ONLY ONE TOUR THAT HAS BEEN CREATED SO FAR.
UM, AND THAT IS THE TMC TOURS, WHICH WAS RECEIVED, UM, BY UNANIMOUS SUPPORT BY COUNCIL.
UM, AND WE DO NOT ANTICIPATE AT THIS POINT, UH, CREATING ANY NEW CHARGES OVER THE NEXT SIX MONTHS.
BUT AGAIN, I THINK IT WAS JUST IMPORTANT TO POINT OUT, UM, THE FACT THAT THERE'S ONLY ONE TOUR THAT'S BEEN CREATED TO DATE.
AND SO AS IT RELATES TO CREATIONS, TAX INCREMENT, REINVESTMENT ZONES WILL BE CONSIDERED ONLY WHEN THE AREA PROPOSED CLEARLY DEMONSTRATES A NEXUS BETWEEN THE PROPOSED ELIGIBLE TOURIST PROJECTS AND ECONOMIC GROWTH SPURRED BY NEW INVESTMENT WITHIN THE GEOGRAPHIC BOUNDARY.
THIS MAY NOT SEEM TO BE UNIQUE, BUT WHAT'S UNIQUE ABOUT IT IS HISTORICALLY JERSEY HAVE BEEN CREATED BASED ON A GEOGRAPHY WHERE WE RECOGNIZE THAT THERE ARE OPPORTUNITIES AND NEED FOR PUBLIC INFRASTRUCTURE AND PUBLIC IMPROVEMENTS.
UM, THERE HAS NOT BEEN A REQUIREMENT THAT THERE IS A PLANNED PRIVATE INVESTMENT.
AND I SPOKE EARLIER ABOUT THE IMPORTANCE OF PRIVATE INVESTMENT, BUT THAT A PLANNED PRIVATE INVESTMENT IS, UM, BEING CONSIDERED, UM, AND THERE'S EVIDENCE SUPPORTING THAT THAT PLANNED INVESTMENT WILL HAPPEN WITHIN THAT BOUNDARY BEFORE WE CONSIDER CREATION.
UM, YOU'LL MAY BE FAMILIAR WITH SOME OF THE T THAT HAVE NOT GENERATED A SUBSTANTIAL AMOUNT OF INCREMENT IN SPITE OF THE FACT THAT MANY OF THEM WERE CREATED 10, 15, 20 YEARS AGO IN SOME CASES.
UM, SIMPLY BECAUSE THAT NEW INVESTMENT JUST DID NOT HAPPEN.
MANY OF OUR T ARE NOW STARTING TO GET THOSE LARGE INFUSIONS OF INVESTMENTS.
UM, AND SO IT'S REALLY IMPORTANT THAT WE KEEP THOSE TOUR ACTIVE SO THAT THEY CAN ACTUALLY BENEFIT FROM THE REVENUE THAT'S BEING GENERATED, AND THAT ACTUALLY THEY CAN ACTUALLY BEGIN TO IMPLEMENT SOME OF THE PROJECTS THAT WERE PRIORITIZED IN THEIR PROJECT PLAN.
UM, AND SO AGAIN, THAT WAS A BIG KEY.
THE TOURS THAT, THE ONE TOURS THAT WAS CREATED, WHICH WAS TEXAS MEDICAL CENTER CENTER, ANDY ALLUDED TO IT EARLIER, UM, WAS CREATED WITH THE INVESTMENT THAT IS GOING TO BE MADE PRIMARILY BY INSTITUTIONS WITHIN THE TEXAS MEDICAL CENTER TO THE TUNE OF ABOUT 2 BILLION AND OR MORE.
AND SO, AGAIN, THAT IS THE IDEAL SCENARIO THAT WE WILL, UM, EXPECT WHEN WE CONSIDER A CREATION OF A TOURS, THAT THERE IS AN INFUSION OF INVESTMENT THAT IS PLANNED AND THAT IS READY TO COME WITHIN THAT GEO GEOGRAPHIC BOUNDARY.
SO, LIFE EXTENSIONS, UM, NOT ALL STATES WITHIN THE COUNTRY HAVE THE OPPORTUNITY TO EXTEND A TURS, UH, TERM FROM THE ORIGINAL TERM.
WHAT I WANNA SHARE HERE IS TO SHOW THE EACH TURS THE NUMBER OF YEARS THAT THAT TURS LIFE HAS BEEN EXTENDED FROM THE ORIGINAL TERM THAT WAS CREATED AT THE TIME THE TURS WAS, WAS, WAS, WAS CREATED, OR THE EXTENSIONS THAT, UM, CAME AFTER THE TURS WAS ORIGINALLY CREATED.
SO THIS JUST REPRESENTS THE EXTENDED YEARS, AND YOU'LL SEE THAT, UM, THAT THERE, IT, IT VARIES.
IT'S VERY DIVERSE, UH, IN TERMS OF THE COMMUNITIES WHERE THERE HAS BEEN LIFE EXTENSIONS.
UM, SO FOR INSTANCE, TOUR NUMBER TWO IS MIDTOWN.
YOU'LL SEE THERE THAT THERE IS A 26 YEAR LIFE EXTENSION, BUT THEN YOU ALSO SEE, UM, THAT TURNS 11 GREENS POINT ALSO HAS A SUBSTANTIAL LIFE EXTENSION AS WELL AS FOURTH WARD.
UM, AND SO I KNOW THAT THERE IS A NOTION THAT THERE HAS NOT BEEN, UH, EQUITY AS IT RELATES TO SOME OF THE RECOMMENDATIONS THAT WE HAVE PRESENTED TO COUNCIL OR IN THE WAY THAT WE, UM, GOVERN
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AND MANAGE THE T PROGRAM.BUT YOU'LL SEE THAT THERE, THAT IS NOT FACTUAL.
UM, WE HAVE EVALUATED EVERY, UM, PROPOSAL FOR A LIFE EXTENSION, AND WE APPLIED THE SAME SET OF POLICIES AND SAME SET OF GUIDELINES, UH, ACROSS THE BOARD.
WE JUST THOUGHT IT WAS A, A MUCH EASIER WAY TO ILLUSTRATE, UM, THE, THE FACT THAT EXTENSIONS HAVE HAPPENED AND, AND WE HAVE BEEN VERY ACTIVE IN IN DOING LIFE EXTENSIONS.
AND SO AS WE MOVE FORWARD IN TERMS OF OUR POLICY, UM, WE WILL STILL CONSIDER A LIFE EXTENSION, UM, AND THEREFORE SCENARIOS OR CONDITIONS THAT WE THINK IS REALLY IMPORTANT TO TO, TO ALLOW FOR THESE LIFE EXTENSIONS.
UM, THE FIRST IS TO, UM, SECURE FINANCING FOR PROJECTS THAT HAVE ALREADY BEEN APPROVED BY CITY COUNCIL THROUGH THE CIP PROCESS.
AND THERE IS A DESIRE TO EXPEDITE CONSTRUCTION.
YOU KNOW, WE KNOW THATT GENERATE REVENUE ON AN ANNUAL BASIS, AND SOME T HAVE OPTED TO SIMPLY, UM, ACCRUE ENOUGH REVENUE UNTIL THEY'RE ABLE TO MAKE AN INVESTMENT.
THAT COULD TAKE A LOT OF TIME.
UM, AND AGAIN, WHEN YOU'RE DEALING WITH A, A TOURS THAT HAS A DEFINED LIFESPAN, UM, SOMETIMES, YOU KNOW, TIMING IS, IS VERY CRITICAL.
AND SO IN THOSE CASES WHERE TURS DESIRE TO, UM, ISSUE DEBT, MANY OF THE TURS ISSUE BONDS, BUT THEY ALSO CAN, UH, SECURE A MORE TRADITIONAL LOAN.
UM, MANY BANKS ARE RECOGNIZING, UM, THAT THERE IS VERY LIMITED RISK WHEN THEY, UH, PROVIDE A TRADITIONAL LOAN DETTER FOR THE PURPOSE OF CONSTRUCTING, UH, INFRASTRUCTURE.
UM, BUT IT ALLOWS THEM TO BE ABLE TO USE THOSE BOND PROCEEDS AND MAKE THOSE INVESTMENTS, UM, TO BUILD A SIGNIFICANT OR MAJOR CAPITAL PROJECT MORE EXPEDIENTLY THAN IF THEY WERE TO DO IT ON A CASE BY CASE BASIS.
AND SO WE WILL STILL ALLOW FOR THOSE LIFE EXTENSIONS SCENARIOS.
THE SECOND IS THAT IF A PROJECT HAS ALREADY BEEN APPROVED AND THERE HAS BEEN SOME KIND OF A DELAY, CONSTRUCTION DELAY OR ANY OTHER DELAY, UM, AND IN ORDER FOR THE PROJECT TO BE COMPLETED, ADDITIONAL TIME IS NECESSARY, UM, WE WILL ALLOW AND CONSIDER LIFE EXTENSION TO ALLOW FOR THAT PROJECT TO BE COMPLETED.
UM, THE OTHER IS, UH, SCENARIO IS THAT IF IT'S GOING TO GENERATE ADDITIONAL REVENUE FOR PROJECTS THAT IS ALREADY REFLECTED IN THE PROJECT PLAN, IF IT IS SUPPORTED BY PLAN NEW INVESTMENT, THE KEY HERE IS, YOU KNOW, WE'VE DONE LIFE EXTENSIONS, UM, AND WE RECOGNIZE THAT EVEN IF THERE'S NOT A SPECIFIC INVESTMENT THAT IS INTENDED OR PLAN, THAT OVER TIME, JUST THE NATURAL APPRECIATION OF PROPERTY VALUES DOES GENERATE SOME INCREMENT.
IT DOESN'T ALWAYS GENERATE SUFFICIENT INCREMENT.
UM, AND SO AGAIN, HERE WE'LL CONSIDER A LIFE EXTENSION, BUT THERE WILL HAVE TO BE AN ACTION PLAN THAT'S PUT IN PLACE.
AND EVIDENCE THAT THERE IS NEW PRIVATE INVESTMENT, PRIVATE IS VERY IMPORTANT, UM, BECAUSE PUBLIC INVESTMENT DOESN'T GENERATE TAX TAX REVENUE.
AND SO THIS WOULD HAVE TO BE A PLACE-BASED PRIVATE INVESTMENT, BUT THAT WE WILL ALSO CONSIDER LIFE EXTENSION IN THAT SCENARIO.
AND THE THIRD IS WE HAVE, UH, DEMONSTRATED AND SHOWN TIME AND TIME AGAIN HOW SUCCESSFUL MANY OF OUR TOURISM HAVE BEEN IN LEVERAGING THE TOURS INCREMENT TO SECURE STATE GRANTS, FEDERAL GRANTS, PHILANTHROPIC DOLLARS.
UM, YOU KNOW, WE COULD PROVIDE YOU, UH, A LIST OF THE MILLIONS AND MILLIONS OF DOLLARS THAT HAVE BEEN, UM, RECEIVED FROM OTHER SOURCES OTHER THAN THE CITY OF HOUSTON, UM, INCLUDING HARRIS COUNTY.
AND AS I MENTIONED EARLIER, IN SOME EARLIER CASES, THE UH, SCHOOL DISTRICT, YOU KNOW, THE TOUR IS THE ONLY PROGRAM THAT ALLOWS THE CITY TO GET RESOURCES FROM OTHER LOCAL JURISDICTIONS FROM THE STATE AND FROM THE FEDERAL AGENCIES, UM, AND USE THOSE RESOURCES WITHIN THE CITY OF HOUSTON.
UM, YOU TAKE AWAY THAT TURS, YOU TAKE AWAY THE CITY'S ABILITY TO TAKE 2 MILLION AND MAKE THAT 2,000,008 MILLION USING 6 MILLION OF OTHER FUNDING SOURCES.
AND SO MAKE, SO THIS IS ANOTHER EXAMPLE, QUENTEN.
LEMME MAKE A POINT ON THIS ONE.
I MENTIONED THAT, UH, TERRA 18 AND 23 HAD NOT COME TO COUNCIL YET.
UH, COUNCIL APPROVED THE BUFFALO BAYOU EAST PROJECT.
UH, WE ALSO TOLD YOU THAT THERE WAS NO GENERAL FUND DOLLARS THAT WERE INCLUDED IN THAT PROJECT, BUT THERE ARE CAPITAL PROJECTS AND A LOT OF THE SOUTH BANK OF BUFFALO BAYOU IS GOING TO BE FINANCED BY TOUR 23.
UM, THE OTHER POINT I WOULD MAKE THAT YOU'RE MAKING ON FEDERAL GRANTS, UH, TOURS EIGHT AND TOURS 23, BOTH ARE DOING THE TELEPHONE ROAD PROJECT BY COMMITTING TOURS INCREMENT.
AND WHAT HAPPENS IN GRANT REQUESTS LIKE THIS IS WHEN WE SHOW A CONTRACTUAL COMMITMENT FROM A TOURS THAT SERVES AS A MATCHING GRANT THAT COUNCIL
[00:30:01]
ITSELF CAN'T COMMIT TO, UH, IN MANY CASES.SO, UH, THESE ARE THE OPPORTUNITIES AND LIFE EXTENT LIFE EXTENSIONS ARE THINGS WE WILL BE BRINGING FORWARD TO COUNCIL BECAUSE WE THINK THEY WILL MEET THESE CRITERIA.
YEAH, JUST, JUST ANOTHER EXAMPLE, UH, ANDY, AS YOU TALK ABOUT SOME OF THE TURS IS MEMORIAL HEIGHTS.
TURS HAS BEEN ABLE TO LEVERAGE ITS INCREMENT TO SECURE ABOUT 65 MILLION IN, UH, STATE AND FEDERAL GRANT FUNDING FOR THE COMPLETION OF SHEPHERD AND DURHAM.
SO AGAIN, THESE ARE JUST EXAMPLES WHERE WE BELIEVE THAT A LIFE EXTENSION TO ALLOW FOR RESOURCES THAT WE WOULD NOT OTHERWISE HAVE ACCESS TO IS, UH, VERY WELL WARRANTED FOR, FOR A LIFE EXTENSION.
AND SO ON THIS SLIDE, UM, WHAT I AM SHOWING IS FOR THE 27 ACTIVE TOURS IS THE CURRENT, UM, LIFE OF THE TOURS.
AND SO THAT INCLUDES THE ORIGINAL TERM AT CREATION AS WELL AS ANY EXTENSIONS.
UM, AND SO HERE YOU'LL SEE THAT, YOU KNOW, MANY OF OUR TOUR STILL HAVE ANOTHER 25, UH, PLUS, UH, 30 YEARS IF YOU LOOK AT THE TOTAL.
UM, BUT ON AVERAGE, UM, I GUESS IF YOU LOOK ON JUST THE, ACROSS THE BOARD AT THE 20, MOST OF THE CHURCHES STILL HAVE ABOUT 20 YEARS REMAINING.
