[Economic Development Committee]
[00:00:12]
IT IS WEDNESDAY, JULY 17TH.AND I'M MAYOR PRO TEM CASTEX TATUM, CHAIR OF ECONOMIC DEVELOPMENT COMMITTEE.
AND I'D LIKE TO CALL THIS MEETING TO ORDER.
I'D LIKE TO WELCOME THE COMMITTEE MEMBERS THAT ARE HERE TODAY.
UH, VICE CHAIR COUNCIL MEMBER FLICKINGER IS HERE.
WE HAVE STAFF FROM MARY ANNE HUFFMAN'S OFFICE, UH, COUNCIL MEMBER, UH, MARTINEZ, UH, RAMIR.
COUNCIL MEMBER JOAQUIN MARTINEZ IS HERE.
AND WE ALSO HAVE STAFF FROM COUNCIL MEMBER ALCORN'S OFFICE.
AND I DO SEE COUNCIL MEMBER CAYMAN, UH, JOINING US IN THE CHAMBER CASTILLO AS WELL.
WE, UM, ALSO HAVE STAFF FROM COUNCIL MEMBER CASTILLO'S OFFICE.
AND SO WE ARE LOOKING FORWARD TO A PRODUCTIVE MEETING TODAY.
UH, THE MEETING WILL BE HELD, UH, IN PERSON.
WE'RE BROADCASTING LIVE ON HTV, UM, COUNCIL MEMBER FLICKINGER.
UH, DO YOU HAVE ANY COMMENTS AT THIS TIME? NO, MA'AM.
COUNCIL MEMBERS AND STAFF, IF YOU'LL HOLD YOUR QUESTIONS TO THE END OF THE PRESENTATION, UH, THAT WOULD BE HELPFUL.
UH, IF THERE ARE ANY SPEAKERS PRESENT IN THE CHAMBER WHO WISH TO SIGN UP TO SPEAK, THERE IS A SIGNUP SHEET AT THE FRONT TABLE ON YOUR RIGHT, AND YOU'LL HAVE AN OPPORTUNITY TO SPEAK AT THE CONCLUSION OF THE MEETING.
UM, TODAY, WE DO HAVE, UH, TWO ITEMS ON THE AGENDA.
AND I KNOW THAT A LOT OF US HAVE A LOT ON OUR MINDS AS WE ARE, UM, WORKING TO MAKE SURE HOUSTONIANS ALL HAVE, UH, RESTORED POWER.
UM, THIS MORNING, I THINK THE REPORT WAS, UH, A LITTLE OVER 36,000.
HOUSTONIANS ARE STILL WITHOUT POWER, UM, BUT WE WANT TO KEEP THEM AND ALL HOUSTONIANS, UM, IN OUR THOUGHTS AND PRAYERS AS WE CONTINUE IN OUR RECOVERY EFFORTS.
BUT, UM, TODAY, UH, WE'RE EXCITED ABOUT OUR HOUSTON AIRPORTS UPDATE.
UM, THIS IS IMPORTANT FOR, UH, NOT ONLY AS WE MOVE FORWARD IN RECOVERY, BUT FOR THE ECONOMIC, UH, HEALTH OF OUR CITY.
SO WE ARE EXCITED TO HAVE, UM, THE HOUSTON AIRPORT SYSTEM DIRECTOR, JIM SNYK, WHO WILL PRESENT THE AIRPORT, UH, UPDATE.
UM, SO DIRECTOR SNYK, WE APPRECIATE YOU BEING HERE.
IF YOU ARE READY FOR THE PRESENTATION, WE ARE READY TO HEAR FROM YOU NOW.
SO AGAIN, VERY GOOD TO BE HERE WITH EVERYBODY.
UM, YOU KNOW, AGAIN, FIRST I'D LIKE TO, YOU KNOW, PUBLICLY THANK, UH, CITY COUNCIL FOR THE SUPPORT THAT YOU GIVE US ON A REGULAR BASIS.
AND THEN I ALSO WANNA MAKE SURE THAT I THANK MY EMPLOYEES.
UH, WE DID JUST GET THROUGH A RATHER, YOU KNOW, TOUGH TIME WITH THE HURRICANE, BUT, YOU KNOW, EYEWALL BASICALLY WENT OVER HOBBY AMBUSH, UH, BUT THE, THE FINE FOLKS AT THE AIRPORT BASICALLY GOT, UH, UH, FLIGHTS, UH, WITHIN FOUR HOURS OF THE, THE HURRICANE PASSING, WE WERE ARRIVING FLIGHTS.
AND THEN THE NEXT DAY, HOBBY WAS A HUNDRED PERCENT OPERATIONS, AND BUSH WAS ABOUT 70.
AND THE FOLLOWING DAY IT WAS A HUNDRED PERCENT OPERATIONS FOR, FOR IAH.
SO I'M REALLY PROUD OF THE TEAM AND THE WORK THAT THEY DID.
SO, AGAIN, FOR TODAY'S PRESENTATION, I GIVE YOU OVERVIEW OF THE HOUSTON AIRPORT SYSTEM.
I WANNA DO A LITTLE EXPLANATION ON THE MONITORING THAT WE DO ON PASSENGER EXPERIENCE IN REAL WORLD, UH, REAL TIME.
UM, UPDATE ON WHAT WE'RE DOING FOR THE SUMMER AND HOW WE'RE DOING FOR THE SUMMER.
AND THEN ALSO AN UPDATE ON AIRPORT RE REDEVELOPMENT PROGRAMS. NEXT SLIDE.
SO, AGAIN, JUST A REMINDER OF OUR IMPACT.
YOU KNOW, WE ARE A CONDUIT FOR THE CITY OF HOUSTON, AND IT'S, AND ITS ECONOMY.
UH, WE ARE OFFERING RIGHT NOW 193 DESTINATIONS NONSTOP THROUGHOUT THE GLOBE.
UH, WE HANDLED LAST YEAR ABOUT 60.1 MILLION PASSENGERS.
UH, AND WE ARE ON PACE THIS YEAR TO, UM, EXCEED THAT, UH, WHICH WOULD BE, AGAIN, ANOTHER RECORD FOR US.
UH, ECONOMIC IMPACT OF THE AIRPORT SYSTEM IS ABOUT 190,000 JOBS AND, UH, $36.4 BILLION IN ANNUAL ECONOMIC ACTIVITY.
UM, IT'S A SELF-SUSTAINING ENTERPRISE FUND.
SO AGAIN, WE DO TAKE ZERO TAX DOLLARS FROM THE HOUSTON, UM, UH, GENERAL FUND.
UH, AND THEN AGAIN, OUR ECONOMIC IMPACT STATEMENT.
WE HAVE A NEW ONE THAT'S GONNA GO ON.
SO OUR ECONOMIC DATA IS, UH, FROM 2019.
AND SO WE ARE IN THE PROCESS OF UPDATING THAT, WHICH WE'LL HAVE PROBABLY LATER THIS YEAR, UM, AND SEE HOW WE'VE IMPROVED, UH, WHAT WE DO, UH, FOR THE COMMUNITY.
AGAIN, JUST CELEBRATING THE SUCCESSES OF OUR EMPLOYEES.
UH, AGAIN, WE ARE THE WORLD'S BEST ART PROGRAM IN THE ENTIRE WORLD.
UH, HOBBY DID GET FIVE STAR RATING AGAIN FROM SKY TRACKS.
UH, WE DID GET BEST REGIONAL AIRPORT IN NORTH AMERICA FOR HOBBY, WHICH IS GREAT BECAUSE AGAIN, IT'S THE TRAVELING PUBLIC THAT VOTES THAT.
UH, AND AGAIN, WE DO HAVE, UH, TOP BEST STAFF AND BEST DINING EXPERIENCE FOR BUSH AND A FOUR STORE, UH, FOUR STAR THAT WE'RE WORKING ON.
UH, AGAIN, FROM A PASSENGER EXPERIENCE, OBVIOUSLY THE AIRPORT IS THE FIRST AND OR LAST IMPRESSION OF THE CITY FOR A LOT OF FOLKS VISITING HOUSTON.
AND SO WE, WE DO MAKE SURE THAT WE PAY
[00:05:01]
ATTENTION TO THAT.UM, SO WE HAVE A COUPLE WAYS THAT WE MONITOR IT.
NUMBER ONE IS THE PASSENGER JOURNEY SCORE.
IT'S A APP THAT WE HAVE FOR OUR EMPLOYEES THAT GIVES THEM REAL TIME DATA ON THE AIRPORT SYSTEM, AND THEN ALSO GIVES THEM REAL TIME FEEDBACK ON HOW THEIR IMPACT OF THE WORK IS, IS IMPACTING THE TRAVELERS.
UM, AND THAT'S, THAT'S CONSTANTLY UPDATED.
UH, WE HAVE QUARTERLY, UM, SURVEYS THAT WE DO WITH THE PASSENGERS.
SO THEY'RE GOING THROUGH THE TERMINALS.
THEY'LL BE SURVEYED ON A QUARTERLY BASIS, AND WE GET FEEDBACK FROM THEM.
UM, IT'S ALSO RUN THROUGH THE AIRPORT, OUR AIRPORT ORGANIZATION, UH, GLOBALLY.
AND SO WE HAVE THE ABILITY TO SEE WHERE WE STACK WITH OTHER AIRPORTS, UH, AND IT'S A CONSISTENT QUESTION BASE SO THAT WE CAN ALWAYS SEE HOW WE'RE IMPROVING AND GOING DOWN, UH, OR, UH, AND THEN WE HAVE THE SKY TRACKS AUDIT, AND THAT'S AN ANNUAL AUDIT BY A THIRD PARTY THAT COMES IN AND BASICALLY DOES AN AUDIT OF OUR AIRPORTS.
SO, THIS, AGAIN, OUR PASSENGER JOURNEY SCORE.
UM, KEY THING ABOUT IT IS RIGHT NOW WE HAVE 12 DATA SOURCES THAT WE'RE OUT THERE LOOKING AT FROM A PASSENGER PERSPECTIVE.
AND SO OBVIOUSLY HOW WE'RE DOING ON A RESTROOM'S PERSPECTIVE, OUR ROADWAY TRAFFIC, OUR WIFI, OUR TSA AND, AND CBP WAIT TIMES, TEMPERATURES, YOU KNOW, HOW OUR ELEVATORS AND ESCALATORS ARE WORKING, OUR WATER PRESSURE ISSUES AT BUSH.
UM, THE FLIGHT STATUS, OUR OUR SECURITY DOORS, OUR LIFT STATIONS, WHICH OBVIOUSLY ARE IMPORTANT FROM A RAIN PERSPECTIVE, MAKING SURE THAT ROADWAYS ARE GOOD.
SO AGAIN, IT'S A WAY FOR US TO MAKE SURE THAT WE CON CONSTANTLY MONITOR HOW THE PASSENGER EXPERIENCE IS GOING ON.
AGAIN, TTSA SECURITY WAIT TIMES.
UM, AGAIN, OUR GOAL AT BOTH AIRPORTS IS 22 MINUTES OR LESS.
UM, AT IAH WE'RE MEETING THAT, UH, 90% OF THE TIME.
AND AT HOBBY, WE'RE MORE THAN 90% OF THE TIME.
UH, AND THEN OUR CBP WAIT TIMES, ALSO, WE'VE GOT A GOAL OF LESS THAN 30 MINUTES.
UM, AND WE'RE GETTING MEETING THAT ABOUT 90% OF THE TIME AT IAH AND A HUNDRED PERCENT OF THE TIME AT HOBBY.
FOR SUMMER 2024, AGAIN, WE ARE SEEING RECORD NUMBERS OF PASSENGERS THROUGH THE TERMINALS.
UH, WE'VE ALSO HAD, AGAIN, COPA AMERICA COME THROUGH, AND IT WAS VERY SUCCESSFUL TO BE ABLE TO SEE THE COPA AMERICA EXPERIENCE THAT WE'VE HAD HERE.
UM, AND THEN ALL THAT, WHAT WE'RE TRYING TO AGAIN, UM, YOU KNOW, DO THE, THE NECESSARY CONSTRUCTION TO BE ABLE TO INCREASE THE FACILITIES TO HANDLE FUTURE TRAFFIC AS WE CONTINUE TO GROW.
SO, IF WE LOOK AT OUR SUMMER FORECAST RIGHT NOW, WE HAD OUR, OUR, OUR BEST EVER MEMORIAL DAY.
IT WAS A RECORD, WE WERE UP 7%.
UM, OUR JULY 4TH HOLIDAY WAS, UH, FORECAST TO BE UP UP 8%.
UH, AND THEN AGAIN, SUMMER IN TOTAL IS ABOUT 7%.
SO WHEN WE THINK ABOUT THAT, UM, YOU KNOW, THE AMOUNT OF TOURISM THAT WE HAVE COMING THROUGH HERE, UM, HOUSTON NOW IS, IS RANKED NUMBER 10 FOR BEST CITIES FOR SUMMER TRAVEL ACCORDING TO FORBES.
AND SO WE'RE DOING OUR PART TO MAKE SURE THAT FOLKS CAN GET INTO HOUSTON AND COME HERE AND SPEND MONEY.
UM, 'CAUSE THAT'S A GREAT THING ABOUT THE AIRPORT IS AGAIN, FROM A TAXPAYER PERSPECTIVE, YOU'RE NOT REALLY PAYING ANYTHING ON IT.
UH, AND PEOPLE FLY IN HERE WITH PLANES, LOADS OF MONEY AND, AND PUT IT INTO THE ECONOMY.
UH, AGAIN, IN ORDER TO HANDLE THE VOLUMES THAT WE HAD THIS SUMMER, WE DID MAKE SOME CHANGES TO MAKE SURE THAT WE, UM, YOU KNOW, DID THE BEST THAT WE CAN, UM, WITH OUR FACILITY.
SO WE'VE ADDED MORE OVERTIME FOR OUR POLICE AND OUR, OUR LANDSIDE EMPLOYEES.
UM, WE DID FUND SOME ADDITIONAL, AND AGAIN, THANK YOU COUNSEL, 'CAUSE YOU DID APPROVE THAT.
UH, ADDITIONAL FUNDING FOR CBP OFFICERS TO MAKE SURE THAT WE'VE GOT, UM, THE OVERTIME NECESSARY TO, TO KEEP THE CBP LINES DOWN.
UM, WE'VE HIRED SOME ADDITIONAL LANDSIDE STAFF.
UM, WE'VE CHANGED TO AN ACTIVE LOADING STAFF STATUS ON OUR CURBS NOW.
SO FROM A I IH PERSPECTIVE, THERE'S NO MORE SITTING AND WAITING AROUND.
UM, OUR FOLKS ARE ACTIVELY MONITORING FOLKS SO THAT YOU CAN STAY IN THE CELL PHONE LOT AS LONG AS YOU WOULD LIKE.
UH, BUT WHEN YOUR, WHEN YOUR PARTY HAS THEIR BAGS AND ARE ON THE CURB, THAT'S THE TIME FOR YOU TO COME IN AND, AND PICK UP THERE.
UM, AGAIN, SIMPLIFICATION OF OUR ROADWAY SIGNAGE TO MAKE SURE THE ENTRANCE IS, IS, IS CLEAR AS WE CAN BE.
'CAUSE I KNOW IT IS CONFUSING FOR THE FOLKS THAT ARE COMING THERE ON A FIRST TIME BASIS.
UM, SO WE DID SIMPLIFY SOME OF OUR SIGNAGE.
UM, AND THEN AGAIN, AIRLINES HAVE BEEN BRINGING IN SOME ADDITIONAL STAFF.
AND THEN ALSO TTSA HAS BEEN HELPING US, PARTICULARLY IN TERMINAL TERMINAL C AND, UH, D WITH CANINE.
UM, AND SO WHEN THEY HAVE THEIR CANINE PATROLS OUT THERE, UM, THE FOLKS THAT ARE NON TSA PRECHECK CAN KEEP THEIR SHOES ON, KEEP THEIR BACKPACKS, UM, CLOSED UP, AND THAT HELPS EXPEDITE OUR, OUR TSA PROCESSING TIMES.
UH, AGAIN, IN MAY, WE ALSO, AGAIN, ARE STARTING TO SEE SOME OF THE BENEFITS OF THE CONSTRUCTION THAT WERE, WE'RE COMPLETING THERE.
UM, SO WE HAD ABOUT 600 NEW SPACES OPENED UP IN THE IAH, UM, CDE GARAGE.
SO AGAIN, THAT, THAT HELPED A LOT DURING OUR, OUR PEAK HOLIDAY TRAVEL PERIODS.
NOW I WANT TO TOUCH ON, UM, IF WE THINK ABOUT, YOU KNOW, HOUSTON IS A GROWING MARKET.
WE HAD ABOUT ROUGHLY 140,000 PEOPLE MOVE HERE LAST YEAR.
UM, AND THAT, YOU KNOW, TREND LOOKS LIKE IT'S GONNA CONTINUE FOR QUITE SOME TIME.
WE HAVE A VERY ROBUST BUSINESS CLIMATE HERE.
AND SO THAT MEANS THAT WE HAVE TO PLAN FOR GROWTH.
SO IF YOU LOOK AT THE FAA, THEY DO A
[00:10:01]
FORECAST FOR THE, THE, THE AIRPORT.UM, IT'S NOT FOR BUSH AND OR HOBBY, IT'S FOR BOTH FOR, FOR THE REGION.
THE KEY THING IS, IS THAT WE'RE ANTICIPATING THAT AIR TRAVEL DEMAND THROUGH IT IS SUPPOSED TO INCREASE BY ABOUT DOUBLE BY 2050.
AND SO WE'RE NEED TO BRING ON ADDITIONAL FACILITIES TO MAKE SURE THAT WE CAN HANDLE THAT GROWTH.
SO, GREAT THING IS, IS THAT WE ARE IN THE PROCESS OF COMPLETING OUR INTERNATIONAL GROWTH FOR THE NEXT LITTLE BIT.
AND SO, AGAIN, WE ARE COMPLETING I TRIPP.
AND SO, OH, WHAT I TRIPP INCLUDES IS THE D WEST PIER, WHICH IS THE SIX NEW GATES, UM, INTERNATIONAL CAPABLE GATES FOR WIDEBODY TRAFFIC.
IT'S A REFRESH OF THE EXISTING INTERNATIONAL TERMINAL, AND THEN IT'S ALSO A NEW CENTRAL PROCESSOR, BASICALLY A TICKETING HALL.
UM, AND THAT TICKETING HALL HAS, IS TWO PIECES THAT ARE IMPORTANT TO IT.
NUMBER ONE, IT'S GONNA BE ALLOW US TO GROW OUR INTERNATIONAL CAPACITY.
UH, BUT IN ADDITION, IT'S GONNA ALSO RETURN THE TERMINAL E THAT USED TO BE THERE BACK TO, TO, UH, UH, ABILITY FOR UNITED TO USE.
SO FOLKS, YOU KNOW, ONE OF THE CHALLENGES WE HAVE AT THE AIRPORT RIGHT NOW IS, IS THIS TERMINAL SEA IS VERY CONGESTED, AND THAT'S BECAUSE WE HAVE TWO TERMINALS OPERATING IN ONE.
SO ALL THAT TERMINAL E TRAFFIC IS, IS PROCESSING THROUGH THE TERMINAL C TICKETS, COUNTERS, AND THE T TERMINAL C UH, TSA LOBBY OR TSA LINES.
AND SO WITH THIS, UH, INTERNATIONAL PROCESSOR OPENING UP THAT WAS GONNA HAVE A UNITED SIDE TO IT, THAT'S GONNA ALLOW THE TERMINAL E TRAFFIC TO GO BACK AND OPERATE IN TERMINAL E.
UH, SO WHAT WE'VE GOT NOW, UM, IT'S A LITTLE VIDEO THAT YOU CAN KIND OF SEE IS, IS WHEN WE TOOK THE COUNCIL MEMBERS ON THE TOUR, WE LOOKED AT THE NEW PIER AND WE LOOKED AT, UM, THE, THE CENTRAL PROCESSOR, BUT WE DIDN'T SEE THE REFRESH OF TERMINAL D.
