* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [Economic Development Committee on July 15, 2026.] [00:00:11] LIVE 15TH, 2026. AND THE TIME IS 2:00 PM I'M MAYOR PRO TEM CASTEX TATU, THE CHAIR OF OUR ECONOMIC DEVELOPMENT COMMITTEE. AND I'D LIKE TO CALL THIS MEETING TO ORDER. I DO WANT TO WELCOME THE COMMITTEE AND COUNCIL MEMBERS, STAFF AND GUESTS IN ATTENDANCE TODAY. UH, VICE CHAIR FLICKINGER IS HERE, COUNCIL MEMBER RAMIREZ. COUNCIL MEMBER HUFFMAN, UH, VICE MAYOR PRO, TIM PECK IS HERE. WE DO HAVE STAFF FROM COUNCIL MEMBER CASTILLO'S OFFICE, STAFF FROM COUNCIL MEMBER SALINAS'S OFFICE CA, UH, STAFF FROM COUNCIL MEMBER MARTINEZ'S OFFICE, STAFF FROM COUNCIL MEMBER CARTER'S OFFICE, AND ALSO STAFF FROM COUNCIL MEMBER PANZELLA'S OFFICE. UH, THIS MEETING IS OPEN TO THE PUBLIC. IT'S BEING HELD IN PERSON AND VIRTUALLY. WE'RE ALSO BROADCASTING LIVE ON HTV COUNCIL MEMBERS. UM, IF YOU'RE ATTENDING VIRTUALLY, YOU CAN OF COURSE USE THE CHAT POD TO COMMUNICATE. UH, VICE CHAIR FLICKINGER, DO YOU HAVE ANY REMARKS YOU'D LIKE TO MAKE AS WE BEGIN? NO, MA'AM. THANK YOU. THERE ARE TWO MEMBERS OF THE PUBLIC WHO HAVE SIGNED UP TO SPEAK TODAY. ONE MEMBER HAS COMMUNICATED THAT SHE WILL NOT BE PRESENT. UM, IF THERE ARE ANY ADDITIONAL PUBLIC SPEAKERS PRESENT IN CHAMBER THAT WOULD LIKE TO SPEAK, THERE IS A SIGNUP SHEET AT THE FRONT TABLE TO YOUR RIGHT. UH, PUBLIC SPEAKERS WILL HAVE A CHANCE TO SPEAK AT THE CONCLUSION OF THE PRESENTATION. ANY QUESTIONS CAN ALSO BE MAILED TO THE DISTRICT, A OFFICE AT DISTRICT A@HOUSTONTX.GOV. AND WE'LL, WE WILL FORWARD THOSE TO THE RESPECTIVE DEPARTMENTS FOR RESPONSES. FIRST ON OUR AGENDA TODAY, WE HAVE JENNIFER CURLEY, WHO IS OUR ASSISTANT DIRECTOR WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT HERE WITH US IN CHAMBER, AND SHE WILL PRESENT ON FISCAL YEAR 2027 TAX INCREMENT REINVESTMENT ZONE BUDGET SCHEDULES. MS. CURLEY, THANK YOU FOR BEING HERE, AND WE ARE READY TO HEAR FROM YOU. OH, THANK YOU SO MUCH FOR HAVING ME TODAY. UM, I WANNA TAKE SOME TIME, A LITTLE BIT OF TIME WITH YOU TO TALK, LET YOU KNOW THAT THE TURS 2027 BUDGETS WILL BE PLACED ON COUNCIL'S AGENDA BEGINNING ON AUGUST 12TH. NEXT SLIDE, PLEASE. UM, AS YOU'RE AWARE, TAX INCREMENT REINVESTMENT ZONES ARE AUTHORIZED BY CHAPTER THREE 11 OF THE TEXAS TAX CODE TSS. WERE CREATED BY THE CITY TO ENCOURAGE THE REDEVELOPMENT OF UNDERDEVELOPED AND OR UNDEVELOPED COMMERCIAL AREAS BY ATTRACTING PRIVATE INVESTMENT. THE CITY HAS 27 ACTIVE TS. OUR CURRENT INCREMENT PARTNERS ARE HARRIS COUNTY, HOUSTON, ISD, SPRING, ISD ALDEN, ISD, HOUSTON COMMUNITY COLLEGE, AND LONE STAR COLLEGE CITY COUNCIL. IN THE LAST COUPLE OF WEEKS, UH, JUST APPROVED THE INTERLOCAL AGREEMENTS BETWEEN THE CITY, HARRIS COUNTY AND THE GULF GATE, GREENSPOINT HARDY, MIDTOWN, OST, AND SUNNYSIDE. UM, SO ALL IN ALL, HARRIS COUNTY PARTICIPATES IN ST. GEORGE PLACE, MIDTOWN DOWNTOWN OST, GREENSPOINT EAST, DOWNTOWN UPTOWN, SOUTHWEST HOUSTON, HARDY, HARRISBURG, GREATER HOUSTON AND SUNNYSIDE. THIS WILL ALLOW THIS PARTICIPATION BY THE COUNTY WILL ALLOW MORE FUNDING FOR PROJECTS IN THESE GEOGRAPHIES AND INCREASED FUNDING FOR THE CITY'S HOMELESS HOUSING FUND. NEXT SLIDE, PLEASE. SO, UM, THIS SLIDE REFLECTS THE STEPS IN PROJECT DEVELOPMENT AS JUST A REMINDER TO COUNCIL HOW THE PROJECTS TYPICALLY WORK. ALL PROJECTS, OF COURSE, BEGIN WITH THE APPROVAL OF THE PROJECT PLAN AND REINVESTMENTS ON FINANCING PLAN BY CITY COUNCIL. THESE PLANS ARE REQUIRED BY CHAPTER THREE 11, AND THEY INCLUDE BROAD CATEGORIES OF PROJECTS THAT THE ZONE BOARD WILL ALLOCATE FUNDING TO ADDRESS ISSUES THAT IMPAIR DEVELOPMENT OR REDEVELOPMENT IN AN AREA. SO WHEN YOU'RE TAKING A LOOK AT THE PROJECT PLAN, THAT'S WHERE THE ABILITY TO DO AFFORDABLE HOUSING OR DRAINAGE OR SIDEWALKS. UM, THOSE ITEMS ARE MENTIONED IN THE PROJECT PLAN. IF THEY'RE NOT MENTIONED IN THE PROJECT PLAN, THE TURF CANNOT SPEND MONEY ON IT. SO, TYPICALLY, ONE THAT WE WON'T SEE THAT OFTEN IS, UM, AFFORDABLE HOUSING. UM, IN A PROJECT PLAN FOR A TURS THAT IS A NON PETITION, TUR SOTS THAT ARE CREATED BY PETITION ARE, HAVE TO SET ASIDE ONE THIRD OF THEIR INCREMENT FOR AFFORDABLE HOUSING. AND SO THEY ALWAYS HAVE AFFORDABLE HOUSING IN THEIR PROJECT PLANS. TS THAT WERE NOT CREATED BY PETITION. THEY DON'T TYPICALLY HAVE AFFORDABLE HOUSING IN THEIR PROJECT PLAN, BUT IF THEY WANTED TO DO AFFORDABLE HOUSING, IT WOULD HAVE TO BE IN THEIR PROJECT PLAN [00:05:01] TO DO IT. ONCE THE PROJECT PLAN IS APPROVED, UM, SPECIFIC PROJECT DEVELOPMENT BEGINS THROUGH A COLLABORATIVE COLLABORATION WITH THE CITY AND THE TURS AND RDA. SO, FOR EXAMPLE, JUST RECENTLY, AS YOU ALL ARE AWARE, MEDICAL CENTER AREA TOURS IS A BRAND NEW TURS. AND SO WHAT THEY DID, UM, WAS THEY MET WITH THE CITY HOUSTON PUBLIC WORKS AND TALKED ABOUT WHAT THE CITY'S PRIORITIES ARE. THEN THEY WENT AND TALKED WITH THE MEDICAL CENTER, AND THEN THEY TALKED WITH HERMAN PARK SO THEY CAN KIND OF GET A LAUNDRY LIST OF PROJECTS THAT THEY NEED TO DO IN THAT PARTICULAR AREA. SO WHAT HAPPENS IS NOW THEY'RE DEVELOPING THEIR CIP AND, AND LOOKING AT WHICH PROJECTS THEY CAN FUND WITH THE, THE, UM, REVENUE THAT IS COMING WITHIN WITH THE, SO ONCE THAT IS ALL DONE, THEY'RE PREPARING THEIR BUDGET AND PROVING THAT BUDGET AT THE BOARD LEVEL TO SUBMIT TO CITY COUNCIL. SO THEN ONCE WE RECEIVE THE, THE, THEIR BUDGET, WHAT WE DO IS CIRCULATE THAT BUDGET WITH, UM, HOUSTON PUBLIC WORKS. 