UM, AND THERE ARE SOME CHURCHES THAT HAVE, YOU KNOW, TOURISTS, UH, SIX AND 13 HAVE APPROXIMATELY FIVE, UH, TO SIX YEARS REMAINING.
UM, BUT THIS KIND OF JUST GIVES YOU AN IDEA OF, UM, JUST SORT OF HOW LONG OUR TOUR HAVE BEEN MAKING CONTRIBUTIONS AND, AND HELPING TO BUILD, UH, SOME INFRASTRUCTURE.
UH, GWEN, LEMME MAKE ANOTHER POINT.
UH, COUNCIL MEMBER PECK WAS HERE A MINUTE AGO AND I'VE HAD A CONVERSATION WITH HER YESTERDAY.
YOU'LL NOTICE TUR 17 ON TUR 17, TUR 17 HAS A VERY SMALL AMOUNT OF TIME LEFT ON IT.
WE HAVE A MAJOR INFRASTRUCTURE PROJECT THAT HAS A TEEM GRANT ASSOCIATED.
IT'S CURRENTLY DOING THE ENGINEERING ANALYSIS.
IF THAT ENGINEERING ANALYSIS COMES THE WAY IT IS, IT'S POSSIBLE WE'LL BE THE COUNCIL TO LIFE EXTENT.
TERRA 17, I ACTUALLY HAD THAT CONVERSATION WITH COUNCIL MEMBER PECK YESTERDAY, AND THAT'S CORRECT.
SO JUST ON, ON TOUR 17, UM, BECAUSE THE PROJECT IS CURRENTLY IN DESIGN, BECAUSE I'VE, I'VE HAD OTHERS ASK THIS QUESTION AS WELL, BECAUSE THE PROJECT IS IN DESIGN, THERE IS SUFFICIENT FUNDING FOR THE TOURS, UM, IN PARTNERSHIP WITH PUBLIC WORKS TO FUND AND FINANCE THE DESIGN.
ONCE THAT DESIGN GETS APPROVED AND THE CONSTRUCTION GRANT DOLLARS ARE GRANTED FOR THE COMPLETION OF THE PROJECT, THAT WOULD BE THE TIME FOR US TO TAKE IT BACK TO COUNCIL BECAUSE AGAIN, THERE IS A FUNDING SOURCE THAT WE WOULD NOT BE ABLE TO ACCESS, BUT FOR THE LIFE EXTENSION.
YOU KNOW, WE HAVE NOT TAKEN THIS, UH, PROJECT OR CHURCH 17 FOR LIFE EXTENSION BECAUSE OF THE UNKNOWN.
AND SO THESE POLICIES ARE INTENDED TO BE, TO REFINE THE PROCESS AND TO ENSURE THAT THERE ARE KNOWN INVESTMENTS OR KNOWN FUNDING OPPORTUNITIES BEFORE ASKING COUNCIL TO MAKE ANY CONSIDERATIONS OR TO APPROVE, UH, ANY SPECIAL REQUESTS AS RELATES TOT COUNCIL MEMBER PECK, I JUST BROUGHT UP OUR CONVERSATION YESTERDAY.
IF YOU LOOK AT 17 IN THE LIFE, WHAT THE CONDITIONS WOULD BE FOR US TO COME BACK AND EXTEND THAT.
SO, UM, IN TERMS OF TERMINATION, THE POLICY, UM, SO A TERMINATION WILL BE RECOMMENDED UNDER TWO CIRCUMSTANCES.
THE FIRST IS THAT A TOURS HAS MET ITS OBJECTIVES AS DEFINED IN THE ZONES PROJECT PLAN, AND WE MAKE REFERENCE TO THE PROJECT PLAN.
ANYONE WHO'S NOT FAMILIAR WITH THE PROJECT PLAN, THAT IS THE DOCUMENT THAT WHEN THE TOURS IS CREATED, SETS OUT THE OBJECTIVES, THE GOALS, THE REVENUE PROJECTIONS, THE PRIORITIES FOR THE ZONE, UH, AND ALL CIP PROJECTS HAS TO TIE BACK TO THAT PROJECT PLAN.
SO THAT IS A VERY CRITICAL DOCUMENT.
WHEN THE OBJECTIVE HAS BEEN MET, THAT WILL BE A CONSIDERATION FOR US TO LOOK TO DETERMINE WHETHER OR NOT TERMINATION MAKES SENSE.
THE OTHER IS, EVEN IF THE OBJECTIVE HAS NOT BEEN MET, I MENTIONED EARLIER THAT SEVERAL T HAVE UNDERPERFORMED.
AND BY UNDERPERFORMED IT MEANS THAT IT DID NOT GENERATE THE REVENUE THAT WAS PROJECTED AT THE TIME THE TOURS WAS CREATED, AND THEREFORE IT WAS NOT, UM, SUCCESSFUL AT IMPLEMENTING THE PROJECTS THAT HAVE BEEN PRIORITIZED IN THE PROJECT PLAN.
UM, AND SO AS PART OF OUR POLICY, THERE IS GOING TO BE A REVIEW OF EVERY TOURS AT AROUND 15 YEARS BECAUSE IT TAKES SOME TOUR THAT AMOUNT OF TIME TO REALLY GET A SIGNIFICANT AMOUNT OF GEN OF TOURS REVENUE GENERATED TO BEGIN TO MAKE AN IMPACT.
UM, WHICH IS WHY TENURE YEAR TOURS OR 15 YEAR TOURS, UM, DOES NOT HAVE ENOUGH TIME TO BE REALLY BE IMPACTFUL.
BUT AT AROUND THE 15 YEAR MARK, WE ARE GOING TO LOOK TO
[00:35:01]
DETERMINE IF THEY'RE UNDERPERFORMING TOURS THAT MAY BE A CANDIDATE, A TOURS THAT, UM, DOES NOT HAVE ANY OUTSTANDING OBLIGATIONS DEBT.SO OBLIGATIONS COULD BE CONTRACTUAL AGREEMENTS, UM, DEVELOPMENT AGREEMENTS.
UM, IF A TS DOES NOT HAVE THOSE OBLIGATIONS AND, AND IT HAS UNDERPERFORMED THAT, THAT WOULD BE A CANDIDATE FOR TERMINATION.
THE OTHER SCENARIO IS THAT A TURS MAY BE RECLASSIFIED FROM ACTIVE TO PREDETERMINATION, UH, IF THERE IS EXISTING DEBT OR OUTSTANDING OBLIGATIONS.
ANDY MENTIONED EARLIER, AND I ALSO MENTIONED THAT WE DID A PRESENTATION SHOWING THE IMPLICATIONS, UH, IF WE WERE TO DISSOLVE OR TERMINATE, FOR INSTANCE, MIDTOWN TURS AND UPTOWN TURS.
AND WE SAW THAT, THAT IT WOULD NOT BE IN THE CITY'S INTEREST TO TERMINATE EITHER OF THOSE BECAUSE OF THE SUBSTANTIAL OBLIGATIONS AND, UH, OUTSTANDING BOND DEBT THAT EXIST THAT THE CITY WOULD HAVE TO ASSUME IF IT TERMINATED.
BUT IN A CASE LIKE THAT, THE CITY COULD CERTAINLY PUT A TURS IN PRETERM PREDETERMINATION AND DEVELOP AN ACTION PLAN OR A TERMINATION PLAN THAT ALLOWS THAT TURS TO CONTINUE TO PAY OFF ITS DEBT.
UM, THAT ALSO MAY ALLOW FOR SOME OF THE REVENUE THAT IS NOT NECESSARY TO PAY DEBT OR OTHER OBLIGATIONS MAY COME BACK TO THE CITY IF THERE IS A FINANCIAL OR ECONOMIC BENEFIT TO THE CITY, MAY NOT BE THE CASE.
UH, IF WE'RE STILL DEALING WITH THE CHALLENGES OF A REVENUE CAP WHERE IT JUST DOESN'T MAKE SENSE.
AND I'LL TALK A LITTLE BIT MORE ABOUT ANOTHER OPTION THAT MAY BE AVAILABLE THAT MAY BE MORE VIABLE.
UM, AND WE WILL WORK WITH THE TUR.
SO AGAIN, WE'RE NOT DOING ANY OF THIS IN ISOLATION.
UH, WE, WE'VE, WE'VE, WE'VE BEEN FULLY TRANSPARENT, UM, AND, YOU KNOW, THROUGHOUT THIS ENTIRE PROCESS.
AND SO WE WILL DEVELOP A TRANSITION PLAN.
SO THERE WILL BE A FORMAL PLAN WITH TIMELINE, WITH THRESHOLDS ESTABLISHED.
UM, WE WILL WORK WITH THE FINANCE DEPARTMENT, MY OFFICE, AS WELL AS DETER TO DETERMINE A REALISTIC EXPECTATION FOR TERMINATION.
UM, SO AGAIN, THAT'S ANOTHER ITEM THAT WE BELIEVE IS, IS, IS, UM, A A LITTLE BIT OF A DIFFERENT APPROACH FROM THE WAY THAT WE'VE HANDLED TERMINATIONS IN THE PAST.
UM, AND SO IN CASE OF A, THE BOUNDARY ADJUSTMENT, UM, WE REFER TO BOUNDARY ADJUSTMENTS, UH, AS ANNEXATIONS OR DE ANNEXATIONS.
AND SO THIS IS AN EXAMPLE, UM, OR A, A GRAPH THAT SHOWS, UM, THE NUMBER OF BOUNDARY ADJUSTMENTS.
THE MAJORITY OF THEM WERE ANNEXATIONS, BUT IN A FEW CASES THERE HAS BEEN, UM, SOME DE ANNEXATIONS, UH, PRIMARILY TO CLARIFY, UM, PARCELS OR TO CLARIFY BOUNDARIES.
UM, BUT IT SHOWS THAT, UM, THERE'S ONLY BEEN ONE TURS OR TWO TOURS THAT HAVE NOT HAD A BOUNDARY ADJUSTMENT.
AND THE TURS NUMBER THREE HAS HAD THE MOST NUMBER OF BOUNDARY ADJUSTMENTS.
IT DOESN'T DESCRIBE THE SIZE OF THE BOUNDARY ADJUSTMENTS, JUST THE NUMBER OF BOUNDARY ADJUSTMENTS THAT OCCURRED WITHIN EACH OF THESE, UH, NEXT SLIDE.
AND SO AS IT RELATES TO THE POLICY, SO ANNEXATIONS INTO EXISTING ZONES WILL BE EVALUATED AND CONSIDERED WHEN THE ANNEXATION WILL FURTHER THE OBJECTIVES OF THE T'S PROJECT PLAN.
AND THERE IS SUFFICIENT EVIDENCE THAT THE TURS WILL ATTRACT PRIVATE INVESTMENT IN THE PROPOSED AREA.
SO AGAIN, IF A TO OR THERE'S A RECOMMENDATION TO ANNEX, WE WILL CONSIDER, BUT ONLY WHEN THERE'S EVIDENCE SUPPORTED BY THE DOCUMENTATIONS, WHICH ALL OF THOSE DOCUMENTATIONS ARE REFLECTED IN THE MORE COMPREHENSIVE DOCUMENT THAT WE'VE PROVIDED.
SO THERE IS NO, UM, CONFUSION AS TO WHAT WE WILL LOOK AT TO CONSIDER WHETHER OR NOT THIS, UM, HAS BEEN MET.
UM, BUT WE WILL CONSIDER THAT IN THE EVENT THAT THERE IS, UH, SUFFICIENT EVIDENCE TO SHOW THAT THERE IS GOING TO BE NEW INVESTMENT COMING INTO THE PROPOSED AREA.
SO WE TALK A LOT ABOUT ANNEXATIONS.
UM, AGAIN, I MENTIONED THERE'S ONLY BEEN A COUPLE OF SCENARIOS OF A DE ANNEXATION, BUT WE REALLY WANT TO EXPLORE THE POSSIBILITY OF DE ANNEXATIONS ON AN ONGOING BASIS IN A WAY THAT IS MORE METHODICAL, UM, IN A WAY THAT IS, UH, THAT ALLOWS US TO BE ABLE TO BUILD CAPACITY WITHIN THE TOURIST PROGRAM.
UM, SO THE REDUCTION IN THE BOUNDARY, IF THE REDUCTION IN THE BOUNDARY WILL INCREASE THE REVENUE GENERATED, THEN WE WILL CONSIDER A DE ANNEXATION.
WE ARE DEVELOPING A MODEL TO BASICALLY TEST THIS, UM, OUTCOME.
WHAT I MEAN IS WHEN A TS IS CREATED, IT IS CREATED AROUND A CERTAIN GEOGRAPHY AND ALL OF THE TAXING PARCELS, UM, ARE USED TO CONSIDER OR DETERMINE WHAT THE REVENUE GENERATION IS WITHIN THAT BOUNDARY.
THERE ARE SOME PROPERTIES THAT INSTEAD OF APPRAISING IN VALUE, IT DEPRECIATES IN VALUE.
AND SO THE REVENUE CONTINUES TO DECLINE
[00:40:01]
YEAR AFTER YEAR AFTER YEAR.WE DON'T LOOK, WE DON'T, THERE'S NOT A SIGNIFICANT, UH, IMPACT WHEN YOU'RE LOOKING AT ALL OF THE TAXING, UH, RECORDS WITHIN A LARGE GEOGRAPHY BECAUSE THE NET EFFECT IS USUALLY POSITIVE.
BUT THERE, IF THERE IS AN EXAMPLE FOR US TO LOOK AT, WHERE THERE, FOR INSTANCE MAY BE CLUSTERS OF DECLINE WITHIN A TURS, IT MAY MAKE SENSE TO REMOVE THOSE, UM, PARCELS BECAUSE NUMBER ONE, IT'S GOING TO INCREASE THE REVENUE THAT'S BEING GENERATED BECAUSE REMEMBER, THOSE NEGATIVE DECLINING, UM, OR THE DECLINING PARCELS ARE ACTUALLY BRINGING DOWN THE TOTAL REVENUE.
UM, BUT IT ALSO, THE SECOND BENEFIT IS, ANDY MENTIONED WE ARE VERY CLOSE TO THE 25% CAP.
WE'RE ABOUT 22.3% OR SO OF THAT 25% CAP.
AND SO IF WE'RE ABLE TO IDENTIFY TAXABLE, UM, PARCELS THAT ARE NEGATIVE, WHICH MEANS THAT THEY'RE NOT CONTRIBUTING, BUT THEY'RE BRINGING DOWN THE REVENUE, BUT THEY'RE TAKING UP PART OF THAT 25%, IF WE REMOVE THOSE, IT GIVES US MORE CAPACITY, RIGHT? SO WE MAY BE ABLE TO GO FROM 22% TO 20%, WHICH THEN GIVES US AN OPPORTUNITY TO REALLY EVALUATE OTHER TURS CREATIONS OR ANNEXATIONS BASED ON THIS NEW ESTABLISHED SET OF POLICIES.
SO LET, LET ME MAKE A POINT HERE.
