[Economic Development Committee on August 19, 2026.]
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AUGUST'S THE 19TH, 2026, AND THE TIME IS 2 0 6.MARTHA CASTEX TATUM, THE CHAIR OF ECONOMIC DEVELOPMENT.
AND I'D LIKE TO CALL THIS MEETING TO ORDER.
DO WANT TO WELCOME OUR COMMITTEE AND COUNCIL MEMBERS AND THEIR STAFF, AND OUR GUESTS THAT ARE IN ATTENDANCE TODAY.
OUR VICE CHAIR, FLICKING JURORS HERE, COUNCIL MEMBER MARTINEZ RAMIREZ.
COUNCIL MEMBER ALCORN VICE MAYOR PRO TEM PECK.
WE ALSO HAVE STAFF FROM COUNCIL MEMBER CASTILLO'S OFFICE FROM COUNCIL MEMBER CARTER'S OFFICE, UH, STAFF FROM COUNCIL MEMBER SALINAS'S OFFICE, AND ALSO STAFF FROM COUNCIL MEMBER THOMAS'S OFFICE.
THE MEETING IS OPEN TO THE PUBLIC AND BEING HELD IN PERSON AND VIRTUALLY COUNCIL MEMBERS.
YOU KNOW THE DRILL IF YOU HAVE QUESTIONS.
OUR FIRST PRESENTATION, UM, TODAY WILL BE DONE BY AN FIRST AND SECOND PRESENTATION WILL BE DONE BY ANDREW BUSKER.
HE'S THE SENIOR STAFF ANALYST WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
AND HE'LL PRESENT THE FIRST PRESENTATION ON THE TAX ABATEMENT ORDINANCE RE ADOPTION.
UM, IF THERE ARE ANY MEMBERS OF THE PUBLIC THAT WOULD LIKE TO SPEAK, UH, THERE IS A SIGNUP SHEET ON MY LEFT.
UM, WE'D BE HAPPY TO HEAR FROM YOU AFTER WE CONCLUDE OUR PRESENTATIONS.
MR. BUSKER, I DO WANT TO, UH, WELCOME COUNCIL MEMBER WILLIE DAVIS, UH, TO THE CHAMBER AS WELL.
WE'RE READY TO HEAR FROM YOU, ANDREW.
UM, SO OUR FIRST PRESENTATION IS THE TEXAS ABBA ORDINANCE ADOPTION.
UM, I DUNNO IF YOU ALL CAN SEE SLIDES AT THIS TIME OR NOT, YOU HAVE COPIES.
UM, SO OUR TAX AMENDMENT PROGRAM, UM, IS AUTHORIZED UNDER CHAPTER THREE 12 OF THE TEXAS TAX CODE.
AND THE STATUTE IS, UH, FAIRLY BROAD.
IT ENABLES MUNICIPALITIES TO CREATE TAX ABATEMENT PROGRAMS AND GUIDELINES AND CRITERIA.
THE MAIN TWO REQUIREMENTS UNDER THIS, UH, STATUTE IS THAT THESE TAX ABATEMENTS CANNOT EXCEED A 10 YEAR TERM.
AND THEN, UM, CITIES HAVE TO RENEW THEIR TAX ABATEMENT ORDINANCES EVERY TWO YEARS TO KEEP THEM CURRENT.
SO, OUR CURRENT ORDINANCE IS, UM, 2024 DASH 6 24, WHICH WAS, UH, APPROVED BY CITY COUNCIL ON AUGUST 28TH, 2026, OR, OR, SORRY, 2024, MY BAD.
UM, AND SO OUR CURRENT TAX ABATEMENT PROGRAM HAS, UH, FIVE DIFFERENT, UH, PIECES TO IT.
THE ECONOMIC DEVELOPMENT ABATEMENT, WHICH IS OUR BREAD AND BUTTER ABATEMENT.
WE ALSO HAVE DEVELOP, UH, BROWNFIELD DEVELOPMENT ABATEMENT, UH, WHICH IS, UM, DESCRIBED IN THE STATE STATUTE.
THERE'S A LEAD TAX ABATEMENT, A GREEN STORM, WA GREEN, SORRY, GREEN STORMWATER INFRASTRUCTURE ABATEMENT AND DETERIORATED AND DEMOLISHED PROPERTY ABATEMENT.
THOSE ARE OUR, UM, FIVE PROGRAMS. UH, NEXT SLIDE PLEASE.
SO, GOING THROUGH SOME OF THE HISTORICAL CHANGES THAT WE'VE MADE OVER TIME.
SO WHAT'S NICE ABOUT HAVING A TWO YEAR, UH, SUNSET PERIOD IS THAT, YOU KNOW, EVERY COUPLE YEARS WE CAN ASSESS WHAT'S WORKING, WHAT'S NOT, UM, WHERE OUR ECONOMY IS MOVING, THINGS THAT WE HAVE TO ADJUST.
UM, AND SO I HAVE SOME HIGHLIGHTS THAT ARE FROM THE PAST, UH, 10 YEARS OR SO.
UM, I'LL MOVE THIS THROUGH THIS RELATIVELY QUICKLY.
SO IN 2016, WE ADDED, UM, ADDITIONAL FAVORABLE CONSIDERATIONS FOR COMMUNITY BENEFITS, INCLUDING MID-SKILL JOBS AND THOSE SORT OF THINGS.
AND THEN TWO YEARS LATER, IN 2018, WE WERE, WE MOVED FROM FAVORABLE CONDITIONS INTO HAVING ACTUAL REQUIREMENTS FOR COMMUNITY BENEFITS IN OUR TAX ABATEMENT PROGRAM.
THEN IN 2020, UM, WE THEN WERE CREATING, UM, A SPACE FOR, UM, REDUCED ELIGIBILITY REQUIREMENTS FOR, UH, PROJECTS THAT WOULD BE LOCATED WITHIN OPPORTUNITY ZONES.
UM, ALSO AROUND THAT TIME WE THEN CREATED THE GREEN STORM WATER, GREEN STORM WATER INFRASTRUCTURE ABATEMENT, UM, AND, UH, UPDATED OUR LEAD ABATEMENT.
AND SO, UM, THOSE CAME INTO PLACE ABOUT SIX YEARS AGO.
UM, AND THEN, UM, WE'VE ALSO, LIKE IF THINGS ARE MOVING WELL, LIKE IN 2022, WE JUST ADOPTED IT WITH NO MATERIAL CHANGES.
UM, SO THEN IN OUR LAST CHANGE TO THE ORDINANCE IN 2024, UH, WE MADE MANY CHANGES.
AND SO THAT'S ON, UH, THE NEXT SLIDE.
SO, UH, FIRST THING, WE, WE DECREASED THE MINIMUM
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TOTAL PROJECT COSTS, UH, AND GREEN STORMWATER INFRA INFRASTRUCTURE COSTS, UM, FOR THE DIFFERENT ELIGIBILITY FOR THE GS IPAYMENT.SO SMALLER PROJECTS NOW ARE ELIGIBLE FOR GSI.
UM, WE EXPANDED WHAT COSTS WERE ELIGIBLE IN THE, UNDER THE GSI PROGRAM.
WE ALSO ADDED LANGUAGE TO OUR PUBLIC HEARINGS, UH, TO BETTER ALIGN WITH THE STATE STATUTE, UM, IN OUR CHANGES TO PUBLIC HEARINGS.
UH, WE ALSO ADDED THAT PUBLIC NOTICES FOR ANYTHING, UH, TAX, ABBA TAX ABATEMENT RELATED FOR OUR AGREEMENTS NEEDS TO ALSO BE POSTED ON THE CITY WEBSITE.
UH, AND THEN, UH, PREVIOUSLY ON OUR SUNSET PROVISIONS, WE JUST HAD THE DATE.
AND SO FOR LEGAL CLARITY, WE ALSO ADDED THE TIME WHEN THE ORDINANCE WOULD EXPIRE.
SO, FOR THE 2026 RENEWAL OF OUR ORDINANCE, WE ARE PROPOSING TO READOPT THE CURRENT TAX ABATEMENT ORDINANCE WITH NO MATERIAL CHANGES.
UM, FOR THIS, WE'RE, WE'RE DOING THIS BECAUSE WE HAVE SOME PROPOSED EDITS AND THINGS THAT WE'RE WORKING THROUGH INTERNALLY.
UH, THEY'RE NOT READY TO TO GO LIVE JUST YET.
WE'RE STILL DOING OUR ANALYSIS.
AND WE ALSO WANT TO, UM, INVITE YOU ALL, AND SO LET'S SAY ALL AND SOLICIT YOUR INPUT FOR, UM, CHANGES TO THE ORDINANCE AS WELL.
'CAUSE WE KNOW THAT, UM, THERE ARE SEVERAL COUNCIL MEMBERS THAT HAVE EXPRESSED INTEREST IN, UH, POTENTIAL CHANGES TO THE ORDINANCE.
AND SO WE WELCOME, UM, YOUR, YOUR INSIGHTS AND SUGGESTIONS.
UM, SO, UH, THE NEXT SLIDE HERE GOES THROUGH OUR TIMELINE.
WE TRY TO AVOID DOING THIS TO YOU ALL, BUT BECAUSE OF TRYING TO GET THIS IN BEFORE THE AUGUST 28TH EXPIRATION, UM, NEXT WEEK WE HAVE THE PUBLIC HEARING ABOUT OUR TAX MOVEMENT ORDINANCE, AND THEN IT'S ALSO ON THE AGENDA THAT SAME DAY.
