* 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 September 16, 2026.] [00:00:11] YOU'RE SOUNDING GREAT. . OKAY, I'M GONNA START. I DON'T KNOW WHAT IT IS ABOUT THIS. THAT'S LOW ENOUGH FLOOR. IS IT? OH, SHE'S SHORT. . OKAY. YOU READY? LEMME START. GOOD AFTERNOON. OKAY. YOU'RE GOOD. IT IS WEDNESDAY, SEPTEMBER THE 16TH, AND THE TIME IS NOW 2 0 3. I'M MAYOR PRO TEM CASTEX TATUM, THE CHAIR OF ECONOMIC DEVELOPMENT COMMITTEE. LIKE TO CALL THIS MEETING TO ORDER. WE DO HAVE, UH, HERE IN THE CHAMBER OUR, UH, CO-CHAIR, UH, FRED FLICKINGER. UH, COUNCIL MEMBER JULIAN RAMIREZ IS HERE WITH US TODAY. COUNCIL MEMBER ALEJANDRO SALINAS IS WITH US TODAY. COUNCIL MEMBER SALLY ALCORN. COUNCIL MEMBER JOAQUIN MARTINEZ IS HERE. COUNCIL MEMBER WILLIE DAVIS IS HERE. WE ALSO HAVE STAFF FROM COUNCIL MEMBER CASTILLO'S OFFICE FROM COUNCIL MEMBER CARTER'S OFFICE, UH, FROM COUNCIL MEMBER TIFFANY D THOMAS'S OFFICE COUNCIL MEMBER TASHA JACKSON HAS JOINED US IN THE CHAMBER AS WELL. THANK YOU COLLEAGUES FOR BEING HERE. THIS MEETING IS OPEN TO THE PUBLIC. IT'S BEEN HELD IN PERSON AND VIRTUALLY. WE'RE ALSO BROADCASTING ON HTV COUNCIL MEMBERS. WE ALL KNOW THE DRILL. IF YOU HAVE QUESTIONS, WE WILL DEFINITELY GET TO THOSE, UH, VICE, UH, CHAIR FLICKINGER, DO YOU HAVE ANY REMARKS YOU'D LIKE TO MAKE BEFORE WE BEGIN? NO, MA'AM. ALL RIGHT. THERE ARE FOUR MEMBERS OF THE PUBLIC WHO HAVE SIGNED UP TO SPEAK TODAY. IF THERE ARE ANY ADDITIONAL PUBLIC SPEAKERS THAT WOULD LIKE TO SPEAK, UH, WE DO HAVE A SIGNUP SHEET HERE ON MY LEFT. UM, YOU CAN, UH, SIGN UP WITH OUR UNIVERSITY OF HOUSTON CHIP INTERN HEYA ALANI. Y'ALL GIVE IT UP FOR HEYA. WHO'S HELPING US TODAY? THANK YOU. HEYA. UH, PUBLIC SPEAKERS WILL HAVE A CHANCE TO SPEAK AT THE CONCLUSION OF THE PRESENTATION. ANY QUESTIONS CAN ALSO BE EMAILED TO US AT THE DISTRICT A OFFICE. OUR FIRST ITEM ON THE AGENDA TODAY, WE WILL HEAR FROM CHIEF ECONOMIC DEVELOPMENT OFFICER GWEN TILLSON WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT, AND SHE WILL, UM, GIVE US A PRESENTATION ON THE PROPOSED AMENDMENTS TO CHAPTER 44, TAX ABATEMENT ORDINANCE. UM, COLLEAGUES, THANK YOU FOR ALL MEETING WITH CHIEF TILLSON AND SHARING YOUR THOUGHTS AND IDEAS. UM, SHE HAS DONE A WONDERFUL JOB OF PULLING THIS ALL TOGETHER, AND WE ARE READY FOR YOUR PRESENTATION, CHIEF TILLSON. VERY GOOD. GOOD AFTERNOON, MAYOR PROAM AND COUNCIL. THANK YOU FOR THE OPPORTUNITY TO SHARE, UM, AN UPDATE ON THE CHAPTER 44 PROPOSED AMENDMENTS. UM, WHAT I'M GONNA DO IS JUST SPEND A LITTLE TIME GIVING SOME BACKGROUND. I KNOW THAT MOST ARE FAMILIAR WITH KIND OF THE REQUIREMENT EVERY TWO YEARS, BUT I THINK IT'S JUST GONNA PUT EVERYTHING IN PERSPECTIVE, UH, TALK SOME ABOUT THE PROPOSED AMENDMENTS, AND THEN, UM, OUR RECOMMENDATION TO MOVE FORWARD TO COUNCIL. UH, DESCRIBE A LITTLE BIT OF THE TIMELINE AND THEN OPEN IT UP FOR Q AND A. SO, WITH THAT, THE NEXT SLIDE, SO MANY OF YOU'RE FAMILIAR WITH THE REQUIREMENT OF CHAPTER THREE 12, UM, THAT EVERY TWO YEARS, UH, ONCE THE CITY HAS ADOPTED THEIR PROGRAM GUIDELINES, THOSE GUIDELINES HAVE TO BE RENEWED AND APPROVED BY CITY COUNCIL. UM, SO IN 2024, WE APPROVED THE TWO YEAR, OR WE RENEWED THE TWO YEAR ABATEMENT GUIDELINES. AND THOSE GUIDELINES, UH, TOOK US THROUGH AUGUST 28TH OF THIS PAST YEAR. ON AUGUST 19TH, MY STAFF DID DO A PRESENTATION TO THIS BOARD, UM, DESCRIBING THE REQUIREMENT FOR THE RENEWAL AND ASKING FOR COUNSEL TO CONSIDER ADOPTING THE CURRENT GUIDELINES, WHICH WAS APPROVED IN 2024, WITH THE UNDERSTANDING THAT WE WOULD BE ENGAGING WITH COUNSEL AND SPEAKING WITH COUNSEL SO THAT WE COULD GET SOME COMMENTS BACK ON PROPOSED AMENDMENTS. UM, OUR OFFICE AS WELL HAD SOME PROPOSED AMENDMENTS THAT WE WANTED TO SUBMIT, BUT, UM, WE JUST DIDN'T HAVE, UH, ENOUGH TIME TO GET TO, TO DO A THOROUGH JOB OF GETTING THOSE AMENDMENTS OR FULLY ENGAGING COUNSEL. SO THE REQUEST WAS TO APPROVE THE, UH, ABATEMENT PROGRAM SO THAT THE PROGRAM WITH NOT, WOULD NOT TERMINATE AND WE WOULDN'T HAVE, WOULD NOT HAVE A DISRUPTION. COUNCIL WAS GRACIOUS TO DO SO. UM, BUT WITH UNDER, UNDER THE UNDERSTANDING THAT WE WOULD COME BACK WITH SOME PROPOSED AMENDMENTS AFTER WE'VE HEARD BACK AND HAD AN OPPORTUNITY TO ENGAGE FULLY WITH COUNCIL. NEXT SLIDE. UM, SO AGAIN, I JUST REPEATED THAT. SO, UM, AGAIN, IT WAS APPROVED WITH SOME CONDITIONS. UM, AND WHAT WE'RE DOING RIGHT NOW IS HAVING A CONVERSATION SO THAT WE COULD [00:05:01] CLEAR THOSE CONDITIONS, UM, AND MAKE SURE THAT WHAT GETS PRESENTED FOR THE, UH, TAX ABATEMENT ORDINANCE AND THE PROGRAM IS IN CONSIDERATION WITH ALL OF THE FEEDBACK THAT WE RECEIVED FROM COUNCIL NEXT SET. SO, SINCE AUGUST 26TH, I JUST WANNA DO A QUICK TIMELINE OF ALL OF THE ACTIONS THAT HAVE OCCURRED. UM, SO BETWEEN AUGUST 31ST AND AUGUST, UH, SEPTEMBER 8TH, WE MET WITH, UH, ANY OF THE COUNCIL MEMBERS WHO WANTED TO BRING SOME RECOMMENDATIONS AND SOME FEEDBACK FORWARD. UM, VERY, UH, THERE WAS A VERY SUBSTANTIAL NUMBER OF COUNCIL MEMBERS THAT WANTED TO DO SO. UM, AND SO DURING THAT TIME, I ACTUALLY MET WITH 10 COUNCIL MEMBERS, UM, THAT EITHER SUBMITTED WRITTEN AMENDMENTS FOR US TO CONSIDER, OR HAD SOME CONVERSATIONS ABOUT HOW THEY BELIEVE THE TAX ABATEMENT PROGRAM COULD BE AMENDED TO REALLY MEET SOME OF THEIR INDIVIDUAL NEEDS WITHIN THEIR OWN DISTRICTS AND WITH THEIR OWN CONSTITUENCY. EVERY COUNCIL DISTRICT IS DIFFERENT, THE NEEDS ARE DIFFERENT, AND WE DID OUR BEST TO TRY TO ACCOMMODATE ALL OF THE REQUEST, UH, EITHER DIRECTLY BY, UH, INSERTING IT INTO THE ORDINANCE OR APPLICATION OR SOME OTHER DOCUMENT THAT WOULD ALLOW US TO BE RESPONSIVE TO THE NEEDS OF THE, THE CONSTITUENTS. UM, SO BETWEEN SEPTEMBER 2ND AND SEPTEMBER 9TH, THAT'S WHEN WE HAD THOSE, UM, UH, SERIES OF MEETINGS AS WELL. UH, ON SEPTEMBER 10TH, WE COMPLETED A VERY HIGH LEVEL SUMMARY OF WHAT THOSE AMENDMENTS WERE. AND, UM, ON THE 11TH, WE DRAFTED, UM, OUR RECOMMENDATION. SO AGAIN, WE'D BEEN MEETING WITH LEGAL, I JUST WANNA MAKE THAT CLEAR. THIS ENTIRE PROCESS WAS VERY ITERATIVE WITH THE LEGAL DEPARTMENT. SO, UM, THE TAX ABATEMENT ORDINANCE IS A LEGAL DOCUMENT. IT IS A LEGAL, UM, PROGRAM, UH, SET OF GUIDELINES. AND