THIS IS A CHANGE IN THE MARKETPLACE THAT HAS OCCURRED AND LARGELY AS AN EFFECTIVE COVID, UH, ONE OF THE OFFICE PARCELS NOW THAT WE HAVE IN SOME OF OUR TURS HAVE ACTUALLY DECREASED IN VALUE TO SOME EXTENT.
IF WE TAKE THEM OUT OF THAT TURS, THAT DECREASES THE OVERALL AT VALOREM TAX AND ACTUALLY COULD ENHANCE OTHER OPPORTUNITIES FOR SELF.
UH, FOR EXAMPLE, THERE'S SOME DUMB DOWNTOWN PARCELS THAT ARE IN THE FOURTH WARD TOURS THAT IF WE TOOK THEM OUT, SOME OF THE BROOKFIELD PROPERTIES, WE'D HAVE A LARGER INCREMENT IN AN OPPORTUNITY TO LOOK ELSEWHERE TO DO THAT.
THAT'S A NEW PHENOMENA FOR US.
IT'S ONE THAT IS A CONSEQUENCE OF SOME OF THE SPARE OFFICE CAPACITY THAT EXISTS ACROSS THE UNITED STATES RIGHT NOW.
BUT IT'S SOMETHING WE HAVE IS NEW TO US AND WE ARE LOOKING AT RIGHT NOW.
AND, YOU KNOW, THE LEGISLATION DOES PROVIDE FOR DE ANNEXATIONS.
AND SO OF COURSE WE WOULD ENSURE THAT WE ARE CONSISTENTLY APPLYING THIS ASSESSMENT TO, UM, CHAPTER THREE 11.
UH, BUT AGAIN, THE REASON THAT WE WANT TO MAKE SURE THAT WE ARE TESTING A MODEL IS TO MAKE SURE THAT THERE ARE NO UNINTENDED CONSEQUENCES, UM, AND THAT WHAT WE BELIEVE THE OUTCOME IS GOING TO BE, IT'S ACTUALLY GOING TO BE TESTED AND VETTED.
UM, AND WE CAN COME BACK WITH THAT LEVEL OF A, UH, OF, OF ASSURANCE.
SO, ANOTHER PHENOMENON THAT EXISTS IN THE LEGISLATION THAT WE REALLY HAVEN'T, UM, LEVERAGED AS MUCH IS THE IDEA OF NON-CONTIGUOUS TERMS. UM, AND SO OUR FIRST NON-CONTIGUOUS TOUR WAS CREATED AROUND 2013.
IT WAS THE GREATER HOUSTON TOUR 24, WHICH WAS THE TUR, OR IS THE TOUR THAT WAS INITIALLY A HARRIS COUNTY REVENUE, UM, OR PARTICIPATING TOUR ONLY.
THE CITY HAS SINCE, UM, MODIFIED ITS PARTICIPATION AND SO WE ARE NOW A PARTICIPATING ENTITY, BUT WHEN IT WAS CREATED, IT WAS CREATED BY, FOR THE PURPOSE OF HARRIS COUNTY, AND IT WAS NON-CONTIGUOUS.
AND SO THE, THE, THE NORTHERN SECTION, UM, IS IN THE DOWNTOWN AREA AND THE SOUTHERN SECTION IS NEAR NRG.
UM, AND IT IS NON-CONTIGUOUS, UM, AND IT, AS YOU KNOW, BUT IN ORDER TO CREATE NON-CONTIGUOUS TERMS, THERE IS, UM, NEXUS TESTS THAT THE LEGISLATION DESCRIBES THAT HAS TO BE MET.
UM, THERE HAS TO BE SOME KIND OF AN ALIGNMENT OR RELATIONSHIP BETWEEN THE TWO AREAS.
UM, THE, WHETHER YOU'RE CREATING A NON-CONTIGUOUS TURS OR ANNEXING TERRITORY NON CONTIGUOUSLY INTO AN EXISTING TURS, RIGHT? SO THOSE ARE TWO DIFFERENT NON-CONTIGUOUS SCENARIOS.
BOTH OF THOSE ARE ALLOWED UNDER THE STATUTE, BUT THERE HAS TO BE AN ALIGNMENT OR A NEXUS BETWEEN THE, THE TWO AREAS.
UM, IN THE CASE OF TOUR 24, THERE WERE BASICALLY KIND OF THREE NEXUS THAT WERE IDENTIFIED.
THE FIRST WAS THAT BOTH THE NORTHERN AND THE SOUTHERN SECTORS WERE STRONG ECONOMIC DEVELOPMENT NODES THAT WERE IN CLOSE PROXIMITY TO, UM, VERY SUBSTANTIAL SPORTS VENUES.
UM, AND THAT BOTH OF THOSE AREAS REQUIRED SOME LEVEL OF REVITALIZATION THROUGH IMPROVEMENTS.
THE SECOND IS THAT THEY WERE ON EITHER SIDE OF THE LIGHT RAIL.
UM, AND THE THIRD WAS THAT BOTH PRESENTED OPPORTUNITIES FOR TRANS ORIENTED DEVELOPMENT.
AND SO IT IS NOT WHERE THE CITY CAN JUST RANDOMLY SELECT A GEOGRAPHY AND DECIDE THAT IT'S GOING TO ANNEX A GEOGRAPHY INTO AN EXISTING AND CALL IT NON-CONTIGUOUS.
WE HAVE TO BE ABLE TO DEMONSTRATE, AND AGAIN, ALL OF THIS IS GOING TO BE VETTED WITH FINANCE.
WE'VE BEEN WORKING VERY CLOSELY WITH FINANCE THROUGHOUT THIS ENTIRE PROCESS AND THE LEGAL DEPARTMENT, BUT IT GIVES US
[00:45:01]
ANOTHER TOOL AND ANOTHER WAY TO BRING REVENUE INTO AREAS THAT ARE IN MUCH NEED OF INFRASTRUCTURE THAT IS NOT CAPABLE FOR WHATEVER REASON OR HAS NOT BEEN SUCCESSFUL IN ATTRACTING NEW INVESTMENT.BUT WE MAY BE ABLE TO DO A NON-CONTIGUOUS TURS TO BEGIN TO CATALYZE THE AREA BY INFUSING SOME ADDITIONAL RESOURCES AND CAPITAL, UM, AND, AND ALLOW THOSE REVENUES TO BE SPREAD.
UM, SO THE, UM, OTHER NEXT CHANGE, UH, AS IT RELATES TO BUDGETS AND CAPITAL IMPROVEMENT PLANS.
UM, SO CURRENTLY THE ANNUAL BUDGET, UM, IS A PROCESS THAT MANY COUNCIL MEMBERS, IF NOT ALL COUNCIL MEMBERS ARE VERY FAMILIAR WITH AND HAVE BEEN VERY, VERY ENGAGED IN THAT PROCESS.
GWEN, WE NEED TO GO BACK ONE CHART HERE.
WE ARE DEALING WITH THE CHART OF TURS PERFORMANCE THERE.
UM, SO ON ON THET PERFORMANCE.
UM, SO I MENTIONED EARLIER THAT THERE'S GONNA BE SORT OF THIS 15 YEAR ASSESSMENT TO DETERMINE WHETHER OR NOT A TUR HAS MADE ITS OBJECTIVE.
UM, IT DOESN'T MAKE SENSE TO WAIT UNTIL 15 YEARS TO, TO DETERMINE WHETHER OR NOT A TURS HAS BEEN SUCCESSFUL.
AND SO PART OF OUR INTERNAL PROCESS, AND THAT'S ALSO HAS BEEN, UH, INTEGRATED INTO THE POLICY IS THAT ON A TWO YEAR BASIS, AND WE'RE DOING IT ON A TWO YEAR BASIS BECAUSE THERE'S USUALLY NOT SUBSTANTIAL CHANGE, UM, IN A OVER A ONE YEAR CYCLE, BUT OVER A TWO YEAR CYCLE, WE WILL WORK VERY CLOSELY WITH THE TURS.
WE WILL DO AN ASSESSMENT, DETERMINE, YOU KNOW, HOW, YOU KNOW, IS THE REVENUE BEING GENERATED, IS INVESTMENT COMING IN, UM, AT LEAST CONSISTENT WITH WHAT WE ANTICIPATED WHEN THE PROJECTIONS WERE MADE.
UM, IS THE TURS ACTUALLY BEING ABLE TO MAKE THE INVESTMENT INTO THE CAPITAL PROJECTS THAT HAS BEEN REFLECTED IN THE CAPITAL PLAN? IF FOR SOME REASON THAT IS NOT HAPPENING, THEN WE ARE GOING TO WORK MORE DIRECTLY WITH THET, UM, AND TO DEVELOP AND WORK WITH THEM TO DEVELOP AN ACTION PLAN THAT WILL ATTRACT INVESTMENT THAT WILL BRING THOSE RESOURCES INTO THE COMMUNITY.
AND WE DO THAT NOW, BUT THIS IS JUST GOING TO BE A WAY THAT WE DO IT ON A MORE REGULAR BASIS, THAT WE DO IT CONSISTENTLY, UM, AND THAT IT IS JUST PART OF OUR PERFORMANCE AND SOMETHING THAT WE'RE GONNA BE REPORTING BACK TO THE ECONOMIC DEVELOPMENT COMMITTEE.
I'LL JUST GIVE YOU AN EXAMPLE.
UM, IN THE, IN DISTRICT K, UM, COUNCIL MEMBER GREEN AND, AND VICE MAYOR PRO TEM HAVE BEEN VERY, VERY ACTIVE IN ATTRACTING DEVELOPERS.
UM, WHETHER IT'S ON A BUS TOUR OF BRINGING THE PRIVATE DEVELOPERS INTO THE COMMUNITY AND IDENTIFYING AMAZING ASSETS THAT MAY NOT HAVE BEEN ON THE DEVELOPER'S RADAR, SIMPLY BECAUSE THEY MAY NOT HAVE BEEN FAMILIAR WITH THE AREA OR ALL OF THE, THE OPPORTUNITIES TO, TO INVEST.
AND SO THAT'S AN EXAMPLE OF AN IDEA THAT COULD BE INTEGRATED INTO AN ACTION PLAN FOR A TOURS THAT IS NOT FOR SOME REASON, SEEING THE TYPE OF PRIVATE INVESTMENT, THE PRIVATE PLACE-BASED INVESTMENT THAT I REFERENCED EARLIER COMING INTO IT.
AND SO WE'RE GONNA BE MORE ACTIVELY INVOLVED WITH THE TOURISM TO ENSURE THAT THEY ARE, UM, BEING SUCCESSFUL.
SO BACK TO THE ANNUAL PROCESS.
THE ONE CHANGE THAT WE'RE GOING THAT, THAT WE WE'RE MAKING IS, UM, AS YOU SEE HERE, THAT THE BUDGETS WILL NOT BE PRESENTED TO CITY COUNCIL UNTIL THEY HAVE BEEN APPROVED BY THE MAYOR OR DESIGNEE.
UM, ALTHOUGH WE MEET WITH THE MAYOR ON A REGULAR BASIS, WE WILL ACTUALLY REVIEW EACH OF THE BUDGETS AND THE CIP AND THE PROJECTS AND HOW THOSE PROJECTS WILL BE FINANCED, WHETHER OR NOT THEY'RE GONNA BE FINANCED BY A REQUEST TO ISSUE MORE DEBT, SO THAT, AGAIN, THIS GOES BACK TO TRANSPARENCY AND ENSURING THAT WE'RE BEING FULLY TRANSPARENT WITH IMPLICATIONS THAT MAY BE BUILT INTO THE TOURIST BUDGET.
UM, AND SO WE'RE GONNA HAVE THIS, UH, ANNUAL REVIEW PROCESS AND ONLY PROJECTS THAT HAVE AN IDENTIFIED FINANCING SOURCE WILL BE PRESENTED ON, ON A CIP.
IF A PROJECT REQUIRES A DEBT ISSUANCE, UM, OR AN INCREASE IN DEBT AUTHORITY, WE WILL MAKE REFERENCE AND WE WILL DE DISCLOSE THAT IN THE DOCUMENT SO THAT IT IS VERY CLEAR THAT THERE'S GOING TO BE A SUBSEQUENT COUNSEL ACTION THAT WILL BE REQUESTED IN ORDER TO SECURE FINANCING.
NOW, UM, THE ASSUMPTIONS ARE BUILT INTO THE CIP, BUT IT IS NOT AS CLEARLY COMMUNICATED AND IS
[00:50:01]
CLEARLY DISCLOSED AS WHAT WE ARE PROPOSING AS PART OF THIS, UM, BUDGET RECOMMENDATION.UH, GWEN, LEMME ADD ONE THING.
WHEN WE COME TO COUNCIL AND ASK FOR BOND AUTHORIZATION TODAY, WE REQUIRE THAT PROJECTS BE IDENTIFIED WITHIN THREE YEARS TO SPEND THAT MONEY.
WE WILL NOT LET A TURS JUST ACCRUE BOND AUTHORIZATION WITHOUT DEFINED PROJECTS.
THIS CLOSES THE LOOP IN THE OTHER WAY THAT WE HAVE DONE SO.
UM, AND, AND JUST GOES TO WHAT ANDY'S REFERRING TO.
SO, UM, THE BOND AUTHORIZATION, THE, THE CITY, WHEN JERSEYS ARE CREATED, MANY OF THE TOURISMS ARE CREATED WITH A VERY MINIMAL LEVEL OF AUTHORIZATION, MEANING THAT IF THEY ARE WANTING TO SECURE A LARGER DEBT INSTRUMENT, IT REQUIRES CITY COUNCIL TO IMPROVE A DEBT AUTHORIZATION.
AND THEN ONCE THE DEBT HAS BEEN AUTHORIZED, THEN THE TURS WORKING WITH THEIR BOND COUNCIL AND THEIR TEAM AND OUR OFFICE WILL THEN ISSUE THE APPROPRIATE DEBT INSTRUMENT.
WHAT CITY FINANCE HAS DISCUSSED IS THE, AND WHAT WE AGREE WHEN WE REACHED OUT TO THEM IS THAT THEY WILL PLAY A MORE ACTIVE ROLE WORKING WITH THET, UH, AND THET IS BOND TEAM TO ENSURE THAT THE TURS IS MAXIMIZING THE RELATIONSHIPS THAT THE CITY OF HOUSTON'S FINANCE DEPARTMENT HAS.
AND SO THE FINANCE DEPARTMENT WILL, RATHER THAN BEING ENGAGED LATER IN THE PROCESS, THEY WILL BE ENGAGED IN THE VERY BEGINNING, UM, BEGINNING WITH THE PRE ISSUANCE MEETINGS.
SO BEFORE THE BOND HAS PROCESS HAS STARTED, WE WILL ENGAGE THE FINANCE DEPARTMENT AND ALL THE WAY THROUGH THE BOND ISSUANCE PROCESS, UM, THERE ARE COSTS ASSOCIATED WITH ISSUING BONDS, UM, FOR LEGAL COUNSEL OR BOND COUNSELS FOR FINANCIAL ADVISORS, UNDERWRITERS, THOSE TYPES OF SPECIALIZED SERVICE, THE CITY OF HOUSTON HAVE RELATIONSHIPS WITH THOSE SERVICE PROVIDERS.
