[00:00:01]
MEMBER STAFF,[Economic Development Committee]
GUESTS IN ATTENDANCE.UM, TODAY WE HAVE IN THE CHAMBER COUNCIL MEMBER ALCORN.
UM, JOINING US VIRTUALLY IS COUNCIL MEMBER ROBINSON, AND WE ALSO ARE JOINED BY STAFF FROM COUNCIL MEMBER JACKSON'S OFFICE.
COUNCIL MEMBER P'S OFFICE COUNCIL MEMBER GALLEGOS OFFICE, COUNCIL MEMBER CAYMAN'S OFFICE.
UH, WE HAVE STAFF FROM COUNCIL MEMBER HUFFMAN'S OFFICE AND STAFF FROM COUNCIL MEMBER, UH, CAROLYN EVANS SHABAZZ'S OFFICE.
UM, WE ALSO HAVE, UH, STAFF JOINING US FROM COUNCIL MEMBER TIFFANY THOMAS'S OFFICE AND AT LARGE ONE, UH, MIKE KNOX'S OFFICE.
AND WE'VE ALSO BEEN JOINED BY STAFF FROM COUNCIL MEMBER CISNEROS, OFFICE COUNCIL MEMBERS AND STAFF.
PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION IF YOU'D LIKE TO ASK A QUESTION.
AND OUR PRESENT IN THE CHAMBER REQUESTS TO SPEAK.
UM, IF YOU'RE ATTENDING VIRTUALLY, USE THE CHAT POD IF YOU EXPERIENCE ANY PROBLEMS. LET US KNOW ON OUR AGENDA TODAY, UM, IS THE OFFICE OF ECONOMIC DEVELOPMENT EXECUTIVE STAFF ANALYST, JENNIFER CURLEY, WHO WILL PRESENT ON THE TAX INCREMENT REINVESTMENT ZONE BUDGET SCHEDULE.
WE'VE BEEN TALKING A LOT ABOUT TURS LATELY, SO WE'RE EXCITED TO HAVE YOU HERE WITH US, MS. CURLEY.
AND IF YOU ARE READY, WE ARE READY FOR YOUR PRESENTATION.
UM, COUNCIL MEMBERS, GOOD AFTERNOON, COUNCIL STAFF.
MY NAME IS JENNIFER CURLEY AND I'M WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
TODAY, MY COLLEAGUES AND I WILL BE PRESENTING THE FISCAL YEAR 2024 BUDGET SCHEDULE AND PROVIDE AN UPDATE TO THE FINANCIAL POLICIES REGARDING ECONOMIC DEVELOPMENT PROGRAMS. I WILL BEGIN WITH THE 2024 BUDGET SCHEDULE.
UH, TAX INCREMENT REINVESTMENT ZONES ARE AUTHORIZED BY CHAPTER THREE 11 OF THE TEXAS TAX CODE T ARE CREATED BY THE CITY TO ENCOURAGE THE REDEVELOPMENT OF UNDERDEVELOPED OR UNDEVELOPED COMMERCIAL AREAS.
SO HERE'S THE PROPOSED SCHEDULE.
UM, BASICALLY OVER THE NEXT EIGHT WEEKS, STARTING WITH SEPTEMBER 12TH, WE PLAN ON TAKING T'S BUDGETS TO CITY COUNCIL.
SO THE FIRST THREE GROUPS THAT ARE LISTED HERE, WHAT WE DID WAS WE LOOKED AT BUDGETS THAT WERE THE SAME FROM LAST YEAR, BUT ALSO BUDGETS THAT WERE NOT ISSUING ANY DEBT.
SO THIS SCHEDULE STARTS OUT WITH BUDGETS THAT DO NOT HAVE ANY DEBT ISSUANT ISSUANCE PLANS IN THEIR BUDGET.
SO FOR EXAMPLE, UM, EAST SIDE, UM, TURS THAT T BLESS YOU, THAT T PAYS THE DEBT SERVICE ON CHAVEZ HIGH SCHOOL, AND SO THAT IT'LL CONTINUE TO DO SO, LAKE HOUSTON, THEIR MAIN PROJECT IS NORTH PARK DRIVE.
UM, AND THEY'VE ALREADY ISSUED DEBT FOR THAT PARTICULAR PROJECT.
AND SO THEY'RE JUST IN CONSTRUCTION NOW.
THEY'VE ISSUED A BID, UM, THEY'RE STARTING CONSTRUCTION ON THAT PARTICULAR PROJECT.
THEY ARE WORKING ON THE PROJECTS THAT ARE CURRENTLY IN THEIR BUDGET OR WERE IN THEIR 2023 BUDGET.
AND SO THEY'RE JUST CONTINUING ON WITH THOSE BUDGETS.
SO THAT'S HOW WE LOOKED AT THIS PARTICULAR LIST, STARTING WITH THE ONES THAT THEY'RE JUST USING FUND BALANCE AND COUNCIL HAS SEEN THEIR BUDGET FROM 2023.
THERE WERE NO CHANGES BETWEEN 2023 AND 2024 IN THEIR BUDGET.
AS WE GO THROUGH GROUP A, THERE WILL BE SOME CHANGES.
AND SO WE HAVE TO LOOK AT WHICH ONES ARE ISSUING THAT, WHAT THOSE NEW PROJECTS ARE, AND MAKE SURE THAT THAT INFORMATION IS PASSED ALONG AND GET APPROVALS TO FOR THOSE BUDGETS.
AND SO WE WERE THINKING THAT ONE, BY THE TIME WE GET THROUGH, THE FIRST THREE GROUPS WILL HAVE THAT INFORMATION TO GO AHEAD AND PUT THOSE ON, PUT THE LATER BUDGETS ON COUNCIL'S AGENDA.