'CAUSE THEY'RE NOW LOOKING AT THE SPECIFIC PROJECTS THAT HAVE COME OUT OF THE DISCUSSIONS ALONG WITH THE MAYOR'S, UM, CHIEF POLICY OFFER OFFICER TO TAKE A LOOK AND BRIEF THOSE TWO AREAS ABOUT WHAT PROJECTS THEY INTEND TO, UM, DO IN THE COMING FISCAL YEAR. AND SO ONCE THAT PARTICULAR PROCESS IS COMPLETE, WE PREPARE THE BUDGETS FOR CITY COUNCIL'S AGENDA. AND THROUGH THAT PROCESS, WE WILL, UM, START A, UM, WE WILL START REACHING OUT TO THE CITY COUNCIL OFFICES TO SEE IF THE COUNCIL MEMBERS WOULD LIKE TO HAVE A BRIEFING ON THE BUDGET. AND SO, ONCE THAT PARTICULAR PROCESS IS DONE, THEN YOU WILL SEE THE BUDGET ON CITY COUNCIL'S AGENDA. AFTER THAT PARTICULAR PIECE, THE COUNCIL APPROVES THE BUDGET. THEN THE REAL, I WOULDN'T SAY THE REAL WORK BEGINS, BUT THE ONCE, ONCE CITY COUNCIL APPROVES THAT BUDGET FOR THAT PARTICULAR, FOR THE PROJECTS, THEN THE BOARD OF THE TURS REDEVELOPMENT AUTHORITY BEGINS PURSUING THAT PARTICULAR PROJECT. IT STARTS WITH DESIGN, UM, PROCESS GOING THROUGH PUBLIC WORKS, MEETING THEIR DCR PROCESS AND THEIR 30, 60 90% DESIGN PROCESS, A HUNDRED PERCENT DESIGN. AFTER THEY GET THE A HUNDRED PERCENT GET TO A HUNDRED PERCENT, UM, DESIGN, THEY'RE TALKING ABOUT BIDDING THE PROJECT OUT FOR CONSTRUCTION. THEN CONSTRUCTION BEGINS, CONSTRUCTION ENDS, AND THEN THAT PROJECT IS PUT BACK ALL THE, ONCE THEY COMPLETE THE PROJECT, THE FINISHED PROJECT IS CONVEYED BACK TO THE CITY BECAUSE THEN IT BECOMES A CITY ASSET. SO THAT'S KIND OF THE, IN A NUTSHELL, IN A VERY NON-COMPLICATED, UM, WAY OF SAYING IT. THAT'S KIND OF THE PROJECT DEVELOPMENT PROCESS. NEXT SLIDE PLEASE. SO, UM, THE HIGHLIGHTS FOR THE 2027 TS BUDGETS. UM, SO FOR FISCAL YEAR 2027, WE'RE LOOKING AT 300 AND TH 334 MILLION, WHICH IS PRIMARILY ADD ALLOCATED TOWARDS STREET PROJECTS, PEDESTRIAN INFRASTRUCTURE PARKS, AND FLOOD REMEDIATION PROJECTS. PROJECT COST IN THE TOTAL FIVE YEAR PLANS FOR ALL OF THE BUDGETS IS AT 1.4 BILLION. AND SO IN THIS PARTICULAR GRAPHIC, I'M SHOWING THE EAST EASTWOOD PARK IMPROVEMENTS. THAT TOTAL PROJECT OVER A FIVE YEAR PERIOD WILL BE 6.5 MILLION. THAT'S IN THE HARRISBURG TOUR. NEXT SLIDE, PLEASE. SO HERE'S THE PROPOSED, UM, BUDGET SCHEDULE. AS YOU TAKE A LOOK AT THE BUDGET, WE'RE BUDGET SCHEDULE, WE'RE PRETTY FIRM EXCEPT FOR MAYBE MIDTOWN MIGHT BE MOVED UP. I'M GIVING THEM WE'RE, WE'RE GIVING THEM ENOUGH ROOM. UM, IF THERE'S ANY QUESTIONS OR ANY COMMENTS THAT NEED TO GO BACK AND FORTH BETWEEN, UM, THE CITY AND THE TURS WE'RE LEAVING THIS ROOM FOR, FOR THOSE CONVERSATIONS TO OCCUR, IF WE CAN MOVE IT UP QUICKER, WE WILL DEFINITELY MOVE THAT UP, UM, QUICKER TO THE EARLIER GROUPS. THAT CONCLUDES MY PRESENTATION. DOES ANYONE HAVE ANY QUESTIONS? COUNCIL MEMBER. ALCORN. THANK YOU, CHAIR. THANK YOU JENNIFER, UM, FOR ALWAYS BEING SO RESPONSIVE TO OUR JILLIONS OF TOURIST QUESTIONS. I, UM, I WAS GONNA ASK YOU ABOUT THE, ARE ANY PLANNED ANNEXATIONS, UM, OR LIKE ENLARGING, YOU KNOW, BOUNDARIES PLANNED FOR THIS NEXT YEAR? I'M NOT SURE. I HEARD SOMETHING ABOUT, UM, DOWNTOWN PERHAPS [00:10:01] GETTING, UM, A PORTION OF LIKE, WHAT, WHAT, REMEMBER HOW THE, UM, SAM HOUSTON PARK YES. WAS GOT, WAS PART OF THE FOURTH WARD TOURS AND THEN IT WAS DE ANNEXED AND I HEARD THE, THE, UM, DOWNTOWN MIGHT TAKE THAT AREA IN AS WELL AS SOME OTHER AREAS. DO YOU KNOW ABOUT THAT OR DON'T? IS JUST THE RUMOR MILL? I MAYBE AN ANDREW QUESTIONS. HE'S GONNA BE UP, UP NEXT. OKAY. ANDREW, I GET, HE'S GOT THE LIST. I KNOW THAT THERE ARE, UM, PROJECT PLAN AMENDMENTS THAT ARE GONNA COME FORTH. OKAY. CITY PARK. OH NO, NOT CITY PARK. I'M SORRY. OLD SIX WARD. OKAY. UM, THEY'RE LOOKING TO COME UP, UM, OFF THE TOP OF MY HEAD, I CAN'T THINK OF ANYBODY. OKAY. ANYBODY ELSE? OKAY. THANK YOU. COUNCIL MEMBER RAMIREZ. THANK YOU MADAM CHAIR. JENNIFER, THANK YOU FOR THE PRESENTATION. UM, SO JUST LOOKING AT THE PROPOSED BUDGET SCHEDULE, UM, THIS, THIS WOULD BE, UM, QUITE A CHANGE FROM THIS PAST FISCAL YEAR. IT, IT SEEMS WHERE WE HAD SOME BUDGETS THAT WERE PRESENTED VERY LATE OR EVEN AFTER, UH, OR ALMOST, UH, WHEN THE FISCAL YEAR WAS, WAS DONE. UM, SO IT, ON THE SURFACE IT LOOKS PRETTY AMBITIOUS TO ME. MM-HMM . UM, WHAT IS THE DIFFERENCE BETWEEN THIS PROPOSED SCHEDULE AND THE ONE YOU HAD FOR LAST YEAR? SO, MOST OF THE BUDGET, SO MUCH, MOST OF THE BUDGETS HAVE NOT CHANGED YEAR OVER YEAR. SO THAT'S PROBABLY THAT, THAT'S ONE OF THE MAIN REASONS WHY, UM, WE BELIEVE THAT WE CAN GET THOSE MOVING QUICKER THAN WE DID LAST YEAR. UM, WHEN WE, WHAT I, WHEN, UM, WE LOOKED AT, COMPARED TO WHAT THE, THE, THE 2027 SUBMISSIONS AGAINST WHAT COUNCIL APPROVED IN 2026, THERE'S NOT A LOT OF DIFFERENCES. THEY'RE VERY MINOR DIFFERENCES IN THE, IN THE BUDGETS. UM, SO THERE'S NO SIGNIFICANT CHANGE. AND SO THERE SHOULDN'T BE A REASON FOR DELAYING ANY OF THE BUDGETS GOING INTO COUNCIL. UM, LAST YEAR WE WERE WORKING WITH SOME PROJECTS THAT THE MAYOR'S TEAM WANTED US TO PUT IN SOME SIDEWALK PROJECTS. SO SOME OF THAT WAS A DELAY IN GETTING THOSE BUDGET PASSED. AND I BELIEVE WE WANTED TO CHANGE AND INCREASE THE MUNICIPAL SERVICE FEE. SO WE HAD TO, IN ORDER TO DO THE MUNICIPAL SERVICE FEE, WE HAVE TO HAVE AN AGREEMENT IN PLACE FIRST. MM-HMM . SO WE HAD TO GET THE AGREEMENTS IN PLACE AND THEN, UM, PUT THE, THE BUDGETED AMOUNT FOR THAT MUNICIPAL SERVICE FEE IN THE BUDGET. SO THAT CAUSED A DELAY TOO. SO I DON'T FORESEE THOSE ITEMS HAPPENING AGAIN THIS YEAR. NOT SAYING THEY WON'T, BUT I DON'T, I DON'T FORESEE ANY OF THOSE THINGS. ALRIGHT. AND YOU MENTIONED MUNICIPAL SERVICES FEE, WHICH