SO TYPICALLY WE TRY TO SPACE THAT OUT A LITTLE BIT.
UM, BUT IT'S A BUSY, BUSY DAY FOR OUR TAX COMMITMENT ORDINANCE NEXT WEEK.
UM, SO I'LL TAKE ANY QUESTIONS ABOUT OUR TAX COMMITMENT ORDINANCE AT THIS TIME.
SO I, UM, HAD A CONVERSATION WITH DIRECTOR TILLEN TODAY.
AND, UM, THE DESIRE IS TO GO AHEAD AND APPROVE OUR, UM, PLAN.
HOWEVER, WE ARE LOOKING TO MAKE SOME AMENDMENTS, UM, IN THE NEAR FUTURE.
I KNOW THAT COUNCIL MEMBER FLICKINGER HAD SOME INTERESTS IN LOOKING AT SALES TAX AND PROPERTY TAX.
I THINK I HEARD COUNCIL MEMBER SALINAS TODAY SAY SHE'S INTERESTED IN WAGES, MINIMUM WAGES SETTING, SETTING SOME TYPE OF MINIMUM WAGE.
SO IT LOOKS LIKE WE NEED TO DO A LITTLE, UM, CONVERSA HAVE A LITTLE CONVERSATION ABOUT SOME POTENTIAL CHANGES.
SO YEAH, WE'LL, WE'LL, WE'LL GET ALL OF THAT GATHERED UP AND HAVE THE COUNCIL MEMBERS SEND THAT OVER TO DIRECTOR TILLSON.
SO EVEN THOUGH WE'RE REQUIRED TO UPDATE THIS EVERY TWO YEARS, WE CAN AMEND THIS ORDINANCE AT ANY TIME.
AND SO WE, WE PLAN TO DO THAT PROBABLY 2027.
WE'LL LOOK AT SOME DOING A, A BROADER AMENDMENT TO, TO EVERYTHING.
ANDREW, DID I UNDERSTAND YOU TO SAY Y'ALL WOULD LIKE FOR THIS TO, UH, BE READOPTED BY THE END OF THIS MONTH? YEAH, SO CURRENTLY IT'S, UH, SET TO EXPIRE OF MIDNIGHT OF GOING INTO, UH, AUGUST 28TH, UH, 2026.
SO THAT, THAT'S WHEN THE ORDINANCE IS SET TO EXPIRE.
UH, SO WHEN, SO WE PUT IT ON CITY COUNCIL AGENDA TO BE READOPTED BEFORE THAT EXPIRATION.
WHAT HAPPENS IF IT'S NOT READOPTED BY THE END OF THE MONTH? BY THE EXPIRATION RIGHT.
OUR, UM, OUR IN A, WE WOULD LOSE THE ABILITY TO CONDUCT TAX ABATEMENTS.
SO WE WOULD NOT BE ABLE TO PROCESS CURRENT APPLICATIONS, RECEIVE APPLICATIONS, MOVE FORWARD WITH ANYTHING IN OUR CURRENT APPLICATION PIPELINE, UH, UNTIL THE ORDINANCES IS REAUTHORIZED.
BUT THE ONES ALREADY EXISTING, THOSE WOULD BE HONORED.
NO, WE WOULDN'T HAVE AUTHORITY TO DO TAX ABATEMENTS.
SO, SO THE ONES THAT HAVE BEEN APPROVED, UH, THOSE, OH, THOSE WOULD STILL BE OPERATIONAL? YEAH.
SO, SO ONCE THE TAX ABATEMENTS ARE APPROVED BY CITY COUNCIL, THOSE ARE LEGAL AGREEMENTS AND THOSE ARE MOVING FORWARD, IT'D BE ANYTHING THAT IS NOT YET APPROVED.
UM, NEXT TO LAST SLIDE, IT SAYS, ONCE THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT IS COMPLETED A REVIEW, ANY PROPOSED AMENDMENTS WILL BE PRESENTED TO THE ECONOMIC DEVELOPMENT COMMITTEE.
SO THIS IS SUPPOSED TO TAKE PLACE BEFORE ADOPTION? NO.
WHEN WE, WHEN WE ARE READY TO PROPOSE, UM, AMENDMENTS, WE'LL HAVE ANOTHER ECONOMIC DEVELOPMENT COMMITTEE MEETING ON
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THOSE PROPOSED AMENDMENTS.SO RIGHT NOW, THIS IS JUST THE, THIS IS THE COMMITTEE MEETING TO EXPLAIN THAT WE PROPOSE IT TO BE RE ADOPTED WITH NO CHANGES.
AND WHEN WILL WE GET ACCESS TO THE LANGUAGE THAT WE ARE TO VOTE ON? UH, AS, AS SOON AS POSSIBLE? YEAH.
UM, FOR RIGHT NOW, THE ORDINANCE ITSELF WILL ESSENTIALLY SAY WE'RE GOING TO READ, ADOPT THE, UM, THE ORDINANCE AS IS.
SO THERE THE, UH, ARTICLE FOUR OF CHAPTER 44 OF OUR ORDINANCES, THAT IS THE LANGUAGE THAT WOULD BE UNDER CONSIDERATION.
THERE WOULDN'T BE ANY CHANGES TO THAT ARTICLE.
UM, I HAVE AN ADDITIONAL QUESTION, BUT I'LL GO BACK.
SO I'M JUST CURIOUS, THE ONES THAT COUNCIL HAS ALREADY ADOPTED IN PRIOR YEARS, UM, DOES, DOES YOUR OFFICE DO ANYTHING TO FOLLOW UP AND MAKE SURE THAT THOSE COMPANIES THAT HAVE RECEIVED THE ABATEMENTS ARE FOLLOWING THROUGH ON, ON WHAT THEY PROMISED TO DO? IN OTHER WORDS, JOB CREATION, ET CETERA? YEAH, THERE'S ANNUAL REPORTING REQUIREMENTS THAT THEY HAVE TO DO IN ORDER TO RECEIVE THE ABATEMENT FOR THAT YEAR.
SO THEY'RE REQUIRED TO SUBMIT TO US, UM, NOTARIZED STATEMENTS, DOCUMENTING THEIR JOB HIRING.
WE ALSO CONFIRM THAT WITH TEXAS WORKFORCE COMMISSION DATA.
UH, WE ALSO WORK WITH, UH, HCAD QUITE CLOSELY TO, TO BE SURE THAT EVERYTHING IS IN COMPLIANCE.
AND IF THEY DON'T MEET COMPLIANCE, THEY DON'T GET THE ABATEMENT FOR THAT YEAR.
AND IT, IT RISKS, UH, TERMINATING THE AGREEMENT.
AND SO HAVE YOU HAD TO TELL COMPANIES, HEY, YOU DIDN'T COMPLY AND, AND THUS YOU DON'T GET THE ABATEMENT THIS YEAR.
UH, CAN, CAN YOU GIVE US A RECENT EXAMPLE OF THAT? UH, JUST THIS YEAR WE HAD A COMPANY, UM, THEY DID NOT SUBMIT, WELL, THEY DID NOT SUBMIT THEIR COMPLIANCE DOCUMENTATION TO US.
THEY ALSO SUBMITTED THEIR APPLICATION TO HCA IMPROPERLY.
AND WHEN WE REACHED OUT TO THEM, IT WAS NOT CORRECTED IN TIME.
SO THEN WE, UH, DID NOT GRANT THEM AN ABATEMENT FOR THIS YEAR, AND THEY WERE ABLE TO CURE UNDER THE AGREEMENT.
THEY'RE ABLE TO CURE THE ABATEMENT, UH, WITHIN THE TIME PERIOD.
SO THE ABATEMENT AGREEMENT IS STILL VALID AND STILL GOING, BUT THEY DID NOT RECEIVE AN ABATEMENT THIS YEAR.
AND WHO WAS THAT? WHAT COMPANY? UH, CONVERGE MIDSTREAM.
UM, AND AS WE DISCUSSED OR THE CHAIR DISCUSSED, UH, I HAD EMAILED COMMUNICATION WITH THE DIRECTOR THIS MORNING.
UM, AND I WOULD REALLY LIKE TO SEE US LOOK AT, UH, SALES TAX AND PROPERTY TAX INCREASES AS MUCH MORE OF, UH, GEARED TOWARDS THAT.
JOBS WILL ALWAYS BE IMPORTANT.
YET AT THE SAME TIME, OUR UNEMPLOYMENT RATE IN THE CITY'S BEEN BETWEEN FOUR AND 5% FOR THE LAST YEAR.
THERE REALLY HASN'T BEEN ANY EMPLOYMENT ISSUES FOR QUITE A WHILE.
IN FACT, I THINK IF ANYTHING, WE MAY HAVE A MISMATCH OF JOB SKILLS.
I, I KNOW ONE OF THE THINGS I HEAR FROM, FROM BUSINESS ALL THE TIME IS THEY CAN'T FIND QUALIFIED, UH, APPLICANTS FOR THEIR POSITION.
SO IN, YOU KNOW, I, WITHOUT A DOUBT, WE HAVE AN ISSUE WITH FINANCES.