SO WE WANNA MAKE, WANTED TO MAKE SURE THAT NOTHING THAT WE WERE PROPOSING WAS GOING TO BE IN CONFLICT WITH LEGAL'S POSITION. SO, SO ALL THIS TIME WE'VE MET WITH COUNSEL, WE'VE MET WITH LEGAL REPEATEDLY. UM, AND ON THE 15TH, UH, YESTERDAY WE DID SUBMIT A DRAFT OF THOSE AMENDMENTS. EXCELLENT. SO I WANTED TO KIND OF DISCUSS THIS, I DUNNO IF THIS EVER BEEN PRESENTED TO COUNSEL, BUT THE CHAPTER 44 IN OUR PROGRAM GUIDELINES IS JUST SORT OF THE, THE BEGINNING OF THE PROCESS FOR A COMPANY TO SUBMIT AN AN ABATEMENT REQUEST. UM, THE ORDINANCE DESCRIBES THE GUIDELINES AS WELL AS PROVIDE FOR THE APPLICATION REQUIREMENTS AND IS CONSISTENT WITH CHAPTER THREE 12. BUT THAT IS NOT THE END OF THE PROCESS. THAT IS JUST BASICALLY THE BEGINNING FOR ANY COMPANY THAT'S CONSIDERING AN ABATEMENT. WE ALSO WANNA MAKE SURE THAT THE PROJECT ITSELF IS IN ALIGNMENT, WHAT WE BELIEVE THE PRIORITIES ARE, AND THOSE PRIORITIES ARE ESTABLISHED NOT ONLY BY WHAT WE HEAR FROM COUNCIL, BUT WHAT WE UNDERSTAND IS HAPPENING WITHIN OUR ECONOMY. SO I WANTED TO JUST KIND OF SHOW THIS MATRIX, WHICH IS WHAT WE EVALUATE THE, UM, COMPLETED APPLICATIONS AGAINST TO DETERMINE WHETHER OR NOT THERE IS ENOUGH SUBSTANCE OF THE PROJECT FOR US TO CONSIDER RECOMMENDING IT TO CITY COUNCIL. UM, AN APPLICATION DOESN'T GUARANTEE THAT THE ABATEMENT IS GOING TO BE RECOMMENDED TO COUNCIL, NOR WILL IT BE GRANTED. UM, THIS IS ANOTHER STEP THAT WE GO THROUGH, AND THE BETTER THE PROJECT SCORES, UH, AS A RESULT OF THESE SET OF METRICS, THE HIGHER THE LIKELIHOOD THAT IT'S GONNA BE RECOMMENDED FOR COUNCIL. OF COURSE, NOTHING IS GRANTED UNLESS COUNCIL APPROVED, BUT I WANNA JUST POINT OUT A COUPLE THINGS. UM, HERE. THE LOCATION OF THE PROJECT IS VERY IMPORTANT TO US BECAUSE WE LOOK AT THE RELATIONSHIP BETWEEN THE PROJECT, THE JOBS THAT ARE BEING CREATED, AND THE COMMUNITY THAT IS GOING TO BE LOCATED. THE BETTER ALIGNMENT, THE JOBS THAT ARE CREATED ARE FOR THE COMMUNITY, THE HIGHER THE PROJECT SCORES. SO WE ALSO LOOK AT THE AMOUNT OF THE INVESTMENT, UM, AND ALSO THE NUMBER OF JOBS AND THE TYPES OF JOBS THAT ARE GOING TO BE CREATED, AND HOW THIS PROJECT ALIGNS WITH PRIORITY. SO THIS IS REALLY JUST TO SHARE, UM, SORT OF ANOTHER, UM, ITERATION OF OUR DUE DILIGENCE AND OUR REVIEW WHEN IT COMES TO THE TAX ABATEMENT, UH, APPLICATIONS AND PROJECTS. NEXT SLIDE. THERE'S A REFERENCE TO THE PRIORITIES. I WON'T SPEND A WHOLE LOT OF TIME ON THIS SLIDE, BUT I JUST WANTED TO SHARE THAT WE LOOK AT, UM, PROJECTS OVER, UM, A SERIES OF WHAT WE CONSIDER TO BE TIERS. UM, I WOULDN'T SAY THAT ONE IS MORE IMPORTANT, IT'S JUST THAT IT'S, UM, IT'S A HIERARCHY. SO THE, YOU KNOW, THE FIRST TIER WE WILL LOOK AT OUR INDUSTRIES, YOU KNOW, IS THIS PROJECT, UM, THAT WE'RE CONSIDERING A COMPETITIVE INDUSTRY FOR THE CITY OF HOUSTON. UM, IS IT PART OF A NEW, UM, ECOSYSTEM OR A NEW INDUSTRY THAT WE'VE PRIORITIZED THAT'S REALLY IMPORTANT IN THE WAY WE, THAT WE DID WHEN WE'RE LOOKING AT BUILDING OUR TECH AND INNOVATION ECOSYSTEM. SO WE LOOK AT SORT OF THE RELATIONSHIP BETWEEN THE PROJECT, WHAT IT DELIVERS, AND HOW IT ALIGNS WITH OUR PRIORITIES. WE ALSO UNDERSTAND THAT THERE ARE SOME INSTANCES WHERE A PROJECT MAY NOT NECESSARILY BE, UH, AN INDUSTRY THAT WE ARE RECRUITING, FOR INSTANCE, UH, RETAIL OR GROCERY STORES. BUT WE KNOW THAT IN SOME COMMUNITIES THAT ARE FOOD DESERTS, A GROCERY STORE IS [00:10:01] CRITICALLY IMPORTANT. SO WHILE IT MAY NOT BE A TOP TIER FOR AN INDUSTRY, THAT COMMUNITY, UM, WOULD RECOGNIZE THE VALUE IN THE BENEFITS, AND SO WOULD WE OF HAVING A GROCERY STORE IN A FOOD DESERT, UH, UM, AREA. SO THIS IS JUST TO KIND OF GIVE YOU AN IDEA OF, AGAIN, A SET OF CONSIDERATIONS THAT WE MAKE WHEN WE'RE EVALUATING THE TAX ABATEMENT. NEXT SLIDE, PLEASE. SO I WANNA JUST, UM, NOW START WITH REVIEWING THE PROPOSED AMENDMENTS, AND I WILL ATTEMPT TO BE KIND OF A HIGH LEVEL CONCISE, BUT AS BRIEF AS POSSIBLE BECAUSE THERE ARE A NUMBER OF AMENDMENTS HERE. UM, I KNOW THAT, UM, DIDI ALSO SHARED THIS, SO HOPEFULLY YOU'VE HAD AN OPPORTUNITY TO REVIEW IT. UM, SO THERE'S A COUPLE THINGS THAT I WANT TO JUST NOTE. SO WHERE YOU SEE LOW, MODERATE, HIGH, UM, THAT HAS TO DO WITH THE RISK THAT WAS ASSESSED BY THE LEGAL DEPARTMENT. SO THE LEGAL DEPARTMENT, UM, DID A VERY THOROUGH REVIEW. NOT ONLY DID THEY COMPARE OUR ABATEMENT GUIDELINES TO ABATEMENT GUIDELINES FOR SOME OF THE OTHER LARGE CITIES IN TEXAS AND THE COUNTY, UM, AND SOME OF THE, EVEN THE SMALLER COMMUNITIES LIKE SUGARLAND, UM, BUT THEY ALSO REVIEWED IT AGAINST STATE AND NATIONAL LAWS. UM, SO FOR INSTANCE, THE TEXAS WORK, UH, UH, WORK COMMISSION ACT, WORKFORCE COMMISSION ACT IS ONE OF THE LAWS, LABOR LAWS THAT THEY REVIEWED IT AGAINST, UM, AS WELL AS OTHER FEDERAL, UH, DEPARTMENT OF LABOR AND OTHER, UM, STATUTES AND, AND AND LAW. UM, THEY WANTED TO DETERMINE WHETHER OR NOT THERE WAS ANY LAW THAT PREEMPTED OR THAT COULD PREEMPT A LOCAL ORDINANCE THAT COULD POTENTIALLY BRING A LEGAL CHALLENGE. SO WHERE YOU SEE LOW, MODERATE, AND HIGH, THIS IS BASED ON LEGAL'S ANALYSIS. UM, I JUST WANNA KIND OF TOUCH ON, UM, REALLY I'M GONNA FOCUS ON OUR RECOMMENDATION. UM, IF THERE ARE ANY QUESTIONS OR THERE'S ADDITIONAL INFORMATION THAT'S BEING REQUESTED FROM A LEGAL ANALYSIS, I'M HAPPY TO PROVIDE THAT. UM, BUT FOR NOW, ESPECIALLY WHERE WE'VE DECIDED TO MAKE A RECOMMENDATION TO INTEGRATE THE ITEM, THE PROPOSED AMENDMENT INTO OUR TAX ABATEMENT ORDINANCE. I THINK IF THERE'S SOME QUESTIONS LATER, IF YOU WANNA UNDERSTAND SORT OF THE LEGAL IMPLICATIONS, I'M HAPPY TO SHARE THAT. UM, SO THE FIRST ONE IS TO ESTABLISH A MINIMUM WAGE FLOOR TIED TO THE CITY OF HOUSTON'S MUNICIPAL WAGE. OUR ACTION IS THAT WE'RE GONNA REQUIRE THAT AND INCLUDE IT AS A COMMUNITY BENEFIT. UM, FOR CLARIFICATION, COMMUNITY BENEFITS ARE NOT ALL OPTIONAL. THERE ARE MANY COMMUNITY, COMMUNITY BEN BENEFITS THAT ARE A REQUIREMENT, UM, TO THE TAX ABATEMENT AGREEMENT. AND SO THIS WOULD BE CONSIDERED A, A REQUIREMENT. WE DID DO AN ASSESSMENT AND A REVIEW OF OTHER, UM, PROGRAMS, POLICIES, OR ORDINANCES, UM, AND WE AGREED THAT THIS SHOULD BE CODIFIED. I WILL TELL YOU THAT OF