I KNOW WAS RECALCULATED RECENTLY TO THE 2021 MM-HMM . UH, VALUATION, IF I REMEMBER CORRECTLY. WHAT IS, WHAT IS THE POLICY ON HOW FREQUENTLY WE RECALCULATE THAT MUNICIPAL SERVICES FEE? WELL, THAT'S SOMETHING THAT WE'RE LOOKING AT. IN FACT, UM, UH, MS. MS TILTON ASKED ME TO RELOOK AT THAT CALCULATION AGAIN. SO WE'RE TAKING A LOOK AT IT. AGAIN, TYPICALLY WHEN WE LOOK AT THAT MUNICIPAL SERVICE FEE, WE'RE TRYING TO BALANCE THE INCREASE VERSUS WHAT THE TS HAS AVAILABLE. BECAUSE, FOR EXAMPLE, I WAS LOOKING AT THE CALCULATION JUST LAST NIGHT, AND SOME OF THE CALCULATIONS WILL EAT UP A HUNDRED PERCENT OF THE INCREMENT. SO WE CAN'T CHARGE ANYTHING THAT'S GOING TO EAT UP THE ENTIRE INCREMENT, ESPECIALLY IF THEY HAVE DEBT SERVICE. SO WE GOTTA BALANCE OUT AND LOOK AT, OKAY, WE WANT TO INCREASE THIS FEE, BUT WILL THEY BE ABLE TO PAY IT? AND SO WE CAN'T INCREASE IT IF WE INCREASE IT SO MUCH THAT THEY, THEY JUST DON'T HAVE AN ABILITY TO PAY GIVEN THEIR OUTSTANDING, UM, UM, DEBT DEVELOPER AGREEMENT AND EVEN PROJECTS THAT THEY ARE PLANNING TO PURSUE. SO IT'S KIND OF A BALANCING ACT WITH REGARD TO THEIR FREQUENCY OF HOW, UM, HOW, HOW MUCH, AND HOW MANY TIMES WE'RE GOING TO INCREASE IT. THAT'S ALWAYS BEEN, I WISH IT WAS REALLY VERY SIMPLE, BUT IT'S NOT BECAUSE THE INCREASE CAN, BASED ON HOW WE PERFORM THE CALCULATION, IT COULD EAT UP THE INCREMENT, IT COULD GROW FASTER THAN THE ACTUAL INCREMENTS SCORING. WELL, WHAT'S, WHAT'S THE IDEA BEHIND THAT FEE? WHAT'S, WHAT'S THE PURPOSE? WHAT'S IT INTENDED TO DO THE MUNICIPAL SERVICES FEE? SO, I, I'M NOT PREPARED TO ANSWER YOUR QUESTION ABOUT THE MUNICIPAL SERVICE FEE. UM, 'CAUSE IT'S, IT'S, IT'S, UM, IT'S BASED ON THE STATUTE AND I, I DIDN'T READ THE STATUTE BEFORE I CAME HERE. SO IT'S BASED ON THE INCREASED IN SERVICES PROVIDED, MUNICIPAL SERVICES PROVIDED IN THAT AREA, IN IN THAT PARTICULAR GEOGRAPHY. BECAUSE THE WAY THAT TS WORK, THE WAY WE CALCULATE INCREMENT, IT'S NOT INCLUDING THE, WE'RE NOT TAKING A SET ASIDE FROM THE [00:15:01] INCREMENT FOR THE MUNICIPAL SERVICES COSTS THAT ARE INCURRED IN THAT AREA DUE TO DEVELOPMENT. UM, AND THEN THE QUESTION IS HOW DO WE, HOW DO WE QUANTIFY THAT? AND SO WHAT WE DID, OR TRY TO ATTEMPT TO, IN THIS MEDICINAL SERVICE CALCULATION ITSELF, AND I, I CAN SPEAK TO THAT. I CAN'T, THE THEORY, I, I GOTTA GO BACK AND READ MY NOTES, BUT, UM, WE'RE TRYING TO DEVELOP A WAY TO EQUITABLY ACROSS ALLT IS NOT E EQUALLY EQUITABLY IS A TOTALLY DIFFERENT THING, BUT EQUALLY APPLY THE SAME FORMAT FOR ALL OF THET. SO ALL OF THET ARE ACTUALLY CONTRIBUTING TO THE MUNICIPAL SERVICE SPACE. SO THOSE ARE THE, SOME OF THE THINGS THAT WE THOUGHT ABOUT WHEN WE, WHEN WE CREATED IT. OKAY. I'LL, I'LL GO BACK IN THE QUEUE. COUNCIL MEMBER ALCO. THANK YOU MAYOR PROTI. AND, AND THANK YOU COUNCIL MEMBER RAMIREZ. I, I, I HAVE, UM, ASKED A BUNCH OF QUESTIONS ABOUT THE MUNICIPAL SERVICES FEE. AND, UH, I KNOW THAT, UM, YOU GUYS HAVE SENT ME A BUNCH OF INFORMATION I NEED TO REVIEW ON THAT. I THINK IT'S ALSO WORTHY, IF IT IS, THE CHAIR WANTS TO HAVE A COMMITTEE MEETING JUST STRICTLY ON THAT MUNICIPAL SERVICES FEE. BECAUSE I THINK, I THINK WHAT IT'S DESIGNED TO DO IS TO CAPTURE THE FUNDS THAT WE WOULD, THAT WE'RE USING, LIKE CITY RESOURCES, NOT TOURISM RESOURCES ARE PAYING FOR POLICE AND ROAD REPAIR AND BLAH, ALL THE STUFF. AND, AND, UM, YOU SAID TO, TO HAVE IT DONE EQUALLY, BUT THEN YOU'VE ALSO SAID, WE DO, WE BASE IT ON WHAT PEOPLE CAN AFFORD. SO THAT MAKES ME WORRY, LIKE, OKAY, WELL IF THIS TUR HAS A TON OF DEBT, BUT THEY'RE STILL USING A BUNCH OF OUR SERVICES, BUT THEY CAN'T AFFORD, AND THEN YOU'VE GOT ANOTHER ONE THAT'S MAYBE HAS MORE, YOU KNOW, CASH AND WE'RE GONNA GET THEM BECAUSE THEY'VE GOT ALL THIS CASH THEY CAN PAY. AND IT MIGHT NOT EVEN BE FAIR, YOU KNOW, LIKE TO WHAT, OR, OR TO WHAT THE ACTUAL SERVICES WE'RE PROVIDING, YOU KNOW, I MEAN, THERE'S GOTTA, THERE. I DON'T, AND YOU, YOU COULD DO IT BY, I DON'T KNOW HOW YOU EVEN DO IT. 'CAUSE DIFFERENT PARTS OF TOWN REQUIRE DIFFERENT AMOUNTS OF SERVICES AND YOU CERTAINLY DON'T WANNA PENALIZE, UH, AN AREA THAT YOU'RE TRYING TO GROW. IT'S COMPLICATED. SO I'M NOT SURE I HAVE ALL THE ANSWERS AT ALL. I I DO, I DO THINK THAT IT'S SHOULD BE BASED ON MORE THAN JUST WHAT A, WHAT A TOURS CAN PAY. YOU KNOW, LIKE, OH MY GOSH, THATT HAS A LOT OF MONEY. LET'S GET ALL THAT MONEY IN MUNICIPAL SERVICES FEE INSTEAD OF LIKE A GOOD PROJECT PERHAPS, YOU KNOW, OR, OR YOU KNOW WHAT I MEAN? MM-HMM . AND I DON'T WANT A TOUR TO THINK, WELL, I'LL JUST ISSUE A BUNCH MORE DEBT BECAUSE THEN I DON'T HAVE ENOUGH MONEY TO PAY THIS BIG HUGE FEE. SO IT, I WANNA MAKE SURE HOWEVER WE'RE DOING IT. I JUST THINK, I JUST THINK, AND I, AND I APPRECIATE ALL THE INFORMATION YOU'VE, YOU'VE SENT THAT I HAVEN'T EVEN READ YET. SO LET ME GO THROUGH THAT. BUT, BUT, UM, I, I DO THINK THERE'S, THERE SHOULD BE MORE CLARITY ABOUT HOW THIS FEE IS CHARGED AND, AND, AND WHAT'S THE BASIS FOR IT. SO ONE THING, AND, AND YOU'RE ABSOLUTELY RIGHT. AND I, AND WHAT WE'RE DOING WITH THE CALCULATION, IF ONE TS CAN'T AFFORD IT, THEN WE'RE NOT ROLLING IT ALL THE WAY OUT TO 2025. FOR EXAMPLE. UM, COUNCIL MEMBER RAMIREZ'S QUESTION WAS WHY WE WEREN'T, WHY DO, WHAT IS OUR POLICY WITH REGARD TO STOPPING AT 21? AND I KNOW THAT HE'S ASKED WHY DIDN WE GO ALL THE WAY OVER TO 25. BUT ONE OF THE REASONS WHY WE DIDN'T GROW IT AFTER 25 IS THAT IF ONE TURS CAN'T AFFORD IT BECAUSE OF DEBT, THEN WE CAN'T REALLY APPLY