SO WHAT YOU'VE GOT HERE IS, AGAIN, SOME OF THE PICTURES OF THE NEW TERMINAL D.
SO WE HAVE ALL BRAND NEW CEILINGS, NEW ART, NEW CARPET, NEW, UM, FURNITURE.
WE'VE GOT, UH, AGAIN, NEW GATE COUNTERS, UM, ALL KINDS OF NEW FACILITIES IN THERE THAT MADE IT LOOK, UH, MUCH MORE REFRESHED AND, AND, AND UPDATED.
WE TOOK OUT SOME OF THE, UM, THE, THE LOUNGES THAT HAPPENED TO BE IN THE MIDDLE THAT, UM, KIND OF CLOGGED UP THE AREA AND REMOVED THAT AND MADE THAT INTO MORE SEATING THERE.
SO TO ADD CAPACITY THERE, UH, AGAIN, JUST A MUCH BETTER EXPERIENCE COMPARED TO WHAT, WHAT WAS IN THERE ABOUT TWO YEARS AGO.
UM, AGAIN, SOME OF THE KEY ADDITIONS THAT WE DID ALSO THERE TOO IS, IS, YOU KNOW, AGAIN, WE HAVE A LARGE MUSLIM POPULATION THAT FLIES THROUGH THE AIRPORT WITH OUR QATAR, OUR EMIRATES, AND OUR TURKISH FLIGHTS.
SO WE'VE ADDED, IN ADDITION TO OUR INTERFAITH CHAPEL, NOW, WE HAVE A DEDICATED, UM, EVOLUTION ROOM.
UM, SO THAT'S AGAIN, ONE OF THOSE, UH, FOR THE, THE MUSLIM COMMUNITY, VERY EXCITED ABOUT THAT, UM, ALLOWS THEM TO, TO, TO, YOU KNOW, PROPERLY BE PREPARED TO GO ON THEIR FLIGHTS.
UH, AGAIN, ALSO, AGAIN, WE LOOK AT THE WEST PIER AND WHAT'S BEEN ACCOMPLISHED THERE.
I KNOW OUR TOUR A LITTLE WHILE AGO, WE WERE, WE, WE WERE SEEING IT, BUT NOW WE'RE REALLY SEEING IT.
UM, YOU KNOW, OUR GATES ARE IN THERE.
WE ARE ACTUALLY IN THE PROCESS.
WE HAVE STARTED COMMISSIONING THE, THE JET BRIDGE SYSTEMS THERE.
SO WE HAVE OUR, OUR LITTLE FAKE AIRPLANE DOOR THAT THEY'RE STARTING TO WORK WITH NOW.
BUT WE WILL, IN THE VERY NEAR FUTURE, BE PUTTING ACTUAL AIRPLANES THERE TO DO OUR, OUR, OUR CHECKS ON THERE TO MAKE SURE ALL THE JET BRIDGES AND THE, AND THE LINES ARE, ARE, UH, APPROPRIATE.
UM, BUT AGAIN, IT IS ONE OF THOSE THINGS THAT'S PROGRESSING.
UM, AND AGAIN, NEXT SLIDE PLEASE.
UH, UH, THE RENDERING HERE ON THE LEFT KIND OF SHOWS ARTISTICALLY WHAT IT WAS SUPPOSED TO LOOK LIKE, AND THE PICTURE RIGHT NOW ON THE RIGHT DOES SHOW THAT IT IS REALLY COMING TOGETHER.
UH, WE DO ANTICIPATE THAT, YOU KNOW, AGAIN, THE CARPET IS DOWN NOW.
UM, WE ARE GONNA START, UH, INSTALLING THE FURNITURE VERY SOON.
UM, SO AGAIN, THIS IS ALL COMING TOGETHER FOR US TO BE ABLE TO HAVE THIS READY FOR THE END OF THE SUMMER.
YOU CAN SEE A LOT OF THE, IT IS GETTING ENERGIZED RIGHT NOW.
SO OUR CUSTOMER SERVICE CENTERS ARE, ARE THERE, OUR TICKET COUNTERS ARE STARTING TO GET ENERGIZED.
UH, AGAIN, A LOT OF WORK GOING ON THERE, BUT IT'S, IT'S, WE'RE, WE'RE, WE'RE, WE CAN DEFINITELY SEE THE LIGHT AT THE END OF THE TUNNEL.
UH, THIS IS THE STERILE CORRIDOR.
SO THIS IS, AGAIN, FROM A CUSTOMS EXPERIENCE.
WHEN YOU COME IN INTERNATIONALLY, YOU'LL WALK DOWN THIS STERILE CORRIDOR.
SO YOU CAN SEE THAT THAT'S STARTING TO GO.
UH, AGAIN, OUR ELEVATORS AND ESCALATORS ARE ALL INSTALLED AND BEING CERTIFIED RIGHT NOW.
UH, AGAIN, OUR CONCESSION ERRORS ARE STARTING TO GET READY TO COME IN HERE.
SO, AGAIN, YOU CAN SEE WE'VE GOT A LOT OF CONCESSIONS THAT ARE GONNA BE COMING INTO THE NEW D WEST PIER.
UM, SO AGAIN, THINKING AGAIN, I THINK THE, THE CUSTOMERS ARE BE VERY EXCITED TO BE ABLE TO, TO, UM, SEE SOME OF THE, THE GREAT STUFF.
YOU KNOW, AGAIN, I WAS IN THERE THE OTHER DAY AND THE ANNIE CAFE AND THE, YOU KNOW, IS LOOKING REALLY NICE.
IT'S, IT'S A VERY, UM, YOU KNOW, THE TILE IN THERE'S FANTASTIC.
UH, THE OTHER THING THAT'S GREAT ABOUT THE PROGRAM IS WE DO HAVE A FANTASTIC ART COLLECTION THAT'S GONNA BE GOING INTO THIS NEW TERMINAL.
SO, AGAIN, THE CUSTOMERS, WHEN WE THINK ABOUT IT, IT IS THEIR FIRST IMPRESSION OF HOUSTON WHEN THEY WASH OFF THAT WALK OFF THAT PLANE.
AND SO IT GIVES, ALLOWS US FROM AN ART PERSPECTIVE TO GIVE THEM A REALLY NICE THING WHEN THEY WALK IN THERE.
THOSE GATEHOUSE HAVE SOME, UH, REALLY FANTASTIC
[00:15:01]
ART COLLECTION IN THERE.SO, THE INTERNATIONAL CENTRAL PROCESSOR.
NEXT SLIDE IS, UH, AGAIN, LARGE FACILITY.
WE'RE TRYING TO BUILD THIS IN THE MIDDLE OF A, YOU KNOW, VIBRANT OPERATING, UH, INTERNATIONAL AIRPORT.
WE HAVE PASSENGERS THAT ARE DRIVING BY ON EACH SIDE OF THE CONSTRUCTION SITE, BUT WE HAVE TO KEEP THEM SAFE.
WE HAVE TO KEEP OUR ROADWAYS OPEN.
UH, EACH OF THEM WEIGHS ABOUT 90 TONS A PIECE.
AND WITH THAT, IT'S GONNA GIVE A COVER OVER OUR NEW DEPARTURES DECK.
UM, WHICH IS GONNA BE A GREAT EXPERIENCE FOR THE TRAVELING PUBLIC BECAUSE OF THE FACT WE'RE GONNA GET SUBSTANTIAL INCREASE IN THE NUMBER OF CURBS WE HAVE AT THE AIRPORT, WHICH IS GONNA REALLY SOLVE THE TRAFFIC ISSUES THAT WE'VE GOT AT BUSH.
THESE TRUSSES ARE SO LARGE, THEY'RE OVER 200 FEET IN LENGTH.
WE HAD TO BRING THEM INTO PIECES.
AND THEN WHEN WE BRING THEM ON SITE WITH 18 TRUCKLOADS, WE HAD TO THEN BOLT THEM IN A AND ASSEMBLE 'EM ON SITE.
EACH TRUSS WAS ABOUT 2,500 BOLTS AND ABOUT 10,000 SQUARE FEET OF PAINTING SURFACE FOR EACH ONE OF THOSE.
IT'S A REALLY COMPLEX OPERATION WHEN YOU HAVE TO INSTALL THESE LEAF TRUSSES.
THE FIRST ONE'S EASY 'CAUSE YOU CAN JUST LIFT IT UP AND PUT IT IN THERE, BUT AS YOU SEE, THE SITE IS VERY CONSTRAINED.
AND SO, AS THEY DID THIS ASSEMBLY, THEY KEPT PERPETUALLY RUNNING OUT OF ROOM.
AND NOW WE'RE BASICALLY COMPLETED THE LAST LEAF TRUSS, WHICH IS THE MOST COMPLEX ONE.
'CAUSE YOU'RE REALLY, YOU KNOW, THREADING THE NEEDLE AS FAR AS LIFTING THIS 90 TON PIECE OF STEEL UP.
THIS IS GONNA BE AN AMAZING, YOU KNOW, KIND OF WELCOME TO HOUSTON.
YOU'RE GONNA SEE THIS REALLY MODERN FACILITY WE'RE LOOKING TO HAVE WHEN IT'S FINALLY COMPLETED, ABOUT 17 SECURITY CHECKPOINT.
UH, AND THAT WILL ALLOW US TO RUN OUR PASSENGERS THROUGH HERE IN A CALMLY MANNER.
THIS WILL BE ONE OF THE LARGEST SECURITY CHECKPOINTS IN THE NATION.
ALL THE GREAT THINGS THAT, THAT A MODERN AIRPORT YOU WOULD EXPECT, UM, IS GONNA BE IN THIS NEW TERMINAL CONSTRUCTION REALLY IS, IS AN ART.
YOU HAVE DESIGNERS WHO, WHO COME UP WITH THE IDEAS, BUT IT'S THE WORKERS WHO ACTUALLY CREATE THAT ART.
SO, A, AGAIN, YOU KNOW, ONE OF THE THINGS THAT WE'RE TRYING TO DO IS MAKE SURE THAT WE CAN GET THE PROJECT DELIVERED, UM, AS QUICKLY AS WE CAN FOR THE PIECES THAT WE NEED.
AND SO THE KEY THING THAT WE'RE DOING IS, IS WE'RE TRYING TO MAKE SURE THAT WE GET THE ROADWAY SYSTEMS DELIVERED EARLIER.
UH, BECAUSE THE SOUTH TERMINAL ROAD WHERE OUR EXISTING INTERNATIONAL ARRIVALS DOES NOT MEET CUSTOMER SERVICE STANDARDS THAT WE WOULD EXPECT FOR OUR AIRPORT, UM, AND IS, IS THE BANE OF MY EXISTENCE FROM A TRAFFIC PERSPECTIVE.
UM, AND SO WHAT WE'RE GONNA DO IS, IS, UM, AGAIN, GET THOSE, UH, DROP OFF LANES OPEN FOR, UH, AND REPLACE THAT INTERNATIONAL CURB.
UH, WE'RE WORKING ON GETTING THAT DONE BEFORE CHRISTMAS.
UM, SO WE'LL BE ABLE TO HIT THAT, UM, WITH THE PRE-CHRISTMAS RUSH.
UH, AND THEN AGAIN, IT'S AGAIN, AGAIN, SIGNIFICANT INCREASE IN THE AMOUNT OF DEPARTURE AND, AND ARRIVAL LANES.
UH, AND THAT IS, AGAIN, ONE OF OUR BIG CHALLENGES.
UH, I MEAN, YOU NEED TO GET THE, THE CARS OFF THE ROADWAY SO THE ROADWAYS FUNCTION, UH, TO BE ABLE TO USE THE CURBS CORRECTLY.
SO WE'RE VERY EXCITED ABOUT THE EIGHT ADDITIONAL LANES THAT WE'VE GOT DEDICATED FOR ARRIVALS AND PICKUPS IN 11 FOUR DEPARTURES.
UH, IT'S REALLY GONNA MAKE A BIG DIFFERENCE FOR US.
UH, AGAIN, THAT INTERNATIONAL SENSOR PROCESSOR IS, YOU KNOW, YOU KNOW, PROGRESSING PRETTY QUICKLY.
UH, KEY THINGS IS, IS THAT AGAIN, FOR, WE'RE GONNA BE A TWO PHASED OPENING ON THAT.
SO YOU'VE GOT, UNITED AIRLINES IS GONNA BE OPENING IN THE FIRST QUARTER OF 2025, UH, AND THAT'S AGAIN, GONNA ALLOW THEM TO TAKE TERMINAL E TRAFFIC AND PUT IT BACK OVER THERE, UH, AND THEN FREE UP, UM, SOME CAPACITY IN TERMINAL C.
AND THEN THE FOREIGN FLAG AIRLINES WILL BE OPENING, UH, THE FACILITY IN REMOVING INTO THE FACILITY IN LATE SUMMER OF 2025.
AND THAT'S DUE TO THE BAGGAGE SYSTEM.
SO THE BAGGAGE SYSTEM TAKES A WHILE, IT'S COMPLICATED.
AND SO WE NEED TO BE ABLE TO INSTALL THAT SO THAT THE FOREIGN FLAGS CAN MOVE OUT OF THEIR EXISTING FACILITY AND MOVE INTO THE NEW FACILITY.
UH, AGAIN, GOT A LOT OF NEW CONCESSIONS THAT ARE GONNA MOVE IN THERE.
SO, UH, AS WE GET PROGRESS WITH FURTHER CONSTRUCTION, WE'LL GET SOME MORE SLIDES ON THAT AS THEY GET UPDATED.
BUT AGAIN, MORE CONCESSIONS THAT ARE GONNA BRING IN THERE FOR THE, FOR THE TRAVELING PUBLIC.
KEY HIGHLIGHT THAT WE'RE VERY EXCITED ABOUT IS, IS THAT WE'VE GOT, AGAIN, THIS PIER AND THIS CENTRAL PROCESSOR THAT WE'RE BUILDING IN THE MIDDLE OF AN ACTIVE AIRPORT, UH, IN AN AVIATION ENVIRONMENT.
AND WE ARE VERY PROUD THAT SO FAR WE HAVE 5 MILLION MAN HOURS WORKED, UH, WITH ZERO LOST TIME INJURIES.
SO VERY PROUD OF THE SAFETY RECORD OF THE AIR, UH, OF THE PROJECT SO FAR.
PLEASE, UH, OTHER UP UPDATES FOR THE COUNCIL.
UH, WE THANK YOU FOR YOUR LAST WEEK VOTE ON
[00:20:01]
OUR, UH, CENTRAL UTILITY PLANT RENOVATION FUNDING FIRST ROUND.UM, KEY THING ON THAT, IT'S, UH, GONNA REPLACE, UH, A BUNCH OF THE OLDER LEGACY, UH, CHILLING EQUIPMENT AT THE AIRPORT.
AND THEN WE'RE ALSO EXCITED BECAUSE THE FACT THAT, UM, WE HAVE TWO LEGACY STEAM BOILER FIRED CHILLERS.
UM, AND WE'RE GONNA REPLACE THOSE WITH ELECTRIC.
UM, SO THAT'S GONNA HELP FROM OUR SUSTAINABILITY, UM, STANDPOINT BECAUSE OF THE FACT THAT WE WILL, UH, REDUCE OUR GREENHOUSE GAS EMISSIONS BY NOT HAVING TO RUN THOSE BOILERS ANYMORE, UH, WILL BE ELECTRIC CHILLERS.
AND THEN OBVIOUSLY FROM THE CITY PROGRAM, WE, WE, WE, UH, OFFSET OUR EMISSIONS, UH, WITH, UH, GREEN ENERGY OUT OF, UH, OUT OF WEST TEXAS, UH, TO BE ABLE TO, TO DO OUR OFFSET.
SO THAT, THAT'S AN IMPORTANT PIECE FOR OUR CENTRAL UTILITY PLANT PROJECT.
UH, WITH THAT AT BUSH, YOU KNOW, AGAIN, TO, TO MEET THOSE GROWTH TARGETS.
WE'VE ALSO GOT UNITED AIRLINES THAT'S CONTINUING TO GROW.
SO THEY'RE DOING THEIR $2.55 BILLION INVESTMENT IN TERMINAL B REPLACEMENT.
UM, SO IF YOU HAVEN'T BEEN OUT THERE LATELY, BOTH OF THOSE OLD BANJO, UM, UH, GATE, UH, GATE COMPLEXES ARE GONE.
UM, THEY'VE ACTUALLY GOT THE FOUNDATIONS ALREADY, UM, DUG OUT FOR THE NEW PIERS, AND SO THEY'RE CONTINUING TO PROGRESS.
UM, THEY'VE TORN DOWN THE OLD DEPARTURES CURB ON THE B TERMINAL, UH, AND ARE STARTING TO DRILL PYLONS OUT THERE FOR THE FOUNDATIONS OF THE NEW TERMINAL.
SO, UH, AGAIN, MOVING, MOVING FORWARD PRETTY QUICKLY ON THE TERMINAL B PROJECT.
UH, AGAIN, IT'S GONNA BE A VERY NICE FACILITY, MODERN 2.5 BILLION.
UM, GONNA BE, YOU KNOW, UH, AGAIN, A REAL GEM.
YOU'RE GONNA HAVE, AGAIN, KEY THINGS ON IT.
YOU'RE GONNA HAVE THE LARGEST, UH, UNITED CLUB IN THE ENTIRE, UH, UNITED PORTFOLIO.
SO THAT'LL BE A GOOD THING FOR THE FOLKS THAT ARE CLUB FOLKS.
UH, BUT IF NOT, IT'S GONNA BE, AGAIN, ANOTHER GREAT SPACE WITH A LOT OF GLASS, A LOT OF OPEN AIR, UH, VERY MODERN COMPARED TO THE EXISTING FACILITY, WHICH IS NOT, YOU KNOW, THOSE, THOSE 1969 FACILITIES LOOK LIKE 1969 FACILITIES.
UH, AGAIN, YEAH, IT'S JUST MORE RENDERINGS OF, OF THE MODERN FACILITIES THAT WE'LL HAVE THERE.
AND THEN ADDITIONAL INVESTMENTS BEING, UH, POURED INTO HOBBY.
SO WE'VE GOT A $470 MILLION PROJECT THERE WITH SOUTHWEST AIRLINES.
THAT'S A SEVEN GATE EXPANSION.
SIX OF THOSE ARE DEDICATED TO SOUTHWEST AND ONE OF 'EM, WHAT WE CALL A CITY GATE.
SO THAT'S FOR US TO GO OVER AND SHOP ADDITIONAL AIRLINES TO BE ABLE TO SERVE.
UM, HOBBY, UH, IT'S VERY, UH, YOU KNOW, AGAIN, FROM A, FROM A CONSTRUCTION STANDPOINT, WE HAVE STARTED SOME OF THE ENABLING PROJECTS FROM A, UM, DETENTION PONDS AND SOME SEWER WORK.
AND THEN WE ARE, UH, ABOUT TO START COMMENCE CONSTRUCTION ON THE PIER ITSELF, UH, EXTENSION IN A LITTLE BIT.
SO, UH, AGAIN, THAT'S STARTING TO MOVE FORWARD.
AND AGAIN, THAT NOT ONLY INCLUDES THE, THE PEER EXTENSION, BUT ALSO INCLUDES UPGRADES TO THE BAGGAGE SYSTEMS AT AT, AT HOBBY.
SO THE KEY THING IS THERE IS, RIGHT NOW YOU GO DOWN THERE IN THE, THE BOTTOM OF THE AIRPORT, IT'S NOT VERY NICE.
UM, YOU DON'T KNOW WHERE YOUR BAGS ARE COMING OUT.
UM, WE'RE GONNA SOLVE THAT ISSUE.
SO WITH THE NEW BAGS, CAROUSELS THAT WE'RE GONNA ADD THERE, WE'LL HAVE SIX CAROUSELS INSTEAD OF FOUR.
AND NOW WE CAN ACTUALLY ASSIGN THEM.
SO YOU'LL KNOW, YOU'LL BE, BE TOLD YOU GO TO CAROUSEL ONE OR THREE OR TWO, UH, WHEREVER YOUR BAGS ARE GONNA BE.