AND THE TOUR MAY BE ABLE TO BENEFIT FROM LOWER COST OF ISSUANCE BY LEVERAGING THOSE RELATIONSHIPS AND LEVERAGING THOSE SERVICE PROVIDERS.
SO AGAIN, FINANCE WILL TAKE A MORE ACTIVE ROLE.
WE THINK THIS IS, UH, ACTUALLY AN, AN ENGAGING OUR, THE FINANCIAL ADVISOR OF THE CITY, WHICH IS MASTERSON, WHO SERVES AS THE FINANCIAL ADVISOR FOR MANY OF THE TOUR.
UM, THEY WERE VERY HAPPY TO SEE THAT THE CITY'S FINANCE DEPARTMENT WILL BE WORKING WITH THEM MORE CLOSELY.
SO, UM, YOU KNOW, WE'VE RECEIVED, UM, POSITIVE FEEDBACK EVEN FROM OUTSIDE STAKEHOLDERS ON THIS POLICY.
AND SO, YOU KNOW, THIS SORT OF CONCLUDES THE POLICY, UM, CONVERSATION, UH, AT A VERY HIGH LEVEL.
UM, AGAIN, WE WANT TO HEAR FEEDBACK, UM, AFTER THIS PRESENTATION.
ANYONE WHO IS INTERESTED IN SITTING WITH ME OR ANYONE FROM MY TEAM TO REVIEW THE MORE DETAILED COMPREHENSIVE DOCUMENT TO GET A BETTER UNDERSTANDING OF WHAT WERE MAYBE SOME OF THE FACTORS THAT INFLUENCE OUR DECISIONS, UM, AS WELL AS THE IMPLEMENTATION PROCESS TO ENSURE THAT WE ARE ASKING THE RIGHT QUESTIONS AND WE'RE GETTING THE CORRECT, UM, STUDIES AND DOCUMENTATION TO SHOW THAT THERE'S PRIVATE INVESTMENT THAT IS GOING TO BE SUPPORTED.
UM, YOU KNOW, WE, WE WOULD LOVE TO HEAR YOUR FEEDBACK.
UM, IF BASED ON THAT FEEDBACK, THERE ARE SOME SLIGHT EDITS.
AND I SAY SLIGHT EDITS BECAUSE AGAIN, AS ANDY MENTIONED, THE POLICY ITSELF HAS BEEN VETTED INTERNALLY.
IT HAS BEEN REVIEWED BY THE MAYOR AND THE ADMINISTRATION.
THIS IS AN OPPORTUNITY FOR COUNCIL TO HAVE THAT SAME OPPORTUNITY TO REVIEW.
BUT IF ANY POLICY AMENDMENTS ARE NECESSARY TO CLARIFY OR TO ENHANCE THE POLICY, THEN WE MAY MAKE THOSE EDITS.
UM, AND THEN THE NEXT STEP WOULD BE TO INCLUDE SOME LANGUAGE THAT I'LL SHARE WITH YOU ON THE NEXT SLIDE, BUT TO INCLUDE THET POLICY IN THE EXISTING FINANCIAL POLICIES, UM, TO BASICALLY CODIFY THESE POLICIES, ENSURE THAT THEY'RE ADHERED TO.
AND THEN FINALLY THE LANGUAGE WILL BE, UM, UH, INCLUDED AND THEN WE WILL ROLL THIS OUT TO THE TUR.
SO AGAIN, THERE'S STILL AN IMPLEMENTATION THAT NEEDS TO HAPPEN.
UM, SOME OF THE T HAVE, OR THE CONSULTANTS OR ADMINISTRATORS ARE FAMILIAR WITH THIS DOCUMENT 'CAUSE WE, WE ENGAGE WITH THEM AS PART OF THE STAKEHOLDER ENGAGEMENT PROCESS, BUT THE ACTUAL T UM, HAVE NOT BEEN MADE AWARE AT THE LEVEL OF DETAIL AND THE IMPLICATIONS TO THEIR ADMINISTRATION AND MANAGEMENT.
AND SO WE DO NEED TO ROLL THIS OUT TO THE TOURIST.
UM, AND SO ON THIS SLIDE, AND I DON'T HAVE TO READ ALL OF IT, THERE'S JUST A COUPLE THINGS I WANNA HIGHLIGHT.
BUT THIS IS THE PROPOSED AMENDMENT TO THE EXISTING SECTION M OF THE FINANCIAL POLICIES.
SECTION M IS FOR ECONOMIC DEVELOPMENT.
IT IS THE SECTION THAT REQUIRES OUR OFFICE TO PRESENT ON AN ANNUAL BASIS, UM, UPDATES OF COMPLIANCE TO THE EXISTING
[00:55:01]
ECONOMIC DEVELOPMENT AGREEMENTS, UH, AND PROGRAMS. AND SO WE WOULD, UH, EDIT THAT SECTION TO INCLUDE THIS LANGUAGE.AND BASICALLY IT DESCRIBES, UM, SPECIFICALLY WHICH POLICY.
AND SO THIS IS THE TS POLICY THAT HAS BEEN DEVELOPED AND APPROVED BY MAYOR TURNER'S ADMINISTRATION IN 2023.
AND THAT'S TO DISTINGUISH IT FROM ANY FUTURE VERSION, UH, OF THE POLICY.
UM, AND ALSO SPEAKS ABOUT THAT THIS, OUR OFFICE WILL BE REQUIRED TO USE THIS POLICY AS OUR GOVERNING AUTHORITY AND HOW WE ADMINISTER AND MANAGE, UH, THE TS PROGRAM.
UM, AND THAT ON AN ANNUAL BASIS WE WILL BE REQUIRED TO PRESENT TO THE ECONOMIC DEVELOPMENT COMMITTEE WHETHER OR NOTTS ARE IN COMPLIANCE ACCORDING TO THE POLICY.
AND, UH, IF YOU GO TO THE NEXT SLIDE, AND IF THEY'RE NOT IN COMPLIANCE, WHAT IS THE ACTION PLAN BEING RECOMMENDED TO PUT THE TURS BACK IN COMPLIANCE? UH, AND SO ON THE TWO PAGES IS THE LANGUAGE THAT, THAT WE ARE, UH, PROPOSING.
SO THAT CONCLUDES THE FORMAL PRESENTATION.
UM, AND THE TEAM IS, UH, OPEN TO ANSWERING ANY QUESTIONS THAT YOU MAY HAVE.
UH, GWEN, WHY DON'T YOU JUST COMMENT HOW LONG THE POLICY DOCUMENT IS? UM, I CAN TELL YOU WITHOUT THE ATTACHMENTS
AND IN THE POLICY, UM, THERE ARE REFERENCES.
SO ANYTIME WE USE A SET OF RESEARCH, WHETHER IT'S, YOU KNOW, RESEARCHING THE CITY OF DALLAS OR UM, RESEARCHING, UH, ANY SUBJECT MATTER EXPERT ON THE TS, UM, POLICY ON A NATIONAL LEVEL, WE'VE MADE REFERENCES AND DISCLOSED THAT INFORMATION.
WE PROVIDED THE LINK SO THAT IF ANYBODY WAS INTERESTED IN EXPLORING OR FURTHER RESOURCING, RESEARCHING OR UNDERSTANDING THE SOURCES, UH, ALL OF THAT INFORMATION IS INCLUDED WITH ALL OF THE DIFFERENT ADDENDUMS. I DON'T KNOW, ANDREW, IS IT ABOUT A 45 PAGE DOCUMENT,
FIRST OF ALL, THANK Y'ALL FOR THE PRESENTATION.
UH, I'D LIKE TO ACKNOWLEDGE WE NOW HAVE COUNCIL MEMBER ROBINSON IN THE CHAMBER.
UH, WE'RE STARTING OFF WITH QUESTIONS.
UH, COUNCIL MEMBER ALCO, THANK YOU CHAIR AND THANK YOU ECONOMIC DEVELOPMENT TEAM.
THIS IS A TON OF WORK AND UH, JOB WELL DONE.
I MEAN, SO MANY THINGS THAT A LOT OF US, UH, WANTED TO SEE I THINK ARE ARE IN THIS DOCUMENT.
I CERTAINLY WANNA SIGN UP FOR THE TUTORIAL WITH THE 45 PAGE DOCUMENT, GWEN, SO SIGN ME UP.
UM, UM, A COUPLE QUESTIONS AND, AND I'M SURE I'LL HAVE MORE, BUT A COUPLE QUESTIONS COME TO MIND.
UH, WHEN, IF ON SLIDE 15 ON THE LIFE EXTENSION, I MEAN ANDY, I CAN SEE THAT THIS COULD ALWAYS BE THE CASE, YOU COULD ALWAYS MAKE A CASE THAT'S RIGHT.
YOU KNOW, YOU CAN MAKE A CASE.
I MEAN WE GOT 60 YEAR OLDS, 65, I MEAN, THAT'S PRETTY MUCH A LIFETIME, BUT YOUR GUIDING PRINCIPLE IS IMPERMANENCE.
SO, YOU KNOW, IS THERE EVER AN END GAME? IS THERE EVER, OKAY, THIS IS THE LAST PROJECT, THIS IS THE LAST BOND PAY OFF.
SO, WELL LET ME USE A LIVE EXAMPLE AND GWEN AND I HAVE HAD THIS CONVERSATION.
I THINK THERE'S AN END GAME ON UPTOWN RIGHT NOW.
I THINK WHEN WE LOOK AT THE PROJECTS THAT ARE NEEDED IN THE UPTOWN AREA, UH, WHILE WE HAVE BEEN DOING SOME ECONOMIC, UH, ECOLOGICAL RESTORATION THERE, THERE'S AN END GAME TO UPTOWN AT THIS POINT, THE TYPICAL 16, 16 IS UP.
UM, IN THE END WE'VE GOTTA MAKE A DECISION AND COUNCIL NEEDS TO MAKE THAT DECISION.
'CAUSE WE WILL, EVERY CASE THAT WE RECOMMEND A PREDETERMINATION IN GWEN'S WORD HERE, WE'RE GONNA SAY THAT THERE ARE BETTER USES FOR THOSE FUNDS, BUT WE DO NOT SEE MEANINGFUL PROJECTS THAT LEAD TO ECONOMIC DEVELOPMENT.
AND THAT, AND THAT'S REALLY THE CRITERIA WE WOULD ASK COUNCIL TO JOIN WITH US AND MAKE THAT DETERMINATION.
ARE ANY OF THE TUR EXISTING ACTIVE TERMS NOW IN A STATE OF PRE, UH, I, I THINK UPTOWN IS APPROACHING THAT RIGHT NOW.
UM, COUNCIL MEMBER ALCORN, CAN I JUST ADD, GO AHEAD.
SOMETHING ELSE TO THAT, WHAT ANDY'S SAYING, UM, AND SO WHEN IT COMES TO, SAY FOR INSTANCE, IF WE USE UPTOWN AS AN EXAMPLE OF A PREDETERMINATION, WHAT WE'LL LOOK AT IS WHAT IS GOING TO BE THE AMOUNT OF REVENUE NECESSARY TO PAY OFF ITS OBLIGATIONS, RIGHT? UM, WE CANNOT, THAT THAT IS ENCUMBERED, THAT IS COMMITTED, RIGHT? AND SO THAT REVENUE OVER TIME, BUT WHAT WILL HAPPEN IS UPTOWN WILL NOT BE ALLOWED TO ADD ANY NEW CAPITAL PROJECTS.
SO EACH YEAR YOU WILL HAVE FEWER AND FEWER RIGHT RESOURCES AVAILABLE TO FUND CAPITAL PROJECTS.
AND SO BASICALLY YOU STOP ANY CAPITAL, CAPITAL PROJECTS, YOU DISCONTINUE ANY DEVELOPMENT AGREEMENTS, UM, AND YOU LOOK
[01:00:01]
AT WHAT IS GONNA BE NECESSARY NOW IN THE EVENT OF THEN WHAT IS THEN PREDETERMINATION? DOES THAT MEAN PREDETERMINATION AND FULLY DISSOLVED? BECAUSE REMEMBER THE OTHER OPTION THAT WE WOULD EXPLORE IS RATHER THAN PRE TERMINATING IT COMPLETELY, IS THERE AN OPPORTUNITY, AN AREA IN CLOSE PROXIMITY TO UPTOWN THAT IS IN NEED OF REVITALIZATION, WHEREAS RESOURCES BECOME AVAILABLE.BECAUSE REMEMBER, TS UM, 16 STILL HAVE 15 YEARS OF LIFE.
AND SO AS WE PAY OFF THOSE DEBT OVER THAT 15 YEARS, MIGHT THERE NOT BE AN OPPORTUNITY TO DO A NON-CONTIGUOUS ANNEXATION, FOR INSTANCE.
RIGHT? AND AS YOU PAY OFF THOSE DEBT, ANY RESERVES COULD ACTUALLY BE USED IN ANOTHER AREA TO CATALYZE.
HAVING INVESTMENT AND IT'S NOT JUST TAKES NON-CONTIGUOUS AREAS.
THE PRACTICE WE HAVE HAD OVER THE YEARS HAS BEEN TO ADD GEOGRAPHY TOTS BECAUSE THE SUCCESS AT THE CORE HAS LED TO NEEDED SUCCESS ON THE PERIPHERY.
AND THAT IF I WERE TO DESCRIBE WHAT WE HAVE BEEN DOING OVER THE LAST 20 YEARS, WE HAVE BEEN LOOKING AT THE PERIPHERY OFTS AND SEE WHERE IMPROVEMENTS THERE CAN MATCH WHAT'S HAPPENED IN THE CORE.
I THINK THIS IS TAKING ANOTHER LOOK AT THAT.
NEXT IS, UH, COUNCIL MEMBER ROBINSON.
AND GWEN AND ANDY, UH, APPRECIATE YOUR PRESENTATION.
UM, PICKING UP A LITTLE BIT ON WHAT COUNCIL MEMBER ALCORN WAS DRIVING AT AND THE RECONFIGURATION, UM, CHANGING OF SHAPES THAT YOU'VE SEEN, AND ANDY MAYBE STARTING WITH YOU FOR KIND OF A NARRATIVE SENSE OF YOUR OBSERVATIONS OVER THE YEARS.
HAVE YOU SEEN THAT THAT EVER IN EXPANDING EITHER CONTIGUOUS OR NON CONFIGURATE CONTIGUOUS THAT IT'S CHANGED THE MISSION MORE OR LESS, YOU KNOW, LIKE IN TERMS OF THE ORIGINAL POLICY? YEAH.
UH, 2011 CAME AND MEMORIAL PARK WENT INTO DESPERATE DROUGHT CONDITIONS.
AND MEMORIAL PARK, TOM BACON CAME TO ME AND SAID, WE NEED TO RESCUE THIS ASSET.
AND IT IS THE FRONT DOOR OF UPTOWN.