IT TO ALL OF THEM. SO WE'RE TRYING THE CALCULATION. BUT, BUT I FELT LIKE EVEN THE 21, WHAT WASN'T APPLIED ACROSS THE BOARD? OH, IT WAS THE, THE 2021 WAS APPLIED ACROSS THE BOARD. OKAY. SO EVERY, EVERY TURS IS PAYING THAT 2021. EVERY TURS IS BEING CHARGED THAT OKAY. THERE'S STILL A TURS THAT UPTOWN CAN'T AFFORD THAT, FOR EXAMPLE. YEAH. BELIEVE IT OR NOT. YEAH. AND, AND THE REASON WHY IS BECAUSE AT THE TIME THAT WE INSTITUTED THE MUNICIPAL SERVICE FEE, THEY WERE IN THE PROCESS OF DOING POSTDOC DRIVE MEMORIAL, UM, MEMORIAL PARK, THE TRANSIT CENTER, ALL OF THOSE AT THE SAME TIME. AND THE, THE, UM, THE, THE DEBT THAT THEY ISSUED FOR OR HOUSING MM-HMM . SO ALL OF THOSE PROJECTS CAME IN AT ONE TIME AND BASICALLY TOOK OVER THEIR CASH FLOW. SO RIGHT NOW, WE, YOU KNOW, WE'RE BILLING THEM, THEY, THEY HAVE TO PAY IT, IT'S JUST FROM A CASH PERS PERSPECTIVE, THEY DON'T HAVE THE FUNDING TO TO, TO PAY THAT. AND SO, YOU KNOW, WHEN WE LOOK AT IT, WE'RE SAYING, YOU KNOW, DO THEY HAVE THE ABILITY TO PAY? WHEN WE'RE LOOKING AT THE CALCULATION, WE'RE SAYING, DO THESE HERS HAVE THE ABILITY TO PAY THAT? HOW MUCH ARE WE ALLOWING THEM TO CONTRIBUTE TO THEMI MUNICIPAL SERVICE FEE AND TO DO THEIR [00:20:01] PROJECTS AT THE SAME TIME? SO IT'S A BALANCING ACT. YEAH. WHEN, WHEN YOU'RE FIGURING OUT KIND OF THE CALCULATION, LIKE WHAT, WHAT SERVICES IS A CITY PROVIDING OUTSIDE OFT FUNDING? IS IT JUST KIND OF, YOU DO IT CITYWIDE, LIKE I THINK IT'S AN EXTRA 10% OR WHATEVER ON POLICE? OR IS IT JUST LIKE A CITYWIDE THING AND THEN YOU DIVVY IT UP? OR HOW, OR DO YOU ACTUALLY LOOK AT THE ACTUAL, UM, ZONE AND D DETERMINE WHAT SERVICES ARE? SO I'M DOING, SO I'M DOING, SO IT'S NOT BASED ON SERVICES. SO WE'RE MAKING ASSUMPTION THAT IF THET , IT'S NOT BASED ON SERVICES, IT'S NOT BASED ON OUR EXTRA WELL, LIKE WHAT WE'RE PROVIDING THAT, THAT LIKE THEY'RE GRABBING ALL THE INCREMENT FROM FOR IN, FOR THEIR AREA. YES. AND SO WE DON'T GET TO SPEND THAT INCREMENT ON THE OTHER STUFF THAT THEY DON'T DO, LIKE POLICE AND PARKS AND ALL, OR THEY DO DO PARKS, BUT POLICE AND FIRE AND DOG CATCHER AND ALL THE OTHER THINGS. SO I ALWAYS THOUGHT THAT THAT WAS TO HELP WITH THIS SUPPLEMENT. THAT FEE WAS TO HELP CUT RECOVER WHAT THE CITY'S PAYING, YOU KNOW, FROM NONT TURS DOLLARS TO, TO PROVIDE SERVICES IN THAT AREA. CORRECT. YEAH, THAT'S CORRECT. BUT, BUT IT'S NOT BASED ON KIND OF WHAT THAT NUMBER IS. WELL, WE, THE DATA FOR SPECIFIC SERVICES IS NOT AS, UH, ROBUST SURE. AS WE WOULD WANT IT TO BE. THAT'S WHY I WAS ASKING IF MAYBE YOU KIND OF JUST PUT A NUMBER TO IT CITYWIDE. YEAH. AND SO WE WERE, AND I'LL HAVE TO, UM, THINK ABOUT MY ANSWER TO YOUR QUESTION. 'CAUSE WE LOOKED AT SEVERAL DIFFERENT DATA POINTS. WE LOOKED AT THE COST TO PROVIDING SERVICES. SO WE LOOKED AT THE GROWTH OF THE, UM, EXPENDITURES IN THE GENERAL FUND OVER A 30 YEAR PERIOD TO SEE ON AVERAGE HOW MUCH THAT WOULD BE. AND I BELIEVE THAT'S HOW, AND I SAY I BELIEVE I NEED TO LOOK AT THE NOTES TO MAKE SURE THAT I'M RIGHT, BUT THE GROWTH RATE WE GOT WAS AROUND 4.5%. SO THAT'S WHAT WE'RE USING GROWTH. OKAY. SO YOU BASED IT ON A GROWTH RATE LIKE THAT. AND I DON'T, I DON'T MEAN, I'M SORRY, CHAIR. I, I DON'T MEAN TO GET TOO MUCH IN THE WEEDS OF THE, THAT'S NOT REALLY WHAT THIS PRESENTATION'S ABOUT, BUT, BUT I APPRECIATE THE INFORMATION YOU SENT AND LOOK FORWARD TO MORE DISCUSSION ON YEAH. WE CAN HAVE A DIS YEAH. BUT YEAH, WE LOOKED AT SOME OF THOSE THINGS AND WE CAN TALK ABOUT ALL OF THE LITTLE DIFFERENT THINGS THAT WE LOOKED AT TO COME UP WITH THE ASSUMPTIONS, UM, THAT WE CAME UP WITH. OKAY. FOR, FOR THE CALCULATION, BUT ABSOLUTELY. UM, YOU KNOW, GREAT, WE, WE, WE APPRECIATE THE MORE THE FEEDBACK. YEAH. WE APPRECIATE THE FEEDBACK. COUNCIL MEMBER RAMIREZ. THANK YOU MADAM CHAIR AND COUNCIL MEMBER ALCORN HIT THE NAIL ON THE HEAD, YOU KNOW, WHERE I WAS GOING WITH THAT. UH, BECAUSE THE MUNICIPAL SERVICES FEE IS INTENDED TO RECOUP THE COST OF PROVIDING SERVICES THAT ALL OF US, UM, HAVE TO PAY FOR. AND IF THE VALUATIONS ARE BASED ON 21 LEVELS, THEN THE REST OF US ARE IN ESSENCE SUBSIDIZING, UH, TO SOME EXTENT THE, THE, THE CITY SERVICES THAT ARE SUPPOSED TO BE RECOUPED IN THE MUNICIPAL SERVICES FEE. 'CAUSE THE REST OF US ARE PAYING AT CURRENT VALUES. SO WE'RE PICKING UP THE TAB, UH, TO SOME EXTENT FOR THOSE WHO LIVE IN, IN A TURS, WHICH STRIKES ME THEN THAT IF YOU LIVE IN A TURS AND YOU'VE GOT A DOUBLE BENEFIT, RIGHT? BECAUSE YOU'VE GOT EXTRA RESOURCES BEING SPENT ON INFRASTRUCTURE IN YOUR AREA. AND MONTHS AGO, YOU KNOW, ANDREW ADMITTED THAT IF YOU LIVE IN A TURS, YOU'RE MORE LIKELY TO HAVE BETTER INFRASTRUCTURE THAN IF YOU DON'T LIVE IN A TURS. SO NOT ONLY DO YOU GET BETTER INFRASTRUCTURE, BUT YOU'RE PAYING LESS THAN YOUR FAIR SHARE OF THE SERVICES LIKE POLICE AND FIRE THAT, THAT THE REST OF US WHO DON'T LIVE IN A TURS HAVE TO PAY. SO, SO TO ME IT'S, IT'S VERY IMPORTANT THAT THESE MUNICIPAL SERVICES FEE, UH, BE BE ASSESSED IN, IN A FAIR MANNER. AND WHEN I HEAR, AND DIRECTOR TILLSON BASICALLY SAID AS MUCH IN AN EMAIL TO ME, WELL, THE REASON WE DON'T HAVE IT AT CURRENT LEVELS, WE HAVE IT AT 20 YEAR 21 LEVELS. 