SO YOU DON'T HAVE TO PLAY GUESS, UM, LIKE YOU DO RIGHT NOW.
UH, KEY THINGS ON THAT, AGAIN, BRINGING IN A LOT MORE NATURAL LIGHT.
IT'S GONNA HAVE A VERY SIMILAR LOOK TO THE EXISTING WESTERN PIER, BUT YOU'RE GONNA HAVE A BIG GIANT GLASS CURTAIN WALL DOWN AT THE VERY END.
UH, AGAIN, VERY, VERY OPEN EXPERIENCE FOR THE THE TRAVELING PUBLIC.
UH, AGAIN, ONE OF THE KEY THINGS ALSO ON THE BAG SYSTEM THAT WE'RE DOING IS, IS IN THAT, AGAIN, THAT BAGGAGE HALL, UM, WHERE IT'S VERY DARK AND DINGY NOW.
UM, WE'RE ACTUALLY GONNA BE POPPING UP SOME SKYLIGHTS INTO THE ROAD DECK IN THERE, AND THEN THAT'S GONNA ALLOW NATURAL LIGHT TO COME DOWN INTO THAT.
UM, SO I THINK THAT'S GONNA HAVE A TREMENDOUS IMPACT ON, UM, THE, THE CUSTOMER EXPERIENCE DOWN THERE.
PARTICULARLY FOR FOLKS THAT HAVE NEVER BEEN TO HOUSTON BEFORE.
IT'S DEFINITELY GONNA BE A MUCH BETTER EXPERIENCE.
WELCOME YOU, 'CAUSE YOU'RE GONNA GET INTO THIS NICE LIGHT AND AIRY THERE.
UH, WE ARE ALSO GONNA RESTORE THE CANOPY THAT ALLOWS YOU TO WALK FROM THE GARAGE OVER TO THE TERMINALS, UH, WITHOUT GETTING RAIN DONE.
UH, AND AGAIN, I THINK IT'S GONNA BE A PRETTY GOOD DESIGN FEATURE FOR THE AIRPORT.
UH, ADDITIONALLY, FROM A HOUSTON PERSPECTIVE, JUST THE GENERAL, UM, UPKEEP OF THE TERMINALS, UH, WE ARE, UM, GONNA BE INVESTING $30 MILLION IN RESTROOMS IN THE VERY NEAR FUTURE.
SO I KNOW THAT IS NEAR AND DEAR TO THE MAYOR THAT HE WANTS THE UP, UH, UH, THE, THE RESTROOMS AT THE AIRPORT UPGRADED AND, AND WE ARE TAKING THAT TO, TO HEART AND, AND GETTING IT DONE.
UM, AND, AND RESTROOMS, UH, AGAIN, WE'RE GONNA BE DOING, UH, RESTROOMS AT TERMINAL A, TERMINAL D AND THEN ALSO, UH, HOBBY.
UM, SO WE CAN GET ALL THREE AIRPORTS ARE GONNA GET THEIR UPGRADES AND IT'S PART OF THE UNITED PROJECT.
SO AGAIN, THE UNITED TERMINALS, UH, WE DON'T NECESSARILY CONTROL THOSE, UM, FROM A, FROM A RESTROOM PERSPECTIVE, BUT AS PART OF THE AGREEMENT FOR UNITED TO DO THEIR TERMINAL B PROJECT, UM, THEY'RE GONNA HAVE TO UPGRADE ALL THE, THE, UM, THE RESTROOMS IN THE FACILITIES THAT THEY CAN CONTROL.
[00:25:01]
FACILITIES, AGAIN, WE'RE GONNA HAVE UPDATED A DA, UM, FACILITIES, LARGER STALLS, UM, NEW FIXTURES.WE'RE GONNA PUT SMART TECHNOLOGY IN THERE.
UM, AND THEN AGAIN, OUR, UM, YOU KNOW, ADDING SOME MORE, UH, WORKER FRIENDLY, UH, CONVENIENCES FOR OUR CUSTODIAL FOLKS TO BE ABLE TO BETTER EFFICIENTLY, UM, CLEAN THE, THE, THE TERMINALS RESTROOMS. 'CAUSE AGAIN, THEY DO TAKE QUITE A, QUITE A BIT OF TRAFFIC.
I THINK I LOOKED AT SOME OF THE NUMBERS THE OTHER DAY AND WE HAD 78,000 PEOPLE THROUGH THE RESTROOMS IN ONE DAY.
SO
SO THAT'S JUST THROUGH TERMINAL A AND TERMINAL D JUST TO THINK ABOUT THAT.
UH, AND AGAIN, ALSO, YOU KNOW, AGAIN, TAKING THE UPGRADES TO MAKE SURE THAT WE, AGAIN, FROM AN A DA PERSPECTIVE, UM, HAVE THE ADULT CHANGING ROOMS THAT ARE NECESSARY NOW.
SO WE'VE ALREADY GOT ONE AT HOBBY.
UM, WE'RE GONNA BE OPENING ONE IN TERMINAL D, AND THEN WE'RE ALSO GONNA BE ADDING ONE TO TERMINAL A, UM, TO BE ABLE TO, UH, HELP WITH THE TRAVELERS THAT, THAT NEED THAT EXTRA, UM, ASSIST AT THE AIRPORT.
UM, AND AGAIN, OUR PROJECTS RIGHT NOW, YOU'LL SEE, UH, COMING IN THE VERY IN THE FALL TO BE ABLE TO CONTINUE THESE RESTROOM PROJECTS.
SO FROM AN UPCO UPCOMING, UH, COUNCIL ACTIONS PERSPECTIVE, OUR MAJOR COUNCIL ACTIONS, UM, YOU KNOW, WE'VE JUST PASSED THE CENTRAL UTILITY PLANT PHASE ONE.
UH, WE WILL BE COMING FOR FUTURE APPROPRIATIONS ON THAT FOR TERMINAL B AT UNITED.
UM, WE ARE GONNA HAVE TO, UH, IN AUGUST COME FORWARD WITH A LEASE, THE LEASE AMENDMENT AND THEN ALSO THE UNITED BOND FINANCING, UH, PACKAGES, AS WELL AS, UM, A HOUSTON AIRPORT SYSTEM, UM, UH, FINANCING PACKAGE.
SO WE'LL HAVE A BONDS THAT WE'RE GONNA GO SELL THAT'S GONNA HAVE A LITTLE BIT OF UNITED FUNDING, UM, FOR OUR ENABLING PROJECTS THAT THE AIRPORT'S RESPONSIBLE FOR.
UM, SOME OF THE ENABLING PROJECTS FOR THE SOUTHWEST PROJECT, AND THEN OUR GE GENERAL, UM, CONSTRUCTION FUNDING THAT WE DO FOR RUNWAYS AND TAXIWAYS AND, AND AND HVAC REPAIRS AND ALL THE OTHER GENERAL MAINTENANCE THAT WE DO OUT THERE.
SO, AGAIN, THAT'S MY UPDATE FOR RIGHT NOW.
SO I AM MORE THAN HAPPY TO TAKE ANY COMMENTS OR QUESTIONS.
AND I WILL TELL YOU THAT THIS IS EXCITING STUFF FOR HOUSTON.
UH, WHILE WE SIT IN THE MIDST OF RECOVERY RIGHT NOW, TO HAVE THIS PRESENTATION IS VERY INSPIRING, AND THE PROGRESS THAT HAS BEEN MADE HAS BEEN INCREDIBLE.
UM, THE TOUR THAT WE TOOK WAS VERY ENLIGHTENING.
WE WERE ABLE TO SEE IT FIRSTHAND, BUT TO, UM, HAVE THE VIDEO AND SHOW THE PROGRESS, UH, IS EXTREMELY HELPFUL.
WE DO HAVE A COUPLE OF COUNCIL MEMBERS IN QUEUE.
UH, WE'LL START FIRST WITH COUNCIL MEMBER CAYMAN.
THANK YOU, UH, CHAIR AND DIRECTOR.
THANK YOU SO MUCH FOR THE PRESENTATION AND THE UPDATES AND FOR ALL THAT THE AIRPORT SYSTEM AND EMPLOYEES, UM, HAVE BEEN DOING TO GET OUR AIRPORTS OPERATIONAL, ESPECIALLY DURING THIS TIME.
UH, IT, FIRST CAN YOU, YOU SAID YOU RAN THROUGH IT VERY QUICKLY.
HOW LONG WAS INTERCONTINENTAL AND HOW HOBBY, HOW LONG WERE THEY DOWN DURING THE STORM AND WHAT, WHAT CHALLENGES WERE THERE? SO, UM, SO FOR HOBBY AND BEEN PUSHED BOTH OF THEM, UH, BASICALLY FOUR HOURS AFTER THE EYEWALL HAD PASSED BY AND THE WINDS HAD STARTED TO DIE DOWN, WE WERE AVAILABLE TO O UH, TO START LANDING AIRPLANES.
UM, AND SO WE, YOU KNOW, AGAIN, THE AIRLINES HAD CANCELED MOST OF THEIR FLIGHTS FOR THAT DAY.
AND SO WE DID SOME RECOVERY WORK.
WHAT IT WAS IS ULTIMATELY THE, UM, THE, THE PLANE, THE AIRLINES FLEW THEIR PLANES OUT OF THE HOUSTON MARKET FOR THE STORM, AND THEN THEY RETURNED THEM IN THE EVENING ON A LIMITED BASIS TO BE ABLE TO START A NORMAL OPERATION THE NEXT DAY.
UM, SO FOR HOBBY THAT NEXT DAY IT WAS A HUNDRED PERCENT OPERATION.
AND FOR BUSH THE FOLLOWING DAY, IT WAS ABOUT ROUGHLY 70%.
UH, AND THEN THE FOLLOWING DAY AFTER THAT, IT WAS A HUNDRED PERCENT, UH, BACK TO NORMAL FOR US.
OUR BIG CHALLENGES DURING THE EVENT, UM, WERE, WERE, WERE, UH, FOR BUSH, IT WAS THE POWER, UH, FOR OUR CARGO AREA AND FLIGHT KITCHENS, UM, ON THE EAST SIDE OF THE AIRPORT.
UM, THAT WAS OUR BIG CHALLENGE.
UM, AND WITH THE CARGO, THAT I THINK HAS BEEN ONE OF, WAS ONE OF MY BIGGEST CONCERNS BECAUSE THAT HAS AN IMPACT ON, UH, ECONOMIC CORRECT, UH, DRIVERS FOR OUR CITY.
UH, AND YOU'RE SAYING THAT THAT WAS PRIMARILY DUE TO POWER RELATED DAMAGE? YES.
NOT OTHER TYPES OF HURRICANE RELATED DAMAGE.
SO, SO OUR HURRICANE DAMAGE FROM A WIND PERSPECTIVE WAS, WAS RELATIVELY MINOR.
WE HAD SOME, YOU KNOW, SOME ASSORTED BUILDINGS AND STUFF LIKE THAT HAD THAT, HAD SOME DAMAGE OR AREAS AND STUFF LIKE THAT.
BUT NOTHING, NOTHING SIGNIFICANT.
UM, BUT IT WAS, YOU KNOW, AGAIN, A, A POWER CHALLENGE FOR THE, THE CARGO AREA THAT WAS ON THE, IT'S THE SAME CIRCUIT, THAT'S THE CARGO AREA, THAT POWER POWERS THE, UH, FLIGHT KITCHENS THAT POWERS OUR, OUR MAINTENANCE SECTION OVER THERE.
UM, THE AIRPLANE MAINTENANCE SECTION.
SO, SO AGAIN, THAT'S ONE OF THOSE THINGS.
WE'LL HAVE A DISCUSSION WITH CENTER POINT AFTER THIS IS OVER, MAKE SURE THAT WE DON'T HAVE THAT HAPPEN AGAIN.
AND I JUST WANTED TO MAKE SURE WE, WE WERE INFORMED AS TO WHAT THE ISSUE WAS AND THAT IT WAS SIMILAR TO THE REST OF THE CITY POWER RELATED, NOT STRUCTURAL DAMAGE RELATED.
UM, THE, WE SAW A DERECHO JUST WENT THROUGH CHICAGO, UH, AND THEY DIDN'T HAVE THE SAME POWER ISSUES WE HAD, BUT THERE'S BEEN
[00:30:01]
NEWS REPORTS, AND I DON'T HAVE ALL THE DETAILS THAT MANY PLANES WERE ACTUALLY LEFT ON THE TARMAC AS THAT WIND EVENT CAME THROUGH.AGAIN, THAT'S CHICAGO, THAT'S NOT HOUSTON
BUT I DID WANNA FLAG AND MAKE SURE THAT, UH, WE HAVE PROPER PROTOCOLS IN PLACE, UH, FOR IMMEDIATE, UH, RESPONSE TO MAKE SURE THAT DOESN'T HAPPEN HERE.
WE ARE MUCH MORE PREPARED, I BELIEVE, AND USED TO DEALING WITH, UH, FASTER DEVELOPING WEATHER EVENTS.
BUT I DID JUST WANNA PUT AN ASTERISK ON THAT ONE SINCE WE SAW THAT HAPPEN IN CHICAGO TO MAKE SURE IT DOESN'T HAPPEN HERE.
SO, SO PART OF THE, THE, THE REASON THE AIRPORT WAS VERY SUCCESSFUL IN OUR HURRICANE RESPONSE WAS BECAUSE OF THE FACT THAT NUMBER ONE, WE'VE GOT A GREAT PLAN.
UH, NUMBER TWO, WE PRACTICE IT.
AND NUMBER THREE, IT'S THE PEOPLE THAT EXECUTE IT.
FOR, FOR THOSE KIND OF, AND YOU KNOW, AGAIN, WHEN WE THINK ABOUT THE, YOU KNOW, POTENTIAL FOR TORNADO AND STUFF LIKE THAT, UM, OUR, OUR, OUR EMERGENCY PLAN HAS SCRIPTED ANNOUNCEMENTS AND THE TERMINALS THAT ARE GONNA DEDICATE, YOU KNOW, DIRECT PEOPLE ON WHERE THEY NEED TO GO.
SO YES, IT IS ONE OF THOSE THINGS THAT WE, WE TAKE VERY SERIOUSLY.
AND AGAIN, IT'S, IT'S, IT'S THE PLAN, IT'S THE PRACTICE, AND IT'S THE PEOPLE THAT MAKE IT WORK.
AND Y'ALL, UM, ARE THE HIGHEST CALIBER WHEN IT COMES TO THAT, AND WE APPRECIATE THAT.
UH, DID WANNA FLAG ONE THING AS IT RELATES TO RESTROOMS AND WE, I'M HAPPY TO TALK OFFLINE WITH YOUR STAFF.
UH, HOUSTON AIRPORT SYSTEM HAS DONE AN EXCEPTIONAL JOB MAKING OUR AIRPORTS AS WELCOMING AND SUPPORTIVE OF FAMILIES THAT ARE TRAVELING AS POSSIBLE.
UH, AND WE HAVE A LONG HISTORY OF WORKING TOGETHER ON THAT WHEN IT COMES TO THE NEW RESTROOMS THAT ARE BEING INSTALLED, JUST TWO LITTLE THINGS I WAS HOPING TO FLAG, UH, HAPPY TO DO THAT OFFLINE, BUT IT'S JUST A LOT OF YOUNGER CHILDREN WILL BE IN RESTROOMS WITH THEIR FAMILIES AND HAVING, AGAIN, JUST THE BASIC NEED OF THE STEPS STOOLS, EVEN IN THE ADULT FACILITIES SO THAT KIDS CAN GET TO THE SINKS.
LITTLE THINGS LIKE THAT THAT I HOPE WE'RE INCORPORATING INTO THE NEWER DESIGNS FOR SOME OF THESE FACILITIES.
AND CONTINUING THE, UM, FREE FEMININE HYGIENE PRODUCTS AS WELL.
UM, YOU LOOK GOOD BACK THERE, BY THE WAY,
I SAY YOU LOOK GOOD BACK THERE, BY THE WAY.
UH, JUST WANT TO ECHO A LITTLE BIT OF WHAT THE, UH, AMERIPRO TIM, UM, WAS, WAS MENTIONING JUST, UH, THE WORK THAT Y'ALL ARE DOING FROM OUR FIRST, UH, OUR SITE VISIT TO NOW.
UH, GREAT JOB AND CONTINUE TO MOVE THIS, THIS PROJECT, UH, ALONG.
UM, AS WE ALL KNOW, OF COURSE, UH, IAH AND OF COURSE, UH, HOBBY ARE ARE HUGE ECONOMIC ENGINES.
THEY SUPPORT OUR CITY IN SO MANY WAYS.
UM, EVEN, EVEN IN HOBBY SPECIFICALLY WHERE A GOOD MAJORITY OF 'EM LIVE IN DISTRICT HIGH.
AND SO JUST WANNA SAY KUDOS TO WHAT Y'ALL ARE DOING, DIRECTOR TO YOUR TEAM.
UH, THANK YOU FOR EVERYTHING Y'ALL ARE, Y'ALL CONTINUE TO MOVE FORWARD WITH THIS PROJECT, UM, AND JUST LOOK FORWARD TO THE COMPLETION IN THE NEAR FUTURE.
EARLY, EARLY 2025, SUMMER 2025.
I'VE GOT A COUPLE QUESTIONS MYSELF.
UM, THE BAGGAGE CLAIM AND HOBBY, DIDN'T WE JUST HAVE A HUGE RENOVATION OF THAT ABOUT 10 YEARS AGO? UH, YOU KNOW, IT MIGHT'VE BEEN THE TSA MACHINES THAT WERE PROBABLY REDONE AT THAT, BUT, BUT YEAH, I, I WASN'T HERE 10 YEARS AGO, SO I, I'LL HAVE TO DEFER TO MY STAFF TO LET, REMIND ME ON THAT ONE.
UH, ALSO ON THE SURVEY, THE PASSENGER YES.
SURVEY, CAN YOU SEND THAT A COPY OF THAT TO ME? I'D LIKE TO SEE THAT.
DOES THAT HAVE THE METRICS IS THE INDIVIDUAL METRICS ARE MEASURED BY AND ALL THAT, CORRECT? YES.
AND THEN YOU SPOKE ABOUT GROWTH.
IS THAT, IS, IS HOBBY AND INTERCONTINENTAL SUPPOSED TO HAVE ABOUT THE SAME AMOUNT OF GROWTH OR IS THAT DIFFERENT AT EACH FACILITY OR? YEAH, SO IT'S, IT'S, IT'S GONNA BE SIMILAR.
SO YOU'RE GONNA, YOU'RE GONNA SEE MORE OF IT.
UM, IAH BASED, AND THAT'S A LOT OF, THAT'S DUE TO THE FACT THAT WE'RE MORE OF A TRANSFER HUB UP THERE AND THEN OUR INTERNATIONAL GROWTH UP THERE.
SO HOBBY IS GONNA GROW, UM, BUT THE BUSH MIGHT OUTPACE IT A LITTLE BIT, BUT THAT'S BECAUSE AGAIN, YOU GOT A LOT MORE OF THAT TRANSFER TRAFFIC THAT'S HAPPENING BECAUSE WE'RE A HUB THERE.
UH, AND THEN AGAIN, OUR INTERNATIONAL GROWTH IS FOCUSED THERE, SO.
AND AS FAR AS FROM A ECONOMIC IMPACT STANDPOINT, IS THERE MUCH DIFFERENCE BETWEEN THE INTERNATIONAL TRAVELER AND DOMESTIC? YES.
SO AS FAR AS SPEND IS CONCERNED, UH, YES, BECAUSE YOUR, YOUR, YOUR DOMESTIC TRAVELER MAY COME IN FOR A, A DAY OR TWO OR A COUPLE DAYS, UH, AND THEY DON'T GENERALLY SPEND AS MUCH BECAUSE OF THE FACT THAT THEY CAN GET ALL THE US STUFF, YOU KNOW, WHERE THEY'RE FROM LOCALLY, YOUR INTERNATIONAL TRAVELERS WILL COME IN AND THEY SPEND MORE MONEY BECAUSE THEY'RE HERE LONGER.