DID YOU WANNA HOLD QUESTIONS TO THE END OF THE PRESENTATION, MA'AM? OKAY.
SO WE'LL SKIP OVER ANY QUESTIONS WITH REGARD TO THE BUDGET SCHEDULE, AND WE'LL JUST ADD THOSE ON INTO THE END.
NEXT, MY COLLEAGUES, UM, AND I WILL PRESENT THE FINANCIAL POLICIES ANNUAL UPDATE, THE INTENT OF THE FINANCIAL POLICIES.
THE INTENT OF THE FINANCIAL POLICIES IS TO PROMOTE SOUND FINANCIAL PRACTICES,
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ENHANCE THE CITY'S FINANCIAL POSITION WITH RATINGS AGENCIES AND OFFER GUIDE GUIDANCE IN THE MANAGEMENT AND CONDUCT OF THE FISCAL AFFAIRS OF THE CITY.FINANCIAL POLICIES IS AN INTEGRATED FRAMEWORK WITH WITHIN WHICH THE MAYOR, CITY COUNCIL, CITY CONTROLLER, FINANCE DIRECTOR, AND ALL DEPARTMENT DIRECTORS SHALL DEFINE AND ADHERE A PRESENCE OF INTEGRITY, ETHICS, COMPETENCE, AND A POSITIVE INTERNAL CONTROL ENVIRONMENT.
ECONOMIC DEVELOPMENT POLICIES ARE STATED IN SECTION M, LOCAL ECONOMIC DEVELOPMENT POLICIES WITHIN THE CITY'S FINANCIAL POLICIES FRAMEWORK.
YOU CAN FIND THOSE POLICIES IN THE ADOPTED BUDGET.
UNDER SUPPLEMENTAL INFORMATION, THE MAYOR'S DESIGNEE SHALL REPORT ANNUALLY TO THE ECONOMIC DEVELOPMENT COMMITTEE DETAILING THE PROGRESS OF EACH ACTIVE PROJECT IN WHICH THE CITY HAS PROVIDED AN INCENTIVE THROUGH THE TAX ABATEMENT IN CHAPTER THREE 80 PROGRAMS. SUCH REPORTS SHALL BE PUBLISHED PROMINENTLY ON THE CITY'S WEBSITE WITHIN 30 CALENDAR DAYS OF PRESENTATION TO THE APPROPRIATE COMMITTEE.
GOOD AFTERNOON ECONOMIC DEVELOPMENT COMMITTEE.
UH, MY NAME IS BRANDON WALLEN AND I'LL BE PRESENTING TO YOU THE COMPLIANCE UPDATES SPECIFICALLY FOR TAX ABATEMENT AGREEMENTS.
SO ON THIS SLIDE, UH, THE TAX ABATEMENT PROGRAM WAS FIRST ESTABLISHED IN 1988 BY ORDINANCE 1988 DASH 1 0 4, CHAPTER FOUR, CHAPTER 44, ARTICLE FOUR OF THE CITY'S CODE OF ORDINANCES CURRENTLY HOUSES THIS ABATEMENT PROGRAM.
STATE LAW REQUIRES THAT THE TAX ABATEMENT GUIDELINES AND CRITERIA EXPIRE AFTER TWO YEARS AND LIMITS THE TERMS OF THE AGREEMENT TO 10 YEARS.
THERE HAVE BEEN MULTIPLE AMENDMENTS SINCE 1988.
THE MOST RECENT AMENDMENT WAS IN DECEMBER OF 2020 TO INCLUDE ONE, THE INCLUSION OF THE GREEN STORMWATER INFRASTRUCTURE TAX ABATEMENT PROGRAM, AND TWO, AN INCREASE TO THE FEE FOR A TRADITIONAL LEAD AND GREEN STORMWATER TAX INFRASTRUCTURE ABATEMENT APPLICATION.
UM, ON THE FOLLOWING SLIDE, HERE WE'LL SEE A TABLE THAT LISTS ALL THE CURRENT TAX ABATEMENT AGREEMENTS.
UM, WORKING OUR WAY DOWN THE HALLIBURTON TAX ABATEMENT AGREEMENT STATES THAT IT WILL CREATE AND RETAIN AT LEAST 2,700 JOBS FOR THE DURATION OF THE ABATEMENT.
HALLIBURTON REPORTED 5,487 JOBS, WHICH IS MORE THAN TWICE THE AGREEMENT REQUIREMENT.
BELOW THAT, WE SEE KROGER COMPANY.
UM, IN 2015, THE KROGER COMPANY LOCATED IN DISTRICT B INVESTED $42 MILLION IN THEIR TAX ABATEMENT AGREEMENT.
AND TODAY IT HAS A MARKET VALUE OF OVER $17 MILLION.
IN 2016, CONVERGED MIDSTREAM, FORMERLY KNOWN AS FAIRWAY ENERGY, COMMITTED $226 MILLION, AND TODAY HAS A MARKET VALUE OF $98 MILLION.
CONVERGENT MIDSTREAM REPORTED 37 JOBS FOR 2023.
IN 2019, BRIMORE FOUND DISTRICT LOCATED IN DISTRICT A HAS SO FAR INVESTED $16 MILLION AND IS EXPECTED TO INVEST $150 MILLION BY DECEMBER 31ST, 2025.
THEY REPORTED 302 TOTAL JOBS FOR THIS YEAR.
UM, THERE ARE TWO TAX ABATEMENTS.
THOSE ARE WITH SCANSCA AND BLACK EXCHANGE THAT ARE CURRENTLY PENDING.
THE TWO COMPANIES ARE EXPECTED TO INVEST OVER ONE $60 MILLION IN THEIR PROJECTS.
UM, ON THE TABLE YOU SEE HERE, IT LISTS EACH COMPANY'S TAX ABATEMENT, PROJECTED ECONOMIC VALUE, AND THE YEAR TO DATE ACTUAL ECONOMIC GROWTH.