'CAUSE THE TOURISTS COULDN'T AFFORD TO PAY IT. WELL, THAT, TO ME, THAT JUST MEANS THEY SHOULD PLAN BETTER SO THAT THEY CAN AFFORD TO PAY THE MUNICIPAL SERVICES FEE AT, AT, AT THE CURRENT, WHAT THE CURRENT LEVEL SHOULD BE. SO, UM, I HOPE THAT GOING FORWARD, YOU KNOW, WE'LL, WE'LL MAKE THE TURS PLAN ACCORDINGLY, UH, FOR, FOR HAVING TO PAY THE, THE, THE APPROPRIATE MUNICIPAL SERVICES FEE. SO, UM, THAT'S FAIR. I WOULD ALSO KIND OF THINK ABOUT WITH REGARD TO [00:25:01] THE AREAS THAT WE'RE TALKING ABOUT, WHILE THEY MAY NOT PAY THE FULL MUNICIPAL SERVICE FEE, AND I DON'T KNOW THAT TO NECESSARILY, UM, WE'D HAVE TO RUN THE NUMBERS TO, TO MAKE SURE THAT, THAT, WE'D HAVE TO RUN SOME NUMBERS ON THAT, BUT ALSO CONSIDER THE SALES TAX REVENUE THAT THEY WOULD BE GENERATING IN THEIR PARTICULAR GEOGRAPHICAL AREAS. 'CAUSE REMEMBER, TERMS ARE CREATED MOSTLY TO ATTRACT PRIVATE INVESTMENT TO REDEVELOP COMMERCIAL PROPERTY. SO WHAT THEY'RE DOING IS THEY'RE ATTRACTING WITH THE REDEVELOPMENT OF COMMERCIAL PROPERTIES IN THOSE AREAS, WHAT THEY'RE DOING IS INCREASING THE SALES AND MIXED BEVERAGE TAX, AND IN SOME CASES THE HOT TAX REVENUE AS WELL. SO WE'D HAVE TO KIND OF TAKE A LOOK AT ALL THE DIFFERENT REVENUE SOURCES, NOT JUST, UH, BECAUSE, BECAUSE WHILE THEY MAY NOT, LET'S ASSUME FOR A SECOND THAT THEY AREN'T PAYING THEIR FAIR SHARE ON, ON, ON, UM, MUNICIPAL SERVICES. THEY ARE PROVIDING ADDITIONAL REVENUE TO THE CITY. SO THE CITY CAN PAY MUNICIPAL SERVICES THAT OTHER AREAS AREN'T GENERATING. SO, YOU KNOW, WE'D HAVE TO KIND OF LOOK AT BOTH SIDES OF THE EQUATION, NOT JUST THE EXPENDITURE SIDE, BUT ALSO THE REVENUE THAT'S BEING GENERATED IN THOSE PARTICULAR AREAS DUE TO THE ACT OF THAT PRIVATE INVESTMENT COMING IN. MM-HMM . I HEAR WHAT YOU'RE SAYING. UH, BUT, BUT YOU'RE NOT TELLING ME THAT THE, THOSE CALCULATIONS ARE FIGURED IN. WHAT I'M HEARING IS THAT, YOU KNOW, UM, THE MUNICIPAL SERVICES FEE IS, IS DETERMINED BY WHAT THE THET CAN AFFORD TO PAY. I MEAN, IT MAY BE AN ADDED BENEFIT THAT WE COLLECT MORE SALES TAX REVENUE OR HOT, UH, IN THOSE AREAS. UM, BUT ANYWAY, JUST SOMETHING WE CAN SCHEDULE A TIME TO TALK ABOUT, UM, THE MUNICIPAL SERVICE FEE. THINK ABOUT, UM, YEAH, THANK YOU DIRECTOR CURLEY, DOES THE AGE OF THE TURS PLAY A FACTOR IN THAT, UM, MUNICIPAL SERVICE FEE? I MEAN, BECAUSE I KNOW THE TURS IN OUR DISTRICT, UM, WE CAN'T SAY THAT WE HAVE BETTER INFRASTRUCTURE BECAUSE THOSE ARE FAIRLY NEWT AND WE ARE JUST GETTING THOSE PROJECTS ON THE GROUND. AND REALLY, BUT FORTS, THEY, WE WOULDN'T HAVE THOSE INFRASTRUCTURE PROJECTS. SO WHAT WE DID IN THE VERY BEGINNING IS IF YOU DID NOT GENERATE, WE GENERATED LESS THAN A MILLION IN INCREMENT. THE MUNICIPAL SERVICE CHARGES DID NOT APPLY TO YOU UNTIL YOU HIT THAT MILLION DOLLAR INCREMENT AMOUNT. SO IT WOULD GIVE YOU ENOUGH TIME TO AT LEAST COME UP TO THAT PARTICULAR AREA. 'CAUSE WE FIGURED A MILLION IN INCREMENT WOULD ALLOW YOU TO ISSUE 10 MILLION IN DEBT, AND THAT WOULD ALLOW YOU TO PUT IN MORE PROJECTS IN YOUR PARTICULAR AREA. SO THAT'S WHY WE DIDN'T DO THAT. SO ONE, I THINK EVERYONE CAME ONLINE, UM, LAST YEAR I BELIEVE, OR MAYBE THE YEAR BEFORE I DIDN'T, I HAD TO CHECK MY NOTES. BUT THAT'S SOME OF THE THINGS THAT WE DID, UM, WITH REGARD TO TRYING TO, UM, WITH THE UNDERSTANDING THAT WE HAD BRAND NEWTS ON, ON, ON DECK AND WOULD NOT BE ABLE TO AT LEAST HAVE THE, THE, THE, THE, UM, THE RUNWAY THAT THE OTHER TOURS DID, BECAUSE WE DIDN'T START DOING THIS UNTIL FIFTH FISCAL, WELL, WE STARTED WITH THE CALCULATION OF FISCAL YEAR 16. PRIOR TO THAT, WHAT WAS HAPPENING IS THAT IT CAME INTO THIS, UM, DIVISION IN FISCAL YEAR 11. AND SO THERE WERE AMOUNTS CHARGED TOTS, BUT WE DIDN'T KNOW HOW THOSE AMOUNTS WERE DERIVED, AND IT WAS ONLY CERTAIN TSAS. SO IN FISCAL YEAR 16 IS WHEN WE CAME UP WITH THIS PARTICULAR FORMULA. SO, UM, THOSE ARE SOME OF THE THINGS THAT WE LOOKED AT TO KIND OF GIVE THEM SOME RUNWAY, THE NEWER TSAS, SOME RUNWAY. AND TO YOUR POINT THOUGH, YOU'RE STILL DIDN'T GIVE THEM 30 YEARS TO, TO DEVELOP BEFORE WE STARTED CHANGING THE MUNICIPAL SERVICE FEE. SO WE, WE LOOK AT THOSE THINGS TOO. WE'RE TRYING TO GIVE THEM ENOUGH MONEY SO THAT THEY CAN, THEY CAN OPERATE AS WELL. THANK YOU VERY MUCH. UM, AND WE WERE, WERE JOINED BY COUNCIL MEMBER DAVIS, UM, AND OF COURSE, COUNCIL MEMBER KORN CAME IN, UM, STAFF FROM COUNCIL MEMBER THOMAS'S OFFICE AS WELL. SO THANK Y'ALL FOR BEING HERE. UH, OUR NEXT PRESENTATION, UM, ASSISTANT DIRECTOR CURLEY, THANK YOU VERY MUCH FOR THE INFORMATION. THANK YOU SO MUCH. EVERYONE WILL BE FROM ANDREW BUSKER. HE'S OUR SENIOR STAFF ANALYST WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT, AND HE WILL PRESENT ON TAX INCREMENT REINVESTMENT ZONE PROJECT PLAN AMENDMENT. SO MR. BUSKER, WE ARE READY TO HEAR FROM YOU. GOOD AFTERNOON. UM, I'M ANDREW BUSKER IN THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT. UM, AS MENTIONED, I'LL BE TALKING ABOUT PROPOSED PROJECT PLAN AMENDMENTS. UM, AND SO THE FIRST FEW SLIDES OF MY PRESENTATION, ACTUALLY, NEXT SLIDE, PLEASE, DIDI. UM, I'LL GO OVER, UM, WHY PROJECT PLANS ARE IMPORTANT STATUTORILY, AND THEN, [00:30:01] UM, WE'LL TALK ABOUT HOW PROJECT PLANS ARE KIND OF ORGANIZED. THEN WE'LL GO INTO THE PROPOSALS AND OUR GENERAL TIMELINE FOR, UH, WHAT THESE, UH, PROPOSED AMENDMENTS LOOK LIKE. NEXT SLIDE, PLEASE. OKAY. SO THIS IS A GRAPHIC THAT WE HAVE, UH, USED QUITE A BIT IN OUR OFFICE TO TRY AND DESCRIBE HOW THE TS PROGRAM WORKS AS FAR AS LEGAL FRAMEWORK AND STRUCTURES GO. SO EVERYTHING TS IS DUE IS STRUCTURED UNDER CHAPTER THREE 11 OF THE TEXAS TAX CODE. AND THAT CHAPTER SPECIFICALLY COVERS THE ELIGIBILITY REQUIREMENTS TO CREATE A ZONE, UM, THE FUNCTIONS A TOUR CAN AND CANNOT DO, AS WELL AS HOW T SHOULD BE ADMINISTERED AND MANAGED. AND THEN INTERNALLY