NOW, WE STILL HAD PARK CREATION IN THE MISSION, SO THE PROJECT PLAN HAD THAT, BUT I THINK WE HAVE TO BE ALERT TO CIRCUMSTANCES THAT CHANGE.
AND THE UPTOWN EXAMPLE IS THE PERFECT EXAMPLE WHEN WE DECIDED THAT THAT NEED WAS THERE AND THE INCREMENT WAS THERE, AND THEN WE CAME TO COUNCIL AND MADE THAT RECOMMENDATION.
I GUESS MY SUSPICION OF GERRYMANDERED, UM, DISTRICTS KIND OF GENERALLY SPEAKING, YOU KNOW, SORT OF RUNS A FOUL OF SOME OF THE, THE STRANGELY CONFIGURED TS THAT WE HAVE AROUND THE CITY.
AND, YOU KNOW, I THINK THE NON-CONTIGUOUS THING FURTHER CREATES THE POTENTIAL FOR THAT TO BE REALLY STRANGE AND, UM, KIND OF AN INCONSISTENT, UH, AREA FOR A MISSION TO BE BORN OUT.
AND I'M THINKING A LITTLE BIT ABOUT THE DOWNTOWN DISTRICT, THE ONE THAT I THINK, UH, GWEN SPOKE ABOUT AS BEING MOST FREQUENTLY CHANGED.
AND WHILE IT SEEMS GOOD, AND I REMEMBER VOTING ON THE ALLEN PARKWAY YEP.
CONFIGURATION AND WHAT WE'VE DONE IN COUNCIL MEMBER GALLEGOS DISTRICT, UH, FOR SAM HOUSTON PARK AND ALL THE OTHER YEP.
OTHER THINGS THAT WE'RE REALLY TRYING TO ACCOMPLISH.
I GUESS THAT'S WHERE, IF THERE IS DISCRETIONARY AUTHORITY, OBVIOUSLY YOU MADE THE POINT, IT'S GOTTA COME TO COUNCIL, IT'S GOTTA COME TO US FOR VOTE.
PASS THE MAYOR'S SCRUTINY TO GET ON THE AGENDA.
BUT YOU ALL ARE WATCHING THAT.
AND I'M KIND OF, I'M JUST WONDERING LIKE THE INTERACTION BETWEEN YOU AND EITHER AN EXECUTIVE DIRECTOR OR A TS BOARD, IS THAT, UM, IS THAT AN ANNUAL ONCE TIME THING? NO.
OR DO YOU CALL 'EM UP IF YOU SAY LIKE, HEY, NOW YOU KNOW, NO, IF WE'RE GONNA DEAL WITH A STRATEGIC CHANGE TO A TOURS, THERE'S A NUMBER OF DIALOGUES THAT OCCUR.
BUT FRANKLY, THEY START WITH THE MAYOR BEFORE WE GET INTO ANY DIALOGUE WITH THAT, AND FRANKLY, THEY END WITH CITY COUNCIL.
THERE'S NOT A PERFECT FORMULA ON HOW THIS HAPPENS.
WHO, WHO COULD HAVE GUESSED THE DROUGHT IN 2011? WHO COULD HAVE GUESSED THAT A PHILANTHROPIC CONTRIBUTION WOULD COME TO US FOR BOTH MEMORIAL PARK AND THE ONE CASE OR BUFFALO BAYOU PARK OR BUFFALO BAYOU EAST? SO IT, WE HAD, WE'VE HAD TO BE NIMBLE, BUT RECOGNIZE WHAT I THINK GWEN HAS DONE HERE IS TO DESCRIBE A FRAMEWORK THAT'S MORE ARTICULATED THAN THE WAY WE HAVE DONE IT IN A MORE COMPREHENSIVE WAY.
MR. CHAIR, JUST ONE FINAL COMMENT JUST TO, UH, CLOSE, AND I WON'T GET BACK IN THE QUEUE, BUT, UM, IT SEEMS PHILOSOPHICALLY, FOR INSTANCE, WHEN, UH, MAYOR TURNER GOT INTO OFFICE, THE WHOLE SORT OF PARADIGM SHIFT THAT HE DID TO FOCUS ON AREAS OF TOWN THAT HAVE NOT BEEN
[01:05:01]
TRADITIONALLY INVESTED IN RIGHT.THAT WAS A RADICAL, UM, CHANGE YET CONSISTENT WITH ALL OF THOSE POLICY DRIVERS.
YEAH, I, I, I WOULD MAKE A CASE THAT AREN'T THE SOLUTION TO EVERY PROBLEM THE CITY HAS, AND ESPECIALLY IN MAYOR TURNER'S WORK ON COMPLETE COMMUNITIES.
RIGHTT ARE TYPICALLY NOT THE ANSWER.
BECAUSE YOU REALLY NEED TO HAVE OTHER TOOLS, UH, WHICH HAVE DONE THE COMPLETE COMMUNITIES WORK.
BUTT IS IN AREAS THAT ECONOMIC DEVELOPMENT.
AND AS GWEN POINTED OUT TIME AND TIME AGAIN, WE NEED AN INVESTOR.
ONCE WE FIND AN INVESTOR, WE CAN LEVERAGE THAT INTO MORE GOOD THINGS HAPPENING.
WE HAVE, UH, COUNCIL MEMBER ALCORN.
AND JUST ON THAT POINT, ANDY, THAT PART ABOUT HAVING THE PRIVATE INVESTMENT PLAN IS, IS SUPER IMPORTANT.
AND, AND, AND THIS IS SO, YOU KNOW, WE ALL REALIZED THE GREAT WORK THAT TOURISM DO AND SO MUCH INFRASTRUCTURE THAT WOULDN'T HAVE BEEN DONE AND OFTEN MORE EFFICIENTLY THAN THE, THAN THE CITY.
AND FASTER, UH, WHAT WE RUN INTO IS PROBLEMS WITH PERCEPTIONS.
AND, AND, AND THE PUBLIC AND, AND THE REV KEPT QUESTION AND ALL OF THAT.
SO, SO THAT WAS KIND OF HOW ALL THIS GOT STARTED.
SO I THINK THIS IS A SUPER USEFUL EXERCISE, AND I KNOW IT WAS A TON OF WORK BY YOU GUYS.
AND I, FOR 1:00 AM VERY APPRECIATIVE OF IT BECAUSE IT'S GOING TO BE SO MUCH EASIER TO TALK TO, UH, ABOUT HER'S.
UM, I, I DO, UH, I DO WANT YOU TO, YOU SAID THERE'D BE A LITTLE BIT MORE TALK IN THE PRESENTATION ABOUT THE PROJECT BASED TOURS, AND I DIDN'T REALLY HEAR ABOUT THAT.
AND, AND IT'S IN, IT'S IN THE POLICY MANUAL.
AND I, WE DON'T NEED TO TAKE A LOT OF TIME ON IT, BUT, BUT YOU'RE, IT'S SOMETHING YOU'RE GONNA, YOU COULD CONSIDER YES.
PERHAPS AS SOME OF THESE GO AWAY AND, OR EVEN IF WE DE X PARTS, WE COULD LOOK AT PROJECT BASED.
WE'LL, WE'LL, WE'LL HIGHLIGHT THAT NOTE ON THE PROJECT BASED.
THERE'S, THERE'S ONE OR TWO THAT HAVE COME TO OUR ATTENTION.
WE'VE JUST CHOSEN TO NOT DEAL WITH THEM RIGHT NOW, BUT, OKAY.
I'D ASK ONE OTHER THING ON THE, ON THE PUBLIC PERCEPTIONS OF THIS.
IN THE END, WHAT OFTEN GETS LOST IN THE PUBLIC PERCEPTION IS THE ROLE CITY COUNCIL PLAYS IN T YOU'LL FIND MEDIA AFTER MEDIA, SAY THESE ROGUE BOARDS GO OFF AND MAKE THEIR DECISIONS BY THEMSELF.
I WOULD ASK YOU TO JUST TELL YOUR CONSTITUENTS THAT YOU MAKE THOSE DECISIONS.
IT'S NOT THESE ROGUE BOARDS THAT MAKE THESE DECISIONS.
THE OTHER COMMENT TOO, JUST, JUST TO ADD TO THAT, AND I KNOW COUNCIL MEMBER ALCORN, UM, HAVING WORKED REALLY CLOSELY WITH ME BEFORE SHE BECAME A COUNCIL MEMBER'S AWARE, ALSO, IT'S THE ROLE THAT OUR OFFICE PLAYS.
GOVERN THE TS YOU KNOW, WE ARE AT EVERY TS MEETING, UH, CONTRACTS THAT ARE EXECUTED BY THE TURS REQUIRES A SIGNATURE FROM OUR OFFICE.
UM, YOU KNOW, UM, DEVELOPMENT AGREEMENTS ARE OFTEN, WE ARE PART OF THE NEGOTIATION PROCESS.
UM, EVERY ASPECT OF A TOURS OUR, OUR OFFICES IS ALSO PART OF THAT PROCESS.
UM, BUT I THINK WHAT THIS DOES IS IT CLARIFIES, I THINK IT SPEAKS, UH, OPENLY.
I THINK IT ALSO HELPS TO, UM, MAKE CLEAR THAT THERE IS FULL TRANSPARENCY AND THERE'S NO MISUNDERSTANDING.
UM, I MENTIONED EARLIER WHEN I LOOKED AT, WHEN I SHARED THE NUMBER OF LIFE EXTENSIONS AND THE TSAS THAT ACTUALLY RECEIVED LIFE EXTENSIONS, AND YOU'LL SEE THAT THERE WAS AN EQUITABLE DISTRIBUTION IN TERMS OF THOSE THAT HAVE RECEIVED LIFE EXTENSIONS.
SO THERE IS NOT A, A CHERRY PICKING THAT GOES ON, BUT I THINK IT WAS NECESSARY, UM, FOR, UH, TO ANDY'S POINT THAT WE HAD INTERNAL POLICIES, BUT IT WAS NOT AS COMPREHENSIVE AS, AS THIS.
AND THIS EXERCISE WAS VERY, VERY VALUABLE.
NOT ONLY I THINK TO THE GENERAL PUBLIC, BUT EVEN, YOU KNOW, FOR OUR OFFICE, UH, AS WELL.
AND SO WE LOOK FORWARD TO, AGAIN, AS I SAID, THE THE NEXT STEP IS TO BE ABLE TO GET SOME FEEDBACK.
UM, AND THEN ONCE WE HAVE THAT FEEDBACK CONSIDERED AND ASSESSED, THEN THE NEXT THING IS FOR US TO BEGIN TO ROLL THIS OUT AS SOON AS POSSIBLE.
AND IDEALLY, WE WOULD LIKE TO ROLL IT OUT WITH THE FY 24 BUDGET, WHICH BASICALLY JUST MEANS THAT THE PROJECTS THAT ARE ON THE CIP WILL HAVE AN IDENTIFIED FUNDING SOURCE, BECAUSE SOME OF THE OTHER IMPLICATIONS ARE, MAY BE A LITTLE BIT, UM, MORE COMPLEX, BUT WE WOULD LIKE TO BEGIN ROLLING IT OUT WITH THIS FY 24 BUDGET.
AS SOMEONE WHO WORKED ON THE FINANCIAL POLICIES, THIS WILL BE A WELCOME ADDITION TO THE FINANCIAL POLICIES.
AND, UM, IN REGARDS TO SENATE BILL 10 57, THAT HAS NOTHING TO DO WITH THE 25% OR MORE OF THE AD ALARM.
BECAUSE THAT'S, UH, MONIES THAT'S GONNA BE COMING FROM HOTEL TAXES, DOWNTOWN HOTEL TAXES.
THAT HAS NOTHING TO DO WITH THAT.
THAT'S ALL THE STATE, THAT'S THE STATE HOT TAX.
SO THE CONVENTION BILL THAT YOU'RE REFERRING TO HAS NOTHING TO DO WITH THE JURORS.
AND, UH, IN REGARDS TO, UM, THE LIFESPAN OF THE TOURISM, YOU MENTIONED THE UP UPPER KIRBY, UH, AND, AND SINCE THIS DOESN'T HAVE TO BE NON-CON, IT COULD BE A CHURCH CAN BE NON-CONTIGUOUS.
RIGHT? IS THERE THE POSSIBILITY OF, OR CAN IT BE POSSIBLE TO LEAVE,
[01:10:01]
FOR EXAMPLE, AS THESE UPPER KIRBY IN PLACE, BUT THE INCREMENTS THAT ARE BEING COLLECTED CAN THEN BE FOCUSED ON ANOTHER AREA OF THE CITY THAT NEEDS HELP? THE, THE, THE QUESTION, GWEN, TO ARTICULATED IS WE'VE GOTTA HAVE A COMMON THEME BETWEEN THE TWO.AND FOR EXAMPLE, THE ONLY NON-CONTIGUOUS TOURS WE HAVE IS 24, THE COUNTY ONE.
THE COMMON THEME IS SPORTS STADIUMS THAT EXIST FOR A MINUTE MADE, WE JUST CAN'T TAKE VARIOUS AREAS OF GEOGRAPHY AND SAY, THAT'S A TOUR, AND THEREFORE WE CAN MOVE THE DOLLARS AROUND.
SO IT, IT'S, IT'S ACTUALLY, BUT IF THERE'S AN AREA TO GO AHEAD, GWEN.
I WAS JUST GONNA SAY, JUST TO BUILD ON WHAT YOU, YOU WERE SAYING, ANDY, UM, WE WORK VERY CLOSELY WITH THE FINANCE AND THE LEGAL DEPARTMENT, UH, ON THAT AND REFERRED BACK TO THE SPECIFIC LANGUAGE IN THE LEGISLATION.
UM, AND, YOU KNOW, IF THERE'S AN AREA THAT IS BEING PROPOSED, WE JUST HAVE TO LOOK AT, UM, THE CONDITIONS, THE CHARACTERISTICS OF THAT AREA.
WE HAVE TO LOOK AT THE NEEDS OF THAT AREA TO DETERMINE WHETHER OR NOT THOSE NEEDS COULD BE MET WITH THE EXISTING PROJECT PLAN, FOR INSTANCE, OF, OF UPPER KIRBY WITHOUT HAVING TO AMEND THE PROJECT PLAN, UH, COUNCIL MEMBER GALLEGOS.
AND SO, YOU KNOW, BUT IF THERE ARE AREAS TO, TO, TO CONSIDER THAT IS THE BENEFIT OF, FOR INSTANCE, A CONTIGUOUS OR NON-CONTIGUOUS RELATIONSHIP WITH AN EXISTING TOURS THAT HAS MET ITS OBJECTIVE.
BECAUSE AS YOU KNOW, WHEN YOU CREATE A NEW TOURS, IT TAKES A VERY LONG TIME FOR REVENUE TO BE GENERATED.
AND ESPECIALLY THE AREAS THAT HAVE THE GREATEST NEED.