SO WOULD REALLY LIKE TO SEE US GEARED TOWARDS THAT.
IN FACT, UM, IN, IN MY DISTRICT OR, OR JUST OUTSIDE OF MY DISTRICT, UH, DOWN IN WEBSTER, UH, THE NEW IKEA JUST WENT IN.
NOW THEY'RE GONNA HAVE A LOT OF RETAIL JOBS, WHICH ARE NOT GONNA BE SEEN AS GREAT JOBS.
RETAIL ISN'T A HIGH PAYING SECTOR YET.
THEY ARE GOING TO HAVE MILLIONS OF DOLLARS EVERY YEAR IN SALES TAXES 'CAUSE IT'S ALL A RETAIL TRANSACTION.
UH, YOU KNOW, THEY, THEY DON'T REALLY DO BUSINESS TO BUSINESS.
SO, YOU KNOW, THAT'S ALL MONEY WE'RE MISSING OUT.
PLUS, YOU KNOW, THERE WOULD BE VERY LITTLE COST TO THE CITY IF THEY WERE INSIDE THE CITY.
IT'S NOT LIKE THEY REQUIRE A LOT OF SERVICES.
UH, AND THEN JUST DOWN THE STREET FROM THEM IS, UH, GRAY WOLF LODGE, WHO, WHO, AGAIN, YOU KNOW, THE HOTEL INDUSTRY TYPICALLY DOESN'T HAVE REAL HIGH PAYING JOBS.
SO, I MEAN, IT'S NOTHING THAT ANYBODY'S GONNA LOOK AT AND SAY, OH, THESE ARE GREAT JOBS FOR AS GREAT HIGH PAYING JOBS, BUT YET AT THE SAME TIME, THEY'RE GONNA BE COLLECTING MILLIONS IN HOT TAX, MILLIONS IN SALES TAX.
UM, THEY MAY REQUIRE A LITTLE MORE SERVICES FROM THE CITY THAN, THAN WHAT, UH, YOU KNOW, IKEA WOULD.
BUT I THINK WE REALLY NEED TO GEAR ON THE FINANCE PART OF IT AND WHAT WE CAN DO TO BRING REVENUE INTO THE CITY, BECAUSE THAT IS THE BIGGEST ISSUE THE CITY'S GOT RIGHT NOW.
RIGHT NOW, OUR TAX ABATEMENT ORDINANCE FOR THE, THE ECONOMIC DEVELOPMENT ABATEMENT, THERE'S A MINIMUM INVESTMENT OF, UH, $5 MILLION FOR THE PROJECT COST.
AND THEN IF IT'S A DETERIORATED BUILDING OR IN A, UM, LIKE AN OPPORTUNITY ZONE OR SOME OTHER, UM, SPECIALIZED AREA, IT'S A MILLION DOLLARS OR OR LESS FOR INVESTMENT REQUIRED TO BE ELIGIBLE.
AND SO CURRENTLY WE'RE KIND OF BEHOLDEN TO WHAT OUR ORDINANCE SAYS IS WHAT THAT MINIMUM INVESTMENT NEEDS TO BE.
UM, BUT THEN WHAT'S, WHAT'S GREAT ABOUT THE, THE ABATEMENT IS THAT WE'RE, WE'RE CHOOSING TO
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NOT COLLECT.SO WE'RE NOT NECESSARILY GIVING REVENUE AWAY, WE'RE JUST NOT COLLECTING IT.
UM, AND SO BASED ON THAT NEW INVESTMENT COMING IN, HISTORICALLY THE PROJECTS THAT WE'RE SEEING IN OUR OFFICE ARE AT LEAST $10 MILLION OR GREATER AS FAR AS INVESTMENT COMING IN.
AND SO THERE'S ALWAYS A PIECE OF IT GOING TO THE GENERAL FUND.
BUT TO YOUR POINT, LIKE LARGER PROJECTS THAT ARE GENERATING SALES TAX REVENUE, WE DON'T USE OUR TAX AGREEMENT ORDINANCE TO CAPTURE THAT.
WE FOCUS MOSTLY JUST ON THE, THE PHYSICAL TANGIBLE PROPERTY.
AND WE USE OUR CHAPTER THREE 80 AGREEMENTS FOR SALES TAX AND THAT SORT OF THING.
AND NO, AND WHEN YOU'RE SAYING WE DON'T HAVE TO PAY OUT MONEY, YOU'RE ABSOLUTELY CORRECT.
I MEAN, TYPICALLY WE'RE STILL COLLECTING A PORTION OF IT, RIGHT? YEAH.
IT'S NOT AS IF WE'VE GIVEN THE WHOLE THING AWAY AND AGAIN, GO BACK TO THAT NRG DEAL AND I, I THOUGHT THAT WAS THE BEST DEAL THAT I'VE SEEN SINCE I'VE BEEN HERE.
UH, JUST TO PIGGYBACK OFF OF THAT AS WELL, UM, I THINK THE CONVERSATION HAS BEEN HOW DO WE INCREASE REVENUE? AND, AND ALTHOUGH IT'S A LITTLE BIT MORE, UH, UM, WE CAN'T RELY ON IT AS MUCH WHEN THE SALES TAX, BUT I THINK TO COUNCILMAN ING'S POINT TO BEING VERY INTENTIONAL ABOUT GEOGRAPHICAL NEEDS, I KNOW THAT SOME PARTS OF THE CITY OF HOUSTON, UM, IN THE HOBBY AREA SPECIFICALLY, BUT THEN I CAN THINK OF LIKE IN DISTRICT B WHERE, YOU KNOW, IF YOU'RE ABLE TO DO A TAX ABATEMENT FOR RETAIL, UH, TO HELP, YOU KNOW, INJECT SOME OF THAT, THAT, UH, THAT THAT KIND OF SUPPORT, THEN YOU START SEEING THAT SALES TAX COME IN.
BUT THEN, YOU KNOW, AGAIN, ALTHOUGH WE'RE NOT SEEING A HUGE INCREASE ON JOBS, BUT THERE, THERE'S STILL, THERE'S STILL OPPORTUNITIES THERE.
UH, YOU'RE BRINGING, YOU'RE BRINGING OTHER, UH, RESOURCES AND, AND, UH, UH, JUST, YOU KNOW, ON, ON THE RETAIL SIDE, WE COULD DO A LOT BETTER OF FIGURING OUT WHAT SALES TAX LOOKS LIKE COMING IN, UH, WHILE HELPING DEVELOP, UH, SOME PARTS OF THE CITY OF HOUSTON.
SO I'D REALLY LIKE TO SEE SOME, SOMETHING MOVE IN THAT DIRECTION AS WELL.
WE HAD ONE, UH, SUCCESSFUL ABATEMENT WITH THAT.
I WANNA BE SURE WE'RE SAY, CLEAR ON TIME.
UM, THE, UH, I BELIEVE IT WAS IN 2024, OUR, UM, FIRST EVER, UH, GSI COMBINATION WITH A DEMOLITION ABATEMENT WAS FOR A MIXED USE RETAIL DEVELOPMENT.
UM, AND SO THAT'S OVER, UM, IT'S CALLED ASHFORD YARDS.
THAT'S, UM, ON BRIAR FOREST AND, UM, DAIRY ASHFORD.
AND SO THAT IS UNDER CONSTRUCTION NOW.
I THINK THEY JUST BROKE GROUND A COUPLE MONTHS AGO.
AND SO THAT'LL BE A VERY INTERESTING ONE WHERE WE'RE DOING, UM, THE TAX AMENDMENT ON, UM, YOU KNOW, INCENTIVIZING THE, THE RESILIENCY AND DEMOLISHING ABANDONED PROPERTIES, THAT SORT OF THING.
BUT THEN WE DON'T, WE'RE NOT IN OUR PROJECTIONS EVERYTHING, WE'RE NOT COUNTING THAT NEW SALES TAX REVENUE THAT'S GONNA BE GENERATED FROM THAT PROPERTY.
SO LIKE THAT'S, THAT'S A HUGE WIN.
SO EVEN THOUGH WE'RE, UM, WE'RE GIVING UP A LITTLE BIT OF COLLECTING OUR, OUR PROPERTY VALUE, BUT WE'RE GAINING IT BACK IN SALES TAX.
UH, JUST TO PIGGYBACK, PIGGYBACK OFF OF WHAT COUNCIL MEMBER FLICKINGER SAID, YOU KNOW, GIVEN THE CHALLENGING REVENUE, UH, SITUATION WE'RE IN, YOU KNOW, THAT SHOULD PLAY A GREATER ROLE IN, IN WHETHER, YOU KNOW, A GIVEN PROJECT GETS RECOMMENDED.
UH, MY LAST QUESTION WAS, GIVEN THAT THERE'S ONLY ONE WEEK LEFT IN THE MONTH, I ASSUME THE ITEM ON NEXT WEEK'S AGENDA WILL BE ACCOMPANIED BY A NO TAG MEMO.
YOU COULD TAG IT IF YOU'D LIKE.
IT'S NOT, UH, WE'RE NOT PUTTING A NO TAG MEMO ON IT.
UM, IT, WHAT WOULD HAPPEN IN THAT EVENT IS IF IT, IF THE ITEM IS TAGGED FOR THE FOLLOWING WEEK, THAT PERIOD BETWEEN, UM, WHEN IT EXPIRES ON THE, THE FRIDAY OF UP THROUGH THE NEXT CITY COUNCIL MEETING, WE WOULD NOT BE ABLE TO PROCESS TAX ABATEMENTS.