UH, AND THEN AGAIN, THEY WILL TAKE ADVANTAGE OF THE SHOPPING.
UH, 'CAUSE AGAIN, WE DON'T GENERALLY HAVE THE VAT THAT THEY HAVE OVER IN SEA.
SO, YOU KNOW, WE HAVE SALES TAX AT, YOU KNOW, 5% IN CHANGE AND THEY'VE GOT SALES TAX AT 22%.
UM, SO WHEN THEY COME OVER HERE, THEY LIKE TO BUY A LOT OF STUFF HERE IF THEY CAN.
SO, SO WE'RE GETTING QUITE A BIT MORE MONEY FROM THE INTERNATIONAL? YES.
YOUR AVERAGE, I THINK GERMAN TRAVELER, WHEN THEY GO ON THEIR TWO WEEK VACATION TO THE UNITED SPEND, STATE SPENDS SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT $3,600.
[00:35:01]
SO I GUESS WE WANNA GET THE GERMAN TEAM HERE FOR THE WORLD CUP.UH, WE ARE, WE ARE ACTIVELY FOCUSED ON GETTING THE ATTRACTIVE, LUCRATIVE, THE, THE TEAMS THAT, UH, THAT FAN BASE HAS MONEY AND THAT THEY TRAVEL.
SO WE'RE INTERESTED IN THE BRITS, THE SPANIARDS, THE, UH, GERMANS, THE, UH, BRAZILIANS, UH, MEXICANS, YOU KNOW, WHATEVER, WHATEVER, YOU KNOW, BIG, BIG, BIG TRAVEL GROUPS.
UM, DOES ANYBODY ELSE HAVE ANY OTHER QUESTIONS? ABBY, YOU ABOUT MS. CAYMAN OR COUNCILWOMAN? THAT'S, SORRY.
THIS IS ONLY BECAUSE LITERALLY A MINUTE AGO, INTERCONTINENTAL POSTED THAT, UH, THE TERMINAL PARKING GARAGES ARE CURRENTLY AT CAPACITY AND OPEN ONLY TO ONLINE RESERVATIONS.
SO WE'RE ENCOURAGING RESIDENTS TO USE ECO PARK.
I KNOW THIS HAS BEEN, YOU SAID IT'S PARKING HAS BEEN THE BANE OF, AND TRAFFIC HAS BEEN THE BANE TRAFFIC IS, YES.
AND ALSO PARKING HAS BEEN A HUGE CHALLENGE.
CAN YOU JUST RESTATE, YOU MAY HAVE SAID IT ALREADY BY WHEN WE EXPECT US TO BE THROUGH THE CH THE LARGEST CHALLENGES WITH PARKING CAPACITY RIGHT NOW.
WHEN ARE, WHEN IS ALL OF THAT GONNA BE COMPLETE TIME? SO, SO FROM A H PERSPECTIVE, UM, TWO THINGS ARE HAPPENING.
UM, SO NUMBER ONE, THE 600 SPACES THAT WE OPENED IN THE, WITH THE NEW PARKING DECKS RIGHT NOW, UM, WE HAVE AN ADDITIONAL 125 ISH SPACES THAT WE'RE GONNA OPEN IN THE VERY NEAR FUTURE.
UM, THAT'S BECAUSE THE, THE DECKS HAVE THE, THE NUMBERS, BUT WE NEED THE, UM, EGRESS FROM A, A FIRE CODE PERSPECTIVE.
AND SO WE'RE BUILDING THE FIRE TOWERS THERE.
SO WE WILL GET SOME ADDITIONAL PARKING SPACES THAT ARE IN THE TERMINAL CORE FOR THE, UM, WHEN, WHEN THE GARAGE OPENS TO FULL CAPACITY.
UH, AND, AND PROBABLY, UH, THE NEXT LITTLE BIT, PROBABLY DEFINITELY BY THE, THE, THE COMPLETION OF THE PROJECT.
THE OTHER PA PROJECTS THAT WE'RE DOING RIGHT NOW IS, IS THAT WE ARE GOING TO BE EXPANDING THE EMPLOYEE PARKING LOT, UH, FOR THE AIRPORT.
AND SO THE EMPLOYEES WILL, WILL, WILL HAVE A, A CONSOLIDATED CENTRALIZED EMPLOYEE LOT.
UH, AND THAT WILL ALLOW US TO PULL SOME OF THE EMPLOYEES THAT ARE CURRENTLY PARKING IN THE CENTRAL TERMINAL CORE AND PUT THEM OUT IN THIS REMOTE LOT.
AND SO THAT WILL FREE UP MORE SPACES IN THE GARAGE.
AND AGAIN, THAT'S JUST 'CAUSE IT JUST CAME OUT AND YOU HAPPENED TO BE YES.
JUST TO CLOSE UP DIRECTOR, I THINK YOU'RE DOING A HECK OF A JOB.
AT THE AIRPORT SYSTEMS, AND THANK YOU VERY MUCH.
WELL, I WILL, I WILL TAKE THAT.
AND, AND I WILL, UH, RECIPROCATE.
'CAUSE AGAIN, IT'S ONE OF THOSE THINGS THAT'S VERY EASY TO, TO HAVE A GOOD WORKING RELATIONSHIP WITH THE CITY COUNCIL AND WE APPRECIATE IT BECAUSE OF THE FACT THAT YOU'RE SUPPORTIVE OF THE AIRPORT.
SO I, I CANNOT BE SUCCESSFUL WITHOUT YOU AND YOU CAN'T BE SUCCESSFUL WITHOUT THE TEAM THAT I LEAD.
SO I WILL TAKE THOSE THANKS AND RECIPROCATE TO YOU.
AND I WILL RETURN THAT TO MY TEAM TOO.
UH, 'CAUSE THEY, THEY MAKE IT WORK.
YEAH, PLEASE DO PASS IT ALONG.
AND NEXT, UH, NEXT SPEAKER WE HAVE, UH, IS ANDREW BUSKER FROM THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
AND, UH, YOU'LL BE GIVEN AN UPDATE ON THE TAX ABATEMENT RENEWAL GUIDELINES AND TAX ABATEMENT PROPOSALS.
I'M ANGEL BUSKER IN THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
SO THIS PRESENTATION COVERS THE REMAINING TWO AGENDA ITEMS. SO THE, WE'LL COVER THE TAX ABATEMENT ORDINANCE FIRST, AND THEN AFTER THAT WE'LL MOVE INTO THE, UM, TAX ABATEMENT PROPOSALS THAT WE HAVE TO, TO PRESENT TO YOU ALL.
UM, I KNOW YOU'RE ALL GOING THROUGH A LOT, SO I'LL TRY AND SPEED THROUGH IT.
IT'S A VERY COMPREHENSIVE PRESENTATION.
SO I'M GONNA HIT THE HIGHLIGHTS AND THEN I'M, UH, ALWAYS WELCOME TO ADDRESS ANY QUESTIONS, EITHER AS WE GO OR AT THE, KIND OF THE STOPPING POINTS ALONG THE WAY.
SO HERE'S A HIGH LEVEL SUMMARY OF OUR TEXT ABATEMENT ORDINANCE.
UM, IN OUR, UH, AB ABATEMENT PROGRAM, UH, WE'VE GOT, UH, FIVE, SIX DIFFERENT PROGRAMS HERE.
SO ECONOMIC DEVELOPMENT, BROWN FIELDS, UH, LEAD GREEN STORMWATER INFRASTRUCTURE AND DETERIORATED DEMOLISHED PROPERTY ABATEMENTS.
UM, WE PRESENTED SOME, UH, AMENDMENTS TO THIS ORDINANCE, YOU KNOW, UH, EARLIER THIS YEAR AND IT WAS REFERRED BACK TO THE ADMINISTRATION.
SO SINCE THEN, UH, WE'VE, UM, COORDINATED WITH COUNCIL MEMBERS, UH, MET WITH CITY DEPARTMENTS AND OUTSIDE STAKEHOLDERS.
AND FROM ALL THESE CONVERSATIONS WE'RE REINTRODUCING NEW AMENDMENTS, UM, TO THE TAX ABATEMENT ORDINANCE FOR YOU ALL TO CONSIDER IT, UH, SOON.
SO RIGHT NOW WE'RE SCHEDULING IT TENTATIVELY FOR AUGUST 14TH.
AND I'LL GO INTO THAT IN A LITTLE BIT.
SO HERE'S A SUMMARY OF OUR PROPOSED CHANGES.
UM, I WILL TRY AND QUICKLY GO THROUGH THIS KIND OF.BY.HERE.
UM, THE VERY FIRST BULLET UNDER THE INCREASE THE BENEFITS OF THE THE GSI ABATEMENT, UM, THAT WAS OUR
[00:40:01]
FIRST AMENDMENT OF.AND SO FROM OUR CONVERSATIONS THAT WE'VE HAD WITH YOU ALL AND, UH, WITH CITY DEPARTMENTS AND OUTSIDE STAKEHOLDERS, THIS IS EXPANDED.
UM, SO LOOKING AT UNDER, UM, THE INCREASE THE BENEFIT OF THE GSI ABATEMENT, WE CONDUCTED A FOCUS GROUP, UM, WITH THE OFFICE OF RESILIENCE AND SUSTAINABILITY.
AND FROM THAT FOCUS GROUP, WE, UH, WE'RE LEARNING, YOU KNOW, THAT DEVELOPERS ARE TAKING OUT THEIR LOANS AND OBTAINING OTHER EQUITY TO FUND THEIR PROJECTS.
AND SINCE A TAX ABATEMENT IS PAID BACK OVER SEVERAL YEARS, BUT THE DEVELOPER HAS A SINGLE UPFRONT COST, UM, WE ARE INTRODUCING IN THIS, UH, GSI ABATEMENT TO FUND THE, UH, INTEREST IN THEIR FINANCING OVER THE, JUST THE GSI IMPROVEMENTS.
SO THAT MEANS THAT OVER TIME THEY WILL BE MADE WHOLE ON THAT INVESTMENT.
UM, SO THE OTHER TWO CATEGORIES WE HAVE HERE ARE REDUCED BARRIERS TO THE GSI ABATEMENT AND ITS APPLICATION PROCESS.
AND THEN ALSO EXPANDING PUBLIC NOTICE REQUIREMENTS.
SO UNDER THE REDUCING BARRIERS, UM, WE WORKED WITH THE RESILIENCE AND SUSTAINABILITY OFFICE TO DETERMINE WHAT A SMALLER GSI PROJECT WOULD LOOK LIKE AND WHAT WOULD BE THE TOTAL PROJECT COST THAT WOULD FIT IN ORDER TO MAKE A TAX ABATEMENT WORTH IT.
UH, AND SO WE ARE REDUCING OUR TOTAL PROJECT COST TO A $735,000 MINIMUM.
AND THEN A MINIMUM GSI INVESTMENT OF 35,000.
SO THESE ARE SIGNIFICANT DECREASES.
'CAUSE BEFORE WE HAD $3 MILLION FOR A TOTAL PROJECT COST AND A HUNDRED THOUSAND DOLLARS FOR A MINIMUM GSI INVESTMENT.
SO SIGNIFICANT REDUCTIONS IN THE THRESHOLD THAT A PROJECT WOULD NEED TO QUALIFY FOR THIS ABATEMENT.
WE ARE ALSO, FROM OUR CONVERSATIONS WITH THE RESILIENCE AND SUSTAINABILITY OFFICE, WE'RE ALSO LOOKING AT POSSIBLE FUTURE INCENTIVES THAT MIGHT APPLY OTHER TYPES OF RESILIENCY TYPE PROJECTS THAT MAY NOT FALL INTO GSI SPECIFICALLY.
SO HOPEFULLY WE'LL HAVE MORE ON THAT.
AND THEN FOCUSING ON OUR EXPANDING PUBLIC NOTICE REQUIREMENTS.
UH, WE ARE UTILIZING THE CITY'S PUBLIC NOTICE PORTAL FOR OUR TAX ABATEMENT PUBLIC NOTICES.
SO THAT IS A PAGE ON THE CITY'S WEBSITE WHERE YOU CAN SEE SEVERAL, UM, INTERNAL DEPARTMENTS WHERE THAT REGULARLY POST PUBLIC NOTICES AND OURS IS INCLUDED IN THAT.
NOW, UM, WE'RE ALSO ALIGNING OUR, UH, GUIDELINES FOR POSTING PUBLIC NOTICES TO INCLUDE, UH, MORE NEWSPAPERS OF GENERAL CIRCULATION.
SO PREVIOUSLY IT SAID LOCAL DAILY, WHICH MEANT WE COULD ONLY POST IN THE HOUSTON CHRONICLE, BUT NOW BY DOING SOME LANGUAGE CHANGES, UM, NEWSPAPERS OF GENERAL CIRCULATION ALSO INCLUDES THE HOUSTON BUSINESS JOURNAL.
UM, WE, WE WOULD ALSO, IF WE REALLY NEEDED TO, WE COULD ALSO LOOK AT, YOU KNOW, OUTSIDE OF THE REGION PAPERS OF GENERAL CIRCULATION AS WELL.
AND THEN FINALLY WE HAVE OVER, UM, FOR THE PROPOSED AMENDMENTS, UM, THAT WHENEVER WE'RE ADJUSTING OUR TAX ABATEMENT, UH, ORDINANCE, SO LIKE WHAT WE'RE DOING NOW OR AT, AT A FUTURE TIME, IT'S GOING TO FILE THE SAME PROCESS THAT WE USE TO, UH, TO DO OUR PUBLIC NOTICE FOR OUR TAX ABATEMENT AGREEMENTS.
SO THAT WOULD INCLUDE A PUBLIC HEARING AND THE NOTICE FOR THE PUBLIC HEARINGS AND THAT SORT OF THING.
UM, SOME THINGS THAT, UH, WERE CONSIDERED THAT, UM, ULTIMATELY WE COULD NOT ACT ON.
UH, FIRST THING THERE IS A REQUEST FROM A COUNCIL MEMBER TO INCLUDE OUR PUBLIC NOTICES IN MULTIPLE LANGUAGES.
AND WHILE OUR OFFICE WAS SUPPORTIVE OF THE IDEA, WHEN WE'RE GOING THROUGH THAT AND REFERENCING AND COORDINATING WITH, UH, CITY LEGAL, IT WAS ADVISED THAT OUR TAX OF MAINTENANCE ARE NOT CONSIDERED, UH, WHAT OUR ADMINISTRATIVE PROCEDURES WOULD CONSIDER CRUCIAL FOR PUBLIC SAFETY, HEALTH AND WELFARE.
SO THEREFORE WE WON'T, WE'LL KEEP THESE IN ENGLISH, BUT, UM, THERE'S THE, UM, OFFICE OF, UH, PEOPLE WITH DISABILITIES AND, UM, CULTURAL AFFAIRS OFFICE AS WELL.
THOSE COULD, UM, ASSIST IN EFFORTS FOR PEOPLE WHO WOULD WANT TO SEE TRANSLATION SERVICES.
UM, THEN, UH, SIMILARLY THERE'S ANOTHER, UM, REQUEST TO INCLUDE OUR COPIES OF OUR TAX AGREEMENT AGREEMENTS AND OUR PUBLIC NOTICES.
UM, HOWEVER, THERE'S SEVERAL STATE STATUTES THAT WOULD PREVENT US FROM DOING SO.
UM, JUST BECAUSE OUR, THE NATURE OF OUR BUSINESS HERE, WE HOLD SOME PROPRIETARY, PROPRIETARY AND CONFIDENTIAL INFORMATION UP UNTIL, UM, THE AGREEMENTS ARE APPROVED BY YOU ALL.
UM, SO THAT WAS A REALLY FAST RUN THROUGH OF ALL THESE.
UM, ON THE NEXT SLIDE I'LL TALK ABOUT THE TIMELINE A LITTLE BIT.
[00:45:01]
PLAN TO HAVE THE MOTION TO SET THE PUBLIC HEARING.UM, AND THEN HOPEFULLY THE HEARING WILL BE ON AUGUST 14TH.
AND THEN WE WOULD ALSO HAVE THE ORDINANCES ALSO ON AUGUST 14TH.
UM, SO THAT THIS IS SUBJECT TO CHANGE, YOU KNOW, BASED ON, UM, THE OTHER ITEMS THAT ARE GOING TO BE ON THE AGENDA.
NOT, NOT JUST TO NOT OVERLOAD YOU ALL.
'CAUSE I BELIEVE THERE'S THE POTENTIAL TO HAVE, UM, MULTIPLE PUBLIC HEARINGS ON CERTAIN DAYS AND WE'RE TRYING TO AVOID THAT TO KIND OF SPREAD EVERYTHING OUT.
UM, SO THIS IS OUR PROPOSED TIMELINE, UM, BUT IT IS SUBJECT TO CHANGE, BUT, UM, BUT IT'S COMING SOON.
SO AT THIS TIME I'M HAPPY TO TAKE ANY QUESTIONS YOU HAVE ABOUT THE, UH, TAX ABATEMENT ORDINANCE, PROPOSED CHANGES.
UH, AND ANDREW, UM, ARE YOU GONNA RUN THROUGH THE, THE REST OF THE PRESENTATION OR ARE WE GONNA TAKE QUESTIONS ABOUT THIS PORTION NOW AND THEN OTHER QUESTIONS LATER, OR IS THAT THERE'LL BE OPPORTUNITY FOR QUESTIONS LATER.
SO IF YOU HAVE QUESTIONS ABOUT THIS NOW, THIS IS THE BEST TIME TO DO IT BECAUSE THERE'S A LOT, THIS IS A BIG PRESENTATION, SO I DON'T WANT, UH, IT CERTAINLY IS THIS TO GET LOST.
AND, AND I DO HAVE A FEW QUESTIONS.
WITH, WITH REGARD TO SLIDE NUMBER FOUR, YOU MENTIONED, UH, THAT YOU HAD COORDINATED WITH SOME COUNCIL MEMBERS.
UM, CAN YOU TELL US WHO YOU COORDINATED WITH? SURE.
UH, SO WE'VE COORDINATED WITH, UH, COUNCIL MEMBER CAYMAN, COUNCIL MEMBER ELKHORN, COUNCIL MEMBER JACKSON ARE AGAIN THE, THE MAIN THREE FOR THESE PROPOSED CHANGES.
I KNOW YOUR OFFICE, UH, IN OUR PREVIOUS, UM, AMENDMENT CHANGES, WE WERE WORKING WITH YOU FOR CERTAIN QUESTIONS THAT YOU HAD.
SUBSEQUENT TO MY TAGGING ALONG WITH THE OTHER COUNCIL MEMBERS HAVE, HAVE WE HAD INTERACTION ABOUT, UH, PROPOSED CHANGES TO THE ORDINANCE? I'M NOT SURE.
'CAUSE I KNOW OUR, UM, CHIEF ECONOMIC DEVELOPMENT OFFICER WAS WORKING ON A LOT OF THAT COORDINATION, BUT IF YOU HAVE QUESTIONS OR THINGS, I'M HAPPY TO TAKE THOSE NOW.
AND, AND I SEE THAT, UM, WITH THE EXCEPTION OF PUBLIC NOTICE REQUIREMENTS, ALL OF YOUR CHANGES HAVE TO DO WITH, WITH GSI ABATEMENTS.
UH, BUT GSI IS ONLY ONE PORTION OF THE TAX ABATEMENT ORDINANCE, IS THAT RIGHT? THAT'S CORRECT, YEAH.
SO YOU ALSO MENTIONED THAT UM, YOU WERE WORKING WITH FOCUS GROUPS.
UH, CAN YOU TELL US HOW THOSE FOCUS GROUPS WERE SET UP? SURE.
SO WE USE THE URBAN LANDS INSTITUTE AS, I'M SORRY, WE USE THE URBAN LAND INSTITUTE AS FACILITATOR URBAN INSTITUTE.
FOR, UM, SO THEY ARE A PROFESSIONAL, UM, ASSOCIATION FOR DEVELOPERS.
SO WE USED, UM, OUR CONTACTS WITH URBAN LAND INSTITUTE TO, UM, GATHER SEVERAL DEVELOPERS THAT WERE MEETING CERTAIN CHARACTERISTICS THAT WE WERE LOOKING FOR THAT WE WANTED FEEDBACK ON.