THE LAST THREE TAX ABATEMENTS THAT WERE PRESENTED TO CITY COUNCIL FOR CONSIDERATION ONE, UM, IT WAS NRG, THE MINIMUM SALARY WAS 77,000. THE TWO OTHER, UM, ABATEMENTS THAT WE BROUGHT BEFORE CITY COUNCIL, WHERE THERE WAS AN HOURLY REQUIREMENT, THE MINIMUM HOURLY WAGE WAS $25 AN HOUR, SO SIGNIFICANTLY HIGHER THAN THE CURRENT CITY, UH, MINIMUM WAGE. UM, WHICH IS SOMETHING THAT AGAIN, WE EVALUATE, EVEN THOUGH COUNCIL MAY NOT SEE IT AS PART OF OUR POLICY AND REVIEW. WE DO LOOK TO MAKE SURE THAT THESE PROJECTS ARE PROVIDING SUSTAINABLE LIVABLE WAGES, UM, THAT THEY ALSO HAVE CAREER OPPORTUNITIES FOR UPSKILLING, UM, AND ENCOURAGING, UM, A GOOD TRAJECTORY FOR THE PEOPLE THAT ARE, ARE BEING HIRED. SO WE DO THAT AS PART OF THE BACKGROUND, BUT I THINK WHAT THIS DOES IS IT CODIFIES A POLICY AND A PRACTICE THAT WAS ALREADY IN PLACE. SO LEGAL CERTAINLY DIDN'T HAVE ANY OBJECTIONS TO THAT. UM, THE SECOND IS TO DO THE SAME, PROVIDING A PREVAILING WAGE FOR CONSTRUCTION WORKERS. UM, WE AGREED THAT THIS IS ALSO GOOD FOR THE WORKERS, IS GOOD FOR THE COMMUNITY, IS GOOD FOR THE CITY AS WELL. UM, WE DO BELIEVE THAT CONSTRUCTION WORKERS SHOULD BE FAIRLY COMPENSATED. UM, SEVERAL YEARS AGO, WE DID MAKE SOME AMENDMENTS TO OUR ORDINANCE BASED ON SOME RECOMMENDATIONS THAT WAS PRESENTED TO US, UM, FROM COUNCIL MEMBER JACKSON BEFORE SHE WAS COUNCIL MEMBER. UM, AND THAT IS WHY YOU NOW SEE SOME GUIDELINES AND REQUIREMENTS AROUND OSHA AND MAKING SURE THAT PEOPLE ARE SAFE. SO THIS HAS CONSTANTLY BEEN AN EVOLUTION WHERE WE CONTINUE TO STRENGTHEN THE PROGRAM AROUND COMMUNITY BENEFITS. AND THIS IS AN EXAMPLE OF WHERE WE'LL DO THAT. WELL, I'M SORRY. EXCUSE ME. UH, MADAM CHAIR, ARE WE GONNA BE PROVIDED WITH A COPY OF THE ACTUAL AWARDING OF THE AMENDMENTS? I DIDN'T, I DIDN'T HEAR YOU. WELL, ARE WE GOING TO REVIEW A COPY OF THE WORDING OF THE ACTUAL AMENDMENTS? YES, YES. YES. OKAY. WE'RE NOT, NOT HERE. THIS IS REALLY FOR US TO KIND OF GO THROUGH THE AMENDMENTS. THIS WAS NOT THE APPROPRIATE PLACE TO DO A RED LINE OF, OF CHAPTER 44, BUT WE WILL CERTAINLY CIRCULATE A COPY OF THE RED LINE DRAFT THAT LEGAL WILL PREPARE AND FINALIZE AT THE END OF THIS, UM, COMMITTEE, UH, PRESENTATION. SO THEY SHOULD HAVE THAT TO US, TO ME BY TOMORROW. UM, AND THEN WE'LL CIRCULATE THIS TO COUNCIL AS A RED LINE DRAFT OF CHAPTER 44 BEFORE IT'S PRESENTED TO GO TO CITY COUNCIL. UM, AND THAT WILL DETERMINE THE [00:15:01] TIMELINE FOR, FOR, FOR GETTING THIS TO BACK TO CITY COUNCIL BECAUSE WE WANNA MAKE SURE THAT EVERY COUNCIL MEMBER HAS AN OPPORTUNITY TO REVIEW THE ACTUAL RED LINE LANGUAGE. OH, ALL RIGHT. I THINK IT WOULD'VE BEEN PREFERABLE TO HAVE THE ACTUAL LANGUAGE TO REVIEW IN COMMITTEE RATHER THAN, UM, GETTING A PRODUCT, UH, BASED ON, WELL, THE REQUEST THAT WE AGREED TO IS THAT WE WOULD PRESENT THE PROPOSED AMENDMENTS BACK TO COMMITTEE. UM, AGAIN, THIS IS ON THE 16TH, AND SO WE WERE TRYING TO MAKE OUR COMMITMENT TO THE 16TH. SO WE SAID WE PRESENTED, SO LEGAL'S NOT FINISHED WITH IT. WHEN THEY'RE DONE WITH IT, WE'LL GET IT, BUT WE MADE A COMMITMENT TO BRING THIS TO COMMITTEE ON THE 16TH. SO HENCE WE'RE HERE, UM, GETTING THE BRIEFING FROM THE, UH, DIRECTOR. RIGHT. SO, BUT WE, WE UNDERSTAND THE IMPORTANCE OF MAKING SURE THAT THAT LANGUAGE IS SATISFACTORY. AND SO WE'VE NEVER DENIED SHARING THAT INFORMATION WITH COUNSEL. UM, BUT IT IS A LEGAL DOCUMENT, SO IT'S, IT'S, IT WILL BE CIRCULATED IN THE WAY THAT LEGAL HAS ADVISED. UM, AND WE WILL MAKE SURE THAT COUNSEL HAS HAD AN OPPORTUNITY TO REVIEW THE ACTUAL RED LINE BEFORE. UM, ALL OF THOSE CHANGES ARE ACCEPTED AND THEN PRESENTED TO COUNSEL IN PROBABLY THREE WEEKS. UM, SO THE NEXT ITEM WAS, UM, COMP WORKERS' COMPENSATION FOR CONSTRUCTION WORKERS. UM, WE WILL ADD THAT TO, UM, SECTION 44, 1 23 OF THE, UM, TAX ABATEMENT, UM, ORDINANCE. SO THAT, THAT IS GOING TO BE A REQUIREMENT. AND WE WERE REFLECTED IN THE, UM, ACTUAL ORDINANCE AS A REQUIREMENT. SO ALL OF THESE THINGS WILL BE, THE LANGUAGE WILL SAY, WILL REQUIRE, SO WE'LL MAKE SURE THAT, WE'LL, THEY WILL REQUIRE IT ON THE FRONT AND AS PART OF THE APPLICATION PROCESS, UM, IN THIS CASE, THIS COULD BE IN ATTESTATION OR A CERTIFICATION THAT THE COMPANY WILL PROVIDE WORKERS' COMPENSATION FOR CONSTRUCTION WORKERS, AND THAT IT WILL ALSO BE VALIDATED AS PART OF THE COMPLIANCE AFTER THE ABATEMENT, THE PROJECT HAS BEEN COMPLETED. THEY WILL BE REQUIRED TO PROVIDE EVIDENCE THROUGH A, UH, CERTIFICATE OF INSURANCE, WHICH IS WHAT THE CITY RECEIVES FOR ALL CONSTRUCTION, UM, REQUIREMENTS FOR, UH, WORKERS' COMPENSATION FOR CONSTRUCTION CONTRACTORS AND SUBCONTRACTORS. SO WE WILL FOLLOW THE SAME PRECEDENCE THAT'S ESTABLISHED BY THE CITY OF HOUSTON TO ENSURE COMPLIANCE TO THIS TERM. NEXT SLIDE. UH, MADAM CHAIR, I ASSUME YOU WANT QUESTIONS AT THE END OF THE PRESENTATION, OR DO YOU WANT HIM BY A RECOMMENDATION? UH, WE CAN DO IT ONCE SHE'S DONE, UNLESS YOU HAVE SOMETHING BURNING IT, MA I THINK IT'LL BE EASIER TO, NO, MA, I'M SORRY TO DO IT AT THE END. UH, OKAY. I'M FINE. I'M FINE EITHER WAY. I MEAN, THIS IS INTENDED TO BE ITERATIVE. UM, THIS IS NOT INTENDED FOR ME TO COME HERE BEFORE YOU, JUST TO KIND OF SAY, THIS WAS A VERY ITERATIVE PROCESS WHEREBY I MET WITH 10 DIFFERENT COUNCIL MEMBERS AND REALLY WORKED TO TRY TO, UH, INCORPORATE WHATEVER WE BELIEVE WAS IN THE BEST INTEREST OF THE CITY AND OF THE COMMUNITY. UM, AND WE CAN CERTAINLY TALK ABOUT HOW THAT'S GOING TO LOOK IN THE FINAL DOCUMENT, BUT THE GOAL HERE IS JUST TO TALK ABOUT THOSE AMENDMENTS THAT WE BELIEVE ARE GOING TO BE ABLE TO BE INSERTED INTO THE AGREEMENT ARE TO THE ORDINANCE, AND THOSE THAT MAY NOT, AND THOSE REASONS WILL SHARE WITH THAT AS WELL. UM, SO THE HEALTH INSURANCE BENEFITS, UM, WE ARE GOING TO, IN ADDITION TO ADDING IT TO SECTION 44, 1 23, WHICH IS GOING TO BE, UM, THE, THAT THE COMPANY WILL CERTIFY THAT THEY PROVIDE, UM, UM, HEALTH BENEFITS TO ALL FULL-TIME EMPLOYEES. SO THAT WILL BE SOMETHING THAT THEY WOULD SUBMIT AT THE BEGINNING OF THE APPLICATION PROCESS, BECAUSE WE'RE TALKING ABOUT TWO DIFFERENT THINGS HERE. YOU'VE GOT THE APPLICATION, WHICH IS WHERE WE REQUIRE