UM, ANDREW, DO YOU KNOW, UM, WHEN WE CHANGED THE ORDINANCE IN 2024, THE PROJECT YOU JUST TALKED ABOUT, IS THAT THE, THE ONLY ONE WE'VE GOTTEN ON OUR GSI ABATEMENT? THAT'S CORRECT.
AND IT, AND IF WE HAD NOT CHANGED IT, WOULD THAT PROJECT QUALIFY? I THINK IT WOULD'VE, BUT IT, IT WOULD'VE BEEN MORE DIFFICULT FOR THEM TO, FOR FEASIBILITY.
SO PART OF THE ISSUES THEY HAD WAS FINANCING THE, THE GSI INFRASTRUCTURE.
AND SO WHILE, UM, THAT WASN'T NECESSARILY AN ELIGIBLE COST AT THE TIME, BUT IT WAS SOMETHING WE WERE WILLING TO CONSIDER DOING, LIKE VARIANCE TYPE THINGS FOR.
UM, BUT THE LESS VARIANCES WE CAN DO BECAUSE OUR POLICY IS SOLID, THEN THE, THE BETTER OFF WE ARE.
IF THERE ARE NO OTHER QUESTIONS, THEN WE ARE READY TO MOVE INTO OUR SECOND, UM, PROPOSAL ON TAX ABATEMENT FOR FERGUSON ENTERPRISES LLC.
SO ON THE SAME TOPIC OF TAX ABATEMENTS, UH, YOU KNOW, YOU ALL APPROVED A TAX ABATEMENT PROPOSAL THIS MORNING, AND THANK YOU.
AND NOW I'M BRINGING ANOTHER ONE TO YOU TO, TO THINK ABOUT.
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FOR FERGUSON ENTERPRISES, LLC, UM, OKAY.SO, UM, AS, AS I STATED, YOU KNOW, ORDINANCE 2024 DASH 64 HAS OUR TAX AMENDMENT PROGRAM.
UM, WE'LL MOVE THROUGH TO THE NEXT ONE.
UM, SO THIS IS TALKING MORE SPECIFICALLY ABOUT THE ECONOMIC DEVELOPMENT TAX ABATEMENT.
UM, SO HERE, THERE'S, UM, THEY'RE REQUIRED TO PROVIDE AN ECONOMIC BENEFIT TO THE CITY.
THERE'S MINIMUM INVESTMENTS THEY HAVE TO CREATE A RETAIN OR PREVENT, UM, LOSS OF PERMANENT JOBS.
UM, IN THIS ABATEMENT WE CAN ABATE BUILDINGS, STRUCTURES, MACHINERY, EQUIPMENT, UM, INVENTORY, ALL THIS SORT OF STUFF.
UM, AND THEN AS, AS A PART OF THIS, YOU KNOW, THEY ARE REQUIRED TO COMMIT TO COMMUNITY BENEFITS.
SO ABOUT, UH, FERGUSON ITSELF, IT'S A FORTUNE 500 COMPANY.
UM, NORTH AMERICA'S LARGEST VALUE ADDED DISTRIBUTOR OF ESSENTIAL WATER AND AIR SOLUTIONS.
SO THINK THE, THE PIPES AND INFRASTRUCTURE THAT GOES INTO WATER TREATMENT PLANTS, UM, HVAC, UM, THE SPRINKLER SYSTEMS FOR BUILDINGS, THEY DO, UH, RESIDENTIAL, COMMERCIAL AND INDUSTRIAL.
SO THE WHOLE RANGE OF, OF THINGS.
UM, SO THIS COMPANY IS, IS VERY BUSY ON THE, THE BACK END OF, UM, A LOT OF, UH, CONSTRUCTION.
UM, AND SO THEY SERVE ALL SORTS OF MARKETS.
THEY ARE, UM, SIGNIFICANT PRESENCE BOTH IN THE US AND IN IN TEXAS.
THEY'VE GOT, I BELIEVE, 200, 225 EMPLOYEES ALREADY IN HOUSTON.
AND THEN, UH, OVER 3000 EMPLOYEES IN TEXAS.
UM, SO LOOKING AT THE INVESTMENT ITSELF, UM, THEY ARE LOOKING TO CREATE A NEW MANUFACTURING, FABRICATION AND DISTRIBUTION FACILITY IN DISTRICT B.
UM, THEIR CAPITAL INVESTMENT IS, UH, $25.9 MILLION FOR THIS PROJECT.
UM, THE BUILDING SHELL WAS JUST CONSTRUCTED THIS PAST YEAR, AND SO THE SHELL ITSELF IS NOT INCLUDED IN THE ABATEMENT.
WE'RE LOOKING AT, UM, THEM MOVING IN AND MAKING IT THEIR SPACE.
UM, SO IT IS LOCATED WITHIN A TEXAS ENTERPRISE ZONE, WHICH IS A, A STATE DESIGNATION FOR, FOR HIGH POVERTY CENSUS TRACT.
UH, IT'S ALSO, UM, IN A, UM, A CURRENT OPPORTUNITY ZONE AND ONE THAT WE DID PROPOSE TO THE STATE FOR THIS NEXT ITERATION OF OPPORTUNITY ZONES.
UM, THE BIG THING HERE IS, YOU KNOW, THEY WERE LOOKING AT GOING TO ATLANTA FOR THIS EXPANSION.
UH, AND SO THIS INCENTIVE, SIMILAR TO PAST INCENTIVES IS THIS IS A, A COMPETITIVE SITE WHERE WE'RE TRYING TO BE SURE THAT THEY COME HERE, UM, AND STAY HERE AND INVEST.
SO THEY'RE LOOKING AT DOING 66 JOBS WITHIN FIVE YEARS OF, UM, FIVE YEARS OF COMPLETING THIS PROJECT.
UM, 64 OF THESE JOBS ARE FABRICATOR JOBS, SO WORKING ON THE MACHINERY, DOING THAT ACTUAL HARD LABOR OF PUTTING THIS EQUIPMENT TOGETHER AND GETTING IT SHIPPED OUT TO THE PROJECT SITES ACROSS THE NATION.
UM, THE OTHER TWO JOBS ARE MORE SUPERVISORY.
UM, SO WE'RE LOOKING AT, UM, $75,000 AVERAGE ANNUAL SALARY FOR THESE FABRICATOR JOBS.
UM, SO THE, THE BIG THING HERE WITH, UM, ATLANTA IS THAT, UM, LABOR COSTS ARE HIGHER HERE IN HOUSTON COMPARED TO ATLANTA.
UM, AND THEN THE FACILITIES AND THINGS THEY WERE LOOKING AT IT, IT WAS A LITTLE BIT MORE OF AN EXPENSIVE SITE IF THEY WERE GOING TO MOVE HERE.
AND SO THAT WAS THE THING THAT WE'RE COMPARING AGAINST.
SO WHEN WE LOOK AT HOW THIS PROJECT ALIGNS WITH OUR OFFICE'S PRIORITIES, UM, YOU KNOW, MANUFACTURING, DISTRIBUTION, THOSE THINGS ARE VITAL TO OUR CITYWIDE INDUSTRIES.
SO THAT'S A, THAT'S A AREA WE WANNA SUPPORT.
UM, AND ADDITIONALLY, BECAUSE THEY ARE IN AN AREA THAT, UM, IS HIGHLIGHTED IN SEVERAL DIFFERENT PROGRAMS AS BEING AN AREA THAT IS WELCOMING INVESTMENT, WE WANT TO ENCOURAGE INVESTMENT WHERE WE'RE SAYING THAT WE WANT INVESTMENT.
SO, UM, FOR THIS ABATEMENT, UM, WE WOULD, YOU KNOW, WE'RE PROPOSING IT TO YOU ALL FOR, FOR CONSIDERATION, UM, IN THE FUTURE HERE.
LOOKING AT THE PROJECT SITE SPECIFICALLY.
UM, SO IT'S, IT'S IN DISTRICT B, AS I MENTIONED EARLIER, IT'S BETWEEN MESA DRIVE AND BEAUMONT HIGHWAY.
UM, THE, SINCE THE SITE IS LOCATED WITHIN AN ENTERPRISE ZONE, WE DO NOT HAVE TO CREATE A TAX AMENDMENT REINVESTMENT ZONE.
UH, WE CAN JUST CREATE THE ABATEMENT AND GO ON.
SO LOOKING AT THE PROPOSAL ITSELF, UM, OUT
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OF THE $25.9 MILLION OF CAPITAL INVESTMENT, UM, WE'RE ESTIMATING ABOUT $5 MILLION OF ELIGIBLE BUILDING IMPROVEMENTS, $15.9 MILLION OF ELIGIBLE MACHINE UNIT EQUIPMENT COSTS, AND ABOUT $800,000 OF BUSINESS PERSONAL PROPERTY COSTS.UM, WE'RE PROPOSING A, UH, MILLION DOLLAR ABATEMENT OR 10 YEARS, WHICHEVER ONE, UH, THEY HIT FIRST.
AND SO BASED ON OUR PROJECTIONS, UH, WE'RE LOOKING AT A FIRST YEAR ABATEMENT OF ABOUT $97,000, AND THEN ANNUALLY ACROSS THE 10 YEARS, MAYBE CLOSER TO 89, ALMOST $90,000.