SOMETIME THAT REVENUE DOESN'T HAPPEN, THIS ALLOWS, UH, WE, THERE'S A, A GIVEN STREAM OF REVENUE THAT ALREADY EXISTS THAT COULD BE INFUSED IN AREAS OF, OF NEED.
WELL, WE'VE GOTTA BE VERY CAREFUL.
BUT WE HAVE TO, AT, WE GOTTA BE VERY CAREFUL ABOUT DOING THAT.
CONSISTENT WITH CHAPTER THREE 11.
REASON WHY I'M THROWING THAT OUT THERE.
'CAUSE I KNOW, AS, AS YOU KNOW, FOR THE PAST FEW WEEKS, WE'VE HAD AN ORGANIZATION FOR THE NORTHEAST, PART OF THE CITY OF HOUSTON THAT HAVE COME TO PUBLIC SESSION, UH, STATING THAT THE CITY IS NOT CONCENTRATING OR FOCUSING ON THE NORTHEAST IN REGARDS TO, UH, FLOODING ISSUES THAT THEY'VE BEEN EXPERIENCING IN THE NORTHEAST.
UH, AND I'M USING MY A A, A NEIGHBORHOOD IN MY DISTRICT, CLINTON PARK, WHO IN MY OPINION, HAS BEEN NEGLECTED BY THE CITY OF HOUSTON.
UH, SO THEREFORE, YOU KNOW, I MEAN, THEY WOULD JUST BE APPRECIATIVE OF SOME SIDEWALKS, UH, YOU KNOW, GOING OUT THERE AND, AND DOING SOME, SOME, SOME IMPROVEMENTS IN THAT NEIGHBORHOOD.
AND IN THAT CASE, I WOULD SEE CLINTON PARK, WE COULD LOOK AT THE EAST END TURS, WHERE THERE IS A, A NEXUS THERE.
IN THE CASE OF WHAT YOU'VE HEARD FROM, UH, THE NORTHEAST AREA.
WE'D HAVE TO LOOK AT THE LELAND WOODS TOURS AND SEE IF THERE'S O OPPORTUNITIES THAT, THAT TOURS ITSELF COULD DEAL WITH THAT.
BUT THERE'S, THERE'S, WELL, THEY DON'T HAVE TO BE CONTIGUOUS.
THERE'S GOTTA BE A NEXUS THAT MAKES SENSE, A RELATIONSHIP TO DO THAT, RIGHT? MM-HMM
SO, SO, SO THAT COULD BE A POSSIBILITY.
WE'LL BE GLAD TO LOOK AT THAT.
UH, WHEN NIXON'S IN THE KEY, WE HAVE STAFF FROM COUNCIL MEMBER KNOX'S OFFICE.
QUICK QUESTION ON SLIDE 17, WHEN YOU'RE TALKING ABOUT TERMINATIONS MM-HMM
UM, AT WHAT POINT COULD THE CITY, SPECIFICALLY THE GENERAL FUND, COULD THEY BE ON THE HOOK AT ANY POINT FOR ANY ACCRUED, UH, ACCRUED DEBT OR OBLIGATIONS THAT OCCURS AS ENCOURAGED? IF WE ROLL UP A AURS, THE DEBT BY LAW HAS TO BE ASSUMED BY THE CITY.
AND THAT, AND THAT'S THE REASON, WHEN I SAID EARLIER THAT IF WE WERE TO ROLL UP TURS TWO AND TURS 16, WE SAW A NEGATIVE IMPACT ON THE GENERAL FUND OF OVER $200 MILLION.
AND I, I, I BELIEVE WE HAVE, AND JOHN, IN THAT CASE, THAT'S, THAT'S WHERE WE WOULD PROPOSE SORT OF THAT PREDETERMINATION, RIGHT? SO THAT, THAT IMPACT IS NOT FELT BY THE CITY OR BY THE GENERAL FUND.
BUT WE WOULD ALLOW THE TOURS ENOUGH TIME TO BE ABLE TO MEET ITS, ITS FINANCIAL OBLIGATIONS.
NOW, I, I I BELIEVE WE HAVE SOME, UH, BOARD MEMBERS OR FROM TOURS THAT ARE IN THE AUDIENCE.
IF SO, CAN YOU RAISE YOUR HANDS?
MEMBERS OF THE BOARD, THA THANK, THANK YOU FOR JOINING US, UH, TODAY,
AND, UH, ANDY IN REGARDS TO, I KNOW YOU SAID YOU'LL BE GIVING US OR COUNCIL MEMBERS THIS INFORMATION, BUT WHEN DO YOU THINK YOU'LL BE COMING TO COUNCIL? UH, THAT'S, THAT'S THE SUBJECT THAT ACTUALLY, UH, TEXTED GWEN BEFORE THIS MEETING.
UH, I WANNA GET THIS WHOLE BROAD DOCUMENT OUT OF EVERYBODY, AND I WANNA GIVE YOU ALL TIME TO, TO DIGEST IT.
BUT IN THE MONTH OF JUNE, WE WOULD LIKE TO COME TO COUNCIL WITH THE FINANCIAL POLICIES OF THE CITY.
THERE, THERE DOESN'T LOOK LIKE THERE'S ANY OTHER COUNCIL MEMBERS AND WE DON'T HAVE ANY, UH, SPEAKERS IN THE AUDIENCE.
[01:15:27]
GOOD AFTERNOON.GO, GO AHEAD AND STATE YOUR NAME FOR THE RECORD.
UH, FIRST OF ALL, UH, MUNICIPAL SERVICE FEE, UH, AMOUNT TO $22 MILLION.
IS THAT $22 MILLION MADE PART OF THE, UH, PROPERTY TAX CAP, UH, CALCULATION? AND IF NOT, WHY NOT? UH, IT SEEMS LIKE IT SHOULD BE.
IT'S VERY CLEARLY PROPERTY TAX.
UH, DO YOU WANT ME TO KEEP GOING OR DO YOU WANT, AND, AND MY NEXT POINT, UH, ON PAGE, AND I LOST MY, UH, EMAIL WITH THE INFORMATION, BUT ON PAGE FOUR, IT TALK, IT'S THE STATE LAW TALKING ABOUT, UH, HOW TOURS ARE TO BE CREATED IN UNDERDEVELOPED, IN UNDERSERVED AREAS.
IT SPECIFICALLY STATES THAT, AND ON PAGE 13, IN THIS NEW POLICY, THEY DON'T MENTION ANYTHING ABOUT THAT.
UH, AND A PERFECT, PERFECT EXAMPLE WOULD BE THE, UH, TMC THREE, UH, AREA, WHICH THEY CREATED A TOURS.
HOW CAN THEY CREATE A TOURS IN AN AREA THAT'S NOT UNDEVELOPED OR NEEDS DEVELOPMENT, IF THAT'S WHAT THE STATE LAW STATES.
SO LET ME, LET ME ANSWER THE SECOND QUESTION FIRST.
REGARDING, UH, ANY CHURCH CREATION IN, IN PARTICULAR TMC? THE, IN ORDER TO DETERMINE THE STATE STATUTE, YOU'VE GOTTA LOOK AT THE GUIDELINES FOR CREATING A TAX INCREMENT REINVESTMENT ZONE.
ONE OF THE CRITERIA IS THAT THERE IS A FAULTY LAYOUT THAT, UM, THAT CREATES A PUBLIC SAFETY ISSUE, UM, OR A MOBILITY CHALLENGE, OR INADEQUATE SIDEWALKS, WHICH ALSO IS A NUISANCE, UH, TO THE PUBLIC.
AND SO THE CRITERIA IN EVERY TOUR THAT HAS BEEN CREATED, THERE IS A REFERENCE TO THE SPECIFIC CRITERIA IN CHAPTER THREE 11 THAT WAS USED TO MEET THAT CRITERIA.
WHAT WAS THE CRITERIA FOR TM C3? TMC IS THE LAYOUT IS A FAULTY LAYOUT FOR DEVELOPMENT.
THERE'S ALSO THE PUBLIC, UM, THE CHALLENGES WITH INADEQUATE.
THERE ARE SIDEWALKS THAT ARE INCOMPLETE AND STREET IMPROVEMENTS, AS WELL AS THE NEED FOR RESILIENCY AND DRAINAGE IMPROVEMENTS.
UH, MS. TILSON, I THINK, UH, CHIEF FEN ALSO SAID THAT A PRINCIPAL PART OF THAT IS ALSO CONGESTION, CONGEST TRAFFIC, MITIGATE TRAFFIC AND PUBLIC SAFETY CHALLENGES.
DID YOU HAVE A COMMENT ON THE, UH, UH, MUNICIPAL SERVICE FEE? I MEAN, I THINK I'M, I'M RIGHT IN THAT THE, THE, IT'S COLLECTED IN THE, INTO THE TURS FIRST, AND THAT OPERATES OUTSIDE THE REVENUE CAP.
AND THEN THE ALL PAYMENTS, JUST LIKE ANY OTHER PAYMENT THAT THE TURS WOULD MAKE, WOULD NOT BE PART OF THE CITY REVENUE.
BECAUSE THE REVENUE ITSELF IS GOING TO THE TURS.
I KNOW IT'S JUST, YOU KNOW, SEEMS LIKE IT'S JUST A PASS THROUGH, BUT IT ULTIMATELY IS LIKE A PAYMENT, LIKE ANY OTHER PAYMENT THAT THET MAKES, RATHER THAN DIRECT REVENUE TO THE CITY, WHICH WOULD, WOULD BE, UM, IMPACTED BY THE RED CAP.
WELL, THE, UH, MY UNDERSTANDING IS THAT THE CITY COLLECTS ALL THE PROPERTY TAXES AND THEN REBATES TO THE REBATES TO THE TOUR.
I NEED HELP FROM THE ECONOMIC DEVELOPMENT.
WE'RE READY FOR THE, UH, SECOND ITEM ON THE AGENDA HERE.
IT'S A HOUSTON AIRPORT SYSTEM DIRECTOR, MARIO DIAZ, UNITED AIRLINES, MANAGING DIRECTOR MICHAEL YOST, UH, AND UNITED AIRLINES VICE PRESIDENT OF HOUSTON, HUB PHIL GRIFFITH.
I WILL PRESENT ON IHAH, UH, TERMINAL B WE DEVELOPMENT PROGRAM.
UH, ONCE YOU'RE UP HERE, IF YOU CAN, UH, UH, MENTION YOU OR, UH, MENTION YOUR, OR, UH, IDENTIFY YOUR GUESTS SO THAT WAY WE CAN HAVE 'EM ON, ON RECORD, PLEASE.
AND, AND MY APOLOGIES, I'M GOING TO HAVE TO LEAVE.
I HAVE ANOTHER PREVIOUS, UH, MEETING, BUT COUNCIL MEMBER ROBINSON WILL TAKE OVER.
ALRIGHT, SO THANK YOU VICE CHAIR, COUNCIL MEMBERS AND STAFF.
I'M THE CHIEF OPERATING OFFICER FOR THE, UH, HOUSTON AIRPORT SYSTEM.
[01:20:01]
UM, TODAY I'M WANTED TO PREVIEW A, A PROJECT, EXCITING PROJECT THAT WE'VE BEEN WORKING ON, UH, WITH UNITED AIRLINES.OUR PARTNER, UH, AT INTER BUSH INTERCONTINENTAL AIRPORT.
UM, YOU KNOW, ECONOMIC DEVELOPMENT CORP, UH, UH, COUNCIL IS VERY IMPORTANT 'CAUSE THE CITY'S AIRPORTS ARE REALLY A DRIVER OF ECONOMIC ACTIVITY AT THE AIRPORT.
I MEAN, IN THE CITY, UH, ABOUT $36.4 BILLION IN ANNUAL ECONOMIC ACTIVITY IS DERIVED FROM THE AIRPORT SYSTEM AND ABOUT 190,000 JOBS.
AND SO, AS WE WORK FROM A FOUR STAR AIRPORT AT BUSH TO TRY AND GET TO A FIVE STAR AIRPORT, UM, THIS PROJECT THAT UNITED IS BRINGING FORWARD, I THINK IS A SIGNIFICANT STEP FORWARD, UH, TOWARDS OUR FIVE STAR, UH, EXPERIENCE AT BUSH.
UH, AND ALSO A GREAT, A GREAT ENHANCEMENT TO PASSENGER EXPERIENCE.
SO, WITH NO FURTHER ADO, I'D LIKE TO AGAIN, UH, UH, RECOGNIZE, UH, MICHAEL YOST, THE MANAGING DIRECTOR, UH, FOR UNITED, AND THEN PHIL GRIFFITH, UH, WHO IS OUR, UH, HOUSTON VICE PRESIDENT.
UH, SO AGAIN, I'M MICHAEL YOST UNITED'S, MANAGING DIRECTOR FOR AIRPORT AFFAIRS.
UH, AND I'LL LET PHIL INTRODUCE HIMSELF, AND THEN WE WILL START WITH THE PRESENTATION.
I'M THE VICE PRESIDENT OF AIRPORT OPERATIONS AT GEORGE BUSH INTERCONTINENTAL AIRPORT.
UM, YOU KNOW, WHEN YOU, WHEN YOU THINK ABOUT KEY GOALS OF ANY BUSINESS, IT'S TO GROW.
IT'S TO GENERATE CUSTOMER SATISFACTION.
IT'S TO BE A PARTNER TO THE COMMUNITY THAT IT SERVES AND, AND WITHIN THE COMMUNITY THAT IT SERVES.
AND THAT'S ONE OF THE BIG THINGS THAT UNITED AIRLINES HAS BEEN DRIVING OVER THE LAST, LAST 10 YEARS AS WE'VE WORKED TO GROW OUR AIRLINE, UM, THAT OPERATES HERE IN HOUSTON, UM, ACROSS UNITED AIRLINES.
UM, THE HOUSTON HUB ON ANY GIVEN DAY COULD ARGUABLY BE THE LARGEST IN GENERAL HOUSTON, AND I'M SORRY, DENVER AND CHICAGO OVER TIME ARE LARGER.
BUT FROM DAY TO DAY SCHEDULE TO SCHEDULE, WE HAVE OUR HIGHLIGHTS.
WHAT WE REALLY STAND OUT FOR THOUGH, IS AS THE GATEWAY TO LATIN AMERICA, SOUTH AMERICA, MEXICO, ALL THINGS SOUTH.
THAT'S WHERE UNITED HOUSTON HUB REALLY PLAYS.
THE BIGGEST PART IN DRIVING UNITED AIRLINES IS OVERALL STRATEGY.
UM, IN ORDER TO GROW, YOU'VE, YOU'VE HEARD US TALK ABOUT OUR PURCHASE OF SOME 500 NEW, UH, WHAT WE CALL NARROW BODY AIRCRAFT.
THOSE ARE BOEING 7 3 7 MAXES AND, UH, AIRBUS EIGHT THREE NINETEENS.
UM, YOU'VE ALSO PROBABLY HEARD OF, UH, A PURCHASE OF A HUNDRED, UM, WIDE BODY AIRCRAFT.