SO THEN, UH, WE CONVENED A MEETING AT CITY HALL AND WE HAD CANDID CONVERSATIONS WITH, UM, SELECT DEVELOPERS FOR THAT FOCUS GROUP.
DID YOU SAY 10 CONVERSATIONS OR NO? NO.
UM, WE HAD PROBABLY FOUR OR FIVE DEVELOPERS REPRESENTED IN THIS, UH, FOCUS GROUP.
CAN YOU TELL US WHO THEY WERE? UH, OFFLINE.
'CAUSE I DON'T REMEMBER IT OFFHAND LIKE THIS.
BUT I'M HAPPY TO PROVIDE THAT FOR YOU.
WERE, I CAN ALSO PROVIDE YOU THE NOTES OF THE MEETING IF YOU'D LIKE.
WERE ANY OF THEM, UM, UH, INVOLVED WITH THE COMPANIES THAT ARE A PART OF THIS PROPOSAL, THIS PRESENTATION? NO, THEY DID NOT.
UM, ANY ACADEMICS OR ECONOMISTS OR FOLKS KNOWLEDGEABLE WITH TAX ABATEMENTS AND INCENTIVES WHO STUDY THIS ISSUE? WERE THEY PART OF ANY OF YOUR FOCUS GROUPS AS FAR AS UM, TAX ABATEMENT RESEARCH? NO.
UM, WE WERE RELYING ON OUR EXPERTISE IN OUR OFFICE.
UM, ARE YOU FAMILIAR WITH THE RESEARCH THAT SUGGESTS THAT 90% OF THE COMPANIES THAT END UP GETTING TAX ABATEMENTS WOULD'VE LOCATED IN A CITY OR MADE THE CHANGES ANYWAY EVEN WITHOUT THE ABATEMENTS? I'M NOT AWARE OF THAT.
IF YOU COULD SEND ME THE STUDY STUDY, I'D APPRECIATE THAT.
UH, BE HAPPY TO, AND I THINK WE'VE MENTIONED THAT BEFORE, UH, WHEN WE WERE DISCUSSING DISCUSSING THE TOPIC.
UM, BUT ALSO WITH REGARD TO SLIDE FOUR, UM, LET'S SEE HERE.
AND ACTUALLY I'LL, I'LL DEFER THE OTHER QUESTIONS TO A LITTLE BIT LATER IN THE PRESENTATION.
AND UM, I JUST WANTED TO BE CLEAR, UH, 'CAUSE YOU REFERENCED OUR OFFICE IN COUNT COUNCIL MEMBER ALCORN'S OFFICE, AND I CAN'T SPEAK FOR HER OFFICE.
UM, BUT ONE COUNCIL MEMBER ALQUAN
[00:50:01]
HAS BEEN WORKING ON GSI WITH THIS DEPARTMENT AND OTHER DEPARTMENTS SINCE SHE WAS A STAFFER ON CITY COUNCIL HERSELF.UH, SO A LOT OF THIS WORK GOES ALL THE WAY BACK TO TRY TO, UH, GROW AND EXPAND AND INCENTIVIZE GREEN STORMWATER INFRASTRUCTURE IN THE CITY OF HOUSTON BECAUSE OF THE, UM, BENEFITS IN THEIR ENTIRETY.
UH, SO I APPRECIATE AND FOR ME, WHEN WE HAD WORKED ON THE AMENDMENT TOGETHER TO ACTUALLY CREATE THIS PROGRAM, UH, AND THEN, UH, COUNCILLOR RAMIREZ, TO YOUR POINT, WE HAD MADE POINTS TO THE DEPARTMENT AT COMMITTEE PUBLICLY AND SAID, HEY, THIS IS WHAT WE'D LIKE TO SEE HERE.
SOME OF OUR CONCERNS, INCLUDING LOWERING THE THRESHOLD, MAKING IT MORE ACCESSIBLE SO WE CAN SEE MORE, UH, NOT JUST THESE LARGE SCALE.
THAT'S WHAT IN MY, UNLESS COUNCILOR ALCORN HAD MORE DETAILED DISCUSSIONS, THAT'S WHAT THE DEPARTMENT WENT WITH TO WORK ON THIS.
SO THERE WAS NO, UM, I EX, I DON'T KNOW ABOUT EXCLUSION OR INCLUSION OF OTHER COUNCIL MEMBERS OVER THE OTHER, IT WAS WHAT WE VOICED AT THE HORSESHOE, BOTH AT THE COMMITTEE MEETING AND DURING COUNCIL THAT THE DEPARTMENT THEN WORKED ON.
SO I WANTED TO JUST THANK YOU ALL FOR TAKING WHAT WE SAID SERIOUSLY IN WORKING ON THAT.
I CAN'T SPEAK TO THE OTHER PARTS OF THIS 'CAUSE WE'VE JUST BEEN VERY INVOLVED IN THE, THE GSI PORTION OF SOME OF THIS, BUT THIS NEW ITERATION, MY UNDERSTANDING IS IT CAME FROM THE FEEDBACK THAT WAS GIVEN PUBLICLY, UM, TO THE DEPARTMENT.
SO I APPRECIATE THAT YOU TOOK ALL OF THAT.
THE NATURE OF THESE PROPOSED CHANGES REALLY STARTED FROM THAT VERY FIRST BULLET ON THE SLIDE OF, YOU KNOW, WE'RE LOOKING AT WHAT A TWEAK WE COULD DO TO THE GSI, UM, ABATEMENT.
AND FROM THERE, BASED ON THE FEEDBACK WE RECEIVED, WE EXPANDED THAT AND THEN, UM, INCORPORATED SOME OTHER EASY FIXES THAT WE COULD DO TO AREAS.
SO WE DO PLAN, SINCE THE TAX ABATEMENT ORDINANCE HAS TO RENEW EVERY TWO YEARS, AS SOON AS UM, IT'S APPROVED BY YOU ALL AT SOME POINT, UM, WE'LL GET WORKING RIGHT AGAIN ON ADDITIONAL CHANGES FOR, YOU KNOW, 2026.
I'VE GOT A COUPLE OF QUESTIONS.
UM, HOW LONG HAS THIS GSI BEEN ABATEMENT BEEN IN EFFECT? IT WAS PASSED IN 2020.
HOW MANY DEVELOPERS HAVE TAKEN ADVANTAGE OF IT? I WILL BE PRESENTING THE FIRST ONE TODAY.
SO ESSENTIALLY NONE UP UNTIL TODAY.
SO WE'RE REWRITING IT TO TRY AND GET MORE DEVELOPERS TO TAKE ADVANTAGE OF IT.
WHAT WOULD YOU CONSIDER A SUCCESS OVER THE NEXT YEAR OR TWO YEARS? IF WE COULD DO ONE A YEAR WOULD BE A GREAT START.
I THINK BECAUSE PART OF IT IS ALSO EXPANDING THE, THE COMMUNICATION OF HAVING THIS INCENTIVE AVAILABLE.
AND SO WE WILL BE UD UTILIZING URBAN LANE INSTITUTE AND OTHER, UM, RELATED ORGANIZATIONS TO SPREAD THE WORD ABOUT THIS.
AND I THINK PART OF THE CHALLENGE, THERE'S SEVERAL, UM, I THINK CHALLENGES THAT KIND OF HIT AT THE SAME TIME.
'CAUSE 2020 WAS ALSO COVID AND NOT TO BLAME EVERYTHING ON COVID, BUT YOU KNOW, THE DEVELOPERS PROBABLY WEREN'T THINKING ABOUT GSI DURING THAT TIME.
UM, AND SO WE, WE HAVE THIS OPPORTUNITY TO ALSO LOWER THE THRESHOLDS, WHICH ARE GONNA BRING IN DIFFERENT TYPES OF PROJECTS THAT WERE EXCLUDED BEFORE.
SO WE, SO PART OF THIS IS A LITTLE BIT OF EXPERIMENTATION TO SEE WHAT WILL WORK AND WHAT WON'T.
UM, SO HAVING THIS GSI PROJECT PRESENT TO YOU NOW IS FANTASTIC BECAUSE WE'LL GET TO SEE WHAT WORKS AND WHAT, WHAT DOESN'T WORK AND WHAT TWEAKS CAN HAPPEN.
AND THAT'LL INFORM US AS WE KEEP MOVING FORWARD.
SO IT'S ALWAYS AN ITERATIVE PROCESS.
IF WE COULD HAVE ONE A YEAR SO WE CAN KEEP THIS FRESH, THAT'D BE GREAT.
SO SOME OF IT MAY BE MORE OF A MARKETING RATHER THAN AN ISSUE WITH THE PROGRAM ITSELF.
COUNCILMAN CAYMAN? NO, I JUST WANTED TO ADD TO THAT.
AND YOU, YOU HIT IT ON THE HEAD, RIGHT? IT'S, AND WE HAD TO LOOK AT THE SAME THING WITH LEAD, UH, WHICH AGAIN, ARE VERY DIFFERENT FROM THE OTHER TYPES OF TAX ABATEMENTS THAT WE'RE CONSIDERING, THAT ARE THESE LONG TERM COMMITMENTS.
THESE ARE ONE TIME, UH, INCENTIVES SO THAT WE'RE GETTING THE TYPE OF BUILDING THAT WE NEED TO SEE TO MAKE THE WHOLE AREA RESILIENT.
BUT WE HAVE TO DO A BETTER JOB, TO YOUR POINT OF THE MARKETING AND THE PACKAGING OF THIS AS WELL.
UM, I KNOW PUBLIC WORKS IS ALSO IN, UM, THEIR CODE, LOOKING AT HOW THEY CAN MAKE THE INCORPORATION OF THINGS LIKE GREEN ROOFS AND GSI MUCH MORE MANAGEABLE FOR DEVELOPERS WHEN THEY'RE BUILDING.
SO HOW THEY'RE INTERFACING WITH THE CITY TO IMPLEMENT THIS TYPE OF BUILDING, UH, IS ALSO
[00:55:01]
BEING LOOKED AT AND IMPROVED UPON.BUT WE NEED TO DO A BETTER JOB, YOU KNOW, TO YOUR POINT, IN FACT, I MET WITH SOME BUILDERS RECENTLY, AND I DON'T KNOW, THIS IS GSI, 'CAUSE I DON'T KNOW ALL THE DETAILS OF IT, BUT THEY WERE TALKING ABOUT USING THESE HONEYCOMB PAVERS RATHER THAN THE CONCRETE DRIVEWAYS.
AND THEY WERE SAYING IT WAS SO DIFFICULT TO GET 'EM APPROVED THROUGH THE CITY THAT THEY JUST SAID, FORGET IT, WE WE'RE NOT DOING THAT, AND WE'LL FIGURE OUT SOMETHING ELSE.
SO ANYWAY, UM, IS THERE ANYBODY SIGNED UP FOR QUESTIONS? HE'S GOT ANOTHER PART.
YOU WERE SUPPOSED TO KEEP ME FROM MESSING UP.
I KNOW IT'S A LOW, TOO HEAVY TO CARRY, BUT
SO NOW I'LL MOVE INTO THE, UH, TWO TAX ABATEMENT PROPOSALS THAT WE HAVE IN FRONT OF YOU.
UM, AGAIN, THEY'RE VERY DETAILED SLIDES.
UM, SO I'M GOING TO TRY AND HIT HIGHLIGHTS, AND THEN IF WE HAVE ANY QUESTIONS THROUGHOUT, EITHER JUMP IN OR, UH, WE'LL HAVE KIND OF PAUSES, UH, ALONG THE WAY WHERE WE CAN TALK ABOUT IT.
SO THIS FIRST ONE IS AN ECONOMIC DEVELOPMENT TAX ABATEMENT PROPOSAL.
AND THE COMPANY, UH, IS INTEGRA MISSION CRITICAL, LLC.
UH, THE LOCATION OF THE PROJECT IS 15 5 50 MILNER ROAD.
SO TO GIVE A REFRESHER ON THE TAX AB, THE ECONOMIC DEVELOPMENT TAX ABATEMENT, UM, THE ELIGIBILITY CRITERIA FOR, UM, ONE OF THESE PROJECTS IS THEY HAVE TO INCREASE THEIR PROPERTY VALUE BY A SIGNIFICANT AMOUNT.
UM, AND THEY ALSO NEED TO CREATE, RETAIN, OR PREVENT THE LOSS OF PERMANENT JOBS.
UM, THE ABATEMENT GOES ANYWHERE FROM 50% TO 90% FOR BUILDINGS AND STRUCTURES OR MACHINERY, EQUIPMENT, BUSINESS, PERSONAL PROPERTY, UM, ANY OF THAT PHYSICAL ITEMS THAT CAN BE TAXED BY HCA.
UM, THEN, UH, IN ADDITION TO THOSE SORT OF INVESTMENTS, PART OF OUR TAX AB ABANDONMENT ORDINANCE, WE REQUIRE THEM TO PROVIDE CERTAIN COMMUNITY BENEFITS, AND THAT'S LISTED IN THE ORDINANCE.
SO THIS IS A UNIQUE SITUATION.
UH, I'M GONNA TAKE US BACK TO 2022.
UM, CITY COUNCIL PASSED ORDINANCE 2022 DASH 9 61, AND THAT CREATED THE PROLOGIS WAYFAIR TAX ABATEMENT REINVESTMENT ZONE, WHICH IS THE MAP ON YOUR SLIDE.
SO THIS IS IN DISTRICT B, IT'S JUST SOUTH OF BUSH INTERCONTINENTAL.
UM, AT THAT TIME WE WERE WORKING WITH RAVE WAYFAIR ON A TAX ABATEMENT.
UM, THEY WERE PLANNING TO BUILD OUT A DISTRIBUTION CENTER AT THIS FACILITY, AND PROLOGIS IS THE LANDOWNER AND THE, UH, DEVELOPER.
SO AT THAT TIME, UM, WE CREATED THE ZONE, AND THEN WAYFAIR MADE THE BUSINESS DECISION TO WITHDRAW ITS ANTICIPATED INVESTMENT ON THIS PROPERTY BEFORE WE COULD ENTER INTO A TAX ABATEMENT AGREEMENT WITH THE COMPANY.
UM, SO EVEN THOUGH THAT AGREEMENT WENT AWAY, THE ZONE STILL EXISTED.
SO THEN PROLOGIS STILL BUILT OUT THE BUILDING, AND AS YOU CAN SEE ON THIS MAP, THE BUILDING WAS CURRENTLY UNDER CONSTRUCTION WHEN THAT IMAGE WAS TAKEN.
UM, AND SO SINCE 2022, THEY'VE BEEN LOOKING FOR A NEW OPERATOR FOR THIS FACILITY.
SO THEN THIS YEAR WE WERE APPROACHED BY A COMPANY THAT SOUGHT TO OCCUPY THIS BUILDING IN THIS PLACE OF WAYFAIR.
AND THE EXISTING TAX ABATEMENT REINVESTMENT ZONE ON THE PROPERTY WAS A SIGNIFICANT FACTOR IN THEIR INTEREST IN THIS SITE.
SO THEY WEREN'T REALLY INTERESTED IN HOUSTON UNTIL THEY SAW THIS SITE HAD AN EXISTING TAX ABATEMENT.
SO, IN THE FOLLOWING SIDE, I'M GONNA INTRODUCE YOU TO THE COMPANY AND THE PROJECT AND THOSE SORT OF THINGS.
SO THIS IS INTEGRA MISSION CRITICAL, LLC.
UM, THEY BEGAN IN HOUSTON IN 2014 AS A TWO PERSON DESIGN ENGINEERING FIRM THAT WAS FOCUSED ON, UH, DATA CENTER MARKET.
AND SO SINCE THEN, UM, IN 2018, UM, THEY ESTABLISHED INTEGRA MISSION CRITICAL TO DO, UH, THESE REALLY NEAT, UM, INTEGRATED COOLING AND POWER SOLUTIONS FOR DATA CENTERS THAT ARE PREASSEMBLED AND PRE-PROGRAMMED TO CUSTOMER SPECIFICATIONS.
SO THESE ARE PLUG AND PLAY ELEMENTS INTO DATA CENTERS.
AND SO THERE'S TWO, THERE, TWO MAIN PRODUCTS ARE SHOWN HERE.
THERE'S POWER BLOCKS, WHICH IS POWER GENERATION, AND THEN THERE'S COOLING BLOCKS, WHICH IS, UH, COOLING AND TEMPERATURE CONTROL FOR DATA CENTERS.
UM, AND SO DUE TO THEIR, UH, SIGNIFICANTLY, UM, WELL, THIS, THIS PROCESS IN GENERAL SPEEDS UP CONSTRUCTION TIME FOR DATA CENTERS DRAMATICALLY.
AND BECAUSE OF THAT, THERE'S A LOT OF INTEREST IN THEIR PRODUCTS.
SO THEIR NEED FOR MANUFACTURING THESE TYPES OF ELEMENTS IN THESE PRODUCTS IS SIGNIFICANTLY INCREASING.
[01:00:01]
IS ONE OF, UM, AMERICA'S FASTEST GROWING PRIVATE COMPANIES.AND IN 2023, INTEGRA SECURED SALES CONTRACTS THAT REQUIRE THEM TO EXPAND THEIR MANUFACTURING.
UM, SO THEY'VE GOT, UM, A LOT OF UNITS THAT NEED TO CREATE IN A SHORT AMOUNT OF TIME, WHICH, UM, IS FORCING THEM TO LOOK AT WHERE THEY CAN EXPAND IN AN EFFICIENT WAY.
SO PROLOGIS HAS THE BUILDING CONSTRUCTED.
UM, AND SO INTEGRA WOULD COME IN AS THE TENANT AND CONDUCT TENANT IMPROVEMENTS.
AND SO IT'S A 1.2 MILLION INDUSTRIAL SHELL, WHICH WOULD THEN BE USED FOR MANUFACTURING.
UM, THEIR INVESTMENT FOR TENANT IMPROVEMENTS, MACHINERY, EQUIPMENT, ALL THAT SORT OF STUFF IS ABOUT $10 MILLION.
UM, AND WHILE THE COMPANY WAS INTERESTED IN THIS FACILITY, THEY WERE ALSO CONSIDERING EXPANDING THEIR EXISTING MANUFACTURING FACILITIES IN CANADA AND OHIO.
SO BOTH, UH, HARROW AND ONTARIO, CANADA AND AKRON IN OHIO HAVE ESTABLISHED WORKFORCES AND EXPERIENCE MANAGEMENT TO STREAMLINE A SUCCESSFUL ONBOARDING AND TRAINING PROGRAM.
BUT EXPANDING TO HOUSTON WOULD BRING SAVINGS FOR INTEGRA'S CUSTOMERS.
UM, BUT THE ABILITY, THE COMPANY WAS CONCERNED ABOUT THE COST OF LABOR TO, UM, IN HOUSTON COMPARED TO ITS OTHER PLACES.
SO HERE, IN ORDER FOR HOUSTON TO BE COMPETITIVE, THE TAX ABATEMENT COMES INTO PLAY AND WE'RE LOOKING AT HOW WE CAN, UH, MAKE OUR SITE MORE COMPETITIVE OR AT LEAST EQUAL TO THE OTHER SITES THEY WERE CONSIDERING.
SO HERE WE'VE GOT ON THE TABLE THE BREAKDOWN OF HOW WE STRUCTURED AND HOW WE DETERMINED WHAT THE INCENTIVE WAS GOING TO BE.
UM, SO YOU CAN SEE THAT IN THE ESTIMATED FIRST YEAR OF ANNUAL WAGES WE'RE KIND OF MIDDLE OF THE PACK, BUT THEN THESE LOCATIONS ALSO OFFERED THEIR OWN LOCAL INCENTIVES, WHICH THEN REDUCE WHAT THE COSTS ARE GONNA BE FOR INTEGRA FOR THE FIRST YEAR.
AND SO THEN THAT, UM, REQUIRES US TO, IF WE'RE GOING TO BE COMPETITIVE AND ATTRACT THIS BUSINESS, UH, WE WOULD NEED TO OFFER SOME SORT OF INCENTIVE.