WITH THE CITY OF HOUSTON E UH, PASSED ORDINANCE 2023 DASH 7 2 6, UH, WHICH EXPANDED, UM, THET IS FINANCIAL POLICIES TO INCLUDE TS. AND SO THAT'S SECTION N OF OUR, UM, FINANCIAL POLICIES DOCUMENT. AND THEN ON TOP OF THAT, OUR OFFICE HAS INTERNAL ADMINISTRATIVE PROCEDURES THAT LOOK AT, UM, HOW WE'RE GOING TO, UM, MANAGE THE TS PROGRAM ON A DAY-TO-DAY BASIS, AS WELL AS WHEN WE'RE LOOKING AT ANNEXATIONS, UM, DE ANNEXATIONS, LIFE EXTENSIONS, CREATIONS, ALL THOSE SORT OF THINGS FOR MANAGING THE TOURS PROGRAM CITYWIDE, WHAT THAT CRITERIA LOOKS LIKE, HOW WE'RE GOING TO EVALUATE IT, THAT SORT OF STUFF. NEXT SLIDE PLEASE. SO IN CHAPTER THREE 11, IT'S DESCRIBING THE FINANCIAL, SORRY, THE PROJECT PLAN AND FINANCING PLAN AS THE TS IS GUIDING DOCUMENT. UH, IN ORDER FOR A TOURS TO BE CREATED, THE PROJECT PLAN AND FINANCING PLAN HAS TO BE APPROVED BY CITY COUNCIL. AND THEN ANY TIME A CHANGE HAPPENS WITHIN THE TS, WHETHER THAT IS CHANGING IN DEVELOPMENT PRIORITIES, WHETHER A TAXING UNIT IS GOING TO PARTICIPATE, OR IF THE BOUNDARIES ARE GOING TO CHANGE, ANY OF THAT STUFF WARRANTS AN UPDATE TO THE PROJECT PLAN AND FINANCING PLAN, WHICH IS WHY ALMOST EVERY YEAR WE COME TO YOU ALL FOR A PUBLIC HEARING ABOUT AMENDING, UH, A PROJECT PLAN. NEXT SLIDE, PLEASE. THEN, FUNCTIONALLY, A PROJECT PLAN AND FINANCING PLAN, UM, DESCRIBES THE ZONE AND THE PRIORITIES USING GENERAL CATEGORIES TO ALLOW THE REDEVELOPMENT AUTHORITY, SOME FLEXIBILITY IN THEIR PROJECTS. UM, IT ALSO DESCRIBES THE DEVELOPMENT GOALS AND OBJECTIVES THAT THAT ZONE IS, UM, INTENDING TO DO WITH, UM, THE INCREMENT THAT THEY GENERATE. UH, THEN, YOU KNOW, THE, THE CORE PIECE OF THE FINANCING PLAN IS REALLY THE FINANCIAL PROJECTIONS AND FUNDING SOURCES THAT, UM, ARE USED AND REVIEWED FOR WHEN A REDEVELOPMENT AUTHORITY IS SEEKING TO ISSUE DEBT, TO DO ITS LARGE SCALE CAPITAL PROJECTS. UM, AND AS JENNIFER MENTIONED, ONLY PROJECTS IDENTIFIED WITHIN THIS PROJECT PLAN CAN BE INCLUDED IN THE ZONES CAPITAL IMPROVEMENT PLAN. SO FOR EXAMPLE, WHEN WE'VE HAD, UM, I THINK LIKE MONTROSE TOURS WAS INTERESTED IN DOING AFFORDABLE HOUSING, WE UPDATED THEIR PROJECT PLAN TO THEN INCLUDE THAT IN THEIR PROJECT PLAN. SO THERE'S, THERE'S TIMES WHERE WE AMEND A PROJECT PLAN BECAUSE WE SEE THAT THE, THE DEVELOPMENT PRIORITIES OF THE ZONE ARE SHIFTING. AND SO WE NEED TO INCORPORATE WHAT THAT DEVELOPMENT'S GOING TO LOOK LIKE. NEXT SLIDE, PLEASE. SO THIS IS A VERY LONG LIST, BUT WE'RE KIND OF BREAKING THROUGH. THIS IS THE GENERAL OUTLINE THAT ALL OF OUR PROJECT PLAN AND FINANCING PLANS FOLLOW. AND SO THEY ALL START WITH AN INTRODUCTION AND THEN THE CURRENT PLAN, IF THEY'VE BEEN AMENDED, WE TALK ABOUT WHAT THE PREVIOUS VERSIONS OF THE PLAN WERE AND THEN YOU KNOW, WHAT THEIR REDEVELOPMENT EFFORTS ARE. THESE, UH, REDEVELOPMENT GOALS. AND THEN WE GO INTO THE STATUTORILY REQUIRED PROJECT PLAN AND FINANCING PLAN. AND THEN IN THE BACK OF THE DOCUMENT, THEN WE HAVE A BUNCH OF EXHIBITS, WHICH ARE, YOU KNOW, MAPS AND THEN THE SCHEDULES FOR REVENUE AND PROJECT COSTS AND THAT SORT OF THING. NEXT SLIDE PLEASE. SO IN THE CORE COMPONENT OF THE PROJECT PLAN ARE THESE LEGALLY REQUIRED SECTIONS, AND THAT'S THE EXISTING AND PROPOSED USES OF LAND, UH, PROPOSED CHANGES TO ZONING, MASTER PLANS, BUILDING CODES, AND OTHER MUNICIPAL ORDINANCES, ESTIMATED NON-PROJECT COSTS, AND THE METHOD OF RELOCATING PERSONS TO BE DISPLACED IF APPLICABLE. NEXT SLIDE PLEASE. ON THE FINANCING PLAN SIDE OF THINGS, THIS IS, UM, WHERE A LOT OF THE MEET IS, I WOULD SAY. SO THIS IS WHERE WE'RE LOOKING AT, UH, WHAT THE ESTIMATED PROJECT COSTS ARE GOING TO BE FOR ITERS TO DO ALL OF ITS CAPITAL PROJECTS THAT IT INTENDS TO DO. AND THEN FROM THERE, UH, WHAT ARE THOSE PUBLIC IMPROVEMENTS? UM, WHETHER OR NOT DOING THESE SORT OF IMPROVEMENTS, UH, WILL BE ECONOMICALLY FEASIBLE IN THE ZONE, UM, IF THEY ARE ISSUING BONDS, UH, WHAT THOSE AMOUNTS WOULD BE OR IF THEY HAVE ISSUED BONDS IN THE PAST, WHAT THOSE ISSUES WERE AND WHEN AND WHY. UM, AND THEN WE'RE LOOKING AT, [00:35:01] UM, THE METHODS AND SOURCES OF FINANCING PROJECT COSTS AND THE PERCENT OF IN INCREMENT FROM TAXING UNITS ANTICIPATE TO CONTRIBUTE TO THE ZONE. SO IN SOME OF OUR ZONES, WE HAVE THE CITY'S PORTION OF, UM, TAX INCREMENT IS GOING A HUNDRED PERCENT INTO THE, THE TS. WE HAVE OTHER ZONES WHERE AFTER A CERTAIN NUMBER OF YEARS, THE CITY'S PARTICIPATION DECREASES FROM A HUNDRED PERCENT DOWN TO 80%, DOWN TO 75% ONWARD. UM, AND THEN ON, ON TOP OF ALL OF THESE THINGS, WE ALSO LOOK AT THE APPRAISED VALUE OF TAXABLE REAL PROPERTY. UH, WE ALSO, UM, HAVE A SECTION ABOUT THE CAPTURED APPRAISED VALUE, UH, FOR EACH YEAR OF THE ZONE'S EXISTENCE, AND THEN THE ZONE'S DURATION. SO AT WHAT YEAR DO WE PLAN TO TERMINATE THE ZONE? UM, AND SO ALL, WE HAVE ONLY ONE TOUR SO FAR THAT'S BEEN FULLY TERMINATED. ALL OF OUR OTHER ONES ARE STILL GOING STRONG, UM, BECAUSE THEY STILL HAVE EITHER CAPITAL PROJECTS GOING ON OR THEY'RE STILL PAYING OFF DEBT, THAT SORT OF THING. NEXT SLIDE PLEASE. SO THESE ARE ALL THE PROPOSALS I AM HERE TO TALK ABOUT TODAY. THEY ARE RELATED TO ALL THE INTERLOCAL AGREEMENTS THAT YOU'VE BEEN LOOKING AT OVER LAST WEEK AND THIS WEEK. UM, HARRIS COUNTY IS INTERESTED IN PARTICIPATING IN OUR TOURIST PROGRAM, WHICH IS GREAT FOR THE REDEVELOPMENT AUTHORITIES. THIS MEANS ADDITIONAL REVENUES COMING ONLINE FOR THEM TO USE FOR CAPITAL PROJECTS. UM, AND SO AS YOU SEE HERE, WE HAVE EIGHT, UH, PROJECT PLAN AND