FOR BSVW GARDEN OAKS $6.7 MILLION WAS PROJECTED IN THE YEAR TO DATE.
ACTUAL FIGURE IS $21.6 MILLION FOR HALLIBURTON.
$119.6 MILLION WAS PROJECTED IN THE YEAR TO DATE.
ACTUAL FIGURE IS 142 MILLION FOR KROGER COMPANY, $7.3 MILLION WAS PROJECTED IN THE YEAR TO DATE, ACTUAL FIGURE IS $20.8 MILLION.
AND FOR A CONVERGED MIDSTREAM, $208 MILLION WAS PROJECTED.
AND THE YEAR TO DATE, ACTUAL FIGURE IS $110 MILLION.
AND THE DECREASE REFLECTED ON THIS IS DUE TO THE DEPRECIATION OF THE ABATEMENT ASSETS OVER TIME.
FINALLY, BRIMORE, FOUNDERS, DISTRICT SKANSKA AND BLACK EXCHANGE ALL ARE
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CURRENTLY UNDERGOING CONSTRUCTION AND PROCESS.THIS CONCLUDES THE TAX ABATEMENT COMPLIANCE UPDATE.
I'LL TALK ABOUT THE CHAPTER THREE 80 PROGRAM.
THE PROGRAM WAS CREATED IN 1999 BY ORDINANCE NUMBER 1999 DASH 74.
HISTORICALLY, IT'S BEEN USED TO REIMBURSE FOR PUBLIC INFRASTRUCTURE OR TO LEVERAGE THE STATE'S ECONOMIC DEVELOPMENT PROGRAMS. HOW THE PROGRAM WORKS IS THAT PRIVATE BUSINESSES ARE DEVELOPERS ADVANCE FUNDS, THE ADVANCED FUNDS FOR THE PUBLIC IMPROVEMENTS, AND IS REIMBURSED OVER TIME FROM THE NEW INCREMENTAL PROPERTY TAX AND IS DRIVEN AND, AND IS PERFORMANCE DRIVEN.
THE STRUCTURE IS VERY SIMILAR TO THE TAX INCREMENT FINANCING STRUCTURE.
THE PROJECT ONLY RECOVERS IF IT PERFORMS AS PLANNED.
THE DEVELOPER ASSUMES THE RISK IF THE FAILURE, IF THERE IS A FAILURE TO PERFORM, PUBLIC INFRASTRUCTURE IS CONVEYED TO THE CITY AND BECOMES A CITY OWNED ASSET.
THREE 80 PROGRAMS INCENTIVIZE JOB CREATION OR PUBLIC ACCESS TO PRIVATE SPACE.
SO IN THE NEXT SLIDE, YOU'LL TAKE A LOOK AT ALL OF OUR CURRENT ACTIVE THREE 80 PROGRAMS, HOW TO READ THIS PARTICULAR TABLE.
AND WE COULD JUST TAKE THE FIRST ONE AS AN EXAMPLE.
UM, IT FROM LEFT TO RIGHT, WE START WITH THE COUNCIL DISTRICT.
THIS AGREEMENT IS LOCATED IN COUNCIL DISTRICT A.
THE TYPE OF IT OF THE AGREEMENT IS IT FOCUSES ON PUBLIC INFRASTRUCTURE.
THE CURRENT STATUS OF THIS AGREEMENT, THE NEXT COLUMN OVER IS IT'S AN ACTIVE AND THERE'S STILL SOME CONSTRUCTION THAT WE'RE LOOKING TO DO ON THAT PARTICULAR AGREEMENT.
HOWEVER, THE AGREEMENT DOES ALLOW PAYMENT AS THEY GO INTO MULTIPLE PHASES OF CONSTRUCTION.
ORIGINALLY, THE UM, INVESTMENT COMMISSION, UH, COMMITTED WAS 290 MILLION.
THE CURRENT, AS WE LOOK OVER, UM, LEFT TO RIGHT, THE CURRENT MARKET VALUE FOR THAT PARTICULAR PROJECT SITE IS 139.7 MILLION.
UM, THIS PARTICULAR PROJECT SITE INC.
THIS, THE TOTAL OF THE PROJECT SITES INVOLVED IN THIS THREE 80 AGREEMENT ARE ALL, UM, UM, SINGLE FAMILY HOMES.
THERE WAS NO JOB COMPONENT TO THE REQUIREMENTS FOR THIS THREE 80 AGREEMENT.
SO THAT'S WHY THERE IS NONE LISTED HERE.
SO THAT'S KIND OF A WAY TO READ THIS.
I'LL GO OVER JUST TO MAKE SURE THERE ARE DIFFERENT AGREEMENTS.
SO FOR EXAMPLE, 4 4 0 4 WESTHEIMER.
THAT ONE DOES HAVE A JOB COMPONENT.
IT'S ACTIVE, IT'S AN ACT OF THE CONSTRUCTION ACTUALLY IS FINISHED.
UM, RIGHT NOW WE'RE IN REIMBURSEMENT NOTE MODE.
THE ORIGINAL INVESTMENT WAS 210 MILLION.
THEY ACTUALLY INVESTED 308 MILLION.
16.4 MILLION IS ALLOCATED TO PUBLIC IMPROVEMENTS, AND THAT INCLUDES STREETS AND SIDEWALKS WALKS.
CURRENT MARKET VALUE OF THAT PROJECT SITE IS 299 MILLION.
THEIR JOB COMMITMENT IN THEIR AGREEMENT WAS 275 JOBS.
THEY ACTUALLY HAVE 1,442 JOBS ON THAT PROJECT SITE.
SO THAT'S HOW TO READ THAT PARTICULAR TABLE.