UM, AND SO BASED ON OUR PROJECTION, WE'RE ESTIMATING TO HAVE THE ABATEMENT COULD HIT ABOUT $900,000 OVER THE 10 YEAR PERIOD.
UH, BUT BASED ON THE COMPARISON WITH ATLANTA, WE'RE PROPOSING A MILLION DOLLARS.
AND THEN, YOU KNOW, IF THEY INVEST MORE AND IT SHOWS UP IN HA, IT COULD GO TO THE A HUNDRED, BUT IT, OR IT COULD GO TO THE MILLION, BUT IT WON'T EXCEED THAT A MILLION BASED ON OUR AGREEMENT.
SO I WILL TAKE QUESTIONS ABOUT THIS PROPOSAL AT THIS TIME.
UM, ANDREW, YOU MENTIONED THAT THE CHIEF COMPETITION IS ATLANTA AND YES, THAT'S CORRECT.
UM, FERGUSON HAS ALREADY BUILT A SHELL OF THIS, UH, PROPOSED NEW FACILITY, IS THAT RIGHT? FERGUSON DID NOT BUILD THE SHELL.
UH, SEPARATE COMPANY BUILT THE SHELL, AND THEY'RE, UH, TRYING TO LEASE IT, LEASE IT TO FERGUSON.
WHO, WHO BUILT THE SHELL? DO YOU KNOW? I DON'T HAVE THAT OFFHAND.
UM, REGARDING THE NEW JOBS THAT, UM, THEY PROPOSED TO ADD 66 JOBS AT $75,000 A YEAR, UM, COMES OUT TO 4.95 MILLION, AND, UH, YOUR SLIDE THAT'S ON THE SCREEN NOW SAYS ESTIMATED TOTAL ANNUAL WAGE FOR NEW JOBS AT 5.57 MILLION.
SO HOW DO YOU RECONCILE THOSE TWO FIGURES? AM I MISSING SOMETHING? 4.95 MILLION VERSUS THE 5.5 7 64 OF THE JOBS ARE AT THE $75,000 SALARY.
THE TWO OTHER JOBS ARE SIX FIGURE JOBS THAT ARE SUPERVISORS AND, AND LIKE A PLANT MANAGER.
SO IT'S 64 FABRICATOR JOBS AND THEN TWO MUCH HIGHER PAYING JOBS.
IS THAT CORRECT? IS THAT CORRECT? YES.
COUNCIL MEMBER FLICKINGER, LOOKING AT THE TOTAL, AND THIS IS THE
AND THEN TOTAL REVENUE TIME 6,000? THAT'S CORRECT.
AND THAT IS BECAUSE THE, UM, THE BUILDING SHELL IS NOT INCLUDED IN THE ABATEMENT.
SO RIGHT NOW ON THIS HC PROPERTY, UM, THE BUILDING IS CONSTRUCTED AND WE'RE GOING TO GET OUR FULL PROPERTY VALUE OR OUR PROPERTY TAX OFF THE BUILDING.
SHELL, THE ABATEMENT WILL BE ON THE MACHINING EQUIPMENT, THE INTERIOR BUILD OUT, THAT SORT OF THING.
UM, WOULD IT BE GREATER THAN 90% THEN? IS IT ONE SLIDE SHOWED THE MAXIMUM 90%? IT'S, YEAH.
SO IT'S, IT IS A 90% OF THE COMPANY'S ELIGIBLE COSTS.
AND SO WHILE THIS, THIS PROJECTION IS INCLUDING IN THAT BUILDING IMPROVEMENT VALUE IS THE, THE VALUE OF THE EXISTING BUILDING, EVEN THOUGH THAT'S NOT ELIGIBLE FOR THE ABATEMENT.
SO AS YOU SEE ON OFF THE SIDE, BUT YET INCLUDED IN, WE HAVE TO INCLUDE IT BECAUSE THE HCA ACCOUNT WILL HAVE IT.
THERE ARE OTHER QUESTIONS FROM THE COUNCIL MEMBERS.
UH, WE DO HAVE THREE PUBLIC SPEAKERS SIGNED UP.
UM, ANDREW, THANK YOU FOR THE INFORMATION.
OUR FIRST PUBLIC SPEAKER IS LISA JENKINS.
HOW ARE YOU? GO AHEAD AND, AND COME UP TO THE MICROPHONE AND WE'RE READY TO HEAR FROM YOU.
DO I SIT DOWN? WANNA STAND UP RATHER? JUST STAND UP.
YOU WANNA STAND? YOU WANNA STAND? OH, OH, I CAN SEE IT.
[00:30:01]
HOW ARE YOU TODAY? DOING WELL, THANK YOU.
IT'S GOOD TO BE ABLE TO COME IN HERE AND TALK TO YOU.
AS YOU KNOW, MY NAME IS LISA JENKINS.
I'M REPRESENTING THE NONPROFIT WHO HAS THE EFFORTS OF RESTORING THE EVERGREEN NEGRO CEMETERY IN FIFTH WARD.
AND AS YOU KNOW, THAT'S, THAT IS KNOWN AS THE THIRD LARGEST, I MEAN, THIRD OLDEST CEMETERY IN HOUSTON.
AND WHAT I'M TALKING ABOUT TODAY IS RECLAIMING FORGOTTEN HISTORY.
BUT THE CORE PROBLEM IS PRESERVATION VERSUS DEVELOPMENT.
TODAY WE HEAR A LOT OF CHAMBERS ABOUT TAX ABATEMENT DESIGNED TO INCENT INCENTIVIZE PRIVATE DEVELOPERS TO BUILD NEW INFRASTRUCTURE.
BUT WE FEEL THE TRUE ECONOMIC AND CULTURAL REVITALIZATION IS IN OUR HISTORIC NEIGHBORHOODS.
IT CAN NOT JUST BE ABOUT NEW STEEL AND CONCRETE.
IT MUST ALSO BE ABOUT HONORING THE FOUNDATIONAL HISTORY OF OUR COMMUNITY THEMSELVES.
RIGHT NOW, THE TASK OF MAINTAINING THIS HISTORIC CEMETERY FALLS ENTIRELY ON LOCAL VOLUNTEERS AND THE NONPROFIT.
AND WHAT WE ARE ASKING TODAY IS TANGIBLE MUNICIPAL SUPPORT.
WE ARE CONVERTING EVERGREEN INTO AN OUTDOOR MUSEUM AND A EDUCATION LANDMARK FOR FUTURE GENERATIONS.
BUT THE GRASSROOTS LABOR CAN ONLY GO AS FAR AS IT CAN WITHOUT CAPITAL.
WHILE WE RECOGNIZE THAT TAX ABATEMENTS DON'T HAND OUR DIRECT CHECKS, WE'RE ASKING THIS COUNCIL TO CHAMPION PRIVATE PUBLIC EQUITY.
WE NEED THE CITY TO ACTIVELY PARTNERSHIP WITH US IN DIRECTING MUNICIPAL AND FRACTURED FUNDS, LEVERAGING COMMUNITY DEVELOPMENT BLOCK GRANTS, OR DEPLOYING PUBLIC WORK CREWS TO ASSIST IN STABILIZING THIS CEMETERY GROUNDS AS A MATTER OF DIGNITY.
PROTECTING BLACK HERITAGE IN HOUSTON SHOULD NOT BE TREATED AS A HOBBY FOR VOLUNTEERS.
THE CITY'S GROWTH HISTORICALLY DISRUPTED THIS SACRED, UH, SACRED SITE IN THE 1960S.
THERE ARE STILL REMAINS THAT ARE IN THE MEDIUM, AS YOU KNOW.
WELL, WE WANT TO WORK TOGETHER TO RESTORE THE DIGNITY TO THOSE PIONEERS.
AND IF YOU HAVE ANY QUESTIONS, MS. JENKINS, WHO, WHO OWNS THIS CEMETERY? THIS CEMETERY IS, UH, IT'S NOT A PRIVATELY OWNED CEMETERY, AND IT'S MANAGED BY A NONPROFIT.
AND UNDER THE TEXAS HEALTH AND SAFETY CODE SECTION SEVEN 13, LOCAL MUNICIPALITIES AND COUNTIES ARE EXPLICITLY PERMITTED TO USE PUBLIC EQUIPMENT FUNDS TO HELP WITH THESE CEMETERIES.
SO IT'S A PUBLIC CEMETERY, BUT IT'S BEING MANAGED BY A VOLUNTEER.
IT'S NOT A PUBLIC, IT WAS, IT'S A PRIVATE CEMETERY? NO, IT'S NOT A PRIVATE CEMETERY.
IT'S, UH, LIKE WHAT WE SAY, WE TALK ABOUT ABANDONED HISTORIC CEMETERY.
IT WAS ABANDONED AT ONE TIME UNTIL OUR NONPROFIT CAME IN, CAME TO HELP IN DEVELOPING ME AND UNDER THE TEXAS HISTORIC CEMETERY DESTINATION, IT WAS RECEIVED IN 2009.
SO THE DESIGN DESIGNATION, SO NOW IT HAS A HISTORICAL MARKER.
UM, OR HISTORICAL DESIGNATION? A HISTORICAL DESIGNATION.