SO BASED ON THIS COMPARATIVE ANALYSIS, UM, OUR OFFICE PROPOSED, UH, A TAX INCENTIVE AROUND $4 MILLION.
AND, UM, I'LL SHARE WHY WE RECOMMEND THAT, UH, IN THE NEXT SLIDE.
SO THIS IS A NEW ONE FOR RETURNING COUNCIL MEMBERS.
UM, THIS, UH, IS A VISUAL REPRESENTATION OF OUR OFFICES ECONOMIC DEVELOPMENT PRIORITIES UNDER THE, UH, GWEN TILSON, OUR CHIEF ECONOMIC DEVELOPMENT OFFICER.
UM, SO WE'RE BREAKING DOWN OUR DIFFERENT, UM, INCENTIVES AND PRIORITIES AND SORT OF THINGS INTO GENERAL ECONOMIC DEVELOPMENT CATEGORIES.
AND SO AT THE HIGHEST LEVEL, UH, WE'RE LOOKING AT CITYWIDE, UM, INDUSTRIES, AND THEN WE'RE LOOKING AT NEIGHBORHOOD AND COMMUNITY PRIORITIES, THEN ECONOMIC DEVELOPMENT, INFRASTRUCTURE IMPROVEMENTS, AND THEN FINALLY SUPPORTING RESILIENT DEVELOPMENT.
SO THAT'S KIND OF THE, UM, OUR, OUR FOCUS AREAS OF TIER ONE BEING CRITICAL AND MOVING DOWN.
SO, UH, OUR OFFICE RECOMMENDS THIS PROJECT FOR COUNCIL CONSIDERATION BECAUSE IT SUPPORTS HOUSTON'S ADVANCED MANUFACTURING INDUSTRY.
AND BECAUSE IT GENERATES SIGNIFICANT MID-SKILL JOB CREATION IN AN UNDER-RESOURCED AREA, THESE TWO JUSTIFICATIONS REFLECT OUR OFFICES TIER ONE AND TIER TWO ECONOMIC DEVELOPMENT PRIORITIES.
SO HERE IS A BREAKDOWN, HIGH LEVEL SUMMARY OF, OF WHAT OUR TAX ABATEMENT PROPOSAL WOULD BE.
UH, SO AN EFFECTIVE DATE OF PROBABLY JANUARY, 2025.
SO THIS COMING JANUARY, UM, THE ELIGIBLE COSTS AVAILABLE FOR TAX ABATEMENT, UM, IS, UH, $4.25 MILLION IN TENANT IMPROVEMENTS AND JUST OVER 5.5 MILLION IN MACHINERY EQUIPMENT.
UM, SO THAT'LL TOTAL TO ABOUT, UM, ABOUT 7 MILLION, SORRY, $4 MILLION, 7,000, UM, IN ABATEMENT, TOTAL ABATEMENT, OR 10 YEARS, WHICHEVER ONE IT HITS FIRST.
AND SO YOU CAN SEE IN THE PICTURES HERE, PROLOGIS IN 2023 WHEN, UM, THE TAX ABATEMENT WAS CREATED, THEY WERE IN THE MIDDLE OF CONSTRUCTING THIS FACILITY.
AND THEN IN JUNE, THIS PAST MONTH, UM, THE FACILITY IS NOW COMPLETED, BUT CURRENTLY UNOCCUPIED.
SO, UH, BECAUSE THE, UM, BECAUSE THE ZONE WAS ALREADY CREATED IN 2023, WE'RE USING THAT AS THE BASE YEAR.
AND SO YOU CAN SEE THE DEVELOPMENT OF THAT, UH, INDUSTRIAL SHELL CREATED SIGNIFICANT AMOUNT OF PROPERTY VALUE, WHICH WE'RE USING FOR, UM, MOST OF THE ENERGY IN THIS ABATEMENT.
SO IT'S EXPECTED THAT WE SHOULD, UM,
[01:05:01]
FULFILL THIS TAX ABATEMENT INCENTIVE WITH INTEGRA WITHIN THE FIRST FIVE YEARS OF THE ABATEMENT.AND AT THAT TIME, THE AGREEMENT WOULD END AND, UM, WE WOULD THAT, UM, REVENUE WOULD THEN GO BACK TO THE GENERAL FUND OR WELL WITH THE REVENUE CAP.
SO, GENERAL TIMELINE HERE, OF COURSE, UH, WE NEED TO APPROVE THE TAX ABATEMENT ORDINANCE FIRST.
SO ONCE THAT HAS BEEN APPROVED, THEN WE'LL MOVE THROUGH THIS PROCESS.
SO WE'RE LOOKING TENTATIVELY AT AUGUST 28TH WOULD BE WHEN COUNSEL WOULD HAVE A MOTION TO SET A PUBLIC HEARING AND THEN FOLLOWING THE CHAIN OF EVENTS, UM, WE'D PROBABLY HAVE THE PUBLIC HEARING IN MID-SEPTEMBER WITHIN THE AGREEMENT ORDINANCE IN EARLY OCTOBER.
SO AT THIS TIME, WE CAN PAUSE AND TALK ABOUT, UM, ANY QUESTIONS REGARDING THIS INCENTIVE? COUNCIL MEMBER RAMIREZ.
AND ANDREW, AGAIN, LOOKING AT SLIDE NUMBER 12, IT SAYS THE EFFECTIVE DATE FOR THIS ABATEMENT FOR INTEGRA PROPOSED, UH, ABATEMENT WOULD BE JANUARY 1ST, 2025.
IS THAT RIGHT? THAT'S CORRECT.
SO WE DON'T HAVE ANY AGREEMENT WITH THEM AT THIS POINT IN TIME? AT THIS TIME, NO.
WE HAVE A, UM, WE'RE, OUR OFFICE IS WORKING ON THE DRAFT TERM SHEET AT THIS TIME.
AND SO MY UNDERSTANDING OF THE WAY THESE ABATEMENTS WORK IS, UM, IT'S AN INCENTIVE FOR A COMPANY TO LOCATE HERE, FOR INSTANCE.
THAT'S ONE WAY YOU CAN DO AN ABATEMENT INCENTIVE TO COME TO HOUSTON AND THEY WOULDN'T HAVE COME OTHERWISE, BUT FOR THE ABATEMENT, AND IT'S THE ABATEMENT THAT CAUSES THEM TO COME.
UM, AND SO THE ARGUMENT HERE WITH THE INTEGRA IS THAT INTEGRA WOULD NOT HAVE LOCATED HERE IF THEY WEREN'T GONNA GET THE ABATEMENT.
IS THAT RIGHT? THAT'S CORRECT.
AND THAT'S IMPORTANT BECAUSE OTHERWISE, YOU KNOW, IF A COMPANY ALREADY HAD PLANS TO COME HERE AND THEY WERE GONNA BE HERE ANYWAY, UH, AND, AND THEY WERE GONNA PAY TAXES ON THE IMPROVEMENTS OR, AND WHATNOT, UH, THE CITY WOULD BE BASICALLY GIVING AWAY, UH, THE VALUE OF THAT ABATEMENT.
AND YOU GUYS HAVE VALUED IT AT A LITTLE OVER $4 MILLION, IS THAT RIGHT? THE $4 MILLION IS ACCURATE.
WHAT, WHAT'S NOT ACCURATE WITH THE REST OF IT? SO LIKE YOU MENTIONED BEFORE, INTEGRA WAS NOT CONSIDERING HOUSTON UNTIL THEY LEARNED THAT THIS WAS AN ACTIVE TAX ABATEMENT ZONE THAT THEY COULD SET AN AGREEMENT FOR.
SO THEY WEREN'T INTERESTED IN HOUSTON UNTIL THEY LEARNED THAT THEY COULD GET A TAX ABATEMENT.
SO, SO THIS IS A CLASSIC ECONOMIC DEVELOPMENT DRAW.
SO, SO, UH, SO IF, IF THEY FOLLOW THROUGH, UH, THEY WILL NOT HAVE TO PAY $4 MILLION IN TAXES BASED ON THE IMPROVEMENTS THAT THEY'RE GONNA MAKE OVER 10 YEARS.
UM, BUT IN OTHER PARTS OF YOUR PRESENTATION, PAGE 10 FOR INSTANCE, SAYS IMPROVEMENTS BEGAN IN JUNE OF 2024.
YOU SEE THAT ON SLIDE 10, THAT WAS THEIR TENTATIVE, UM, START DATE.
AND, UH, COMPLETION IS ESTIMATED TO BE AUGUST, 2024.
IS THAT RIGHT? YEAH, THEY HAVE THE RAPID BUILD OUT THAT THEY NEED TO COMPLETE.
SO WE'VE BEEN WORKING ON THIS WITH THEM SINCE PROBABLY FEBRUARY, BUT BECAUSE OF JUST THE NATURE OF TIMING, UHHUH
SO, SO WHAT'S THE STATUS RIGHT NOW? I'D HAVE TO GET BACK TO THEM ON THE SPECIFIC STATUS.
DID YOU GUYS KNOW THAT THEY WERE ALREADY POSTING, UH, JOBS FOR PEOPLE TO APPLY FOR AND GET AS OF MAY OF THIS YEAR? I WAS NOT AWARE.
SO WOULD YOU AGREE WITH ME? IT LOOKS LIKE THEY WERE ALREADY COMING HERE IF THEY'VE STARTED TO MAKE IMPROVEMENTS, HAD AN ESTIMATED COMPLETION DATE, AND THEY'RE ALREADY HIRING, TRYING TO HIRE FOLKS.
WHEN WE HAD OUR CONVERSATIONS WITH THEM STARTING IN EARLY THIS YEAR, THEY HADN'T CONSIDERED HOUSTON YET.
AND SO THE TAX ABATEMENT WAS A SIGNIFICANT FACTOR IN THEM MOVING TO HOUSTON.
AND NOW THAT THEY'VE COMMITTING TO MOVING TO HOUSTON, WE'RE FOLLOWING THROUGH ON OUR END BY PROVIDING THE TAX ABATEMENT OR PROPOSING YOU ALL TO, TO APPROVE THE TAX ABATEMENT FULFILLING OUR END.
BUT, BUT YOU SAID EARLIER WE, WE DON'T HAVE AN AGREEMENT, SO WE DON'T HAVE AN END, DO WE? WHAT'S THAT? WE DON'T HAVE AN AGREEMENT AT THIS TIME.
YOU'RE WELCOME TO, UH, VOTE IT DOWN DURING COUNCIL IF YOU'D LIKE.
AND CAN I GO BACK IN THE QUEUE? I DON'T HAVE ANYBODY ELSE.
[01:10:01]
OKAY.I'LL, I'LL CONTINUE IF THAT'S ALL RIGHT.
AND SO YOU ALSO MENTIONED WE'RE TRYING TO STAY COMPETITIVE WITH THE OTHER SITES.
UM, AND YOU'VE LISTED THOSE ON SLIDE 10, ONE OF WHICH IS AKRON, OHIO.
SO STAFF DID A LITTLE, WELL, WE DID A LITTLE CHECKING ON THE INTERNET AND, UM, FOUND ON THE OHIO OFFICE OF BUDGET MANAGEMENT.
UH, INTEGRA ALREADY HAS A COMPLETED DEAL WITH AKRON, OHIO, UH, FOR, WELL, THEY, THEY HAVE EXISTING FACILITIES ALREADY IN, IN CANADA AND OHIO IN BOTH OF THESE CITIES.
SO THAT'S NOT SO A SURPRISE TO ME ANYWAY.
YEAH, WELL, YOU KNOW, THEY HAVE A, LET'S SEE, IT LOOKS LIKE, UH, 1.75, 1% NINE YEAR JOB CREATION TAX CREDIT, UH, THAT HAS BEEN APPROVED IN AKRON.
SO, SO IF WE'RE COMPARING, UH, HOUSTON WITH AKRON AKRON'S ALREADY A DONE DEAL FOR THEM, THEY WERE INTENDING TO EXPAND THEIR FACILITIES IN THESE TWO LOCATIONS.
NOT MOVE THERE COMPLETELY NEW.
YOU, YOU MENTIONED ALSO THEY HAD EXPRESSED CONCERNS ABOUT THE COST OF LABOR.
CAN CAN YOU ELABORATE ON THAT? WELL, THAT'S WHERE THE NATURE OF THE SLIDE COMES IN.
SO WE WERE, UM, WE'RE IN THE MIDDLE OF THE PACK, KIND OF BETWEEN HARROW AND AKRON, BUT WITH THE LOCAL INCENTIVES THAT ARE IMPLIED FOR THE EXPANSION OF THOSE TWO FACILITIES, WE WERE THEN THE MORE EXPENSIVE OPTION ARE, ARE OUR LABOR COSTS HIGHER HERE IN HOUSTON, UH, RELATIVE TO AKRON, OR, OR, OR WHAT, WHAT WAS, WHAT WAS THE CONCERN? IF YOU'D LIKE, WE CAN ARRANGE A MEETING BETWEEN YOU AND INTEGRA IF YOU'D FIND THAT HELPFUL, THAT THAT WOULD BE FINE.
WHAT ELSE DO WE HAVE? I, OKAY.
I I THINK THAT'S ALL I'VE GOT WITH REGARD TO INTEGRA.
BUT YOU STILL HAVE ANOTHER PART OF THE PRESENTATION, IS THAT RIGHT? THAT'S CORRECT, YES.
I I'VE GOT A COUPLE OF QUESTIONS.
UM, CITYWIDE, WHAT EXACTLY DOES THAT MEAN? CITYWIDE, CITYWIDE? THAT WAS ONE OF THE CRITERIA ON THE DIFFERENT, UM, THE ENTIRE CITY LIMITS AND ETJ.
BUT I MEAN, AS FAR AS A BUSINESS OPERATING, WHAT QUALIFIES THEM IS, DOES THAT MEAN THEY HAVE MULTIPLE LOCATIONS IN THE CITY TO QUALIFY AS CITYWIDE OR JUST ONE LOCATION INSIDE THE CITY? COULD I, UH, HAVE A LITTLE BIT OF CONTEXT FOR YOUR QUESTION, PLEASE? WELL, ON THE, UH, SEE IF I CAN GO BACK AND FIND A SLIDE NOW.
UH, ONE OF THEM YOU'RE TALKING ABOUT OUR ECONOMIC DEVELOPMENT PRIORITIES.
SO WHEN WE'RE SAYING CITYWIDE INDUSTRY PRIORITIES, WE'RE MEANING OUR HOUSTON'S MAIN ECONOMIC DRIVERS, WHAT THOSE INDUSTRIES ARE.
SO THAT'S NOT REFERRING TO THE BUSINESS, THAT'S REFERRING TO OUR CITYWIDE.
SO THAT'S THE, UM, I GUESS FOR, FOR SOME CLARITY, WHEN WE'RE DOING OUR TAX ABANDON PRESENTATIONS, THIS SLIDE WILL ALWAYS BE IN IT.
THAT LEFT GRAPHIC WILL NEVER CHANGE.
WE'LL, CHANGE WILL BE WHAT'S ON THE RIGHT BECAUSE WHAT'S ON THE RIGHT IS GOING TO BE APPLICABLE TO THAT PROJECT.
BUT, BUT THE LEFT IS JUST A REMINDER OF FOR OUR, FOR OUR OFFICE, THIS IS HOW WE'RE, UH, PRIORITIZING, UM, INCENTIVE REQUESTS AND THAT SORT OF THING.
SO 90% TAX ABATEMENT, ESSENTIALLY THAT'S THE TAXES THAT THEY WOULD PAY.
WE'RE GONNA GIVE THEM 90% OF THAT BACK OVER A COURSE OF A NUMBER OF YEARS.
YEAH, WE WILL, WE WILL CHOOSE NOT TO COLLECT THAT 90% OUT OF WHAT THEY WOULD PAY OVER TIME.
UM, THE BUILDING'S ALREADY COMPLETED, CORRECT? THAT'S CORRECT.
SO THEY'RE ALREADY PAYING ADDITIONAL PROPERTY TAXES 'CAUSE WE DON'T HAVE AN AGREEMENT WITH THEM.
SO IF YOU LOOK AT THE PROJECTION, UH, SLIDE 13, UH, WE HAVE HERE TEXT YEAR 2024.
UM, THE BUILDING WAS ASSESSED AT, UH, 161, ALMOST 162 MILLION.
UM, AND SO WE COLLECTED ABOUT 838,000, YOU KNOW, BUT THEN KEEP IN MIND WITH THE REVENUE CAP, THAT MONEY ISN'T TRULY BEING COLLECTED.
IT'S JUST SAYING THAT WE COULD, IT'S SOMEWHAT FUNNY MONEY, RIGHT? I MEAN IT BUILDS TOWARDS THE CAP.
SO THIS TAX ABATEMENT RELIEVES SOME OF THE PRESSURE ON THE REVENUE CAP.
SO THAT ISN'T NECESSARILY MONEY OUT OF THE CITY, BUT OBVIOUSLY IF WE, THIS MONEY IS NOT GOING INTO THE GENERAL FUND BECAUSE OF THE REVENUE CAP.
BUT IF WE ASK THE VOTERS TO INCREASE THE REVENUE CAP, THEN IT DOES POTENTIALLY.
UH, YOU WANNA GO AHEAD AND GO ON WITH THE SURE.
SO OUR SECOND ONE'S A LITTLE DIFFERENT.
SO HERE WE HAVE OUR GREEN STORMWATER INFRASTRUCTURE AND DETERIORATED SLASH DEMOLISHED PROPERTY TAX ABATEMENT PROPOSAL.
SO THE COMPANIES WE'RE WORKING WITH ARE TPM S3, DALC, AND TPMS FOUR D-A-L-L-C.
[01:15:01]
THE PROJECT SITE IS 1325 SOUTH DAIRY ASHFORD.SO I'M GONNA GIVE YOU A QUICK REFRESHER ON THE GSI ABATEMENT.
UM, SO CURRENTLY ELIGIBILITY CRITERIA IS $3 MILLION OF TOTAL PROJECT COSTS.
HOPEFULLY WITH THE TAX ABATEMENT ORDINANCE BEING APPROVED, THAT'LL BE REDUCED TO 375,000.
UM, RIGHT NOW A MINIMUM OF A HUNDRED THOUSAND DOLLARS IN GSI INVESTMENTS HOPEFULLY REDUCED TO 35,000.
UM, THEY ALSO WOULD RECEIVE 100% OF THEIR, UM, CITY TAXABLE VALUE FOR JUST THE, FOR THE GSI INVESTMENT OR 10 YEARS.
AND THE WAY WE'RE CALCULATING THAT IS THEY HAVE THEIR TOTAL ELIGIBLE GSI COSTS AND THEN WE'RE SUBTRACTING THE COSTS IT WOULD TAKE TO BUILD CONVENTIONAL STORMWATER DETENTION.
AND THEN WE ALSO HAVE RESEARCH THAT, UM, CALCULATES, UM, THE GSI CO-BENEFITS.
SO LIKE THE, THE MONETARY VALUE OF HAVING URBAN FORESTRY, THE MONETARY VALUE OF HAVING THOSE SORT OF IMPROVEMENTS.
AND SO THAT EQUATION TOGETHER CREATES WHAT THEIR, UM, ABATEMENT VALUE WILL BE.
THE OTHER ABATEMENT WE'RE WORKING WITH HERE IS THE DEMOLISHED PROPERTY ABATEMENT.
AND SO FOR THIS ONE, UM, THE ELIGIBILITY CRITERIA IS PRETTY SIMPLE.
UM, THE PROPOSED PROJECT HAS TO PROVIDE ECONOMIC BENEFIT, OR THE DEMOLITION ITSELF HAS TO PROVIDE ECONOMIC BENEFIT TO THE CITY.
AND THEN WHATEVER, UM, REPLACES THAT DEMOLISHED, DEMOLISHED PROPERTY WOULD HAVE TO INCREASE VALUE EITHER BY ONE AND A HALF TIMES WHAT EXISTED, OR A MILLION DOLLARS, WHICHEVER IS LESS.
UM, AND THEN THIS ONE ALSO IS UP TO 90% OF ELIGIBLE DEMOLITION COSTS OR 10 YEARS.