FINANCING PLANS THAT, UH, WILL NEED TO BE AMENDED TO REFLECT HARRIS COUNTY'S PARTICIPATION. AND SO WHEN WE'RE LOOKING AT THE STRUCTURE OF THE PROJECT PLAN AND FINANCING PLANS, THE CERTAIN SECTIONS THAT ARE GOING TO BE AMENDING WILL BE THE CURRENT PLAN, THE PROJECT COST SECTION, AND OUR REVENUE SCHEDULES IN, IN THE BACK OF THE DOCUMENT. NEXT SLIDE PLEASE. AND THEN WHEN WE LOOK AT KIND OF EACH, UH, TURS A LITTLE BIT MORE SPECIFICALLY, UM, WE HAVE HERE ON THE TABLE THE, UM, ESTIMATED FIRST YEAR OF INCREMENT THAT'LL BE GOING INTO THESE TURS IS FROM, UM, HARRIS COUNTY PARTICIPATING. FORTUNATELY, WITH, WITH THE WAY, UM, A TAXI UNIT PARTICIPATES IS THEY GET TO START THEIR INCREMENT BASED ON THE YEAR THE ZONE WAS CREATED, NOT WHEN THEY JOINED. SO WE'RE SEEING THESE REDEVELOPMENT AUTHORITIES ARE GETTING A DECENT AMOUNT OF MONEY FOR, UH, FISCAL YEAR 27 THAT THEY CAN START USING. WELL, IT'S GOING TO, THEY'RE APPROVING IT THIS YEAR, I BELIEVE. THEY DON'T ACTUALLY GET THE MONEY THAT THEY'LL USE UNTIL FY 28, SO IT TAKES A LITTLE BIT OF TIME TO ROLL IN, BUT IT'S GOING TO BE EFFECTIVE, UM, FOR THE TUR STARTING, UM, I THINK TAX YEAR 2027. UM, AND SO THEN, UM, THAT, UM, SECOND TO THE LAST COLUMN ON THE RIGHT IS LOOKING AT WHEN WE DO OUR PROJECTIONS ABOUT WHAT, UM, THE TOURS SHOULD BE GENERATING AN INCREMENT THROUGH THE LIFE OF THEIR ZONE. UH, WE HAVE THOSE PROJECTIONS THERE FOR WHAT AS A WHOLE, UM, HARRIS COUNTY'S PARTICIPATION IN THESE UNITS SHOULD BE GENERATING FOR US TO DO CAPITAL PROJECTS AND THAT SORT OF THING. AND THEN THE FAR COLUMN ON THE RIGHT, UH, WE ARE COORDINATING WITH, UM, HARRIS COUNTY'S, UH, STAFF TO DETERMINE, YOU KNOW, WHERE IS THIS MONEY GOING TO BE USED WITHIN THE ZONE AND FOR WHAT PURPOSE? AND SO WE HAVE THOSE, UH, LISTED HERE. AND SO, YOU KNOW, A LOT OF IT IS LOOKING AT, UM, I MEAN, IT'S STILL, THE BREAD AND BUTTER OF OUR PROGRAM IS INFRASTRUCTURE, WHETHER THAT'S THROUGH PARKS OR THROUGH DRAINAGE OR MOBILITY STREETS. SO IT'S STILL THE, THE CORE FUNCTIONS OF WHAT OUR TOURS DO. UM, NEXT SLIDE PLEASE. AND THEN FINALLY, I HAVE THIS TIMELINE HERE. WE'RE EXPECTING MOST OF THESE TOURS TO APPROVE THEIR PROJECT PLAN AMENDMENTS, UM, OVER THE NEXT COUPLE OF MONTHS. WE DO HAVE SOME TOURS THAT TAKE BREAKS DURING THE SUMMER. UM, BUT ONCE WE HAVE THOSE, UM, PROJECT PLAN AMENDMENTS AT OUR OFFICE, THEN WE REVIEW THEM AND CITY LEGAL ALSO REVIEWS THEM, AND THEN WE CONDUCT PUBLIC HEARINGS, AND THEN THAT'S WHEN IT REACHES YOU ALL, UH, ON THE CITY COUNCIL AGENDA. AND THEN ON TOP OF THAT, AS, UM, COUNCIL MORALE COHEN WAS MENTIONING FOR IN THE PREVIOUS PRESENTATION EVERY YEAR, WE ALSO, UH, WILL CONSIDER, UM, PROPOSALS SUBMITTED TO US BY THE REDEVELOPMENT AUTHORITIES, WHETHER THAT IS ANNEXATIONS OR LIFE EXTENSIONS. AND THEN WE'LL CONSIDER THOSE PROPOSALS AND WE'LL PROBABLY DO THOSE CONSIDERATIONS PLUS THESE, UH, PROJECT PLAN AMENDMENTS KIND OF AROUND THE SAME TIME. SO AT THIS TIME I'LL TAKE ANY QUESTIONS, ANY QUESTIONS? UH, COUNCIL MEMBER RAMIREZ. THANK YOU, MADAM CHAIR. THANK YOU, ANDREW, FOR THE PRESENTATION. UH, YOU MENTIONED ANNEXATIONS AND, UM, IT, IT IS POSSIBLE TO DO NON-CONTIGUOUS ANNEXATIONS MM-HMM . ISN'T IT? THAT IS CORRECT, YEAH. AND WHAT ARE, WHAT ARE THE POLICIES SURROUNDING THAT? SO THE, THE STATUTE HAS SOME [00:40:01] ROOM FOR INTERPRETATION ON IT, BUT THE CORE FUNCTION IN THE STATUTE AND WITH OUR PRACTICES, THAT THERE HAS TO BE SOME SORT OF LIKE COMMON NEXUS OR SOME CONTINUITY IN NEED FOR US TO DO A NON-CONTIGUOUS ANNEXATION. CAN, CAN YOU DO, DOES AN EXAMPLE COME TO MIND? I MEAN, I KNOW MEMORIAL HEIGHTS, IF I'M NOT MISTAKEN. IT'S KIND OF A, UM, SO OUR CRAZY, YEAH. SO THERE'S, THERE'S A LOT OF LIKE SQUIGGLES ON MEMORIAL HEIGHTS WHERE WE'LL DO LIKE RIGHT OF WAY ANNEXATIONS AND THROUGH, UH, TOUR 24, WHICH IS A GREATER HOUSTON, THAT IS A NON-CONTIGUOUS ZONE. WE HAVE THREE DIFFERENT SECTIONS OF THAT TOUR THAT THOSE THREE SECTIONS ARE NOT CONNECTED BY RIGHT OF AWAY. UM, AND SOME OF THAT INCLUDES, UM, GEORGIA R BROWN CONVENTION CENTER, IT ALSO INCLUDES ENERGY PARK IN THAT AREA. AND THEN THERE'S ANOTHER PIECE THAT'S KIND OF IN TUCKED AWAY ON THE EAST END, KIND OF CLOSE TO, UM, GEORGIA R BROWN. AND SO THERE, THE COMMON NEXUS WAS THESE ARE, UM, HIGH TRAFFICKED FACILITIES THAT HAVE, UH, PUBLIC USES AS WELL AS PRIVATE USES. AND THERE'S A LOT OF INFRASTRUCTURE COMPONENTS THAT ARE NEEDED TO KEEP THOSE AREAS, UM, I GUESS ACCESSIBLE AND, UM, EASILY, EASILY TRAFFICKED FOR THE AMOUNT OF PEOPLE, THE VOLUME THAT COME THROUGH THERE. THEY'RE ALSO ALL CONNECTED ON THE, UH, RED LINE FOR METRO MM-HMM . YEAH. NO, I, I HAVE IN MIND, UH, PARTS OF THE CITY THAT REALLY NEED, UM, DEVELOPMENT INFRASTRUCTURE, BUT THEY'RE NOT IN A TURS. AND, AND MAYBE IT'S POSSIBLE TO ANNEX SOME OF THOSE AREAS INTO AN EXISTING TURS BECAUSE IT DOESN'T SEEM LIKE WE'RE GONNA SHUT ANY OF OUR CURRENT TURS DOWN ANYTIME SOON. AM I RIGHT ON THAT? UM, WE'LL APPROACH THAT KIND OF CASE BY CASE. WE DO KNOW THAT, UM, TURS SIX IS SET TO EXPIRE IN 2027, AND SO IT'S A MATTER OF WHETHER OR NOT THERE'S DEVELOPMENT NEED TO SEE IF THAT CONTINUES ONWARD. BUT IT WAS ORIGINALLY CREATED TO, UH, TO FUND A, A SCHOOL. AND SO NOW THAT THAT ZONE IS ENDING AND THE SCHOOL'S FUNDED, WE, UM, WE MAY TERMINATE THAT ONE. UM, SO THAT WAS, THAT'S KIND OF A ONE-OFF PROJECT TS CORRECT? YEAH. WHICH IS UNUSUAL, RIGHT? ALL THE OTHERS ARE DIFFERENT. YEAH. OUR, OUR EARLIER TS IS OFTEN FOCUSED ON KIND OF ONE-OFF PROJECTS, WHETHER THERE'S A COLLABORATION WITH THE SCHOOL DISTRICT OR SOMETHING LIKE THAT, WHERE OUR, OUR LATER TS IS, ARE MORE LOOKING AT, UH, NEIGHBORHOOD OR COMMERCIAL CORRIDOR LEVEL AND WHAT INVESTMENTS COULD HAPPEN AT THAT LOCATION. THE THE OTHERS SEEM TO BE MORE PERMANENT, IF YOU WILL. THEY, THEY, WE JUST KEEP EXTENDING THEM. UM, AND, AND THE, THE, UM, THE ABILITY TO, UM, CREATE NEW ONES IS, IS LIMITED, RIGHT? 