ON SATURDAY OF THIS, UM, ON THE 22ND, WHAT WE ARE DOING IS HAVING A DESCENDANTS DAY WHERE WE ARE INVITING CITY COUNCIL MEMBERS TO COME OUT.
AND THEN WHAT WE ARE DOING IS WE ARE UNVEILING THIS BEAUTIFUL MONUMENT THAT WAS GIVEN TO US BY METRO, AND THEY KEPT THEIR WORD BECAUSE WE, THE DISUR REMAINS THE 39 DISUR REMAINS.
WERE MOVED BACK INTO THE CEMETERY IN MARCH, AND RIGHT NOW IS SLAVE INTERNATIONAL SLAVERY REMEMBRANCE DAY.
SO WE WANNA MAKE SURE THAT WE REMEMBER OUR HISTORY THROUGH THE WAYS OF THIS HISTORICAL LANDMARK IN THE MIDDLE OF CITY HOUSTON, THE CITY OF HOUSTON, AND IN THE FIFTH WARD AREA.
AND IS THE PROJECT RESPECT THE NONPROFIT THAT IS MAINTAINING THAT CEMETERY? YES.
HAVE YOU HAD A CONVERSATION WITH YOUR COUNCIL MEMBER? YES, WE'VE HAD CONVERSATION WITH THE COUNCIL MEMBER.
BUT WHAT WE ARE ASKING IS THE MEDIUM WE'VE DONE EXTENDED, I LEFT IT THERE.
WE'VE DONE AN ARCHEOLOGY REPORT THAT EVERYONE HAS ACCESS TO IT.
IT TOOK US A YEAR AND A HALF TO DO THIS REPORT.
THIS REPORT IS AT THE GREGORY LIBRARY.
[00:35:01]
I MEAN, THE CITY HAS A COPY OF IT, BUT THE MEDIUM AND THE SI OUTSIDE OF THE CEMETERY STILL BELONGS TO THE CITY.ARE THEY, IS THE CITY MAINTAINING IT? IS PARKS DEPARTMENT MAINTAINING IT? NOBODY'S MAINTAINING THAT OUTSIDE OF IT.
WE CAN PUT IN, DEFINITELY PUT IN A REQUEST FOR THAT.
UM, IF THE CITY OWNS IT, THAT THE PARKS DEPARTMENT CAN MAINTAIN THAT.
COUNCIL MEMBER DAVIS, YOU'RE IN THE QUEUE.
MS. D, IT'S GOOD TO SEE YOU AGAIN.
UH, AND THANK YOU FOR STAYING ON TOP OF THIS SITUATION.
AND YOU KNOW, WE HAD TALKED A COUPLE TIMES BEFORE ABOUT IT.
YOU ALL ARE MAINTAINING IT AS OF NOW, YOU ARE MAINTAINING IT.
WHAT NON-PROFIT, UH, IS MAINTAINING IT IS, IS IT PROJECT WAS AND WHY NOT? LEGACY AND HERITAGE GROUP.
SO YOU ALL ARE THE ONES THAT'S KEEPING UP WITH IT.
AND THE CHAIR, UM, UM, MAYOR PRO, TIM ASKED YOU ABOUT THAT SO THAT WE CAN, IF THE CITY OWNS IT, THEN WE CERTAINLY WANT THE CITY OWNS THE OUTSIDE OF IT.
AND SO BY BY DEFINITION, YOU'RE TRYING TO GET THE DESIGNATION OF THE CLASSIFICATION OF THIS TO WHAT WE ALREADY HAVE THE HISTORIC DESIGNATION.
OH, IT'S, WE'VE BEEN HAD THE HISTORIC DESIGNATION.
SO YOU'RE ASKING 2009 ASKING TO DO.
SO YOU ASKING US FOR WHAT? I'M ASKING YOU FOR THE IN-KIND DONATION OF THE USE OF USING YOUR, UH, PUBLIC WORKS TO HELP MAINTAIN THE OUTSIDE OF IT.
WE'RE, WE'RE GONNA, WE'RE GONNA SEND IT TO, UM, PUBLIC WORKS TO SEE IF WE OR THE PARKS DEPARTMENT TO SEE IF THEY CAN MAINTAIN IT.
IF THEY, UM, SEE THAT IT IS THE CITY'S PROPERTY, UM, WE SHOULD HAVE THE PARKS OR PUBLIC WORKS TO MAINTAIN IT.
WE'LL, WE'LL SEND THAT OVER TO THEM.
AND WE ALSO APPLYING FOR, UM, THE TEXAS HISTORIC FOUNDATIONAL GRANT.
BUT THERE'S A LOT OF THINGS GOING ON IN THAT CEMETERY THAT WE HAVE NOT ADDRESSED.
SINCE IT IS A PUBLIC VENUE AND IT'S CREATED, YOU'LL SEE THAT'S BEING CREATED AS A BEAUTIFUL GREEN SPACE.
WE WOULD LIKE TO TALK TO SOMEONE IN THE FUTURE ABOUT HELP IN DOING SOME OTHER THINGS USING YOUR EMPLOYEES YOU ALREADY HAVE IS IN KIND DONATIONS.
WE KNOW THAT THE CITY IS TIGHT ON FUNDS, SO WE HAVE AND EMPLOYEES
BUT I, I DEFINITELY, I'LL, AND I'LL TALK TO YOUR COUNCIL MEMBER TO SEE IF THERE IS THIS, IF THERE IS SOME OPPORTUNITIES THERE TOO FROM HER, UM, FROM HER DISTRICT OFFICE AS WELL.
SO, UH, I THINK SHE DOES HAVE A HOT TEAM AND, AND WE CAN SEE IF MAYBE THERE, THERE'S SOME SYNERGIES THERE.
MADAM CHAIR, IF I MAY? YES, SIR.
HOT TEAM ANSWER ASK, IS IT, IS IT BEING, IS IT BEING USED NOW FOR PEOPLE COMING HERE? IT'S A HISTORICAL CEMETERY.
SO IT'S ALREADY SHE CLOSED ON THAT.
NO, NO NEW PEOPLE COMING IN THERE.
AND THEN SAFETY IS VERY IMPORTANT ALSO.
SO WE WAS ASKING IF WE, IF YOU CAN DIRECT US TO GET WHAT, UH, THE GROUPS THAT YOU HAVE FOR THE HOMELESS, BECAUSE WE HAVE THE HOMELESS PEOPLE, UH, SLEEPING ON THE BENCHES AROUND THERE AS WE MAKE THIS GREEN SPACE.
WE WANNA MAKE SURE THAT THEY HAVE SOMEWHERE TO GO OTHER THAN SLEEPING AROUND THIS HISTORIC PROPERTY.
WE'LL DEFINITELY HAVE YOUR, HAVE, UM, YOUR COUNCIL MEMBER REACH OUT TO YOU BECAUSE, UM, CHIEF SATTERWHITE IS PROBABLY THE PERSON THAT YOU SHOULD CONTACT ABOUT THE HOMELESS CONCERNS, UM, TO GET SOME RESOURCES THERE FOR THOSE FOLKS.
BECAUSE THEY'RE VERY IMPORTANT.
WE WILL MAKE SURE THAT YOU HAVE CH CAN SOME, CAN Y'ALL GIVE HER CHIEF SETTER WHITE'S CONTACT INFORMATION? WE'LL GET YOU THAT.
OUR NEXT SPEAKER IS DOMINIQUE CHACON.
HI, I CAN YOU RAISE UP, YOU UP KIND OF TALL? UH, HELLO.
I'M WITH AN ORGANIZATION CALLED TEXAS CAMPAIGN FOR THE ENVIRONMENT.
UH, I LIVE HERE IN THE EAST END.
UM, UH, I'D LIKE TO SPEAK TO YOU A COUPLE A LITTLE BIT ABOUT THE RESEARCH WE'VE DONE AROUND TAX ABATEMENTS FOR HARRIS COUNTY AS A WHOLE, BUT INCLUDES CITY OF HOUSTON, PASADENA, AND OTHER, UH, ENTITIES THAT ARE GIVING AWAY OUR TAX DOLLARS.
AND, UM, I KNOW IT'S TRADITIONALLY NOT CLAIMED AS OURS AUTOMATICALLY, BUT WHEN YOU'RE, UH, DEALING WITH AN AFFORDABILITY CRISIS AND YOU'RE SEEING THAT YOUR PROPERTY TAXES ARE BEING INCREASED EVERY YEAR, EVERY YEAR AF AFTER YEAR, AND YOU'RE EXPECTED TO PAY MORE, ONLY TO SEE THAT A DIFFERENT
[00:40:01]
STANDARD APPLIES FOR THESE CORPORATIONS THAT DON'T NECESSARILY NEED IT.IT, IT BEGS THE QUESTION AS TO WHAT KIND OF ECONOMIC TOOL IS THIS AND WHO IS THIS DEVELOPING AN ECONOMY FOR? UM, JUST A LITTLE BIT OF RESEARCH, UH, OR INFORMATION.
WE REALLY FOCUS ON TAX DOLLARS THAT SHOULD BE COMING TO CITY OF HOUSTON AND SCHOOLS THAT ARE GOING TO CORPORATE POLLUTERS LIKE EXXONMOBIL, RIGHT? CHEVRON.