UM, WE'RE LOOKING AT A DEMOLITION OF THREE BUILDINGS, UH, LOCATED IN DISTRICT G AND THEN, UH, WELL UP FROM THE ASHES ESSENTIALLY WE'RE GOING TO HAVE A MIXED USE FACILITIES, UM, THAT ARE LIKE RETAIL OFFICE, UM, RESTAURANTS, ET CETERA.
SO WE'RE LOOKING AT 12.7 ACRES.
UM, AND THEN THE IMPROVEMENT SITE WILL BE 8.43 ACRES.
THEY'RE LOOKING AT A TOTAL INVESTMENT OF 28.3 MILLION DEMOLITION FOCUSED ON 3.9 MILLION.
AND THE GSI INVESTMENTS ARE, UH, ESTIMATED TO BE 5.58 MILLION.
SO THE WAY, UM, THIS PROJECT'S GOING TO WORK, IT'S A LONG MOVE, LONG TIMELINE FOR THIS PROJECT IS GONNA TAKE SOME TIME TO DEMOLISH THESE THREE BUILDINGS, BUT THEY'RE STARTING CON THE DEMOLITION IN 2024 THIS YEAR.
AND, UM, THEY PLAN TO HAVE DEMOLITION COMPLETED AND CONSTRUCTION STARTING IN SPRING OF 2026, UM, WITHIN ESTIMATED COMPLETION BY EARLY 2027.
UM, SO THERE'S A LOT OF CHANGE HAPPENING IN THIS LOCATION.
UM, AND SO IT'S A, WHAT'S GREAT ABOUT IT IS IT'S THE FIRST OF ITS KIND TO UTILIZE BOTH A DEMOLITION ABATEMENT AND A GSI ABATEMENT TOGETHER.
BUT THEN ALSO IT'S OUR FIRST GSI ABATEMENT PERIOD, WHICH IS GREAT.
UM, SO ON THE BOTTOM PART OF YOUR SLIDE HERE, UH, WE'RE SHOWCASING THE FOUR DIFFERENT TYPES OF GSI THEY'RE DOING.
IT'S MOSTLY THREE, BUT THEN YOU CAN'T DO THESE THREE IMPROVEMENTS WITHOUT DOING SOIL AMENDMENTS.
SO I'LL WALK THROUGH HERE PER SO PERMEABLE PAVERS ALLOW STORM WATER OR THE RAIN WATER COLLECTED ON THE SITE TO THEN SOAK INTO THE GROUND UNDERNEATH THE PAVER INSTEAD OF JUST RUNNING OFF LIKE CONCRETE OR ASPHALT DOES.
UM, SO THAT'LL SLOW DOWN, UM, SOME OF THE WATER AND REDUCE STREET FLOODING IN THIS AREA.
UM, THE BIOSWALES ADD, UM, PLANTINGS AND TREES THAT ARE, UM, CAPABLE AND ENJOY HAVING A BUNCH OF WATER AROUND THEM FOR A SIGNIFICANT AMOUNT OF TIME.
AND SO THAT ALSO HELPS SLOW DOWN, UM, SOME OF THE RAINWATER.
AND THEN URBAN FORESTRY AS WELL, WE'RE INCREASING SHADE.
UM, AND THAT CAN ALSO HELP WITH SOME OF THE FLOODING AS WELL.
SO THOSE ARE THE HIGHLIGHTS OF THOSE DIFFERENT GSI IMPROVEMENTS.
SO HERE, UH, THIS IS WHY WE'RE RECOMMENDING THE PROJECT.
THERE'S SEVERAL FACTORS, UH, THAT GO INTO IT.
UM, SO FIRST WE'RE ESTABLISHING A NEIGHBORHOOD AND COMMUNITY DESTINATION RETAIL SPACE.
THIS AREA DOESN'T QUITE HAVE ONE.
UH, IT REPURPOSES, IT REPURPOSES LAND USE AND INCREASES THE DENSITY IN THIS AREA, UH, IS GOING TO INDIRECTLY CREATE NEW JOBS FROM THE FUTURE RETAIL ESTABLISHMENTS.
UM, AND ANY SUPPORT FROM THE OFFICE BUILDINGS, THAT SORT OF THING.
UM, WE'RE UTILIZING GSI TO IMPROVE DRAINAGE AND ENHANCE THE VISITOR EXPERIENCE AS WELL.
UM, SO FOR ALL OF THESE JUSTIFICATIONS, UH, WE RECOMMEND,
[01:20:01]
UH, THIS PROJECT.SO SINCE IT WAS THE FIRST GSI ABATEMENT APPLICATION, THIS IS THE REVIEW PROCESS WE USED, UM, SINCE, UH, THE GSI TAX ABATEMENT'S UNIQUE IN THAT IT KIND OF ORIGINATED OUT OF THE RESILIENCE AND SUSTAINABILITY OFFICE AND THEN WE OPERATE IT, BUT WE ALSO NEED THEIR, UH, EXPERTISE IN GSI TO MAKE IT HAPPEN.
UM, THIS IS KIND OF THE, THE PROCESS WE USE.
SO FIRST IT WAS RECEIVED BY US, WE CHECKED IT FOR COMPLETENESS, AND THEN WE MOVED IT OVER TO, UM, THE RESILIENCE AND SUSTAINABILITY OFFICE AND, UH, PUBLIC WORKS.
AND BOTH OF THOSE ENTITIES EVALUATED FOR DIFFERENT THINGS.
SO THE RSO, UH, THEY EVALUATED BASED ON THE CITY'S RESILIENCE AND SUSTAINABILITY PRIORITIES WHILE PUBLIC WORKS REVIEWED IT FOR ITS PERMITTING AND ITS MAINTENANCE COMPLIANCE AND HOW THOSE THINGS MIGHT LOOK WHEN IT'S ACTUALLY READY TO ISSUE PERMITS.
AND THEN ONCE WE GOT APPROVAL FROM BOTH OF THOSE ENTITIES, IT CAME BACK TO US TO THEN WORK ON THE LIKE DRAFT TERM SHEET AND ALL THESE OTHER THINGS.
AND, UH, PRESENT TO YOU ALL NOW.
SO, UH, FROM THAT EXPERIENCE, WE ARE WORKING WITH THE RESILIENCE AND SUSTAINABILITY OFFICE TO FIND WAYS TO STREAMLINE BOTH THE ABATEMENT APPLICATION FOR THE GSI ABATEMENT AS WELL AS THE EVALUATION PROCESS.
UM, IMPROVEMENTS OF THIS PROCESS ARE LIKELY TO BE MADE WITHOUT REQUIRING ORDINANCE CHANGES.
UH, BUT OUR OFFICE WOULD BE HAPPY TO KEEP YOU ALL INFORMED ON ANY FUTURE CHANGES IF IF NEEDED OR RELATED.
UM, YOU CAN SEE THERE'S THE, THE THREE BUILDINGS HERE.
UH, WE ARE IN DISTRICT G, UM, JUST NORTH OF UH, DAIRY ASHFORD.
UM, SO WE'RE IN THE, THE WEST SIDE OF HOUSTON HERE.
THIS IS, UM, LIKE I MENTIONED BEFORE, ABOUT 12.7 ACRES, BUT TO GIVE YOU A SENSE OF PLACE, UM, THIS WOULD BE THE PROPOSED ZONE WHEN, WHEN WE MOVE FORWARD, UH, WITH THIS.
SO AS FAR AS THE TAX ABATEMENT ITSELF IS CONCERNED, UH, WE'RE LOOKING AT AN ESTIMATED EFFECTIVE DATE OF JANUARY 1ST, 2028.
UM, SO THE TOTAL ABATEMENT AMOUNT WOULD BE ABOUT 5.7 MILLION OR 10 YEARS.
UM, ON THE RIGHT HAND SIDE HERE ARE EXAMPLES OF THE DIFFERENT, UM, GSI IMPROVEMENTS THEY PLAN TO USE.
THE THREE PICTURES AT THE BOTTOM ARE RENDERINGS FROM, UM, THE COMPANY TO SHOW KIND OF WHAT THEY HOPE THEIR SPACE WILL LOOK LIKE.
SO, UM, THE BASE VALUE OF IMPROVEMENTS IS LIKELY TO BE TAX YEAR 2026.
UM, THAT'S WHEN DEMOLITION SHOULD BE COMPLETED, BUT CONSTRUCTION IS UNLIKELY TO HAVE STARTED BASED ON OUR PROJECTION.
THE TAX ABATEMENT INCENTIVE WILL ACQUIRE THE FULL 10 YEAR TERM.
UM, THE GSI ABATEMENT WOULD BE APPLIED TO THE PROPERTY FIRST AND THE DEMOLITION ABATEMENT WOULD TAKE EFFECT ONCE THE AGREED UPON GSI ABATEMENT AMOUNT IS ACHIEVED.
UH, BASED ON THIS PROJECTION, WE ANTICIPATE THE GSI ABATEMENT WOULD BE FULFILLED IN ABOUT YEAR TAX YEAR 2033 OR SO.
AND AT THAT POINT IT WOULD SHIFT DOWN TO THE 90% FOR THE DEMOLITION ABATEMENT.
SO THIS, UH, PROPOSAL FOLLOWS THE SAME TIMELINE AS THE PREVIOUS PROPOSAL.
SO ONCE THE TAX ABATEMENT ORDINANCE IS APPROVED, WE'D MOVE FORWARD WITH THIS ONE AS WELL.
UM, UH, MID-SEPTEMBER PUBLIC HEARING AND EARLY OCTOBER.
UM, ZONE CREATION AND ORDINANCE FOR THE AGREEMENT, UM, WHEN THE TIME COMES.
SO I'LL TAKE ANY QUESTIONS ABOUT THIS, UH, PROJECT AT THIS TIME.
UH, JUST ONE QUICK QUESTION, THEN I'LL GO BACK IN THE QUEUE.
UM, SO, SO THE LOCATION OF THIS TRACK, YOU SAID, UH, IT WAS DAIRY ASHFORD AND WHAT'S THE OTHER CROSS STREET THAT IS FIRE FOREST R FOREST.
OH, I DIDN'T KNOW HE WAS DONE.
FIRST OFF, I WE'RE SO EXCITED TO FINALLY SEE ONE COMING FORWARD AS IT RELATES TO GSI.
UM, AND I LOOK FORWARD TO MORE DETAILS ON THIS AS THE PROJECT PROGRESSES.
I WOULD BE, TO YOUR POINT ABOUT PROCESS, RIGHT? AND THE LEARNING CURVE.
UH, I'D BE VERY INTERESTED TO KNOW ONE, HOW, UH, THIS DEVELOPER FOUND OUT ABOUT THE GSI ABATEMENT.
[01:25:01]
WAS IT THROUGH GOING TO THE, UM, THROUGH THE DEMO ABATEMENT FIRST AND THEN BEING MADE AWARE OF IT? AND AGAIN, THIS IS UNIQUE BECAUSE IT'S TWO ABATEMENTS IN ONE, SO THAT BIG NUMBER IS BECAUSE IT, WE'RE COMBINING TWO, BUT IT'D BE VERY HELPFUL TO KNOW WHAT THEIR FEEDBACK WAS THROUGHOUT THIS PROCESS AS WELL.SO Y'ALL ARE LEARNING A LOT AND WORKING WITH OTHER DEPARTMENTS TO ASSESS AND ANALYZE AND MAKE SURE IT CHECKS ALL THE BOXES.
HOPEFULLY WE'RE ALSO GETTING THE FEEDBACK, UM, FROM THE PARTNERS WE'RE WORKING WITH AS TO HOW IT WAS FOR THEM AND HOW WE CAN MAKE THIS, UM, A MORE EXPEDITED PROCESS, BUT ALSO JUST A BETTER PROGRAM AND A STRONGER PROGRAM.
SO ANY OF THAT FEEDBACK I WOULD LOVE TO HEAR, EVEN IF IT'S OFFLINE OR AT ANOTHER TIME.
UH, BUT IF, YOU KNOW, FIRST HOW DID THEY FIND OUT ABOUT IT? WAS IT FIRST COMING FROM DEMO OR DO WE KNOW? SO THEY APPROACHED US, UH, WITH THE GSI ABATEMENT IN MIND, WHICH WAS GREAT.
UM, AND SO THAT, THAT WAS AN AWESOME, UM, EXPERIENCE TO HAVE.
AND IT'S, YOU'RE RIGHT, IT'S BEEN A LEARNING CURVE.
UM, SO WE WILL HAVE, UH, WHEN WE'RE THROUGH ALL OF THIS, UM, WE'LL DEFINITELY ASK FOR THEIR FEEDBACK.
UM, 'CAUSE RIGHT, RIGHT NOW WE'RE, UM, WE'RE ALSO WORKING ON THE DRAFT TERM SHEET FOR, FOR THEM AS WELL.
AND IN TERMS OF, UH, I DON'T WANNA SAY THE WORD ENFORCEMENT, BUT BECAUSE IT'S A ONE TIME, IT'S NOT OVER THE COURSE OF THE DURATION OF THIS, THIS COMPANY, ARE WE ALSO TO MAKE SURE THEY'RE STAYING TRUE TO WHAT THE COMMITMENT IS? I DON'T DOUBT THAT THEY WILL, BUT, UM, ARE WE, DO WE HAVE A WAY TO NOTE, FOR EXAMPLE, WHEN THEY'RE SUBMITTING TO PERMITTING, UH, TO MAKE SURE IT'S CONTINUING TO CHECK ALL OF THOSE BOXES? OR HOW ARE WE, WHAT SYSTEM IS IN PLACE TO MAKE SURE THAT THEY'RE ACTUALLY ADHERING TO THE UNDERSTANDINGS AND THE TERMS OF THIS ABATEMENT? YEAH, WE ARE WORKING WITH THE RESILIENCE AND SUSTAINABILITY OFFICE ON THAT.
UM, I DON'T HAVE THOSE DETAILS IN THE MOMENT, FORTUNATELY BECAUSE THE DEMOLITIONS HAVE TO GO THROUGH FIRST.
WE DO HAVE A LITTLE BIT OF TIME TO IRON OUT WHAT REGULAR COMPLIANCE WILL LOOK LIKE.
UM, BUT THAT IS SOMETHING THAT, UM, WE, WE'VE BEEN, WE'RE HAVING ACTIVE CONVERSATIONS WITH RSO ABOUT.
SO JUST LOOKING AT, UH, GOOGLE MAPS REAL QUICK, UM, TO SEE WHAT WAS ON THE SITE AND UM, THERE IS SOME RETAIL THERE ALREADY.
MARCO'S PIZZA, THERE'S A KINGDOM KIDS LEARNING CENTER.
UH, THERE'S A GEO SERVICES UNIVERSITY OF SOME KIND.
THERE'S A CVS AND A FAMILY CLEANERS.
UM, SO THAT WOULD, THAT WOULD ALL GO AWAY PRESUMABLY.
AND IT WOULD BE REPLACED BY, UM, OFFICE SPACE, SOME RETAIL.
AND DO YOU KNOW IF THERE ARE ANY ANCHOR TENANTS ASSOCIATED WITH THE PROJECT THUS FAR? SO I WANT TO CLARIFY.
THE CVS IS NOT INCLUDED IN THE REINVESTMENT ZONE AND THAT WILL REMAIN.
CAN I SEE THAT IN THE, IT'S THE OFFICE STRUCTURE JUST NORTH OF THE CVS THAT IS CURRENTLY VACANT, SO THAT'LL BE DEMOLISHED.
UM, THEN THERE'S THE LONGER STRUCTURE THERE THAT HAS SOME TENANTS, UM, AND THEY ARE, UH, MOVING ELSEWHERE.
THEIR LEASES AREN'T BEING RENEWED.
AND THEN THERE'S THE, I BELIEVE THAT OFFICE THAT'S JUST EAST OF THE CVS, UM, THAT IS ALSO VACANT.
AND, UM, SO, SO MOST OF THE JOBS CREATED OR THE JOBS CREATED WOULD BE, UM, LOW SKILL AND MID-SKILL.
IS THAT RIGHT? THAT'S WHAT WE'RE EXPECTING.
UM, AGAIN, THIS PROJECT ISN'T FOCUSED ON JOB CREATION BECAUSE WE'RE LOOKING AT PURELY JUST THE BUILT ENVIRONMENT CHANGE.
UH, BUT WE ARE SEEING, YOU KNOW, THERE WOULD BE AN INDIRECT BENEFIT BASED ON THE DEVELOPMENT THAT WOULD TAKE PLACE HERE.
AND THEN THE OTHER COMPONENT, OBVIOUSLY THE IMPORTANT COMPONENT AND THIS ONE IT SEEMS IS THE GSI.
AND HAVE THERE BEEN ANY, UM, DRAINAGE OR ENGINEERING STUDIES TO SEE HOW, HOW, UH, THE DRAINAGE WOULD BE AFFECTED WITH THE CHANGES? SO AS A REQUIREMENT, THEY HAVE A CIVIL ENGINEER THAT THEY, THEY'RE WORKING WITH FOR THEIR PROJECT AND PUBLIC WORKS HAS REVIEWED THIS PROJECT.
AND SO THEY ARE REQUIRED TO HAVE THOSE STUDIES AND DO WE KNOW WHAT, WHAT PUBLIC WORKS SAID ABOUT IT, THEY'RE NOT GONNA HAVE A FINAL ANSWER UNTIL IT'S AVAILABLE FOR PERMITTING.
BUT RIGHT NOW, BASED ON WHAT THEY HAVE SEEN FROM THEIR CIVIL ENGINEER, THEY ARE APPROVAL WHAT THEY APPROVE IT.
UM, BUT PUBLIC WORKS WON'T START ITS TRUE THOROUGH INVESTIGATION ON THE SITE UNTIL THEY APPLY FOR PERMITS.
AND HAS THIS, UH, LLC TPMS THREE DA, HAVE THEY PROVIDED ANY STUDIES
[01:30:01]
ON DRAINAGE? YEAH, THEY HAVE THEIR STUDY, UM, FOR WHERE THEY'RE AT THIS TIME.AND WHAT DOES IT SHOW? I DON'T HAVE IT OFF HAND.
THAT'S NOT SOMETHING THAT OUR OFFICE WOULD NECESSARILY EVALUATE.
UH, ALSO YOU'VE LISTED PROPOSED FUTURE MULTI-FAMILY HOUSING.
CAN YOU TELL US A LITTLE BIT ABOUT THAT? RIGHT, SO THAT IS NOT INCLUDED IN THIS PROJECT, BUT IT IS INCLUDED IN THE GENERAL ZONE BECAUSE, UM, IF, IF YOU GO BACK TO PAGE, UH, SLIDE 18, SO YOU CAN SEE ON THOSE LITTLE SITE PLANS, UM, IN THE, THE BOTTOM PORTION OF THE THE SLIDES, THERE'S THAT BLANK SPACE IN THE UPPER LEFT CORNER THAT IS WHERE THE MULTIFAMILY HOUSING IS GOING TO GO.
UH, BUT THAT IS GOING THROUGH A DIFFERENT DEVELOPER, DIFFERENT COMPANY.
UM, SO EVEN THOUGH IT'S TAKING PLACE ON SITE, IT'S NOT PART OF THE ABATEMENT.
SO WE'RE NOT REALLY FOCUSING ON THAT SO MUCH FOR THE PURPOSES OF THIS ABATEMENT.
UM, WE'RE LOOKING AT THE DEVELOPMENT THAT'S GONNA HAPPEN AROUND THAT PROPOSED MULTIFAMILY MM-HMM
ARE THEY, ARE THEY TIED TOGETHER NECESSARILY OR CAN YOU SEPARATE 'EM OUT? WE COULD SEPARATE THEM OUT FOR THE EASE OF THE ABATEMENT WE'RE PUTTING THEM TOGETHER BECAUSE IT'S, IT'S ONE CONTINUOUS PROJECT FROM START TO END WITH THE DEMOLITION AND THEN THESE IMPROVEMENTS.