'CAUSE WE CAN ONLY HAVE A CERTAIN PERCENTAGE OF, OF, UH, THE CITY WITHIN A TS, RIGHT? WHAT IS IT? 25%? THAT'S CORRECT. YEAH. 25% OF THE CITY'S OVERALL TAXABLE VALUE CANNOT BE, UM, SORRY. IT MUST, THE TS PROGRAM MUST STAY UNDERNEATH 25% OF THE, THE CITY'S WIDE TAXABLE VALUE. WHEN WE LASTED THAT CALCULATION, I THINK WE WERE SOMEWHERE BETWEEN 21 AND 22%. SO, WHICH IS STILL, WE'RE STILL TALKING BILLIONS OF DOLLARS OF TAXABLE VALUE. SO EVEN THOUGH THE PERCENTAGE NUMBER IS HIGH, THAT MON MONETARY VALUE IS, THERE'S STILL A LOT OF WIGGLE ROOM THERE. OKAY. AND WHEN WE DO PROJECT PLAN AMENDMENTS, LIKE, UH, THE ONES THAT ARE, THAT YOU'RE PRESENTING TO US, WE'RE INCLUDING IN THIS INSTANCE, UH, HARRIS COUNTY PRECINCT ONE, PARTICIPATION PRECINCT TWO PARTICIPATION, UM, IT, IT SEEMS TO ME THAT IT ADDS TO THE COMPLEXITY AND, AND MAKES IT, UH, A LITTLE MORE, UH, A LITTLE HARDER TO ACTUALLY SHUT ONE OF THESE DOWN. AM I, AM I RIGHT ON THAT OR NOT? I THINK THAT'S A LOGICAL CONCLUSION. UM, I DON'T NECESSARILY KNOW IF IT'S, IT MAKES IT NECESSARILY EASIER OR HARDER, BUT IT DOES ADD ANOTHER PARTY WITH VESTED INTEREST IN THE TUR PROGRAM. AND, AND I SAY SHUT ONE OF THESE DOWN. I MEAN, I'D LIKE FOR ALL OF THE CITY TO BENEFIT FROM, UM, UH, YOU KNOW, THESE SORTS OF ZONES IN, IN, IN PROGRAMS THAT THE CITY HAS AVAILABLE. UH, SO THANK YOU STAFF FROM COUNCIL MEMBER PANZELLA'S OFFICE. THANK YOU CHAIR. THANKS SO MUCH. ANDREW. I JUST HAD A COUPLE OF VERY QUICK QUESTIONS. YOU HAD MENTIONED, UM, AND I KNOW THIS WASN'T NECESSARILY THE TOPIC OF TODAY'S PRESENTATION, BUT WITH THE MONTROSE TOURISM, WE MEN, YOU MENTIONED WE MODIFIED THEIR PROJECT PLAN TO INCLUDE AFFORDABLE HOUSING. I UNDERSTAND, I BELIEVE THAT'S DIFFERENT FROM A TOURS BEING REQUIRED TO PUT FUNDING TOWARDS AFFORDABLE HOUSING. COULD YOU WALK THROUGH, DOES THAT, IT BEING A PART OF THEIR PROJECT PLAN, DOES THAT MEAN THAT IT'S MORE OF A GOAL, IT'S NOT A REQUIREMENT, OR WHAT ARE THEIR OBLIGATIONS TO PUSH PROJECTS FORWARD THROUGH THAT FUNDING? IF IT'S JUST PART OF THE PROJECT PLAN AND NOT PART OF THE ACTUAL, YOU KNOW SURE. INITIAL AGREEMENT? YES. SO IF A TS IS CREATED BY PETITION, WHICH MEANS THAT MM-HMM . A GROUP OF PROPERTY OWNERS [00:45:01] CAME TOGETHER AND REQUESTED A TOURS IS CREATED, THOSE TS IS ARE REQUIRED TO PUT, UM, A THIRD OF THEIR INCREMENT INTO AFFORDABLE HOUSING. RIGHT. UM, THE MONTROSE CHURCH WAS NOT CREATED BY PETITION, AND YET THEY STILL HAD AFFORDABLE HOUSING AS A GOAL. AND SO IN THE PROJECT PLAN, UM, IN THE PROJECT COST CATEGORY, THEY'LL SAY LIKE, WE, WE HAVE THIS MUCH KIND OF, UM, PHILOSOPHICALLY BUDGETED FOR AFFORDABLE HOUSING BASED ON THE INCREMENT THAT WE EXPECT TO GENERATE. AND THEN HOW THEY GO ABOUT THAT IS KIND OF UP TO THE REDEVELOPMENT AUTHORITY. SO SOME OF OUR CHURCHES THAT PARTICIPATE IN AFFORDABLE HOUSING WILL SEND THEIR INCREMENT TO, UM, THE CITY'S HOUSING COMMUNITY DEVELOPMENT DEPARTMENT OR SOME TERRAS WILL MANAGE THEIR OWN AFFORDABLE HOUSING PROGRAM THEMSELVES. AND SO I BELIEVE MONTROSE IS STILL, UH, FIGURING OUT THEIR BEST APPROACH ON, ON HOW TO GET THAT DONE. AND SO IT CAN BE IN THE PROJECT PLAN WITHOUT, UH, REQUIREMENT TO SPEND THAT MONEY ON THAT CATEGORY JUST YET, BUT IT DOES GIVE THEM THE OPTION TO DO IT WHEN THEY'RE READY TO. GOT IT. SO THERE'S NO LIKE OFFICIAL REQUIREMENT, YOU KNOW, TO PUT THAT? CORRECT. OKAY. GREAT. UM, AND THEN RELATED TO THE TOPIC TODAY, UM, FOR THE MID, I KNOW WE, I BELIEVE WE PASSED IT THIS MORNING AT COUNCIL FOR THE PRECINCT ONE PARTICIPATION, AND THE THIRD OF THAT'S GOING TO ORDER. SO AFFORDABLE HOUSING, WHICH IS AMAZING. DO WE KNOW WHERE THOSE TOURISM STAND ON? LIKE IS THAT SIMILAR WHERE THEY'LL SEND IT TO HC DD OR THEY MAY MANAGE THEIR OWN? OR DO WE KNOW THE NATURE OF THAT AND WHEN WE'LL SEE THOSE INVESTMENTS COMING TO FRUITION OR DEVELOPMENT HAPPENING OR WHERE THOSE STAND? YEAH, THE, UM, THE APPROXIMATE THIRD OF THE COUNTY INCREMENT GOING TO AFFORDABLE HOUSING IS GONNA GO INTO THE COUNTY'S AFFORDABLE HOUSING DEPARTMENT. OKAY. FOR THEM TO DO THEIR PROJECTS. SO IT WON'T GO TO THE CITY'S DEPARTMENT. UM, BUT WE CAN STILL COORDINATE, UH, ANY SORT OF INFORMATION THAT YOU'D LIKE FROM THEM. NO PROBLEM. THANK YOU SO MUCH. I APPRECIATE IT. THANK YOU AGAIN, CHAIR. NO OTHER QUESTIONS. UM, WE WILL CALL OUR PUBLIC SPEAKERS. IS, UM, MR. ATO IN THE AUDIENCE, ANA ENTA NOT HERE. IF THERE'S ANYONE ELSE IN THE AUDIENCE THAT WOULD LIKE TO SPEAK, GOING ONCE, GOING TWICE CLOSED. ALL RIGHT. COLLEAGUES, IF THERE ARE NO OTHER COMMENTS OR QUESTIONS, I DO WANT TO THANK YOU ALL FOR JOINING US. UH, BEFORE WE ADJOURN, I'D LIKE TO LET EVERYONE KNOW OUR NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING IS AUGUST THE 19TH, AND IT'LL BE AT 2:00 PM. IF YOU'RE INTERESTED IN RECEIVING ANY INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, YOU CAN CONTACT THE DISTRICT, A OFFICE AT DISTRICT A@HOUSTONTX.GOV. THE TIME IS 2 49 AND OUR MEETING IS NOW ADJOURNED. THANK YOU FOR BEING HERE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.