THE NEXT SLIDE JUST SHOWS THE SOURCES OF FUNDING FOR EACH OF THE THREE 80 AGREEMENTS.
SO WE CAN EITHER DO AVALOR TAX, UM, REIMBURSEMENT, OR WE CAN DO SALES AND MIXED BEVERAGE.
AND SO THIS PARTICULAR SLIDE REFLECTS THE DIFFERENT WAYS THE THE AGREEMENT IS FUNDED.
THIS PARTICULAR SLIDE REFLECTS THE COMMUNITY BENEFITS THAT ARE IN EACH OF THESE AGREEMENTS.
AS YOU CAN SEE IN THE LATER AGREEMENTS, WE STARTED TO INCORPORATE COMMUNITY BENEFITS.
AND SO YOU SEE, OF COURSE, THE GREATEST NUMBER OF COMMUNITY BENEFITS IS IN THE MEOW WOLF AGREEMENT AS AS IT PERTAINS TO THREE 80 AGREEMENTS.
AND SO IF YOU WERE LOOKING AT THE TAX ABATEMENT AGREEMENTS, IT WOULD BE BRIMORE FOUNDER'S DISTRICT.
UM, CURRENTLY WESTHEIMER RANCH.
THEY ARE IN THE PROCESS OF, UM, WRITING TENANT AGREEMENTS.
ME, MEOW ME, MEOW WOLF
NEXT WE'RE GONNA TALK ABOUT THE TEXAS ENTERPRISE ZONE PROGRAM.
I'M ANDREW BUSKER IN THE MAYOR'S OFFICE OF ECONOMIC DEVELOP.
MADAM CHAIRMAN CHAIRWOMAN, I WAS CAN I I'M IN THE QUEUE.
CAN I, UH, REFERENCE A POINT ON THE THREE 80? GO AHEAD PLEASE.
UM, THE WESTHEIMER RANCH, THAT IS, UH, THE DEAL WHERE WE TORE DOWN THE OLD BLOCKBUSTER AND, UM, THE BEAUTY SUPPLY ON WESTHEIMER
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ACROSS FROM FANIA.ALRIGHT, SO I WILL BE TALKING TO YOU ALL ABOUT THE, UH, TEXAS ENTERPRISE ZONE PROGRAM.
NOW THIS IS A PROGRAM ADMINISTERED BY THE STATE OF TEXAS.
SO THE WAY IT WORKS FOR THE CITY IS THAT WE PASS A RESOLUTION SUPPORTING THE PROJECT, AND THEN THAT RESOLUTION IS INCLUDED IN THE COMPANY'S APPLICATION TO THE STATE.
UM, SO THE COMPANY WOULD BE REIMBURSED OF, UH, STATE SALES AND USE TAXES, UH, IF THEIR APPLICATION IS APPROVED.
SO LOCAL MUNICIPALITIES ARE ALLOTTED NINE NOMINATIONS PER BIENNIUM AND NOMINATIONS DO NOT ROLL OVER.
UH, THE, THESE NOMINATIONS DO NOT REQUIRE ANY FUNDING FROM THE LOCAL MUNICIPALITY.
UM, THE COUNTY CAN ALSO SUBMIT NOMINATIONS.
HOWEVER, IF THE PROJECT IS BEING SUBMITTED BY THE COUNTY, UM, BUT RESIDES IN THE CITY OF HOUSTON, UH, WE NEED TO ENTER INTO INTERLOCAL AGREEMENT WITH THE COUNTY TO SUPPORT THE PROJECT.
BUT THAT COUNT WOULD COME FROM THE COUNTY'S NOMINATIONS, NOT OURS.
UM, SO THE NEXT BIENNIUM WILL BEGIN, UM, THIS FRIDAY, UM, SEPTEMBER, UM, FIRST 2023.
AND THAT'S WHERE WE'LL GET A NEW BATCH OF NINE NOMINATIONS.
SO I'M GONNA PICK OUT A COUPLE OF PROJECTS HERE AS WE GO THROUGH.
SO HERE'S A PARTIAL LIST OF, UM, OUR ACTIVE, UH, TEXAS ENTERPRISE ZONE, UM, DESIGNATIONS.
UH, SO THE ONE I'D LIKE TO DISCUSS HERE IS, UH, CROWN CASTLE INTERNATIONAL CORPORATION.
SO THEY'RE IN DISTRICT A, UM, THEY COMMITTED AN INVESTMENT OF $85 MILLION.
UM, THEIR ACTUAL INVESTMENT FOR THEIR PROJECT IS UNKNOWN TO US BECAUSE THEY REPORT DIRECTLY TO THE STATE.
UH, WE DO KNOW THAT FOR THE, UM, PRAISED VALUE OF THEIR PROPERTY IS AROUND $69 MILLION AND THEY COMMITTED 150 NEW JOBS.
UH, BUT THEN AGAIN, THE ACTUALS ARE REPORTED DIRECTLY TO THE STATE, SO WE CAN'T PROVIDE THAT.
UM, SO THE NEXT SLIDE WILL SHOW SOME MORE ACTIVE AGREEMENTS.
SO THE, THE BOTTOM FOUR, YOU KNOW, ON THIS SLIDE WERE ONES THAT WERE NOMINATED THIS BIENNIUM.
AND SO THAT WAS MACQUARIE HOLDINGS, UH, THE MEN'S WAREHOUSE D NOW LP AND TALA FARMER CORPORATION.
SO THE ONES I'LL, UH, LIKE TO DISCUSS FIRST IS, UH, MACQUARIE HOLDINGS.
I, UH, THEIR INVESTMENT IS, UH, $29 MILLION.
UH, AND THEIR APPRAISED VALUE IS CURRENTLY PENDING BECAUSE THEY'RE UNDERGOING THE CONSTRUCTION THAT, UM, WAS DISCUSSED IN THEIR APPLICATION.