INFORMATION, AND AN UNDERSTANDING THAT THE COMPANY IS AWARE AND HAS AGREED TO COMPLY TO WHAT THE TERMS OF THE PROGRAM ARE. BUT ON THE BACK END, AFTER THE PROJECT HAS BEEN COMPLETED, THE INVESTMENT HAS BEEN MADE, THE JOBS HAVE BEEN CREATED, IT IS OUR RESPONSIBILITY TO ENSURE THAT THE COMPANY COMPLIED TO WHAT THEY SAID THAT WOULD COMPLY. WE HEAR ON A REGULAR BASIS THAT THEY'RE, THEY DON'T, THE PUBLIC DOESN'T UNDERSTAND THAT THERE IS A COMPLIANCE OR DON'T THINK THAT THERE IS A COMPLIANCE. THERE IS A VERY ROBUST COMPLIANCE PROCESS, NOT ONLY BETWEEN US AND THE COMPANY, BUT BETWEEN US AND HARRIS CENTRAL APPRAISAL DISTRICT BEFORE WE EVEN, UM, APPROVE A COMPANY FOR AN ANNUAL ABATEMENT. WE DO THIS EVERY YEAR. SO THE COMPANY WILL BE REQUIRED TO PROVIDE, UH, DOCUMENTATION AND EVIDENCE THAT THE BENEFITS, THE HEALTH BENEFITS ARE BEING PROVIDED, UM, EXCLUSION OF CONTRACTORS WITH SUBSTANTIAL WAGE THEFT, UH, OR OSHA VIOLATIONS. UM, THIS WILL ALSO BE INCLUDED IN CHAPTER 44, AS WELL AS IN THE AGREEMENT. UM, WE WILL ALSO MAKE SURE THAT IN THE AGREEMENT IT'S GOING TO CLARIFY THAT IF A COMPANY HAS BEEN FOUND TO VIOLATE THIS TERM, THAT NOT ONLY WILL THE CITY REQUEST RECAPTURE OF ANY ABATEMENTS PAID IN THE PAST, BUT IT WILL BE A COST FOR TERMINATION OF THE AGREEMENT. UM, A, A STRENGTH AND DEED THE APPRENTICE PROGRAM UTILIZATION. SO THE SPECIFIC REQUEST WAS FOR, UM, 15%, [00:20:01] UM, OF THE CONSTRUCTION LABOR TO COME FROM OUR, FOR THE CONTRACTORS AND SUBCONTRACTORS TO HIRE FROM CERTIFIED DEPARTMENT OF LABOR, UH, CERTIFIED APPRENTICESHIP PROGRAMS. WE AGREED THAT THAT IS VERY GOOD FOR NOT ONLY THE COMMUNITY, BUT FOR THE INDUSTRY AND THE CITY AS WELL. UM, WE DO CURRENTLY HAVE LANGUAGE IN CHAPTER 44 THAT REQUIRES GOOD FAITH EFFORT, UM, TO HIRE FROM THESE VERY SPECIFIC PROGRAMS. SO COMPANIES ARE NOT UNFAMILIAR WITH OUR REQUIREMENT. WHAT THIS DOES, IT TAKES IT FROM GOOD FAITH EFFORT TO MAKES IT, TO MAKING IT A REQUIREMENT. IT'S SOMETHING THAT WE ALSO DID SEVERAL YEARS AGO WHEN WE TOOK CERTAIN, UM, GOOD FAITH EFFORT, UH, TERMS, AND WE CONVERTED THOSE INTO REQUIREMENTS. UM, AND SO WE ARE GOING TO INCLUDE THAT AS A REQUIREMENT. THE WAY THAT WE ARE GOING TO SUGGEST, UM, COMPLIANCE IS IF COMPANIES FAIL TO MEET THAT 15%, THAT FOR EVERY PERCENTAGE THAT THEY FAIL TO MEET THE 15%, THEIR TAX ABATEMENT WILL BE REDUCED BY THAT SAME PERCENTAGE. UM, AND SO WE BELIEVE THAT THAT IS A MOTIVATION FOR COMPANIES, UM, TO BE ABLE TO QUALIFY AND BE ELIGIBLE FOR THE ABATEMENT AS NEGOTIATED. UM, BUT THIS WILL BE BAKED INTO THAT REQUIREMENT, UH, AND FAILURE TO DO SO WITH SIGNIFICANTLY REDUCE THEIR ABATEMENTS. UM, THE NEXT IS TO STRENGTHEN AUDITS AND INSPECTIONS. UM, THERE IS NOT, UH, WE'RE NOT RECOMMENDING A CHANGE CURRENTLY BECAUSE OUR CURRENT ORDINANCE AND AGREEMENTS DOES PROVIDE PROVISIONS, UM, THAT ON AN ANNUAL BASIS, COMPANIES HAVE TO PROVIDE COMPLIANCE TO AN AFFIDAVIT. UM, THEY HAVE TO CERTIFY THEIR PAYROLL AND THEIR JOB CREATION THROUGH THE SAME FORM THAT THEY USE TO PROVIDE TO THE TEXAS WORKFORCE COMMISSION. THAT IS A REQUIREMENT TO ENSURE THAT THEIR JOB CREATION IS WHAT IS BEING REPORTED TO THE STATE. UM, AND THEN WE ALSO HAVE IN ALL OF OUR AGREEMENTS, ACCESS TO ANY RECORDS, ANY REPORTS, AND TO BE ABLE TO VISIT THE, THE, THE COMPANY AS NEEDED TO ENSURE COMPLIANCE. AND SO WE ALREADY HAVE SOME STRONG LANGUAGE IN CHAPTER 44, AS WELL AS IN THE AGREEMENT TO ENSURE, UM, AUDITS COMPLIANCE AND, UM, THAT THE COMPANY IS COMMITTING AND DOING WHAT IT IT INDICATED. UM, SO ADD THE CHILDCARE SUBSIDIES FOR EMPLOYEES AS A COMMUNITY BENEFIT. UH, WE AGREE THAT WE, UH, CERTAINLY WANNA MAKE THAT AVAILABLE BECAUSE A LOT OF THE PEOPLE THAT ARE WORKING ARE WORKING PARENTS. UM, AND SO WE WILL ADD THAT AS RECOMMENDED AS, UH, TO THE TABLE UNDER CHAPTER 44 AS AN ADDITIONAL COMMUNITY BENEFIT THAT COULD BE OFFERED. ONE OF THE THINGS THAT, UM, COUNCIL MEMBER THOMAS, UH, TALKED ABOUT WAS BEING ABLE TO BE, UH, UH, TO USE A TAX ABATEMENT PROGRAM FOR MORE COMMERCIAL REVITALIZATION, UH, INCLUDING GROCERY STORES. CURRENTLY, WHAT PROHIBITS, UH, RETAIL, UH, AND OTHER PROJECTS WHERE THE DEVELOPER AND THE TENANT ARE NOT THE SAME, IS THE JOB REQUIREMENT, THE JOB CREATION REQUIREMENT. SO MOST DEVELOPERS THAT ARE DEVELOPING COMMERCIAL ARE NOT THE TENANTS, AND THEREFORE THEY'RE NOT RESPONSIBLE FOR THE JOB CREATION, WHICH IS WHY WE REALLY HAVEN'T BEEN ABLE TO USE THE ABATEMENT FOR THOSE. WE'VE BEEN USING CHAPTER THREE 80. UM, I HAD THAT CONVERSATION WITH, UH, COUNCIL MEMBER FLICKINGER. SO THERE IS A PROGRAM THAT ALLOWS US TO DO THAT, BUT WE CERTAINLY SEE THAT THIS COULD BE A REALLY GOOD BENEFIT, ESPECIALLY FOR INFILL DEVELOPMENT, UM, WHERE WE'RE TRYING TO BRING THE RIGHT TYPE OF DEVELOPMENT TO STRENGTHEN COMMUNITIES, UH, AND FILL CERTAIN DEVELOPMENT DEFICIENCIES, DEVELOPMENT GAPS. UM, AND SO OUR RECOMMENDATION IS TO, UM, ALLOW OR REMOVE THE JOB CREATION REQUIREMENT FROM THE DEVELOPER. UM, WE DO KNOW THAT THOSE JOBS WILL BE CREATED, THE TENANTS WILL BRING IN NEW JOBS, BUT THE DEVELOPER WILL NOT HAVE TO BE RESPONSIBLE FOR COMPLYING TO A CERTAIN REQUIREMENT FOR JOB CREATION. AND WE THINK THAT THAT'S GONNA MAKE IT MORE ACCESSIBLE TO COMMERCIAL DEVELOPMENT. NEXT SLIDE. UM, AND COUNCIL MEMBER FLICKINGER HAD A SAME, A SIMILAR REQUEST. UM, HE CITED, UM, THAT RETAIL IN CERTAIN COMMUNITIES, UM, WHERE THERE IS A LACK OF RETAIL OR THOSE KINDS OF DEFICIENCIES OR THE JOBS COULD BE REALLY, UH, BENEFICIAL FOR THE COMMUNITY. UM, THAT TO REMOVE ANY BARRIER WOULD BE A BENEFIT, AND WE AGREED. SO AGAIN, THE SAME WOULD APPLY FOR COUNCIL MEMBER FLICKINGER PROPOSED AMENDMENT. UM, COUNCIL MEMBER HUFFMAN'S, HER CONCERNS AND HER AMENDMENTS WERE AROUND COMMUNITY ENGAGEMENT. UH, IN PARTICULAR ENGAGING WITH THE SUPER NEIGHBORHOODS AS A WAY TO NOTIFY OF PROJECTS THAT ARE BEING PROPOSED, UM, IN AND AROUND THE COMMUNITY. UM, OUR RECOMMENDATION IS THAT WE WOULD HAVE A REQUIREMENT AS PART OF THE INFILL DEVELOPMENT TAX ABATEMENT PROGRAM, WHICH IS THE NEW TAX ABATEMENT PROGRAM THAT WE'RE PROPOSING, THAT IF A PROJECT, UM, IS WITHIN A SUPER NEIGHBORHOOD, THAT THE COMPANY WOULD