I THINK THERE'S AN ARGUMENT IN CASE TO BE MADE THAT COMPANIES LIKE EXXON AND CHEVRON DON'T NECESSARILY NEED A TAX BREAK FROM THE CITY OF HOUSTON.
THESE ARE COMPANIES THAT ARE, UH, IN THE BUSINESS OF OIL AND GAS AND THAT IS HERE IN TEXAS.
THEY'RE NOT GONNA BE GOING ANYWHERE ELSE.
WE DON'T NECESSARILY NEED TO BE GIVING THEM PROPERTY TAX INCENTIVES.
UM, AND WHEN IT PERTAINS TO THE CITY OF HOUSTON, THERE'S ABOUT $93 MILLION THAT THE CITY OF HOUSTON COULD BE COLLECTING, BUT INSTEAD HAD BEEN GIVING TO, UH, VARIOUS ORGANIZATIONS.
AND THOSE AGREEMENTS ARE EXPIRING THIS YEAR, WHICH MEANS THAT THERE'S AN OPPORTUNITY TO REVIEW, HAVE THESE AGREEMENTS REALLY MANIFESTED THE ECONOMIC DEVELOPMENT THAT THEY SAID THEY DID.
UM, WHEN IT BECOMES TO, UH, IDAS, WHICH IS ANOTHER TYPE TYPE OF TAX ABATEMENT, UM, THERE ARE NO JOB REQUIREMENTS ATTACHED TO SOME OF THESE AGREEMENTS.
SOME OF THE JOB REQUIREMENTS THAT ARE ATTACHED AREN'T NECESSARILY MANIFESTED AS WE'VE SEEN IN OTHER EXAMPLES.
SO I WANT TO JUST KIND OF LEAVE THIS HERE.
UM, UH, AND IF YOU HAVE ANY QUESTIONS, I'D BE MORE THAN HAPPY TO SET ASIDE A MEETING TO DISCUSS FURTHER.
UH, BUT SPECIFICALLY WHEN IT COMES TO THE IDAS AND THE STANDARDS AND WHAT'S ON THE AGENDA TODAY IS WE'RE FINDING THAT THERE ARE OPPORTUNITIES THAT THE CITY OF HOUSTON CAN BE USING TO ENFORCE TAX ABATEMENT AGREEMENTS, UH, THAT WOULD ALLEVIATE SOME OF THE BUDGET DEFICIT THAT Y'ALL ARE SEEING ON AN ANNUAL BASIS.
THE CITY OF HOUSTON HAS AN OPPORTUNITY TO SEE WHO IS IN DEFAULT OF THEIR AGREEMENTS AND WHO IS FOLLOWING THROUGH.
AND LET'S SAY THEY PROMISE A HUNDRED JOBS, BUT THEY ONLY PRODUCE 50 JOBS.
THEY, THE CITY OF HOUSTON GETS TO WITHDRAW 50% OF THAT AGREEMENT FOR THAT YEAR.
SO THERE ARE, I THINK, ARE TOOLS THAT I WOULD ENCOURAGE Y'ALL TO EXPLORE ON HOW TO USE, SO THAT WAY THIS TAX BURDEN DOESN'T FALL ON THE EVERYDAY CITIZENS.
AS I'M SURE YOU ALL KNOW, WE'RE GOING THROUGH AN AFFORDABILITY CRISIS, ONE THAT WE HAVE NEVER SEEN, AND THESE AGREEMENTS THAT ARE EXPIRING THIS YEAR WERE MADE 10 YEARS AGO.
SO THERE'S A HUGE DIFFERENCE IN OUR ECONOMIC SITUATION THAT I THINK WE SHOULD BE REVIEWING.
I ALSO WANT TO POINT OUT THAT A LOT OF THE COMPANIES THAT WE SAW THAT ARE RECEIVING THESE ABATEMENTS ARE DOUBLE DIPPING ACROSS THE REGION, WHETHER IT BE HERE IN HARRIS COUNTY, GETTING AGREEMENTS FROM CITY OF PASADENA, CITY OF HOUSTON AND THE SCHOOL DISTRICTS, AND THEN GOING TO ANOTHER COUNTY AND DOING THE SAME WITH ALL THE TAXING AGENCIES THERE.
THERE'S A LOT OF OVERSIGHT THAT COULD BE HAD, AND WE REALLY SHOULD BE ASKING OURSELVES, DOES A FORTUNE 500 COMPANY REALLY NEED ANOTHER TAX BREAK? AND WHERE COULD THESE FUNDS RATHER BE GOING? I ALSO WORK WITH SOME OTHER ORGANIZATIONS THAT ARE DEALING WITH FLOODING.
WE'RE DEALING WITH PUBLIC SAFETY AND TO JUST HEAR ABOUT THIS HISTORIC CEMETERY, THERE'S PLENTY OF PROJECTS THAT EXIST THAT COULD USE JUST A FRACTION OF THESE SAME TAX DOLLARS.
SO I ENCOURAGE YOU ALL TO REVIEW THE PROCESS.
AND WE'LL, WE'LL PASS THOSE OUT TO THE, TO THE COMMITTEE COUNCIL MEMBER FLICKINGER, DID YOU HAVE A QUESTION? UH, JUST ONE SECOND.
I MEAN, THANK YOU COMING IN, MIKE.
UM, I CHAIR SOME OF YOUR CONCERNS.
I KNOW A NUMBER OF OTHER, HIT YOUR MIC SHARE.
OH, SHARE THOSE CONCERNS AS WELL.
UM, BUT ALSO I THINK IT'S A BIT MORE THAN, THAN WHAT YOU MAKE IT OUT TO BE.
UM, THERE IS ISSUES WITH COMPANIES THAT ARE LOOKING TO EXPAND AND THEY WILL LOOK AT CITY A AND LOOK AT CITY B AND THEN COME TO BOTH AND SAY, WHAT WILL YOU DO FOR US? UM, AND THERE'S ALWAYS THE POSSIBILITY THAT THEY DON'T COME HERE AT ALL.
UH, YOU KNOW, THE PROBLEM IS WE DON'T KNOW FOR SURE WHAT IS IN THEIR MIND AND WHAT THEY'RE PLANNING TO DO.
AND IT MAY WELL BE THAT THEY'RE PLANNING TO COME HERE THE ENTIRE TIME AND THEY'LL BE COMING HERE THE ENTIRE TIME, BUT YET THEY'RE KIND OF MAKING A PLOY AND PLAYING US AGAINST OTHER CITIES.
SO ALL THOSE THINGS ARE, ARE TAKEN INTO CONSIDERATIONS.
AND, AND I DON'T KNOW IF YOU HEARD EARLIER, BUT COUNCILMAN RAMIREZ WAS JUST ASKING ABOUT THE CLAWBACKS AND WHETHER OR NOT THEY MET HIM, THE CLAWBACKS ON THE ABATEMENTS OKAY.
AND WHETHER OR NOT THAT THEY HAD MET THE CRITERIA AND ALL THAT.
THAT, THAT IS STUFF THAT WE, WE, WE LOOK AT.
AND LIKE I SAID, I I THINK IT'S CERTAINLY PERTINENT, BUT, UH, I THINK MOST OF THOSE CONSIDERATIONS WERE, WE'RE ALREADY LOOKING AT AND DOING OUR BEST IN NEGOTIATING WITH THESE COMPANIES AND TRYING TO FIGURE OUT WHAT THE BEST DEAL IS.
AND, YOU KNOW, IF, IF YOU DO THE DEAL, YOU DON'T EVER KNOW WHAT WOULD'VE COULD HAVE HAPPENED.
UM, FOR EXAMPLE, THE, THE NRG TAX ABATEMENT, RIGHT? MM-HMM
THERE ARE RULES WITHIN THE LAW ALREADY THAT TAX ABATEMENT SHOULD BE GOING FOR ENERGY DEVELOPMENT.
IS A, IT IS A VERY NUANCED APPROACH, RIGHT? EACH DEV TAX MM-HMM
DEVELOPMENT TOOL REQUIRES CERTAIN PROTOCOLS AND OVERSIGHT, BUT THERE
[00:45:01]
ARE ALREADY STANDARDS THAT EXIST THAT AREN'T BEING ENFORCED.SO IT, IT DOES, IT IS GONNA TAKE, I THINK, A COHORTED EFFORT TO GET ALL COUNCIL MEMBERS TO RECOGNIZE WHICH, UH, ABATEMENT CODES REQUIRE DIFFERENT OVERSIGHT.
UH, AND, AND ALSO IN THE ESSENCE OF TIME, I'M GONNA ASK IF Y'ALL CAN MAYBE CHI CHIT CHAT ABOUT THAT.
I, I DO WANNA, I, WE, WE HEAR YOU AND WE ARE DEFINITELY HAPPY TO, TO PASS OUT THE, THE INFORMATION THAT, THAT YOU BROUGHT IN.
DID, ARE YOU DONE? COUNCIL MEMBER RAMIREZ.
DOMINIC, THANK YOU FOR YOUR COMMENTS.
YOU MENTIONED A FIGURE OF 93 MILLION.
I, I ASSUME THAT DOESN'T INCLUDE THE PFC TAX ABATEMENTS THAT WERE ALL APPROVED, ALMOST ALL APPROVED, UH, WITHOUT CITY COUNCIL CONSIDERATIONS.