SO, UH, ONCE THAT'S FINISHED, WE'LL HAVE AN APPRAISED VALUE THAT WE WOULD BE ABLE TO PROVIDE YOU HOPEFULLY NEXT YEAR.
UM, THEY COMMITTED A HUNDRED NEW JOBS FOR THIS PROJECT, UM, AND AT THIS TIME, UM, THAT INFORMATION IS, UM, NOT AVAILABLE TO US.
UH, THE NEXT ONE I WOULD LIKE TO BRING UP IS D.
NOW LP, WE JUST FOUND OUT LAST WEEK THAT THEY WERE APPROVED BY THE STATE.
SO THAT ONE WILL BE, UH, MOVING FORWARD.
THEY COMMITTED $11 MILLION FOR THEIR, UM, THEIR IMPROVEMENTS.
THE PROPERTY IS ASSESSED AT $49.5 MILLION.
THEY WERE COMMITTING 75 NEW JOBS FOR THEIR PROJECT.
AND THAT IS ALL I HAVE FOR THE TEXAS ENTERPRISE ZONE PROGRAM.
WE DO HAVE A COUNCILMAN MEMBER IN THE QUEUE WITH A QUESTION.
WE'LL START WITH COUNCIL MEMBER ALCO.
THIS IS IMPORTANT THAT WE FOLLOW UP ON THESE, ALL OF THESE PROJECTS TO MAKE SURE THEY'RE DOING WHAT THEY SAID BEFORE WE GAVE THEM ANY KIND OF ABATEMENT.
UM, YOU LIST THE GREEN INFRASTRUCTURE ABATEMENT, BUT ONCE AGAIN, THERE ARE NO PROJECTS.
SO OBVIOUSLY WE NEED TO BE TWEAKING THIS PROGRAM.
WE'VE BEEN SAYING THAT FOR A LONG TIME, BUT CHAIR, I'D REALLY LIKE TO TAKE A LOOK AT THAT.
WE HAVE, WE, WE PASSED THAT RIGHT WHEN WE FIRST GOT ELECTED.
I MEAN, RIGHT, MAYBE A YEAR IN.
WE ESTABLISHED THAT PROGRAM AND, AND PART OF OUR CLIMATE ACTION PLAN, RESILIENCY PLAN, EVERYTHING HAS MORE GREEN INFRASTRUCTURE PROJECTS.
I'M NOT, I'VE BEEN TOLD BY VARIOUS PEOPLE WHAT THEY THINK THE PROBLEMS ARE.
I'M NOT AN EXPERT ON IT, BUT I REALLY WOULD LIKE TO, TO TAKE A HARD LOOK AT THAT AND IF THERE'S SOME CHANGES WE CAN MAKE TO THAT TO MAKE IT MORE ATTRACTIVE.
WE WANT MORE GREEN INFRASTRUCTURE DONE BY PRIVATE DEVELOPMENT.
I MEAN, THE PRIVATE DEVELOPERS ARE DOING IT, BUT THEY'RE NOT REALLY DOING IT THROUGH OUR PROGRAMS. WE COULD EXPAND THE REACH OF IT.
I THINK IF WE COULD GET SOME MOVEMENT ON THAT PROGRAM.
ANOTHER COMMENT, UM, SO WHETHER IT BE SALES TAX OR AVALOR ON THE 30 EIGHTIES, JENNIFER, THAT THAT'S JUST YOU, YOU TAKE EITHER SOURCE OF FUNDS TO REIMBURSE THE INFRASTRUCTURE IMPROVEMENTS, RIGHT? I MEAN, OR WHAT IS THERE DIFFERENT? I ALWAYS THOUGHT IT WAS PROPERTY TAX THAT WOULD REIMBURSE THE INFRASTRUCTURE.
DOES SALES TAX ALSO DO THAT OR DOES IT DO SOMETHING ELSE OR WHAT SO IT'S DOING SOMETHING ELSE IN THOSE PARTICULAR CASES?
[00:20:01]
LET ME GRAB THAT.YEAH, SO WHEN YOU'RE LOOKING AT THAT LIST, YOU CAN KIND OF SEE WHERE IN THE SALES TAX GENERALLY, AND I'LL, I'LL, BECAUSE I KNOW IT'S NOT THE CASE WITH DYNAMO, BUT I KNOW THAT IN THE OTHER CASES IT WAS JOBS RELATED.
THIS, THE SALES AND MIXED BEVERAGE WAS A JOB RELATED, UM, INCENTIVE.
WHEREAS TYPICALLY WHEN WE'RE DOING AVALOR REIMBURSEMENTS, THOSE ARE INFRASTRUCTURE RELATED, RIGHT? SO THE SALES TAX IS MORE ASSOCIATED WITH THE JOBS.
YEAH, IT'S MORE ASSOCIATED WITH THE JOBS, FOR EXAMPLE, OR IF THERE'S A MIX THERE.
SO, YOU KNOW, WHEN WE'RE EVALUATING THE AGREEMENT, WE GOTTA SEE HOW MUCH WE EXPECT THEM TO GENERATE FROM THE ADVIL ALARM.
IF THERE IS NOT ENOUGH TO PAY FOR THE PUBLIC IMPROVEMENT THROUGH THE ADVIL ALARM TAX TAX, WE CAN LOOK AT THE SALES AND MIXED BEVERAGE TAX.
NOW, THAT WAS ALSO IN THE VERY BEGINNING WHEN WE WERE DOING THREE EIGHTIES.
NOW, YOU KNOW, WE'VE SH SHIFTED, UM, TO MORE LOOKING AT SALES TAX THAN MIXED BEVERAGE TAXES BECAUSE THAT, YOU KNOW, YOU'RE AFFECTING THE, THE GENERAL FUND AT THAT PARTICULAR POINT, HOW MUCH REVENUE.