BE REQUIRED TO NOT ONLY NOTIFY, UM, BUT ALSO TO PROVIDE A PRESENTATION AND GET A LETTER OF SUPPORT [00:25:01] FROM THE NEIGHBORING SUPER, SUPER NEIGHBORHOOD. UM, WE BELIEVE THAT THOSE KINDS OF INFILL PROJECTS DO IMPACT COMMUNITIES A LOT, UM, DIFFERENTLY THAN IF IT WERE, SAY, IN A COMMERCIAL CORRIDOR WHERE THE RESIDENTIAL MAY BE, YOU KNOW, QUARTER MILE, HALF MILE AWAY, BUT FOR INFILL DEVELOPMENT, IN SOME CASES THE PROJECT COULD BE ADJACENT. UM, SO WE DO BELIEVE THAT THERE'S A LOT OF VALUE IN DOING THAT, AND THAT'S GONNA BE OUR RECOMMENDATION. UM, COUNCIL MEMBER MARTINEZ, UM, WANTED TO SORT OF LOOK AT WAYS TO LEVERAGE THIS PROGRAM FOR THE BENEFIT OF STARTUPS AND SMALL BUSINESSES. UM, ONE OF OUR RECOMMENDATIONS IS WITHIN THE INFIELD DEVELOPMENT TAX ABATEMENT PROGRAM, UM, TO PROVIDE A REQUIREMENT AS A COMMUNITY BENEFIT IN THE SAME WAY THAT WE DO FOR ECONOMIC DEVELOPMENT BENEFITS THAT THE DEVELOPER MAY PROVIDE SPACE. UM, WE WANT TO NEGOTIATE THAT THEY PROVIDE THAT SPACE AT A REDUCED RENTAL RATE, UM, DEPENDING ON THE NATURE OF THE PROJECT, THAT THEY MAKE IT AVAILABLE TO SUPPORT SMALL BUSINESSES, STARTUPS. WE'VE DONE SOMETHING VERY SIMILAR IN A COMMUNITY BENEFITS WITH, UM, ANOTHER PROJECT WHERE FOR, UM, FOR BUSINESSES THAT ARE NEEDING SPACE THAT THAT WAS OFFERED AT A REDUCED RATE, AND THEN WE USE OUR ABATEMENT AS A WAY TO OFFSET THAT COST. SO WE'RE GONNA LOOK FOR HOW TO, THAT THAT LANGUAGE IS GONNA BE REFINED AND IN, UM, CHAPTER 44 AS PART OF THE INFILL DEVELOPMENT. SO WE'LL WANNA MAKE SURE THAT YOU REVIEW THAT TO MAKE SURE THAT IT ADDRESSES YOUR NEEDS. UM, AND THEN, SO COUNCIL MEMBER RAMIREZ ALSO PROVIDED SOME RECOMMENDATIONS, AND IF I COULD INTERRUPT, SORRY ABOUT THAT. SURE. UH, POINT OF ORDER, UH, MADAM CHAIR, I'M GONNA WITHDRAW THIS ONE, SO WE WANNA MOVE TO THE NEXT ONE. SAVE A LITTLE TIME. YES, SIR. THAT'S FINE. GO AHEAD. THANK YOU, SIR. UM, SO WE'RE GONNA WITHDRAW THE FIRST, UM, PROPOSED AMENDMENT. AND SO WE'LL GO TO THE SECOND, WHICH IS TO REQUIRE OFFICE TO CONDUCT AN ANALYSIS. UM, THIS HAS TO DO WITH THE, BUT FOR JUSTIFICATION, OUR APPLICATION DOES REQUIRE THAT. AND WE ALSO DO A DUE DILIGENCE TO, UM, PROVIDE AS MUCH, DO AS MUCH INDUSTRY RESEARCH, UM, RESEARCH ABOUT THE COMPETITIVE, THE, THE LOCATIONS THAT THE COMPANIES ARE ALSO EXPLORING. UM, IF THEY'VE SUBMITTED A REQUEST FOR ANY KIND OF INCENTIVE, WE GET THAT AS A RESULT OF, YOU KNOW, BEING ABLE TO JUSTIFY TO DEMONSTRATE THAT THERE IS A STRONG JUSTIFICATION AND THAT THE TAX ABATEMENT IS A CRITICAL COMPONENT OF THEIR DECISION TO LOCATE OR RELOCATE. BUT YOU DID OFFER SOME ADDITIONAL QUESTIONS THAT YOU THINK WOULD STRENGTHEN THAT, THAT JUSTIFICATION. UM, AND SO WE COULD, UH, SO I SHARED THE MATRIX EARLIER. WE COULD EITHER INCORPORATE THAT INTO THE MATRIX, WHICH THE MORE THE, THE HIGHER THE RESPONSE IS ON THOSE QUESTIONS, THE HIGHER THE RECOMMENDATION. UM, OR WE CAN ALSO INCLUDE IT IN OUR APPLICATION SO THAT THEY CAN COMPLETE THAT APP, THAT INFORMATION AS PART OF THE APPLICATION, SO THAT WE HAVE THAT ON THE FRONT END. WE DO RECEIVE THAT INFORMATION AS PART OF OUR DUE DILIGENCE, BUT WE CAN CERTAINLY CONSOLIDATE THAT PROCESS AND MAKE IT A LITTLE BIT MORE CONCISE, UM, AND MAKE SURE THAT WE HAVE THAT INFORMATION ON THE FRONT END. UM, THE NEXT IS TO REQUIRE OUR OFFICE TO INCLUDE A METHODOLOGY AND CRITERIA FOR THE RECOMMENDATION OR CALCULATIONS. UM, WE ARE RECOMMENDING, UH, THAT NO ACTION BE TAKEN BECAUSE THAT IS ACTUALLY PART OF OUR, UM, PROCESS. UM, WHENEVER WE PRESENT THE PROPOSAL TO THE ECONOMIC DEVELOPMENT COMMITTEE, IT DOES INCLUDE ALL OF THE DATA. IT INCLUDES THE PROJECTION OVER THE 10 YEARS. UM, IT INCLUDES THE ASSUMPTIONS THAT ARE USED TO COME UP WITH THAT CALCULATION. UM, AND SO UNLESS, AND I, WE DID SHARE A COUPLE OF EXAMPLES OF THAT METHODOLOGY WITH YOU. UM, IF YOU WANNA TAKE A LOOK AT THAT AND LET US KNOW IF THAT SATISFY YOUR PROPOSED AMENDMENTS. AND IF WE'RE GOOD THERE, THEN WE'LL JUST GO AHEAD AND CONTINUE PROCEEDING. UM, AS WE'VE, AS WE'VE TALKED ABOUT. UM, THE OTHER IS TO PROVIDE 50% OF THE JOBS CREATED, UM, MAKE THOSE JOBS AVAILABLE, UM, TO RESIDENTS THAT WERE PREVIOUSLY UNEMPLOYED, UH, 50% PREVIOUSLY UNEMPLOYED AS WELL, UM, AS THOSE THAT MIGHT BE RELOCATING FROM OTHER CITIES. UM, I CERTAINLY UNDERSTAND THE IMPORTANCE OF MAKING SURE THAT THESE TAX ABATEMENTS ARE PROVIDING A LEVEL OF EQUITY, UM, WHICH IS WHY IN OUR COMMUNITY BENEFITS, WE DO HAVE SOME REQUIREMENTS FOR LOCAL HIRING, UM, IN CENSUS TRACKS THAT ARE CONSIDERED TO BE DIS, UH, DISTRESSED CENSUS TRACKS. SO WE DO HAVE SOME REQUIREMENTS. IN CHAPTER 44, THE LEGAL DEPARTMENT SUGGESTED THAT WE CONTINUE TO WORK THROUGH OUR GOOD FAITH EFFORTS, UH, TO HIRE LOCAL. THERE IS AN EXISTING PROGRAM CALLED THE TEXAS ENTERPRISE ZONE PROGRAM THAT ESPECIALLY, UH, AND SPECIFICALLY REQUIRES 25% OF THE JOBS FROM, UH, BE OF, UH, ECONOMICALLY DISADVANTAGED INDIVIDUALS, WHICH INCLUDES THOSE THAT HAVE BEEN PREVIOUSLY UNEMPLOYED. AND THAT IS AN ACTIVE PROGRAM FOR THE CITY OF HOUSTON. SO WE ARE ADDRESSING ECONOMICALLY DISADVANTAGED THROUGH THE PROGRAM THAT WAS DESIGNED TO, [00:30:01] UM, PROVIDE THAT ALIGNMENT, UM, RATHER THAN TRYING TO INCORPORATE A TEZ CRITERIA INTO A TAX ABATEMENT PROGRAM. UM, AND THEN THE NEXT AMENDMENT IS TO ESTABLISH ADDITIONAL PREFERENCE FOR SMALL BUSINESSES. UM, I THINK IT GOES BACK TO THIS CONVERSATION THAT WE HAD WITH COUNCIL MEMBER RAMIREZ. WE WANT TO TRY TO LEVERAGE THIS PROGRAM, WHICH IS BASED ON CHAPTER THREE 12. THIS IS A PROGRAM THAT'S INTENDED TO CONSTRUCT FACILITIES OR, UM, MODERNIZE OR EXPAND FACILITIES. SO IT'S REALLY A PROGRAM THAT'S TIED TO WHAT HAPPENS ON THE LAND AND THE REAL ESTATE AND THE INVESTMENT, UM, VERSUS A PROGRAM FOR SMALL BUSINESSES. UM, WE DO HAVE THE OFFICE OF BUSINESS OPPORTUNITIES THAT WORKS VERY CLOSELY WITH PROVIDING ACCESS TO CAPITAL, UM, BUSINESS PLANNING AND OTHER RESOURCES FOR SMALL BUSINESSES. UM, AND SO I THINK THAT IS THE APPROPRIATE PLACE TO CONTINUE TO SUPPORT SMALL BUSINESSES, BUT WE DO WANNA LEVERAGE THIS ABATEMENT AS MUCH AS WE CAN, AND MAYBE WE COULD DO THAT PROVIDING SPACE, UM, AND