AND LET ME ASK YOU, UM, SO YOUR PRESENTATION HAS COVERED JUST THE, UH, GENERAL CHANGES TO THE ORDINANCE AND THE INTEGRA PROPOSED TAX ABATEMENT AND NOW THIS, UH, TPMS THREE AND FOUR DA ABATEMENT PROPOSALS, RIGHT? MM-HMM
SO DO YOU KNOW IF ALL THREE OF THESE WILL BE LUMPED INTO ONE ORDINANCE OR WILL THEY BE SEPARATE? THEY'LL ALL BE FULLY SEPARATE.
SO THE TAX ABATEMENT ORDINANCE IS ITS OWN THING THAT AUTHORIZES US TO DO TAX ABATEMENTS.
THEN FOR INTEGRA THEY'RE GONNA HAVE ONE ORDINANCE AND THAT'LL JUST BE FOR THE AGREEMENT.
SINCE THE ZONE ALREADY EXISTS FOR THIS PROJECT, WE'LL HAVE TWO ORDINANCES, ONE TO CREATE THE ZONE AND THEN ONE FOR THE AGREEMENT.
SO WE'LL WE'LL BE VOTING ON FOUR SEPARATE AGENDA ITEMS THEN? THAT'S CORRECT.
I'VE GOT A COUPLE OF QUESTIONS.
UM, ON THESE LITTLE SITE MAPS ON 18 MM-HMM
I DON'T SEE ANY DETENTION WITH THIS ABATEMENT.
DO THEY QUALIFY NOT TO HAVE DETENTION OR HOW DOES THAT WORK? SO THE PURPOSE OF THE GSI IS TO, UM, THERE'LL BE IMPROVEMENTS MADE ON THE SITE THAT REDUCE THEY'RE REQUIRED DETENTION.
AND SO THE, THE WAY THE BIOSWALES ARE DESIGNED AND THE PERMEABLE PAVERS WORK, UM, THE WATER'S GOING TO DRAIN INTO THOSE AREAS AND THEY CAN HAVE DETENTION BOXES OR SOMETHING UNDERNEATH THOSE THINGS OR, UM, DEPENDING ON HOW THEY DESIGN THEIR BIOSWALES, THAT MIGHT JUST FILTER INTO THE GROUND SOIL.
UM, AND SO THEIR DETENTION REQUIREMENTS ARE REALLY GOING TO BE DETERMINED WHEN THEY MOVE INTO THAT STAGE OF PERMITTING TO SEE HOW, UM, WHEN, UM, THE PERMITTING CENTER IS REVIEWING THEIR BIOSWALE DESIGNS AT THAT TIME AND THEIR URBAN FORESTRY AND THE PERMEABLE PAVERS AT THAT TIME TO SEE IF THERE'S ANY ADDITIONAL DETENTION THAT HAS TO BE REQUIRED SOMEWHERE.
AND THEY'LL LIKELY PUT SOME SORT OF, UM, WATER STORAGE, UM, UNDERNEATH MAYBE ONE OF THE PARKING LOTS OR SOMETHING LIKE THAT.
SO IF I UNDERSTAND CORRECTLY, THEY STILL HAVE THE SAME DETENTION REQUIREMENTS, ALTHOUGH THEY MAY BE OFFSET OR COMPLETELY MITIGATED BY THESE OTHER RIGHT.
SINCE THEY ARE DOING SOME DEVELOPMENT, THEY HAVE TO FOLLOW ALL THE SAME STANDARDS OKAY.
AS WHAT ANY OTHER FACILITY WOULD HAVE TO DO FOR, UH, DETENTION REQUIREMENTS.
THE GSI HELPS BECAUSE IT, IT REDUCES SOME OF THAT IMPACT BY USING MORE NATURAL, UM, IN INTERVENTIONS INSTEAD OF JUST THE, THE GRAY STORM WATER THAT WE NORMALLY THINK ABOUT.
NOW THESE PROPERTIES CURRENTLY, WHAT ARE THEY VALUED AT ON THE TAX ROLLS? YEAH, SO CURRENTLY IT'S ABOUT $10 MILLION.
SO THAT IS ON, UM, THE PROJECTION.
UM, SO CURRENTLY IT'S ABOUT 10 AND A HALF FOR, UH, FOR ALL THE STRUCTURES THAT ARE UM, INCLUDED.
UM, SOMEBODY WAS ASKING THE QUESTION EARLIER WITH PERMITTING AND THE GSI, UM, IS PERMITTING ARE, ARE THEY KIND OF INVOLVED HAND IN GLOVE WITH WHAT THE BUILDER'S SUPPOSED TO DO IN ORDER TO QUALIFY FOR, FOR THIS? YEAH.
SO THEY WON'T BE ABLE TO GET THEIR BUILDING PERMITS UNTIL THEY GO THROUGH ALL
[01:35:01]
OF THAT.SO PERMITTING'S GOING TO HAVE, UM, A VERY DETAILED LOOK AT ALL OF THEIR GSI IMPROVEMENTS.
UM, JUST A SUGGESTION, SINCE THIS IS GOING TO BE THE FIRST GS, UM, AND THEN MORE SO FOR COUNCIL'S BENEFIT RATHER THAN WITH THE END USER, I THINK IT WOULD BE GREAT TO SEPARATE THAT ABATEMENT OUT SO WE CAN TAKE A LOOK AT IT.
I'M NOT SURE WHAT Y'ALL'S THOUGHTS ARE, BUT COULD YOU DEFINE, SEPARATE IT OUT WELL, SO THAT WE KNEW WHAT THE GSI WAS AND WHAT THE DEMOLITION WAS EACH, EACH ONE OF THE COMPONENTS? WELL, IT'S UH, BASED ON TIMING.
SO THEY CAN'T DO THEIR DEVELOPMENT UNTIL THOSE BUILDINGS ARE DEMOLISHED.
SO THE, THE DEMOLITION ABATEMENT IS GOING TOWARDS THE DEMOLISHING OF THOSE THREE BUILDINGS.
UM, AND THEN THEIR, THEY CAN'T REALLY, UH, FUND A TAX ABATEMENT BECAUSE THEN THERE'S NO VALUE ON THESE PROPERTIES.
SO THEN THEY NEED THE NEW DEVELOPMENT THAT'S GOING TO USE THE GSI TO GENERATE THE PROPERTY VALUE NEEDED.
SO THEY'RE THEY'RE LINKED TOGETHER.
YEAH, SO THEY'RE SOMEWHAT TIED TOGETHER AND THEY ARE PART OF THE MATH.
AND, UM, AS IT RELATES TO THE BENEFITS OF GSI, SOME OF IT DOES OFFSET DETENTION AND ONE OF THE CHALLENGES IS IT, IT IT'S A LOT MORE, UH, COST EFFECTIVE TO BE ABLE TO JUST RIGHT.
TO DIG A HOLE AND COUNT THAT AS ATTENTION VERSUS DOING NICER MORE, UH, BENEFITS THAT WILL IMPROVE THE PROPERTY AS A WHOLE.
BUT I, I DO WANNA, UM, ALSO MENTION THOUGH, AS IT RELATES TO DETENTION GSI DOESN'T JUST NECESSARILY OFFSET DETENTION REQUIREMENTS.
IT CAN, BUT IT ALSO SLOWS RUNOFF.
SO IT'S NOT THE HOLDING OF THE WATER, IT'S SLOWING RUNOFF, IT'S CLEANING THE WATER.
UH, THE OTHER BENEFIT, UH, THE LIST GOES ON DEPENDING ON THE TYPE OF GSI IT IS, BUT I WANTED TO MAKE SURE THAT WE'RE NOT JUST, UH, LABELING THIS AS DETENTION ONLY.
UH, BECAUSE AGAIN, YOU CAN'T NECESSARILY QUANTIFY HOW ADDING TREES BRINGS DOWN A, BRINGS DOWN THE TEMPERATURE, BUT THAT'S GONNA HAVE, SO ALL OF IT GOES TO, AND OBVIOUSLY AESTHETICS WOULD BE MUCH BETTER, RIGHT.
PROPERTY VALUES INCREASE, BUT IT'S, THERE'S ADDITIONAL BENEFITS, NOT JUST THAT IT ATTENTION.
SO I THINK IT'D BE HELPFUL FOR PUBLIC WORKS TO BE ABLE TO SAY SOME OF THAT.
BUT I WANTED TO JUST CLARIFY AS IT RELATES TO ANY OF THESE PROJECTS, UH, DETENTION IS ONE COMPONENT, BUT IT ALSO CAN BE JUST SLOWING RUNOFF, THINGS OF THAT NATURE THAT IT'S, IT'S BENEFITING TO.
UH, ANYTHING ELSE? UH, THAT'S ALL I HAVE.
I'M HAPPY TO TAKE ADDITIONAL QUESTIONS OR IF Y'ALL WANNA REACH OUT TO MY OFFICE OR SORRY, THE OFFICE OF ACADEMIC DEVELOPMENT.
UM, HAPPY TO FIELD ANY QUESTIONS OFFLINE AS WELL.
UM, I GUESS WE GO INTO PUBLIC SPEAKERS NOW.
AND THE COMMENTS SHOULD BE RELEVANT TO THIS AGENDA ITEM.
SO IF WE'VE GOT ANY PUBLIC SPEAKERS HERE WHOSE COMMENTS ARE RELEVANT TO THE AGENDA ITEM THEM, UM, FIRST, THE FIRST ONE SPEAKER, IT WAS GLADYS HOUSE.
THINK ONE WAS SIGNED UP BEFORE I DID YOU.
WELL THESE ARE THE PEOPLE WHO, THESE ARE THE ONES WE'VE GOT SIGNED UP ALREADY AND, AND WE WILL GET TO YOU IN IN JUST A SECOND.
SO, GLADYS, YOUR FIRST SIGNED
IT NOW IS THIS REGARDING, REGARDING THE TAX ABATEMENTS? UH, I'M GONNA GIVE INPUT, BUT I HAVE ANOTHER, UH, COMMENT.
IT HAS TO BE RELEVANT TO THE YEAH, YEAH.
THIS IS JUST FOR THE TAX ABATEMENTS AND THAT'S WHAT WE'RE TAKING COMMENTS ON.
ARE THERE, OKAY, WELL AIRPORTS UPDATE, DO A COMMENT ON THE OKAY, YOU WANNA GO AHEAD AND OKAY.
YEAH, WHEN SHE WAS TALKING ABOUT, UM, COMPLIANCE TO MAKE SURE THAT EVERYTHING WAS GONNA BE MET TO THE AGREEMENT, UM, BECAUSE I KNOW IN THE STATE OF TEXAS THEY RUN INTO PROBLEMS WHEN WITH ABATEMENT, UH, PROJECTS THAT BY THE TIME, UH, IT MATURES FOR THE THAT PARTICULAR COMPANY OR ENTITY TO DELIVER, THEY LEAVE THE STATE.
SO IT'S LIKE THEY GOT A FREE RIDE.
SO, UH, I JUST WANTED TO SHARE THAT LITTLE INFORMATION TO YOU ALL.
UH, WHO ON THIS COMMITTEE, UH, MR. CHAIR DO I NEED TO SPEAK TO ABOUT CONSTRUCTION OF OUR YOUTH CENTER IN FRIEDMANS TOWN? BECAUSE I WAS, UH, ATTACKED BY THE MAYOR AT THAT TIME AND WE HAD OUR OWN PRIVATE MONEY PERMIT.
THE PLANNING COMMISSION APPROVED OUR PERMITTING, EVERYTHING, BUT THE MAYOR
[01:40:01]
INTENTIONALLY, KNOWINGLY KEPT DELAYING OUR PERMIT.SO WE, OUR FUNDING SOURCE HAD TO, HAD TO LEAVE AFTER TWO YEARS.
YOU KNOW, THEY WAITED A LONG TIME.
SO IS IT ANY PARTICULAR PERSON ON THIS COMMITTEE WHO CAN WORK WITH US? YOU GOT ANY ANSWER ONE? I KNOW THAT THE CHAIR'S, UH, WE HAVE THE VICE CHAIR SITTING IN RIGHT NOW.
SO OBVIOUSLY WORKING WITH THE CHAIR OF THE COMMITTEE BUT ALSO WORKING WITH THE OFFICE OF ECONOMIC DEVELOPMENT AND THE MAYOR'S OFFICE ITSELF.
I DO KNOW, UM, GLADYS THAT WE'VE ASKED THAT THE MAYOR'S TEAM HAVE A SPECIFIC LIAISON TO WORK ON THE VERY SENSITIVE AND SPECIFIC ISSUES THAT WE HAVE, UM, IN FOURTH WARD IN FRIEDMANS TOWN.
AND SO I HAVE ASKED FOR THAT AS WELL.
SO WE HAVE A DIRECT LINE OF COMMUNICATION ON THAT.
OF COURSE, MY OFFICE IS, UM, ALWAYS HERE AND WILL CONTINUE TO WORK WITH YOU, BUT IF YOU'RE ALSO LOOKING FROM AN ECONOMIC PERSPECTIVE, 'CAUSE I DON'T SIT ON THIS COMMITTEE, UM, WORKING WITH THE CHAIR'S OFFICE, UH, WOULD BE VERY, I THINK VERY PRODUCTIVE.
THEY, THE CHAIR DOES A PHENOMENAL JOB.
SO CAS WOULD BE THE COUNCILWOMAN.
THEN, SO DISTRICT, DISTRICT K HOUSTON DOT GO.
ALRIGHT, WELL THANK YOU VERY MUCH.
I'M A CIVIL ENGINEER AND A RESILIENCE PLANNER.
AND BACK IN 2019, I, UH, WAS WORKING ON A, A STUDY FOR A COUNCIL MEMBER ALCORN, WHEN SHE WORKED FOR STEVE CASTELLO, YOU KNOW, WHEN HE WAS THE FLOOD FLOOD SAR.
AND THE REPORT, UM, SUGGESTED AMONG OTHER THINGS THE GSI TAX ABATEMENT.
AND SO I'M JUST HERE TODAY TO, TO THANK, UH, COUNCIL MEMBER ALCORN AND COUNCIL MEMBER CAYMAN FOR ADVANCING THAT.
UM, AND ALSO THANK THE OFFICE OF ECONOMIC DEVELOPMENT FOR THEIR WORK ON THIS.
AND JUST WANTED TO EXPRESS MY SUPPORT FOR THE FIRST GSI TAX STATEMENT.
I HOPE YOU GUYS ISSUE IT WHEN IT GOES TO FULL COUNSEL.
UH, COUNCILMAN CAYMAN? NO, MR. MR. BLOOM.
COUNCILMAN CAYMAN HAS A QUESTION.
I JUST, I LOOK, YOUR INPUT, YOUR EXPERTISE, YOUR WORK ON THIS HAS BEEN INVALUABLE.
UM, SO I WANNA CREDIT YOU AND OTHERS WITH THE WORK THAT CAME TO BRING ALL OF THIS TO FRUITION.
CAN YOU SPEAK TO SOME OF THOSE BENEFITS TO WHY THE GSI PROGRAM IS IT'S IMPORTANT TO NOT JUST CONTINUE IT, BUT MAKE THESE CHANGES TO ALLOW THE PROGRAM TO HOPEFULLY BE SUCCESSFUL? SURE.
I MEAN I THINK, I THINK THE, UM, THE, THE WHOLE QUESTION OF USING AN ABATEMENT TO ENCOURAGE GSI IS, IS A, IS OUR, YOU KNOW, THIS, THIS CITY'S DECISION.
UM, THERE ARE OTHER CITIES IN THE COUNTRY THAT REQUIRE IT.
UH, WHEN SOMEONE GETS, WANTS TO APPLY TO BUILD A NEW, A NEW PROJECT OR A NEW DEVELOPMENT IN THEIR CITY, THEY'RE REQUIRED TO USE GREEN INFRASTRUCTURE TO MANAGE STORMWATER MORE EFFICIENTLY AND AND BETTER.
UM, BUT IN OUR CASE, WE DIDN'T WANT TO HAVE THAT REGULATORY AS, YOU KNOW, ASSERTIVENESS.
WE WANTED TO HAVE IT BE A FLEXIBILITY THING AND AN INCENTIVE THING.
AND, AND SO REALLY WHAT I WOULD SAY IS THAT WHEN YOU'RE THINKING ABOUT THE REDUCTION, UH, IN THE TAX COLLECTION, THAT THAT A MONEY THAT YOU'RE PAYING THIS DEVELOPER IS ACTUALLY BUYING A PUBLIC GOOD AND THE PUBLIC GOOD IS BETTER A MONETIZED AREA, BEAUTY, AESTHETICS, REDUCED HEAT ISLAND, BETTER WATER QUALITY, BETTER SOIL QUALITY, POLLINATOR HABITAT, WILDLIFE, LIKE ALL THE THINGS THAT WE, LIKE, ALL THE THINGS THAT THE MASTER PLAN DEVELOPERS ARE SELLING WHEN THEY SELL SUBURBAN HOMES, YOU KNOW, WITH BIG PARKS AND TRAILS.
AND IT'S WHAT THE BAYOU GREENWAY IS ABOUT, RIGHT? THAT THAT'S WHAT THIS IS ALL ABOUT.
AND SO RATHER THAN JUST REQUIRE IT, YOU HAVE TO DO IT ON ALL NEW DEVELOPMENT.
WE JUST SAID, WELL MAYBE WE COULD JUST DO AN INCENTIVE AND MAYBE ENCOURAGE PEOPLE TO DO IT AS A WAY TO AND BUY THAT PUBLIC GOOD WITH THAT TAX MONEY.
UH, NEXT SPEAKER IS DOUG SMITH.
THE, UH, PROPERTY TAX CAP IS SOMETHING THAT'S EXTREMELY DIFFICULT TO UNDERSTAND AND YOU THREW OUT A FIGURE OF $800,000 WORTH OF FUNNY MONEY, UH, ON THE AIRPORT AREA, UH, TAX ABATEMENT THAT YOU WERE
[01:45:01]
TALKING ABOUT.AND I THINK SOMETHING WAS MISSING THERE.
AND THAT IS THE TAX ABATEMENT OR THE AMOUNT OF ALLOWABLE PROPERTY TAX COLLECTION STARTS WITH THE PREVIOUS YEAR'S AMOUNT AND ANY NEW CONSTRUCTION IS ADDED TO THAT.
SO THE NEW CONSTRUCTION, UH, WOULD BE ADDED.
AND IT'S NOT $800,000 OF FUNNY MONEY I STAND CORRECTED.
BECAUSE IT'S A LOT OF MONEY AND I DON'T WANT YOU TO THINK IT IS FUNNY MONEY REGARDING THE AIRPORT, UM, UH, PRESENTATION.
UH, THERE WASN'T AN ALLOWANCE FOR PUBLIC COMMENT THEN.
FIRST OF ALL, UH, CONGRATULATIONS ON THE FACT THAT THEY HAVE 5 MILLION HOURS OF MAN WORK OR WOMAN WORK, UH, WITH NO LOST DAYS TIME.
SECONDLY, I WAS SHOCKED TO HEAR THAT THE NEW BOILERS ARE GOING TO BE ELECTRIC AND AFTER WHAT WE'VE JUST BEEN THROUGH IN THE LAST WEEK, I AM QUESTIONING WHETHER THAT IS A WISE DECISION.
UH, SEE WHAT ABOUT THIS HILLARY? UM, HILLARY, UH, IF SHE'S ONLINE, I DUNNO IF SHE'S HILLARY CONSULTING.
UH, WE'VE GOT A HILLARY CONSULTING ONLINE.
IT'S STAR SIX ON MUTE IF SHE'S ON THAT.
UM, STAR SIX, IF YOU'RE, I DON'T SEE IT THERE AND WANTING TO SPEAK.
DOESN'T APPEAR THAT ANYONE ELSE IS THERE.
UM, BEFORE WE ADJOURN, I WOULD LIKE TO REMIND EVERYONE ON THE NEXT, UH, ECONOMIC DEVELOPMENT COMMITTEE MEETING SCHEDULED FOR WEDNESDAY, AUGUST 21ST AT 2:00 PM THANK YOU.
IF THERE THE TIME, 2 48 OH THE TIME IS 2 48, THE MEETING IS ADJOURNED.