BUT THAT IS THAT, SO THOSE, THOSE SALES TAX REVENUES ARE, ARE BEING, ARE BEING REIMBURSED TO INFRASTRUCTURE.
IF THERE'S NOT ENOUGH ON THE VALOREM SIDE, IF, IF, IF IT'S, IF THERE'S NOT ENOUGH ON THE A VALOREM SIDE, AND I CAN SAY THAT ON I BELIEVE, UH, LET ME CHECK TO VERIFY, MAKE SURE I WAS GONNA SAY THERE'S ONE THAT IS ONE MORE RECENT ONE, BUT I NEED TO CHECK AND MAKE SURE BEFORE I TELL THAT.
AND THEN FINALLY ON THE ENTERPRISE ZONES, I MEAN, I WANNA KNOW IF THEY'RE CREATING THE JOBS.
I MEAN WHEN WE PASS 'EM, THEY PROMISE THESE JOBS.
SO HOW COME WE CAN'T JUST SAY, HEY STATE, HOW MANY JOBS HAVE THEY CREATED? I MEAN, WHY, WHY IS THAT? LIKE WHY CAN'T WE GET THAT INFO ANDREW? WE TRY.
UM, SO WHAT WE'VE STARTED DOING, BECAUSE UM, THE COMMUNICATION WITH THE STATE HAS BEEN LACKING, WHAT WE'VE BEEN DOING IS ENTERING INTO MOUS WITH THE, UH, COMPANIES THEMSELVES TO PROVIDE US THIS INFORMATION.
UM, WE DON'T HAVE MOUS WITH ALL OF THE ACTIVE, UM, ENTERPRISE ZONE PROJECTS AT THE MOMENT.
SO ONCE I THINK ONCE WE DO, WE'LL START REPORTING IT.
YEAH, I THINK IF WE ESTABLISH A NEW ONE OR WHATEVER, WE SHOULD DEFINITELY HAVE THAT IN THE MOU THAT THEY HAVE TO REPORT THE J THE JOBS TO US.
AND, AND WHAT, WHAT'S OUR NUMBER NINE PER YEAR OR SEVEN PER YEAR? CAN'T REMEMBER.
ACTUALLY, CAN I COME BACK TO YOU ON THE SALES TAX IT NINE PER BIENNIUM, SORRY, YEAH, NINE PER BIENNIUM.
SO YOU HAVE THE FULL, UM, BIENNIUM TO USE THAT AS QUICKLY OR SLOWLY AS WE'D LIKE, LEMME GO BACK TO YOU ON THE SALES TAX INFORMATION.
DYNAMO STADIUM FOR EXAMPLE, THERE IS NO ADD ALARM AVAILABLE BECAUSE IT'S IN THE TURS.
SO WE CAN ONLY DO A SALES MIX, BE BEVERAGE, UM, REIMBURSE ON THAT.
AND THAT ONE IS INFRASTRUCTURE.
SO IT'S LIKE THERE'S A, THERE'S A CERTAIN RULE BUT THEN CERTAIN TIMES YOU CAN'T DO IT BECAUSE THE TURS ACTUALLY HAS THE, THE INCREMENT AND SO YOU CAN'T NO, NO, THAT MAKES SENSE.
I GUESS I WAS CONFUSED WHEN YOU JUST SAID IT WAS ASSOCIATED WITH JOBS.
LIKE WHAT ARE WE REIMBURSING FOR JOBS? I MEAN, I DON'T UNDERSTAND WHAT WE'RE USING SALES TAX FOR.
SO FOR EXAMPLE, WHEN WE USE, SO WHAT I'M SAYING IS, FOR EXAMPLE, UM, WE LOOKED AT THAT FIRST BECAUSE THEY'RE REALLY A COMMERCIAL ENTITY.
SO KROGER'S IN A COMMERCIAL ENTITY, WE'RE LOOKING AT ALL THE REVENUE SOURCES.
AND SO WHAT WE WANTED FOR THEM TO DO IS BUILD SOME INFRASTRUCTURE.
SO IF YOU'RE LOOKING AT THE KROGER DUMONT, THERE ARE SOME SIDEWALKS IN THAT, THAT AGREEMENT AND PUBLIC INFRASTRUCTURE AND THAT AGREEMENT AROUND THAT FACILITY.
BUT THE MAIN REASON FOR THAT PARTICULAR AGREEMENT IS THE JOBS.
'CAUSE THERE'S 170 JOBS THAT WERE CREATED ON THAT, ON THAT PARTICULAR SITE.
SO MORE, MORE IMPORTANTLY, WE'RE LOOKING AT, UM, WHAT IS THE AVAILABLE REVENUE THAT THAT CAN BE, UM, FUND THE PRO PROJECT IN, IN ITS IN, IN ITS ENTIRETY.
UM, GENERALLY SPEAKING, WE WERE, WE WERE MATCHING UP WITH, WE WERE MATCHING INFRASTRUCTURE PROJECTS WITH A ALARM, BUT AS IT CAME BY WITH THE, THE SWITCH IN, YOU KNOW, EAT WHAT YOU KILL, WE HAVE TO LOOK AT THE SALES AND MIXED BEVERAGE TAX.
'CAUSE THAT'S THE LESS IMPACT.
THAT'S A LESS LESSER IMPACT ON THE GENERAL FUND.
NO, I HAVE A COMMENT AND I HAVE A REQUEST.
SO, UH, LET ME SPEAK TO THE THREE 81ST.
I THINK, UH, WHAT IS DONE IN WESTCHASE WITH THE THREE 80 IS A, A PHENOMENAL DEMONSTRATION OF HOW WHAT THIS CAN DO.