OTHER REALLY KIND OF SHARED AMENITIES THAT THEY MAY NEED, UM, VERSUS MAKING THE ABATEMENT AVAILABLE FOR SMALL BUSINESSES. UM, THE LEVEL OF INVESTMENT THAT SMALL BUSINESSES ARE MAKING, WHEN YOU CALCULATE THE ABATEMENT ON THAT, AND ESPECIALLY JUST THE CITY OF HOUSTON, UM, MATHEMATICALLY DOESN'T PROVIDE A LOT OF FINANCIAL VALUE, AND WE BELIEVE THE BIGGEST VALUE IS TO BE ABLE TO GIVE THEM ACCESS TO SPACE. NEXT SLIDE. UM, AND SO AGAIN, THIS IS CONSISTENT WITH THE CONVERSATION THAT WE'VE ALREADY HAD ABOUT THE APPRENTICESHIP PROGRAM. UH, COUNCIL MEMBER, UH, PENZA JUST SORT OF SUGGESTED THAT MAYBE THERE'S A TIERED APPROACH BASED ON THE SIZE OF THE PROJECT. UM, HOW MANY, WHAT PERCENTAGE OF CONSTRUCTION WORKERS SHOULD COME FROM APPRENTICESHIP PROGRAM. BUT I BELIEVE THAT HAVING THAT 15% REQUIREMENT, UH, WILL SATISFY THAT BECAUSE AGAIN, ONE OF THE CONDITIONS THAT WE ARE ALLOWING FOR IS IF A, A CONSTRUCTION TRADE, UM, IS NOT AVAILABLE THROUGH A CERTIFIED, UM, PROGRAM, THEN THE COMPANY WILL HAVE TO DEMONSTRATE THAT THERE ARE NOT APPRENTICESHIP PROGRAMS TO MEET THE NEED. UH, IN THE ABSENCE OF BEING ABLE TO DO THAT, THEN WE WILL GO AHEAD AND APPLY THAT 15% REDUCTION OF THEIR TECH UP TO 15% REDUCTION OF THEIR ABATEMENT BASED ON THEIR PERFORMANCE. NEXT SLIDE. I THINK I SHARED THIS WITH YOU EARLIER. THIS WAS JUST TO SHARE THAT WE DID GET A LETTER OF SUPPORT FROM THE GREATER HOUSTON PARTNERSHIP, WHOM WE WORK WITH SO VERY CLOSELY. UM, THEY UNDERSTAND THE, THE BENEFIT AND THE TOOL THAT THE TAX ABATEMENT PROGRAM IS AND HAS BEEN FOR OUR ABILITY TO ATTRACT INVESTMENT. THEY ALSO UNDERSTAND THE IMPORTANCE OF US WANTING TO EXPAND TO THE EXTENT POSSIBLE, TO THE BROADER COMMUNITY TO MAKE SURE THAT, UM, THE COMMUNITY WHERE THESE PROJECTS ARE BEING LOCATED ARE ALSO GETTING THE MAXIMUM BENEFIT, UM, FROM, FROM, YOU KNOW, THIS IS BASICALLY DOING ECONOMIC DEVELOPMENT AND LOOKING AT IT FROM AN EQUITABLE SET OF LENSES. UM, AND THIS IS WHAT THEY'RE SAYING IS, YES, YOU'RE DOING THAT WITHOUT COMPROMISING THE, UM, EFFECTIVENESS OF THE TAX ABATEMENT PROGRAM. SO THEY DID REVIEW OUR PROPOSED AMENDMENTS, UM, THEY DID REVIEW THE RECOMMENDATIONS THAT WE'RE GONNA MAKE TO CHAPTER 44, UM, AND THEY BELIEVE THAT THAT IS THE, THE RIGHT APPROACH FOR US, FOR OUR OFFICE TO TAKE. OKAY. SO I THINK THAT'S THE END OF THE SLIDE PRESENTATION. UM, SO AS I MENTIONED IN TERMS OF TIMING, UM, WE WOULD LIKE TO PRESENT THIS, UH, AMENDED ORDINANCE TO COUNCIL TWO WEEKS AFTER WE HAVE A FINAL RED LINE VERSION. UM, SO WE EXPECT TO BE ABLE TO CIRCULATE THE RED LINE TO COUNCIL NO LATER THAN MONDAY, UM, AND GIVE YOU SOME TIME TO BE ABLE TO REVIEW THAT IF QUESTIONS, UH, IF YOU HAVE QUESTIONS OR NEED MEETINGS WITH MY OFFICE OR LEGAL, WE WANNA MAKE OURSELVES AVAILABLE FOR YOU. UM, AND THEN SHORTLY THEREAFTER, IT'S ABOUT A TWO WEEK LEAD TIME FOR US TO GET THIS TO CITY COUNCIL. SO AS SOON AS THAT HAPPENS, WE HAVE A TWO WEEK LEAD TIME, WHICH SHOULDN'T REQUIRE ANY MORE THAN THAT FOR THIS TO BE, UM, BACK BEFORE CITY COUNCIL. SO I SUSPECT NO LATER THAN 30 DAYS FROM NOW. THANK YOU VERY MUCH. UM, FIRST COUNCIL MEMBER IN THE QUEUE IS, UH, COUNCIL MEMBER. SALINAS, DO YOU HAVE A QUESTION? YES. THANK YOU SO MUCH. UM, AND THANK YOU FOR THE PRESENTATION. SO I JUST HAD A FEW CLARIFYING QUESTIONS SPECIFIC TO THE EIGHT, UH, AMENDMENTS THAT WE PUT FORTH. UM, AND AS MY COLLEAGUES KNOW, THESE EIGHT AMENDMENTS ARE THE, UH, FLOOR AMENDMENTS THAT WE PUT FORTH ON AUGUST 25TH. AND SO I WOULD LIKE TO JUST SORT OF UNDERSTAND WHERE I, I THINK WE ARE IN ALIGNMENT WITH THE LANGUAGE WE PROPOSED AND JUST WHERE WE HAVE SOME QUESTIONS. SO STARTING WITH THE FIRST, SECOND, AND EIGHTH RECOMMENDATION, MY UNDERSTANDING FROM YOUR PRESENTATION AND WHAT'S WRITTEN ON THIS DOCUMENT IS THAT YOU ARE ADOPTING THE LANGUAGE AS WE'VE PROPOSED IT IN THE SECTION OF THE CODE THAT WE'VE PROPOSED IT. IS THAT CORRECT? UM, THAT IS MOSTLY CORRECT. I I DON'T BELIEVE LEGAL HAD ANY, UM, SIGNIFICANT CHANGES TO THAT. BUT AGAIN, WHERE IT SHOWS UP IN CHAPTER 44 MAY BE DIFFERENT. SO FOR EXAMPLE, FOR THE APPLICATION FOR HEALTH, UM, CARE [00:35:01] BENEFITS, WE ARE GOING TO HAVE THAT AS PART OF THE APPLICATION REQUIREMENT IN ADDITION TO WHERE YOU MAY HAVE, YEAH, SO THOSE ARE DIFFERENT RECOMMENDATIONS. I'M TALKING SPECIFICALLY ABOUT RECOMMENDATION ONE, TWO, AND EIGHT. YES. SO MOST OF WHERE YOU'VE INSERTED THE LANGUAGE, I BELIEVE IS THE APPROPRIATE PLACE TO HAVE INSERTED THE LANGUAGE, BUT THE REASON THAT WE COULD NOT ACCEPT THE TABLE AMENDMENT IS BECAUSE LEGAL HAD TO GO THROUGH THAT AND MAKE SURE THAT IT WAS ORDERLY, THAT IT WAS CONSISTENTLY PLACED, BECAUSE AGAIN, THERE ARE MULTIPLE TAX ABATEMENT PROGRAMS WITHIN CHAPTER 44. SO IT WAS REALLY JUST TO MAKE SURE THEY'RE DOING THEIR OWN DUE DILIGENCE TO MAKE SURE THAT THAT IS THE CORRECT LOCATION. AGAIN, I'M NOT TRYING TO DEBATE ANY OF THAT. I WANNA JUST WALK THROUGH ALL EIGHT INDIVIDUALLY. AND SO SPECIFICALLY ON THE FIRST AND THE SECOND AND THE EIGHTH, MY UNDERSTANDING BASED ON WHAT YOU SAID AND BASED ON WHAT'S WRITTEN ON THIS DOCUMENT, IS THAT YOU ARE ADOPTING OUR RECOMMENDED LANGUAGE AS PROPOSED IN THE SECTIONS THAT WE'VE PROPOSED IT. SO I DID NOT SAY WE WERE ADOPTING THE RECOMMENDED LANGUAGE. SO I'M, I'M GONNA STOP US RIGHT HERE BECAUSE I'M NOT GONNA YEAH. WHAT I'M SAYING IS GONNA ALLOW ALL THIS BACK AND FORTH. YEAH, I'M SAYING THAT WE'RE, WE'RE ADOPTING THE RECOMME WHEN STOP, Y'ALL CAN MEET OFFLINE AND GO OVER ALL EIGHT OF THOSE. OKAY. I THINK IT WAS APPROPRIATE FOR YOU TO, WE SAID WE WOULD COME BACK ON THE 16TH, UM, WITH EVERYONE'S, UM, AMENDMENTS. YOU MET WITH EVERYONE. UH, IF Y'ALL NEED TO MEET OFFLINE ONCE WE GET THE RE UH, AMENDMENTS BACK FROM LEGAL, I THINK THAT WOULD BE APPROPRIATE, BUT I DON'T THINK IT'S NECESSARY FOR US TO GO THROUGH ALL OF THESE, UM, AND GO BACK AND FORTH. YEAH, I AGREE. I DON'T WANNA HEAR IT, FIRST OF ALL. SECOND OF ALL, I THINK IT'S IMPORTANT FOR Y'ALL TO HAVE THAT CONVERSATION SO YOU CAN BE CLEAR BEFORE IT COMES TO COUNSEL. AND ONCE WE GET IT BACK FROM, UH, LEGAL, EVERYBODY WILL HAVE THE RED LINES. UM, THEY CAN ALL