THOSE ARE BOEING 7, 8, 7, UH, AIRCRAFT THAT ESSENTIALLY WILL, UH, PLAY A BIG ROLE IN US REPLACING, UM, SMALL AIRCRAFT EMBR, ONE 40 FIVES, UH, 50 SEATER AIRCRAFT, 75 SEATER AIRCRAFT, UM, WITH THE LARGER AIRCRAFT THAT WE HAVE ON ORDER AND ARE ACTUALLY TAKING DELIVERY ON TODAY.
JUST TO PUT IN PERSPECTIVE, BEFORE WE GET INTO THIS PROJECT, HOW BIG THAT EFFORT IS FOR US AT UNITED, NO AIRLINE HAS EVER TAKEN MORE THAN 50 AIRCRAFT IN ONE YEAR.
RIGHT NOW WE'RE DELIVERING ANYWHERE FROM TWO TO THREE AIR AIRLINE, AIR AIRPLANES, EXCUSE ME, AIRPLANES A WEEK, UM, INTO THE UNITED NETWORK.
WE'RE GONNA DO THAT FOR FIVE YEARS IN A ROW, AND THAT, THAT'S A REALLY BIG DEAL.
SO WE'VE ALREADY THROWN THE LONG BALL, IF YOU WILL, IN TERMS OF WHAT WE'RE WORKING TO DO TO GROW OUR AIRLINE.
AND AS WE WORK ON THE PLAN HERE IN HOUSTON, UH, THERE ARE A COUPLE THINGS THAT WE ABSOLUTELY HAVE TO DO SO THAT WE CONTINUE WITH THAT, THAT PROGRESSION IN TERMINAL B, IT WAS PRIMARILY BUILT FOR OUR UNITED EXPRESS OPERATIONS.
AGAIN, THOSE ARE THE SMALL AIRCRAFT, UM, THAT'LL CARRY ANYWHERE FROM 50 TO A HUNDRED PASSENGERS.
UM, OFTENTIMES THEY WOULD SERVE, UH, WHAT WE CALL OUR TIER ONE CITY CITIES THAT ARE WITHIN A, A CLOSE RADIUS OF, OF THE HOUSTON HUB.
AND, AND THEY WERE VERY IMPORTANT BECAUSE THAT'S WHAT, UM, OUR, THE HOUSTON HUB WAS DESIGNED FOR, UM, ESPECIALLY TERMINAL B.
AND THAT'S WHAT A LOT OF OUR, UM, AIR AIRPORTS THAT WE WERE FLYING TO WERE DESIGNED FOR AS WELL.
UM, WHEN YOU LOOK AT TERMINAL B ON THE SOUTH SIDE, IT, IT HAS ALREADY BEEN MODIFIED.
IT'S GONNA GET MODIFIED AGAIN SO THAT INSTEAD OF JUST HAVING THE SMALL UNITED EXPRESS AIRPLANES, IT'LL BE ABLE TO TAKE ON THE LARGER, UM, MAINLINE AIRCRAFT, THE BOEING SEVEN THREE SEVENS.
[01:25:01]
UM, WHEN YOU LOOK AT TERMINAL B NORTH, IT WAS ORIGINALLY BUILT IN 1969, AND IT, BY FAR HAS THE MOST WEAR AND AND AGE AS YOU WALK THROUGH THAT, THOSE, THAT, UM, SECTION OF THE AIRPORT THAN ANY OTHER PART OF, OF GEORGE BUSH INTER CONTINENTAL.UM, WHAT WE'RE GONNA DO THERE IS ESSENTIALLY DEMOLISH IT AND BUILD IT SO THAT IT CAN HOUSE THE LARGER, UH, NARROW BODY AIRCRAFT.
THE BOEING SEVEN THREE SEVENS.
UM, FROM A PROCESSOR STANDPOINT, UH, WE'VE BEEN CHALLENGED, AGAIN WITH A PROCESSOR THAT WAS BUILT FOR OUR OPERATIONS IN 1969.
UM, WE'RE GONNA MAKE IT LARGER, WE'RE GONNA MAKE IT MORE FUNCTIONAL.
UM, WE'RE GONNA GIVE MORE CURB SPACE SO THAT CONGESTION RELATED ISSUES GET RESOLVED.
AND IT'S GONNA BE A REAL HIGHLIGHT IN THE WAY OUR, OUR AIRPORT IS, IS CONFIGURED.
SO, UH, IN, IN SHORT, WE'RE, WE'RE REALLY WORKING TO, TO PUT ALL THE PIECES TOGETHER.
WE'RE BUYING THE AIRCRAFT, WE'RE HIRING PEOPLE, UM, AND THEN OF COURSE, WORKING ON A TERMINAL THAT'S GONNA BE ABLE TO HOUSE ALL THAT IS A KEY PART OF WHAT MIKE'S GONNA TAKE YOU THROUGH OVER THE NEXT, UH, SLIDES.
SO IF YOU, IF YOU LOOK AT THE SLIDE HERE, UM, IT, IT GREATLY ILLUSTRATES WHAT PHIL WAS DISCUSSING WITH THE THREE DIFFERENT COMPONENTS OF OUR PROJECT.
SO IF YOU LOOK ON THE B NORTH SIDE, YOU WE'RE GONNA PLAN TO BUILD TWO MODERN PIERS.
UH, SO IF YOU'RE FAMILIAR WITH OUR C NORTH PIER, WHICH IS JUST TO THE EAST THERE, UM, IT'S VERY BRIGHT MODERN, YOU KNOW, IT, IT'S ESSENTIALLY GOING TO BE REPLICATING THAT, UH, TWO DIFFERENT TIMES.
AND WE'LL HAVE CAPACITY FOR ALL THE SEVEN 30 SEVENS AND SEVEN EIGHT SEVENS.
UH, JUST SOUTH OF THAT WE HAVE THE PROCESSOR.
SO WE ARE GOING TO ESSENTIALLY TRIPLE THE CAPACITY OF THAT PROCESSOR, BOTH FROM A CUSTOMER FLOW STANDPOINT, SO CHECK IN AND SECURITY, BUT ALSO IMPORTANTLY ON THE CURB FRONT, WHICH I'LL GET TO A LITTLE MORE IN A SECOND.
AND THEN FINALLY, AS PHIL MENTIONED ON THE SOUTH SIDE AS WELL, WE'RE GONNA CONVERT THESE GATES FROM 50 SEAT AIRCRAFT FOCUSED TO BE ABLE TO HANDLE THE LARGER REGIONAL JETS.
UM, AND, AND THOSE WILL ALL BE BOARDED THROUGH PASSENGER BRIDGES INSTEAD OF THE, THE GROUND LOADING OPERATIONS AND, AND STAIRS THAT YOU MAY SEE TODAY.
MIKE, IF I CAN JUST ADD ONE THING.
UM, TRADITIONALLY WE'VE SEEN SOMETHING IN THE 15 TO 18,000 LOCAL PASSENGER VOLUME AT GEORGE BUSH INTERCONTINENTAL AIRPORT.
OVER THE LAST FEW MONTHS, WE'VE BEEN SEEING DURING PEAK PERIODS AS MANY AS 30,000 LOCAL CUSTOMERS PER DAY.
UM, THAT HAPPENED DURING SPRING BREAK, AND IT'S HAPPENED DURING THE INITIAL, UM, MEMORIAL DAY.
AND OF COURSE, WITH THE KIDS BEING OUT OF SCHOOL, WE'RE SEEING MORE AND MORE EXAMPLES OF THAT.
UM, SO ALL OF THE THINGS THAT I AND MIKE HAVE DESCRIBED SO FAR REALLY IS GETTING IT MORE THAN JUST COSMETIC THINGS AND THINGS THAT ALLOW US TO, UM, BUILD CUSTOMER SATISFACTION, WHICH IS ALSO VERY IMPORTANT.
IT'S FUNDAMENTAL TO OUR ABILITY TO OPERATE AN AIRPORT THAT IS SEEING MORE AND MORE SPECIFIC PASSENGERS EVERY DAY.
AND, AND SO WITH ALL THOSE LOCAL CUSTOMERS, WE HAVE A COLLABORATIVE EFFORT WITH THE HAS TEAM TO TRY TO ADJUST THE ROADWAYS AND MAKE THE IMPROVEMENTS TO HANDLE ALL THE, THE CUSTOMERS.
UM, SO WE, WE ARE, UH, HAVE WORKED VERY CLOSELY WITH THE HS TEAM ON SOME VERY SOPHISTICATED MODELING EFFORTS TO ENSURE THAT WHAT WE'RE BUILDING, WHAT WE'RE DEVELOPING IS GOING TO, IS GOING TO BE READY FOR THE FUTURE AND FOR THESE VOLUMES.
UH, SO AGAIN, THE FOCUS THERE IS WE'RE TRIPLING THE CAPACITY, AND OUR FOCUS IS REALLY ON THE CURB FRONT.
SO BY INCREASING THE CAPACITY ON THE CURB FRONTS, ALL THE CARS ARE ABLE TO GET OFF THE ROADS LOAD, UNLOAD THEIR CUSTOMERS ON THOSE CURB FRONTS, AND THEN MOVE ALONG ON THEIR JOURNEY, THUS FREEING UP THE, THE FREE TRAFFIC ON THE ROADWAYS.
AN IMPORTANT COMPONENT IS ALSO THE CONSTRUCTION PHASE.
SO WE'RE COMMITTED TO, UH, MAKING A CONSTRUCTION ACCESS LANE SO OUR CONSTRUCTION TRAFFIC WILL NOT TRAVEL ON THE SAME SAME ROADS AS OUR CUSTOMERS.
AND WE'RE ALSO LOOKING AT WAYS TO INCREASE ADDITIONAL ROADWAY CLEARANCE AROUND TO ALLOW FOR MORE CUSTOMER TRAFFIC TO FLOW INTO THE AIRPORT.
UM, WE'RE EXPLORING NIGHTTIME CONSTRUCTION POSSIBILITIES AND AS WELL AS UTILIZING SOME PRETTY INNOVATIVE CONSTRUCTION TECHNOLOGIES WHERE WE CAN BUILD SOME THINGS ON A MORE MODULAR BASIS OFFSITE, AND THEN BRING THEM INTO THE AIRPORT, UH, PARTICULARLY ON THE GATE SIDE, UM, WITHOUT EVEN COMING THROUGH THE, THE PUBLIC ROADWAY SYSTEM.
[01:30:01]
YOU KNOW, AS WE THINK ABOUT ALL THE DIFFERENT PHASES THAT THIS PROJECT WILL GO THROUGH, WE ARE COMMITTED TO, TO NOT ONLY PLANNING FOR THE IMPACT ON TRAFFIC, BUT WE'RE GOING TO MODEL IT, WE'RE GOING TO TEST IT, WE'RE GONNA ADJUST OUR PLANS ACCORDINGLY AND THEN TEST IT AGAIN ALL BEFORE WE TRY.WE MAKE ANY IMPACTS ON THOSE ROADWAYS.
UH, SO WHAT I'M GONNA DO HERE IS KIND OF TAKE YOU THROUGH A, A CUSTOMER PERSPECTIVE OF SOME OF THE ELEMENTS OF THE PROCESS THAT WE'RE GONNA BE BUILDING HERE.
UH, SO RIGHT OFF FRONT, UH, CUSTOMER DRIVES UP ON THE DEPARTURE CURB, UM, AND THEY SEE OUR BEAUTIFUL NEW PROCESSOR.
UH, THE ROADWAYS ARE ALL ON THIS GROUND LEVEL, SO BOTH THE DEPARTURES AND THE ARRIVAL CURBS.
UM, AND AGAIN, THAT IS AN EFFORT TO MAKE SURE WE MAXIMIZE THAT SPACE TO ALLOW FOR THE, THE CURB FRONTAGE FOR THOSE CUSTOMERS TO GET OFF THE ROAD AND, AND UNLOAD AND LOAD, UM, ALONG THE CURBS.
THERE'LL BE FANTASTIC WAY, WAY FINDING SIGNAGE TO MAKE SURE THE ARRIVAL CUSTOMERS, UM, CARS KNOW WHERE THEY'RE GOING AS WELL AS THE DEPARTING CUSTOMERS.
SO FROM A DEPARTING CUSTOMER PERSPECTIVE, UM, THEY'RE GOING TO ENTER THESE DEPARTURE CORES, WHICH WILL HAVE THE ESCALATORS AND ELEVATORS NECESSARY TO GET PEOPLE UP TO THE TICKETING HALLWAY.
UH, SO THE TICKETING HALL IS GOING TO BE EXPANSIVE, IT'S GONNA HAVE ENOUGH CAPACITY FOR ALL OUR, OUR, UH, CUSTOMER CHECK-IN FOR BAG DROP.
UM, IT'LL HAVE, AGAIN, CLEAR WAY FINDING.
AND THROUGH THE CENTER HERE IS WHERE WE PLAN TO HAVE THE NEW SECURITY CHECKPOINT.
UH, SO THAT WILL ENTER INTO THE, THE NEW B NORTH CONCOURSES.
SO AGAIN, THERE'LL BE TWO OF THESE CONCOURSES VERY SIMILAR TO WHAT WE HAVE IN OUR C NORTH CONCOURSE.
UM, THESE ARE GONNA BE BRIGHT FACILITIES, A LOT OF NATURAL SUNLIGHT COMING IN, LARGE HOLD ROOMS THAT WILL HAVE GREAT CUSTOMER AMENITIES THROUGH CONCESSIONS AND RETAIL OPPORTUNITIES, AS WELL AS HAVE ADEQUATE OR AMPLE, UH, RESTROOM SPACE.
AND FINALLY, AS YOU COME BACK TO HOUSTON, UM, YOU COME BACK DOWN TO THE BAGGAGE CLAIM AGAIN, TRIPLING THE CAPACITY OF WHAT IS THERE TODAY SO A CUSTOMER CAN RETRIEVE THEIR BAG AND CONTINUE ON THEIR JOURNEY TO HOUSTON.
SO IF YOU LOOK AT THE TIMELINE HERE, WE ARE TRYING TO ACHIEVE ONE OF THE NEW CONCOURSES BEING OPENED BY MID 2026.
AND SO IN ORDER TO DO THAT, WE'VE GONE THROUGH A GREAT DEAL OF CONCEPT AND PLANNING WORK WITH THE HAS TEAM, AND WE'RE CURRENTLY IN THE DESIGN PROCESS.
AND SHORTLY WE'LL COME UP WITH THE ENABLING PROJECT PROCESS OF THAT.
SO THAT'S THINGS LIKE, UM, FINDING SOLUTIONS FOR EMPLOYEE PARKING, UM, STORM WATER DETENTION, UH, U UH, UTILITY SOLUTIONS.
AND THEN FINALLY WE'LL GET INTO THE, THE HEART OF THE CONSTRUCTION WITH THE BE NORTH, BE SOUTH AND PROCESSOR CONSTRUCTION PHASES.