UM, THE PARKS, THE INFRASTRUCTURE, EVERYTHING HAPPENING THERE.
[00:25:01]
TO THE BENEFIT OF A THREE 80 AGREEMENT.SO LET ME SAY THAT, HERE'S MY REQUEST.
SO, UH, UM, I WANNA SAY MAYBE LAST FALL WE APPROVED BOUNDARY CHANGES TOTS AND UM, I HAVE A SLIVER OF 20.
SO THE BOUNDARY CHANGES EXTENDED THOSE BOUNDARIES FURTHER WEST BEL AIR TAKING AND COMING IN MORE INTO F AND ONE OF THE REASONS I VOTED IN SUPPORT OF THAT WAS BECAUSE THERE ARE SOME INFRASTRUCTURE PROJECTS THAT ARE ON MY LIST THAT I CAN'T DO THAT FALL NOW, FALL WITHIN THAT BOUNDARY LINE.
SO I HAVE A COST ESTIMATE FOR COOK ROAD AND BEL AIR THAT'S A HALF A MILLION DOLLARS SMILE.
'CAUSE I THINK YOU'VE SEEN IT ALREADY.
UM, SO, SO FOR ME, THE REQUEST WOULD BE AS THE BUDGET WE'RE SLATED TO COME UP IN OCTOBER, UH, FOR AGENDA, UM, I WANT TO FOLLOW UP TO MAKE SURE THAT, UH, THESE PROJECTS ARE CONSIDERED TO BE INCORPORATED IN THAT BUDGET, UM, WHICH WOULD THEN ALIGN WITH THE NEW BOUNDARIES.
UM, AND IF, IF THAT'S IT, I, I WOULD LIKE TO MAKE SURE FOR TURS 20 THAT WE GET THAT IN THE QUEUE.
AND I HAVE A COUPLE OF CO COMMENTS.
UM, I KNOW THAT YOU SAID WE'VE BEEN TRYING TO GET THE ACTUAL NEW JOBS CREATED FROM THE STATE.
UM, AND AREN'T THEY SUPPOSED TO POST THOSE, THEY POST AN ANNUAL REPORT? THAT'S A BIG EXCEL DOCUMENT THAT WE SIFT THROUGH.
I HAVE TO DOUBLE CHECK IF THEY PROVIDE ACTUALS FOR THAT.
I KNOW FOR OUR INFORMATION, WE DO GET, UM, WE DO GET OTHER DATA FROM THAT DOCUMENT.
I'LL DOUBLE CHECK ABOUT ACTUALS.
BECAUSE I, I DO THINK WE, WE'VE TALKED ABOUT THAT BEFORE AND, AND MAKING SURE THAT WE CAN TRY TO SIFT THROUGH TO GET THE ACTUAL JOB CREATION INFORMATION SO THAT WE ARE ENSURING THAT THAT IS ACTUALLY HAPPENING.
AND I KNOW THAT THEY HAD TO POST IT.
UM, AND THE OTHER QUESTION I HAD WAS FOR THE NINE NOMINATIONS, UM, FOR THE BIENNIUM, DID WE DO NINE LAST TIME? WE DID NINE? WE DIDN'T OR WE DID FOUR.
FOUR OUT OF THE NINE WE USED FOUR.
UM, AND SO THE NEW BIENNIUM STARTS SEPTEMBER THE FIRST? THAT'S CORRECT.
SO WE HAVE AN OPPORTUNITY TO DO NINE MORE.
NOW WHEN WE DON'T USE THE NINE, DOES THAT CARRY OVER OR NOT? NO, IT'S ONLY NINE.
IT'S ONLY DO THE NINE IN THAT TIMEFRAME.
AND THEN MY OTHER QUESTION IS ON THE COMPLIANCE UPDATE, TAX ABATEMENT AGREEMENTS ON CONVERGE MIDSTREAM SERVICES, UM, FORMERLY FAIRWAY ENERGY PARTNERS, UM, THEIR ECONOMIC VALUE WAS 2 0 8 AND THEN IT WENT DOWN, THEIR GROWTH WENT DOWN TO ONE 10.
YOU SAID IT WAS THE DEPRECIATION IN THEIR, IN THEIR ASSETS, IT WAS THE DEPRECIATION IN THEIR ASSETS.
DID YOU KNOW PART OF THAT? IS IT BECAUSE OF THE PERSONAL PROPERTY IN THAT THE PROPERTY WAS MOSTLY PIPELINE? PLEASE COME IN? SO FOR THIS SITUATION, THE PROPERTY ON THIS ABATEMENT WAS MORE OF LIKE PIPELINES AND STORAGE FACILITIES INSTEAD OF BUILDINGS.
SO AS WE'VE SEEN OVER TIME, THAT DECREASES INSTEAD OF INCREASES.
SO THAT'S WHY WE'VE SEEN THAT FALL FOR CONVERGE.
DOES THAT MAKE SENSE? I GUESS, I GUESS I, I HADN'T SEEN THE ECONOMIC GROWTH LIKE GO DOWN LIKE IT, IT'S ALWAYS BEEN UP, BUT I GET THE DEPRECIATION, UM, OF THOSE ASSETS.
ANY OTHER QUESTIONS FROM, UH, COUNCIL MEMBERS OR STAFF? NO.
DO WE HAVE ANY PUBLIC SPEAKERS SIGNED UP? DOUG.
DOUG, YOU'RE ON
UH, I HAVE COME TO YOU SEVERAL TIMES BEFORE TALKING ABOUT THE POSSIBILITY OF THREE 80 AREAS AND TS TO DO SOME WORK IN THEIR AREAS, SPECIFICALLY AS IT RELATES TO, UH, PUTTING STRIPING ON STREETS.
AND I THINK YOU AGREED THAT THAT'S SOMETHING THAT SHOULD BE DONE.