THE 93 MILLION FIGURE IS JUST FROM THE INDUSTRIAL DISTRICT AGREEMENTS THAT THE CITY OF HOUSTON DIRECTLY, UH, AGREES TO WITH THESE COMPANIES.
HA HAVE YOU LOOKED AT THE PFCS AND, AND COME UP WITH A FIGURE FOR THAT? WE HAVE NOT.
WE KIND OF DO THESE COUNTIES, THESE STUDIES COUNTYWIDE BY COUNTY.
UM, AND SO WE ONLY LOOK AT THE PETROCHEMICAL AND OIL AND GAS INDUSTRIES IN OUR PURVIEW, BUT WE DO KNOW THAT THESE OTHER, UH, DEALS EXIST FOR ALL KINDS OF COMPANIES.
STAFF FROM COUNCIL MEMBER SALINAS'S OFFICE.
UH, WHEN IT COMES TO TEXAS JURISDICTIONS, ARE THERE CITIES OR COUNTIES WITHIN TEXAS THAT YOU SEE AS A GOOD MODEL, UH, FOR WHAT YOUR ORGANIZATION IS PROPOSING? ABSOLUTELY.
THERE'S A CITY OF, UH, FAY, TEXAS THAT HAVE DIFFERENT JOB REQUIREMENTS.
UM, THERE'S COUNTIES THAT DO DIFFERENT SORT OF INCENTIVES TO, TO ENSURE THAT JOBS ARE UNIONIZED OR THAT THEY HAVE BETTER SAFETY PROTOCOLS.
SO IT REALLY DEPENDS ON THE TAX CODE.
UM, BUT GENERALLY THAT'S WHAT THIS OPPORTUNITY FOR THIS ORDINANCE IS, IS TO SAY, HEY, THESE ARE THE STANDARDS.
UM, BUT WE NEED TO CONSIDER NEW ONES.
FOR EXAMPLE, AI IS A, IS A, IS A WHOLE NEW COMPONENT TO OUR ECONOMY, AND IT IS FAIR FOR US TO SAY, HEY, IF WE'RE GONNA BE TALKING ABOUT JOB DEVELOPMENTS, WE NEED TO MAKE SURE THAT YOU'RE NOT CITING AI JOBS AS SOME SORT OF, UH, BENEFIT.
UM, SO THERE'S A LOT OF CONSIDERATIONS THAT, UM, WE COULD LOOK TO OTHER CITIES, BUT ALSO WE HAVE TO BE FORWARD THINKING ABOUT WHAT WE KNOW OUR CONSTITUENTS NEED.
YOU, YOU CAN, YOU CAN LEAVE THOSE RIGHT UP THERE AND WE'LL, WE WILL GET 'EM AND PASS 'EM OUT.
UM, SO I KNOW TODAY WAS, UH, REALLY JUST GIVING SOME, UH, INSIGHT ON APPROVING THE ORIGINAL ORDINANCE AS IS WITHOUT GIVING ANY ADDITIONAL AMENDMENTS, I DID WANT TO, UM, ADVOCATE FOR POSSIBLY FIXING OR ADDING ADDITIONAL LANGUAGE TO, UM, STRENGTHEN THE CHECKS AROUND THE COMMUNITY OF BENEFITS THAT ARE INCLUDED IN THOSE, UH, ABATEMENT AGREEMENTS.
JUST BECAUSE WHEN YOU LOOK AT IT FROM THE PUBLIC STANDPOINT, UM, WHEN YOU SEE COMPANIES LIKE FERGUSON SAY, OH, WE'RE GONNA GIVE 60, 66 JOBS OVER THE COURSE OF FIVE YEARS IN AN AREA WHERE THE MEDIAN INCOME SITS ANYWHERE BETWEEN 36 TO $45,000 AND THEY'RE EACH GOING FOR 75,000, THAT'S DEFINITELY SOMETHING TO HIGHLIGHT AND CHAMPION.
BUT YOU REALLY WOULDN'T KNOW UNLESS YOU COME TO MEETINGS LIKE THIS AND YOU'RE ABLE TO SIT, LIKE, HAVE TIME ON A WEDNESDAY AFTERNOON AT 2:00 PM TO GET THE DETAILS OF THIS.
SO MAYBE INCLUDING SOME LANGUAGE TO SAY THERE IS A, A PUBLIC COMMITMENT IN PARTNERSHIP WITH THE COUNCIL MEMBER.
UM, I KNOW JUST SPEAKING FROM EXPERIENCE IN COUNCIL MEMBER JACKSON'S OFFICE, THIS IS IN PERFECT ALIGNMENT WITH HER, UM, HER BE SUCCESSFUL INITIATIVE.
AND JUST CURIOUS TO SEE WHAT THE COMMITMENT IS FOR THOSE COMPANIES TO GO DIRECTLY TO THOSE COUNCIL MEMBERS TO DO THE HIRING FAIRS, THE JOB TRAININGS, THINGS OF THAT NATURE.
UH, TO THAT POINT, I DID SEE FOR FERGUSON'S ABATEMENT PROPOSAL, THEY MADE MENTIONS OF, IN THE TIER ONE THAT THEY HAD, UM, GENERAL GOALS OF DOING SOMETHING AROUND AFFORDABLE HOUSING, INCREASING, UH, TOURISM AND THINGS OF THAT NATURE.
AND QUITE FRANKLY, THE AREA THAT THEY'RE TALKING ABOUT IS IN THE HEART OF INDUSTRIAL AREA IN EAST HOUSTON.
IT'S IN A BACK STREET, UM, LIKE IT'S OFF OF MESA DRIVE, BUT IT'S ALSO IN LAY ROAD, WHICH IS KNOWN AS ONE OF THE MORE HIGHLY, UH, POLLUTED AREAS.
AND AIR QUALITY IS ABYSMAL OUT THERE.
SO I'M CURIOUS TO SEE HOW THEY CAN TACKLE THE AFFORDABLE HOUSING AND TOURISM ON TOP OF THAT.
IN TIER TWO, THEY MENTIONED THAT THEY WANTED TO DO SOME SUPPORT WITH, UH, GROCERY STORES.
UM, BUT JUST CURIOUS TO SEE LIKE WHAT KIND OF CONVERSATIONS THEY'VE DONE WITH THE COUNCIL MEMBER OR WITH ANY COUNCIL MEMBERS TO HAVE A THOROUGH PLAN OF ACTUALLY MAKING
[00:50:01]
THAT HAPPEN OVER THE FIVE YEARS OF THIS ABATEMENT.UH, WELL WE ARE, WE DEFINITELY APPRECIATE YOUR COMMENTS AND WE WILL DEFINITELY TAKE THAT UNDER ADVISEMENT.
HAVE YOU HAD A CHANCE TO TALK TO COUNCIL MEMBER, UH, JACKSON? NOT TODAY.
UM, I DO PLAN ON FOLLOWING UP, BUT I, WHEN I SAW THE, UH, PRESENTATION AGENDA, IT WAS LIKE, UH, HOW IS THIS GONNA ACTUALLY FIT INTO TOURISM? HOW IS THIS GONNA ACTUALLY DO GROCERY STORES ESPECIALLY, ONCE AGAIN, THE AREA THAT THEY'RE RESPONSIBLE FOR IS IN A BACK STREET WAY OFF OF MESA DRIVE FAR AWAY FROM LAY ROAD.
SO HOW WOULD YOU DO ANY TYPE OF GROCERY STORE INITIATIVE IF IT'S NOT NECESSARILY IN A RESIDENTIAL AREA PER SE, UNLESS THEY'RE GOING TO, AND THEY ALSO MENTIONED SOMETHING ABOUT GREEN SPACES TOO.
SO WHAT DOES GREEN SPACE CREATION LOOK LIKE IN A HIGHLY INDUSTRIALIZED AREA? OKAY.
UH, WELL THAT'S GOOD INFORMATION FOR US TO TAKE INTO CONTEXT, UM, AS WE LOOK AT ANY AMENDMENTS THAT WE ARE GOING TO PROPOSE FOR OUR, OUR COMPLIANCE.
SO THANK YOU FOR YOUR PARTICIPATION.
WE APPRECIATE YOU BEING HERE TODAY.
UH, ANYTHING ELSE, COLLEAGUES, IF NOTHING ELSE, WHAT UH, POINT OF ORDER? UH, JUST A QUESTION.
DURING THE LAST BUDGET PROCESS, I'D OFFERED AN AMENDMENT TO HAVE REPORTING FROM THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT TO THIS COMMITTEE YEAH.
IN THE SEPTEMBER ECONOMIC DEVELOPMENT COMMITTEE MEETING? I MUST HAVE MISSED THAT, BUT I LOOK FORWARD TO THAT.
YEAH, MID, I MEANT TO ANNOUNCE THAT TOO, THAT THEY SHOULD BE, MAKE THAT PRESENTATION AT NEXT MONTH'S ECONOMIC DEVELOPMENT COMMITTEE MEETING.
OKAY, COLLEAGUES, IF NOTHING FURTHER, THEN IT IS THE TIME IS 2 57.
UH, OUR NEXT UH, ECONOMIC DEVELOPMENT MEETING WILL BE ON SEPTEMBER THE 16TH AT 2:00 PM IF YOU'RE INTERESTED IN RECEIVING INFORMATION, YOU CAN CONTACT THE DISTRICT K OFFICE.
IT'S 2 57 AND WE STAND ADJOURN.