ASK THEIR QUESTIONS, CORRECT. AND THEY CAN GO THROUGH EVERY SINGLE THING. UH, I KNOW YOU MADE LOTS OF TIME TO MEET WITH EVERYONE TO PULL ALL THIS TOGETHER. UM, BEFORE IT GOES TO COUNSEL, WE WILL HAVE THE RED LINES FROM LEGAL. EVERYONE WILL HAVE AN OPPORTUNITY TO GO OVER STEP BY STEP OF WHERE IT IS, WHAT IT SAYS. IS IT YOUR RECOMMENDATION? IS IT IN THE APPLICATION OR IS IT IN THE ACTUAL AMENDMENTS? I DON'T THINK IT'S PRUDENT FOR US TO GO THROUGH THAT RIGHT NOW. I AGREE. UM, UNTIL WE GET FROM LEGAL, THE ACTUAL AMENDMENTS AND WHERE THEY ARE ON THE DOCUMENT. SO, UM, COUNCIL MEMBER SALINAS, ONCE WE GET IT BACK FROM LEGAL, I WOULD HOPE THAT YOU WOULD BE ABLE TO SIT DOWN WITH THE DIRECTOR, GO OVER IT, MAKE SURE IT'S WHERE YOU WANT IT TO BE. IT SAYS WHAT YOU WANT IT TO SAY, AND THEN BEFORE IT GOES TO COUNSEL, UM, WE CAN ALL TOUCH BASE, UH, VIA EMAIL AND MAKE SURE EVERYBODY IS GOOD WITH IT. UM, AND, AND THEN WE CAN MOVE FORWARD. BECAUSE I THINK EVERYBODY HAD SOME GREAT SUGGESTIONS. THE DIRECTOR DID A YEOMAN'S JOB OF TRYING TO IMPLEMENT EVERYBODY'S SUGGESTIONS INTO OUR POLICIES. UH, AND I THINK THAT'S THE INTENT, UM, IS TO ALWAYS IMPROVE ON OUR BEST. AND SO WE APPRECIATE EVERYONE'S INPUT, UM, AND THEIR AMENDMENTS. THANK YOU. CHAIRMAN. MAY, MAY I JUST, IF I, SURE. IF I CAN'T ASK ABOUT THE ONES WHERE I THINK WE HAVE AGREEMENT, CAN I AT LEAST ASK ABOUT, UH, WHY THE RECOMMENDATION WAS MADE TO MAKE A DIFFERENT APPROACH FROM WHAT WE RECOMMENDED? JUST TO UNDERSTAND, UH, THE BASIS. I, I MEAN, I, I DON'T, WE DIDN'T DO ANYTHING DIFFERENT, BUT SO, SO FOR EXAMPLE, ON RECOMMENDATION SEVEN, UM, WE SPECIFICALLY RECOMMENDED THAT THERE BE LANGUAGE THAT ALLOWS US TO AUDIT THINGS BEYOND PAYROLL RECORDS BECAUSE THE CURRENT CODE ONLY ALLOWS US TO RECOMMEND TO, TO AUDIT SOMETHING LIKE PAYROLL RECORDS, BUT NOT WORKER COMPENSA COMPENSATION RECORDS AND OTHER TYPES OF DOCUMENTS. THE RECOMMENDATION SAYS THAT THIS IS NOT APPROPRIATE BECAUSE THERE'S ALREADY LANGUAGE IN SECTION 44 1 28 THAT ALLOWS US TO DO SO. AND I REVIEWED THAT LANGUAGE WITH MY STAFF AND WE COULDN'T FIND ANYTHING IN THERE. AND SO, ONE CLARIFYING QUESTION I HAVE IS AGREEMENT. SO IT WAS THE ORDINANCE AS WELL AS THE ACTUAL AGREEMENT. THE, UH, UH, BASICALLY STATED THAT THE SECTION IN THE ORDINANCE AS WELL AS THE SECTION, I THINK IT'S NUMBER SIX, SECTION SIX IN AN AGREEMENT. I'M HAPPY TO FORWARD YOU A COPY OF THE AGREEMENT SO THAT YOU COULD SEE EXACTLY THE TERMS THAT THE COMPANIES ARE REQUIRED TO COMPLY TO, WHICH GIVES US ACCESS TO ANY REPORT THAT IS NEEDED FOR COMPLIANCE. YES. BUT MY QUESTION WAS, THE CODE ONLY GIVES ITS AUTHORITY TO AUDIT PAYROLL RECORDS. IT DOES NOT GIVE US AUTHORITY TO AUDIT ANY OTHER TYPE OF RECORD. AND THAT IS SPECIFICALLY ENUMERATED IN THE CODE. AND THE REASON WHY WE WANTED TO ADD THE OTHER CATEGORIES DOCUMENTS UNDER OUR AUDIT POWER TO MAKE CLEAR UNDER THE ENFORCEMENT THAT YOU DO UNDER POLICY, THAT THAT WOULD ALLOW YOU TO AUDIT OTHER TYPES OF RECORDS THAT IS CONSISTENT WITH WHAT OTHER CITIES HAVE ADOPTED IN THE CODE LANGUAGE. YOU POINTED AS TO 44 1 2 8. THERE IS NO DISCUSSION OF AUDIT POWER. AND SO MY QUESTION IS, IS THERE A LEGAL REASON? I DON'T THINK I SAW ONE. UM, NOT TO ENUMERATE IN THE CODE THAT WE HAVE THE AUDIT POWER [00:40:01] OVER RECORDS, OTHER THAN PAYROLL RECORDS, THE CITY'S ABILITY TO AUDIT IS ALWAYS IN OUR BEST INTEREST. UM, AND SO IF THERE IS AN OPPORTUNITY FOR US TO ADD THAT LANGUAGE, AGAIN, WHAT WE'RE DOING IS WE'RE SOLIDIFYING, WE'RE CODIFYING WHAT WE'RE ALREADY DOING. SO IF THERE'S A RE A BENEFIT FOR US DOING THAT, AND THERE ARE NO LEGAL OBJECTIONS, I WOULDN'T HAVE ANY OBJECTIONS IN, IN US PROVIDING ADDITIONAL PROVISIONS AS IT RELATES TO AUDIT. GREAT. THAT'S OUR RECOMMENDATION. COUNCIL MEMBER, FLICKINGER, ARE WE WANTING TO HOLD OFF ON QUESTIONS, INDIVIDUAL ITEMS? NO, THIS IS THE TIME TO ASK QUESTIONS. I'M SORRY. GO AHEAD. GO AHEAD. YEAH, I MEAN, I'VE GOT SOME QUESTIONS REGARDING THE, THE WAGE THEFT. I MEAN, THERE'S A NUMBER OF DIFFERENT CATEGORIES OF WAGE THEFT. A LOT OF 'EM AMOUNT TO A CONTRACT DISPUTE WHERE ONE PARTY READS THE CONTRACT ONE WAY THE OTHER PARTY READS THE CONTRACT THE OTHER WAY, SOMETIMES THEY END UP HAVING TO GO TO COURT TO SETTLE IT. OR IS THAT THE TYPE OF THING THAT WE'RE TALKING ABOUT WITH WAGE DISPUTE? WE'RE LOOKING FOR ANY, UM, ANY MATTER THAT WAS SERIOUS ENOUGH FOR IT TO BE PRESENTED TO OSHA AS A MAJOR VIOLATION. OKAY. AND DOES OSHA TYPICALLY DEAL WITH WAGES DISPUTES? THERE? UM, THERE IS INFORMATION PRESENTED, UH, IN A REPORT. AND SO WE'RE GONNA BE WORKING WITH LEGAL TO IDENTIFY THAT REPORT, AND THAT'S GONNA BE PART OF OUR COMPLIANCE. OKAY. BECAUSE I, I DIDN'T REALIZE OSHA DEALT WITH WAGES DISPUTES. WELL, I'M SORRY. THERE ARE VARIOUS DIFFERENT TYPES OF, UM, MATTERS THAT WE'RE GOING TO BE WORKING WITH TO ENSURE THAT A COMPANY DOES NOT HAVE ANY REPORTS OF ANY KIND OF THEFT. OKAY. SO I'M SORRY. AND MAYBE THAT WOULD WOULD'VE BEEN TWAC. OKAY. BECAUSE I MEAN, LIKE THE CITY JUST WENT THROUGH A DEAL IT MOST LIKE THE TWAC INSTEAD OF OSHA, THE CITY JUST WENT THROUGH A DEAL WITH THE HOUSTON FIRE DEPARTMENT MM-HMM . WHERE THEY READ THE CONTRACT ONE WAY WE READ IT ANOTHER WAY, ENDED UP GOING TO AN ARBITER. THE ARBITER DECIDED THAT NO CITY, YOU HAVE NOT PAID THESE FIREFIGHTERS IN THE MANNER THE CONTRACT SAYS, AND WE HAD TO PAY. SO WOULD WE HAVE NOT BEEN ELIGIBLE UNDER OUR GUIDELINES? YOU KNOW, IT DEPENDS ON HOW FAR THE, THE ISSUE. WE UNDERSTAND THAT THERE ALWAYS ARE GOING TO BE SOME TYPES OF CONTRACT DISPUTES THAT CAN BE SOLVED AND SETTLED, UM, IN A MEANINGFUL WAY WITHOUT IT BEING REPORTED. THESE ARE GONNA BE REPEAT VIOLATORS, UM, OF SOMEBODY THAT IS, HAS A HISTORY OF DOING THESE THINGS. RIGHT. WE WANNA MAKE SURE THAT WE'RE NOT DOING BUSINESS WITH COMPANIES THAT HAVE A HISTORY OF POTENTIALLY BEING FRAUDULENT. ONE OF THE OTHER BIG CATEGORIES OF WAGE DISPUTES IS, UH, OVERTIME MM-HMM . AND SPECIFICALLY COMPANIES PAYING COMPENSATORY TIME RATHER THAN THE OVERTIME. MM-HMM . THE CITY DOES THAT. AND I WOULD SAY THAT'S PROBABLY MORE OF A MISINTERPRETATION THAN A BLATANT