THERE SEEMED TO HAVE BEEN SOME CONFUSION AS FAR AS THE ECONOMIC DEVELOPMENT OFFICE WAS CONCERNED BECAUSE THEY THOUGHT I WAS ASKING TO DO STRIPING IN AREAS OTHER THAN, UH, THE SPECIFIC AREAS.
AND THEY SAID THEY COULDN'T DO THAT, BUT IT SHOULD BE OKAY IN THE AREAS.
AND I DON'T KNOW IF IT'S, I DON'T KNOW IF IT'S BECAUSE OF WHAT I SAID, BUT
[00:30:01]
ONE OF THE AREAS THAT I HAD MENTIONED WAS IN THE THREE 80 WEST CHASE AREA, UH, WAS ON ROGER DALE BETWEEN HARWIN AND WESTHEIMER.AND AGAIN, I DON'T KNOW WHETHER IT CAME FROM MY COMMENTS OR IT JUST HAPPENED, BUT IT WAS DONE
SO I WE'RE GONNA ATTRIBUTE IT TO YOUR COMMENTS.
WE ARE ATTRIBUTING THAT TO YOUR COMMENTS.
UH, AND AS FAR AS THE, UH, UPTOWN TOURS IS CONCERNED, I HAD MENTIONED THE FACT THAT BETWEEN RICE AND SIX 10, UH, STRIPING IS ALMOST NON-EXISTENT.
UH, SO THAT IS SOMETHING THAT SHOULD BE DONE.
AND ALSO THE SAME AREA BETWEEN ON SAN FELIPE BETWEEN POST OAK AND SIX 10 HAS PRETTY MUCH NO STRIPING.
SO THOSE ARE TWO AREAS THAT I HOPE MAYBE, UH, COULD BE LOOKED AT.
AND, UH, THAT'S ALL I HAVE TO SAY.
THANK YOU AND I APPRECIATE YOUR DILIGENCE.
UM, WE, WE HAVE HAD CONVERSATIONS WITH PUBLIC WORKS OVER THE LAST SEVERAL MONTHS ABOUT, UM, STRIPING IN A LOT OF THE VARIOUS AREAS THROUGHOUT THE CITY.
UM, AND AT ONE TIME, UH, SUPPLY CHAIN WAS AN ISSUE WITH THE PAINT, UM, FOR THE STRIPING.
BUT I THINK THAT WE ARE, UM, SEEING THAT WE ARE GETTING MORE SUPPLIES IN FOR THE, THE STRIPING.
UM, BUT WE WILL DEFINITELY, UM, REPORT THOSE AREAS, UM, AS AN AREA OF CONCERN.
THANK YOU COUNCIL MEMBER THOMAS.
UH, AND DOUG, GOOD TO SEE YOU AS ALWAYS.
UH, TO SPEAK TO YOUR POINT ABOUT THE STRIPING, YOU'RE ABSOLUTELY CORRECT.
UM, YOU KNOW, MANY CONSIDER THAT A PUBLIC SAFETY ISSUE, RIGHT? YEAH.
UH, 'CAUSE THEY CAN'T SEE, UM, FORMER COMMISSIONER JACK KAGEL ACTUALLY, UM, THROUGH, UH, COMMUNITY FEEDBACK, UM, RETRIED CLOSE TO 17 INTERSECTIONS IN THE ENTIRE DISTRICT.
SO WHAT WE CURRENTLY HAVE HAS BEEN IDENTIFIED BY INDIVIDUALS.
BUT I THINK YOU RAISE AN IMPORTANT POINT AROUND, YOU KNOW, TURS THREE EIGHTIES, EVEN MANAGEMENT DISTRICTS BECAUSE YOU KNOW, RICHMOND IS RICHMOND HARWIN IS HARWIN WEST THOMAS.
AND WE, UH, ALL SHARE THE SAME ROAD.
SO I, I THINK THERE IS A POINT TO, UM, HOW WE COLLABORATE AROUND THAT.
UM, AND LEVERAGE RESOURCES TO VICE MAYOR'S POINT.
THERE WAS A SUPPLY SHORTAGE AND THERE'S A HUGE DEMAND.
WE'VE TALKED ABOUT THIS AT THE HORSESHOE.
UM, AND SO THAT'S ON THE LIST FOR US TO DO IN THE DISTRICT AGAIN.
SO IF YOU HAVE ANY PARTICULAR AREAS ON THE WEST SIDE, WE'LL WE'LL TRY TO MAKE SURE WE GET THAT COVERED.
I'LL TAKE AN EXAMINATION TRIP TO DO THAT.
I APPRECIATE YOU AS ALWAYS MY FRIEND.
HEY, AND UH, WE DID HAVE A MR. GUTIERREZ WHO, UM, SIGNED UP.
MR. GUTIERREZ, IF YOU ARE HERE OR ONLINE, NOW IS YOUR TIME TO SPEAK.
MR. GUTIERREZ, IF YOU'RE ONLINE, YOU CAN PUSH STAR SIX TO UNMUTE.
UM, IF THERE ARE NO FURTHER QUESTIONS OR COMMENTS FROM, UM, THE COUNCIL AND STAFF, I'D LIKE TO THANK EVERYONE FOR JOINING US TODAY.
AND BEFORE WE ADJOURN, I'D LIKE TO REMIND EVERYONE THAT THE NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING WILL BE WEDNESDAY, SEPTEMBER THE 20TH AT 2:00 PM AND IF YOU'RE INTERESTED IN RECEIVING INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, YOU CAN CONTACT THE DISTRICT A OFFICE AT DISTRICT A@HOUSTONTX.GOV.
THANK YOU FOR YOUR PRESENTATION.
UM, THE TIME IS NOW 2 35 AND OUR MEETING IS ADJOURNED.