SO AS YOU THINK ABOUT WHAT IMPACTS THIS HAS ON THE CITY, I'LL KIND OF GO THROUGH A FEW DIFFERENT AREAS THAT WE THINK ARE GONNA BE MOST IMPACTFUL.
UM, SO ONE, JUST BY BRINGING IN THE LARGER AIRCRAFT, THEY'RE MORE FUEL EFFICIENT AND THERE'S A MUCH BETTER CUSTOMER EXPERIENCE IN THE AIR.
WE'RE MAKING INVESTMENTS IN THESE PLANES TO MAKE SURE THAT EVERY CUSTOMER HAS A CHANCE TO PUT THEIR, THEIR, UH, ROLLER BOARD IN THE OVERHEAD BINS.
AND THEN ON THE GROUND IS WHERE WE'RE REALLY TALKING ABOUT THE TERMINAL CONSTRUCTION PROJECTS.
SO MAKING SURE THAT WE'RE REPLACING THESE OLD, OUTDATED FACILITIES WITH VERY MODERN, EFFICIENT INFRASTRUCTURE.
FROM A HOUSTON ECONOMY PERSPECTIVE, WE, WE BELIEVE OVER THE NEXT FOUR YEARS, UNITED IS GOING TO GROW OUR EMPLOYMENT FOOTPRINT HERE BY OVER 2000 DIRECT JOBS.
UM, WE THINK THAT'S GREAT FOR, FOR THE CITY, IT'S GREAT FOR US AND WITH ALL OF OUR HIRING PRACTICES, YOU KNOW, WE OBVIOUSLY TAKEN A, A, A BIG FOCUS ON OUR DEI INITIATIVES AND, YOU KNOW, TRY TO EXCEED TARGETS NOT ONLY FOR DIRECT EMPLOYMENT, BUT ALSO FOR ALL THE CONTRACTORS AND CONSTRUCTION WORK THAT OCCURS AS WE DESIGN THESE FACILITIES, WE'RE DESIGNING THEM WITH, UH, LEAD SILVER REQUIREMENTS IN MIND.
YOU KNOW, SO UNITED IS COMMITTED TO BE CARBON NEUTRAL BY 2050, AND WE THINK WITH OUR TERMINAL CONSTRUCTION PROJECTS, THAT'S GONNA BE A KEY PART OF ACHIEVING THAT GOAL.
AND FINALLY, UH, OPPORTUNITIES FOR ECONOMIC DEVELOPMENT.
THE MORE, THE MORE CUSTOMERS WE CAN BRING INTO THE CITY OF HOUSTON, AND ESPECIALLY EVEN A, ON A CONNECTING BASIS, THAT OPENS UP MORE OPPORTUNITIES FOR US TO GROW OUR OVERALL NETWORK FROM HOUSTON.
SO THAT GIVES US THE CHANCE TO PUT MORE CITIES ON THE MAP AND CONNECT MORE PEOPLE TO THE REST OF THE WORLD.
[01:35:01]
ANY QUESTIONS.THANK YOU VERY MUCH, MR. YOST, MR. GRIFFITH, FOR YOUR PRESENTATION AND BRINGING THIS TO COUNCIL TODAY.
WE DO HAVE AT LEAST ONE COUNCIL MEMBER IN THE QUEUE, AND WE'LL START WITH COUNCIL MEMBER ALQUAN.
AND THANK YOU GENTLEMEN FOR THE PRESENTATION.
IT'S SO FUN TO BE AT A PRESENTATION THAT'S NOT ABOUT THE EYE TRIP
UM, THIS IS VERY EXCITING AND APPRECIATE ALL UNITED DOES FOR THE CITY.
SO IT'S COOL THAT IT'S NOT, IT'S ONE LEVEL THAT'S KIND OF A NEW THING RIGHT OUT THERE.
I MEAN, IT'S, IT'S ALWAYS, WE'VE ALWAYS GONE UP THE RAMP AND IT'S ALWAYS BEEN A DOUBLE LEVEL THING.
SO TELL ME HOW THAT, I MEAN, OBVIOUSLY THE CAR'S BACK UP GOING UP THE RAMP, BUT HOW IS IT GONNA BE BETTER FOR TRAFFIC, I GUESS SOMEHOW? SO IT, IT WILL HAVE TWO LEVELS.
I MEAN, THE, THE TRAFFIC IS ALL ON THE GROUND LEVEL, BUT THE, THE RIGHT BUILDING, THE TICKETING AND THE CHECKPOINT WILL BE ABOVE THAT.
THE BUILDING, THERE'S NO MORE RAMP TO GO UP.
THERE WON'T BE A RAMP TO GO UP FOR DEPARTURES FOR THE, FROM A, FROM A TRAFFIC PERSPECTIVE? CORRECT.
OKAY, SO THE CARS THAT'S NOT ANYWHERE ELSE AT, CORRECT.
WELL, YEAH, THAT, THAT'D BE A FIRST OUT THERE, I GUESS.
AND, AND THAT, I GUESS IF YOU COULD JUST BETTER EXPLAIN HOW THAT HELPS WITH TRAFFIC FLOW.
SO WE'RE BASICALLY MAXIMIZING OUR GROUND FOOTPRINT TO GET AS MUCH CURB FRONTAGE AS POSSIBLE.
SO YOU'RE NOT DOING THAT NARROW THING.
SO THAT, THAT MAKES SENSE TO ME.
AND THEN WHEN YOU TALKED ABOUT THE 30,000, UM, PASSENGERS, SO I REMEMBER SITTING DOWN WITH MARIO DIAZ AT THE BEGINNING OF THE PANDEMIC, AND HE WAS LIKE, WE'RE NOT GONNA BE BACK UNTIL 2024.
AND I THOUGHT, OH MY GOSH, THAT SOUNDS SO FAR AWAY, BUT NOW IT'S GETTING CLOSER.
IS IS THE 30,000 MORE IN LINE WITH PRE PANDEMIC LEVELS OR IS IT HIGHER, OR IS IT THE SAME? IT'S IT'S HIGHER.
UM, WE, IN THE OVERALL TRAFFIC, BOTH, UM, CONNECTING CUSTOMERS AS WELL AS LOCAL PASSENGERS, WE'VE ALREADY EXCEEDED 2019 LEVELS.
AND IT'S GONNA CONTINUE TO GROW.
VERY GOOD NEWS, BUT I, I LOVE A RENDERING AND THESE LOOK BEAUTIFUL, SO GOOD LUCK.
AND, AND HOW MANY PLANES DID YOU SAY YOU WERE, I KNOW YOU SAID NORMALLY AIR AIRLINES GET 50 A YEAR AND YOU, YOU GUYS HAVE BOUGHT ALREADY? OUR UNITED NEXT PROGRAM HAS 500, UM, WHAT WE CALL NARROW BODY.
THOSE ARE BOEING SEVEN THREE SEVENS AND AIRBUS, UM, UM, A TWO NINETEENS, UM, THAT ARE ALREADY BEING DELIVERED.
IN ADDITION TO THAT, WE RECENTLY PLACED AN ORDER FOR ANOTHER A HUNDRED, UM, BOEING 7, 8, 7 AIRCRAFT.
THOSE ARE THE REALLY LARGE ONES THAT FLY INTERNATIONALLY.
AND, AND THOSE WILL DELIVER OVER THE NEXT THREE YEARS AS WELL.
WELL, THANK YOU VERY MUCH MR. GRIFFITH.
UH, I THINK, UH, WE DO HAVE A QUESTION FROM STAFF FROM COUNCIL MEMBER KNOX'S OFFICE.
I AGREE WITH COUNCIL MEMBER ALCORN AIRPORT'S GREAT STUFF.
UM, QUESTION YOU TALK ABOUT ALL THESE ADDITIONAL AIRCRAFT DOES, I DON'T KNOW IF YOU ALL THE RIGHT FOLKS TO TALK OR ANSWER THIS QUESTION, BUT DO WE HAVE THE RUNWAY CAPACITY TO HANDLE ALL THESE ADDITIONAL? YEAH, SO, SO THE, THE REAL STORY HERE IS, IS AN UP GAUGING STORY.
SO WE'RE TAKING SOME OF THE SMALLER AIRCRAFT, THE 50 SEATERS, AND UP GAUGING THOSE TO MORE OF THE SEVEN 30 SEVENS.
UM, SO A LOT OF THE CUSTOMERS, YOU KNOW, THE, THE DEPARTURE COUNT WON'T NECESSARILY INCREASE AT THE SAME LEVEL AS THE NUMBER OF SEATS IN THE MARKET AND THE NUMBER OF CUSTOMERS.
SO WE DO HAVE THE SUFFICIENT RUNWAY CAPACITY.
UM, I KNOW THINKING ABOUT, UH, THE RECENT VISIT WE HAD TO THE, UH, STAFF TRAINING FACILITY WITH, UH, YOUR CEO, MR. KIRBY AND THE MAYOR WAS OUT THERE, I SUPPOSE I REALLY DO WANT TO KNOW WHEN YOU'RE GONNA MOVE BACK FROM CHICAGO
IS, IS THAT STILL A FAIR QUESTION? I, I WILL DEFAULT TO WHATEVER SCOTT SAID TO ADDRESS THAT.
WELL, UH, JOKES ASIDE, I THINK, UH, UNITED REALLY HAS BEEN, UH, DOING TREMENDOUSLY.
WE'RE GRATEFUL FOR ALL THE HELP WITH SOME OF OUR TRADE MISSIONS INTERNATIONALLY AND, AND THE GROWTH AND, UH, WHAT WAS JUST DISCUSSED WITH THE PRE PANDEMIC NUMBERS IS REALLY KIND OF ASTONISHING.
UM, HAVING TRAVELED QUITE A BIT OVER THE LAST WEEK AND A HALF MYSELF, UM, IT MAKES ME WONDER, I MEAN, WE'VE ALL ENDURED SOME CRITICISM WITH THE AIRPORT SYSTEM FOR THE CONGESTION THAT WE'VE SUFFERED OVER CONSTRUCTION.
AS AN ARCHITECT, I KIND OF UNDERSTAND YOU CAN'T GET AN OMELET WITHOUT BREAKING A FEW EGGS, AND THAT IS, UH, PART OF THE DEAL.
BUT WHAT DOES CONCERN ME, AND AS WE'RE TALKING ABOUT THIS, UM, THE LEVEL OF PERFORMANCE IS THAT HOW WE, UH, DESCRIBE THE, UH, TRAFFIC PERFORMANCE MM-HMM
I WONDER IF SOME OF THOSE, UM, CONGESTION MODELING SOFTWARES HAVE BEEN APPLIED YET, ARE, IS OUR DESIGN FAR ENOUGH ALONG THAT WE'RE REALLY LOOKING AT THAT? 'CAUSE THAT, I RECALL WHEN, UH, DIRECTOR DIAZ REALLY CAME TO A YES LIGHT BULB MOMENT AND WE HAD TO RECONFIGURE THINGS IN THE FIRST PROCESS.
SO, SO AS WE'VE LOOKED AT TRAFFIC, WE'VE LOOKED AT THE PEAK
[01:40:01]
HOUR OF PEAK DAYS FOR OUR KIND OF FULL TERMINAL BUILD HERE.AND WE'RE LOOKING AT THOSE PERIODS AND WE'RE STILL MEETING THE APPROPRIATE LEVELS OF PERFORMANCE FOR TRAFFIC.
AND I THINK LIKE COUNCIL MEMBER ALCORN CONCERNED ABOUT THE QUEUING ON THE RAMPS, UH, WE WERE TRYING TO MAKE A FLIGHT A WEEK AND A HALF AGO AND REALLY STRUGGLING TO FIND A PARKING SPACE.
JUST GOT ONE JUST IN TIME TO CATCH OUR FLIGHT.
SO TRYING TO THINK ABOUT THAT.
UM, AGAIN, WITH THE DESIGN, UM, AND WE'VE BEEN TALKING ABOUT PARKING EARLIER TODAY.
UM, HOW ARE YOU FEELING ABOUT THAT? YOU'VE DESCRIBED THAT IN YOUR TIMELINE AS REALLY MAYBE SOMETHING THAT SEEMS LIKE IT WOULD BE AHEAD, BUT TELL ME HOW THAT INTEGRATES WITH THE CURRENT DESIGN PROCESS.
YOU KNOW, WHAT'S INTERESTING IS, UM, CAPACITY AS A FUNCTION OF PHYSICAL CAPACITY AND PROCESS FLOW.
UH, ONE OF THE THINGS THAT WE'VE DONE A MUCH BETTER JOB ON OVER IN TERMINAL C IS IMPROVING PROCESS FLOW AS THE PROJECTS HAVE COMPLETED.
THAT MEANS PARTNERING WITH HAS, UM, HPD TO GET MARSHALING SUPPORT OUT.
IT STILL ISN'T EXACTLY WHAT WE WANT IT TO BE, BUT IT'S PREDICTABLE NOW.
IN THE PAST YOU WERE SUCCESSFUL.
IF YOU WERE REALLY BRAVE AND HAD AN OLD CAR, UH, NOW YOU'RE ABLE TO HAVE AN EXPECTATION THAT YOU'LL MOVE, UH, BECAUSE OF THE TRAFFIC LIGHTS THAT WERE PUT OUT BECAUSE OF THE CONSTANT, UH, MARSHALING FROM HPD.
AND AND I THINK YOU HAVE TO BE COGNIZANT OF THAT AS YOU BUILD A NEW PROJECT, LIKE WHAT WE'RE GONNA DO ON A WHOLE DIFFERENT TRAFFIC LOOP OVER IN THE A AND B COMPLEX.
UM, YOU'RE GONNA HAVE DESIGN RELATED PLAYS AND THEN YOU'RE GONNA HAVE THINGS THAT WE JUST DO TOGETHER TO FIGURE IT OUT WHILE WE, UM, BUILD SOMETHING THAT'S REALLY IMPRESSIVE.
I THINK MY FINAL QUESTION, JUST 'CAUSE I DON'T SEE WHERE IT WAS DISCLOSED EARLIER, UH, WHO IS THE ARCHITECT? WE, SO WE HAVE TWO, WE HAVE ONE FOR THE PROCESSOR AND THE OTHER FOR THE CONCOURSES.
CAN YOU SAY WHO THEY ARE? UH, PAIGE AND PGAL.
UM, I DON'T SEE ANY OTHER QUESTIONS IN THE QUEUE.
GENTLEMEN, AGAIN, THANK YOU FOR BEING HERE.
THANK YOU TO THE HOUSTON AIRPORT SYSTEM.
WITH THAT, LET ME ANNOUNCE THAT THERE ARE, UH, WITH NO FURTHER QUESTIONS.
AND BEFORE WE ADJOURN, I'D LIKE TO REMIND EVERYONE THAT THE NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING WILL BE WEDNESDAY, JUNE 21ST AT 2:00 PM ALSO, UH, IF YOU ARE INTERESTED IN RECEIVING INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, PLEASE CONTACT THE DISTRICT K OFFICE AT DISTRICT K@HOUSTONTX.GOV.
WITH THAT, UH, WE ARE ADJOURNED.