VIOLATION. OKAY. BUT, BUT I WILL SAY COUNCIL MEMBER, IF THERE IS A RECOMMENDATION TO REFINE THE LANGUAGE, TO CLARIFY MORE, THAT'S THE PURPOSE OF THIS DISCUSSION. UM, SO THAT WE HAVE LANGUAGE THAT IS ENFORCEABLE LANGUAGE THAT CAN BE VALIDATED, THAT WE CAN DEMONSTRATE COMPLIANCE TO. SO IF IT SEEMS TO BE TOO VAGUE OR TOO, UM, AMBIGUOUS, AND THERE'S A WAY FOR US TO REFINE THAT, I'M CERTAINLY HAPPY TO HEAR YOUR SUGGESTION. OKAY. CAN I ASK ONE MORE ABOUT THE OSHA? YEAH. WITH THE OSHA VIOLATIONS, IS THERE SPECIFIC LANGUAGE ABOUT WHAT TYPE OF VIOLATION WOULD ELIMINATE A COMPANY FROM CONSIDERATION? BECAUSE FOR EXAMPLE, UM, IF YOU HAVE YOUR OSHA PLACARD UP ON YOUR WALL, OR IF YOU DON'T HAVE IT UP ON YOUR WALL, THAT'S AN OSHA VIOLATION. IN FACT, IF YOU HAVE IT UP ON YOUR WALL AND IT'S NOT THE MOST UPDATED VERSION, THAT'S AN OSHA VIOLATION AS WELL. UM, I MEAN I'VE, I'VE HAD SOME FIRSTHAND EXPERIENCE WITH THIS MM-HMM . UM, THERE, I'LL GIVE YOU ANOTHER EXAMPLE. UM, WE HAD AN ELECTRICAL EXTENSION CORD WE PURCHASED FROM HOME DEPOT. THEY PROBABLY SELL MILLIONS OF THEM BROUGHT IT INTO OUR FACILITY. THAT'S ACTUALLY AN OSHA VIOLATION. 'CAUSE IT DID NOT MEET THE INSULATION STANDARDS THAT OSHA REQUIRES. I MEAN, IS WE WOULD CERTAINLY HAVE TO USE DISCRETION. AND AGAIN, AGAIN, THE THE LANGUAGE, AGAIN, WE'RE TRYING TO BE RESPONSIVE TO MAKE SURE THAT BUSINESSES ARE RESPONSIBLE, THAT BUSINESS AGREED. BEING ACCOUNTABLE. AGREED. I MEAN, NOBODY AND THERE ARE LEVELS OF SEVERITY OF THE OSHA VIOLATIONS. YES. YES. AND THAT'S WHAT I'M SAYING, IF WE'D HAVE TO USE DISCRETION TO DETERMINE WHAT THE VIOLATION IS AND IF THE VIOLATION WAS SOMETHING THAT WAS INTENTIONAL. IF THE COMPANY IS A REPEAL OFFENDER, YES, THERE ARE REPEAT THOSE THINGS AND WILLFUL VIOLATIONS. I MEAN, THERE, THERE ARE SOME, YOU KNOW, IT'S NOT A VIOLATION IS NOT NECESSARILY A VIOLATION THAT WE ALL THINK OF. YEAH. UM, SO THERE'S A LOT THAT GOES INTO THAT. AND SO WE MAY HAVE TO JUST ADD SOME LANGUAGE THAT BASICALLY ALLOWS A DISCRETION TO BE ABLE TO REVIEW AND TO DETERMINE THE LEVEL OF SEVERITY AND WHETHER OR NOT THAT VIOLATION, IF THERE IS A VIOLATION, [00:45:01] SHOULD WARRANT ANY KIND OF PENALTY AS A RELEASE TO AN ABATEMENT. SO AGAIN, IT'S VERY DIFFICULT TO HAVE A KIND OF ONE SIZE FITS ALL AGREED LANGUAGE. AGREED. AND THAT'S THE CHALLENGE THAT WE'RE HAVING RIGHT NOW, IS THAT WE UNDERSTAND THE INTENT. WE UNDERSTAND THAT WE'RE TRYING TO DO WHAT'S IN THE BEST INTEREST OF THE COMMUNITY, BUT WE ALSO ARE RESPONSIBLE FOR COMPLYING AND BEING ABLE TO DETERMINE WHEN THE VIOLATION HAS OCCURRED AND WHEN THERE SHOULD BE SOME KIND OF RECOURSE. UM, AND THAT IS PROBABLY GOING TO BE A LITTLE BIT OF A TRIAL AND ERROR. THE GOOD THING IS THAT WE RENEW THIS IN TWO YEARS, AND SO WE'LL HAVE THIS IN PLACE. AND SO IF WE MAKE A DETERMINATION THAT THERE IS A WAY FOR US TO FURTHER REFINE, UM, THIS LANGUAGE WHEN IT'S TIME, NEXT TIME FOR THE RENEWAL, THEN WE CAN CERTAINLY TAKE THAT INTO CONSIDERATION. OR IF IT'S MORE MAJOR BEFORE THEN WE CAN ALWAYS COME BACK TO AMEND CHAPTER 44 BEFORE THE TWO YEARS. OKAY. THANK YOU MA'AM. MM-HMM . COUNCIL MEMBER DAVIS. THANK YOU MADAM CHAIR. UH, GWENDOLYN, THANK YOU. YOU'RE WELCOME. UM, IN, IN SOME OF MY CONCERNS IN OUR CONVERSATION THAT WE HAD WANTED TO UM, SAY THAT CERTAINLY I'M HAPPY TO SEE THAT WE ARE LOOKING AT WAYS BY WHICH WE CAN BETTER SERVE, YOU KNOW, THE WORKERS AND COMMUNITIES AND IN REGARDS TO THE WORK. BUT KIND OF ONE OF THE THINGS I WANT TO KIND OF PIGGYBACK A LITTLE BIT ON THIS, ONE OF THE AMENDMENTS CONCERNING OSHA, UM, AS ONE WHO I'VE WORKED FOR PHILIP CHEMICALS A CHEMICAL, UH, OPERATOR FOR 10 YEARS IN REGARDS TO OSHA LAWS. AND I'M JUST, I'M ASSUMING THAT IF IT'S A OSHA SAFETY VIOLATIONS THAT WE WOULD HAVE TO WRITE IN WHAT THE CITY REQUIRES WITH OSHA, WOULD WE, WOULD THAT MEAN WE'D HAVE TO CREATE A STAFF OR A CERTAIN NUMBER OF PEOPLE TO MONITOR THAT PROCESS? 'CAUSE THAT CAN TAKE, FOR THOSE WHO HAVE ANY INVOLVEMENT WITH OSHA, NO. THAT COULD TAKE A, A SIGNIFICANT LENGTH OF TIME. SO WOULD THAT HAVE TO BE IN CONSIDERATION IF WE AMEND THIS PROCESS? UM, WE ARE NOT CONTEMPLATING ADDING ADDITIONAL STAFF. AND SO IT WOULD BE A MATTER OF US ENGAGING OSHA TO GET INFORMATION ON WHERE THESE VIOLATIONS MIGHT BE REPORTED AND PUBLICLY AVAILABLE. UM, AND AS PART OF OUR COMPLIANCE, WE WOULD DO, UM, UH, WE WOULD, UM, ACCESS THAT REPORT AND INFORMATION FOR THAT PERIOD OKAY. TO DETERMINE IF THAT COMPANY'S NAME IS REPRESENTED ON A LIST OF VIOLATORS. UH, AND THEN WE WOULD THEN HAVE TO FOLLOW UP WITH OSHA TO GET THE DETAIL. SO WE'D HAVE TO DEAL WITH OUR EXISTING STAFF. RIGHT. AND, AND THEN IT WOULD BE KIND OF A, IF THE COMPANY DISPUTED IT, YOU KNOW WHAT I MEAN, IF THE COMPANY DISPUTED WHATEVER WE TOOK INTO CONSIDERATION REGARDING THE OSHA VIOLATIONS, UH, WOULDN'T THAT TAKE UP? I MEAN, IT COULD TAKE A LITTLE BIT MORE TIME AS PART OF THE COMPLIANCE, BUT AGAIN, WE GO THROUGH A VERY, YOU KNOW, IT TAKES US MONTHS TO GO THROUGH A COMPLIANCE ON AN ANNUAL BASIS, ESPECIALLY FOR, UM, THE FIRST YEAR, WHICH IS WHEN THE COMPANY HAS TO SUBMIT THE MAJORITY OF THEIR DOCUMENTATION TO DEMONSTRATE COMPLIANCE. UM, AND SO COUNCIL MEMBER, THAT'S ONE OF THE THINGS. IT'S LIKE WE ARE, WE'RE LOOKING AT DOING WHAT WE BELIEVE IS IN THE BEST INTEREST OF, OF ALL STAKEHOLDERS. RIGHT? RIGHT. UM, BUT WE RECOGNIZE THAT SOMEBODY IS GONNA HAVE TO BE HELD ACCOUNTABLE AND RESPONSIBLE FOR ENSURING COMPLIANCE. SO IT'S ONE THING TO MAKE THESE REQUIREMENTS, IT'S ANOTHER SET OF EFFORT TO ENSURE COMPLIANCE, WHICH MEANS WE WILL HAVE TO GET ACCESS TO LINKS, GET ACCESS TO REPORTS SO THAT WE HAVE A MECHANISM TO BE ABLE TO CONFIDENTLY STATE THAT THE COMPANY IS IN COMPLIANCE. RIGHT. UM, WHICH MEANS THAT, AGAIN, THE DISCRETION IS GOING TO COME INTO PLAY DEPENDING ON WHAT THAT VIOLATION IS. OKAY. GOOD. I THANK YOU MADAM CHAIR. YOU'RE WELCOME, SIR. THANK YOU. COUNCILMAN RAMIREZ. THANK YOU MADAM CHAIR AND DIRECTOR. LET ME ASK YOU ABOUT THE SLIDE DECK THAT WE'VE BEEN LOOKING AT. SURE. DID, DID YOU PREPARE THE SLIDE DECK? UH, MY STAFF DID. YES. YOUR STAFF. ALRIGHT. AND, UM, IN THE COLUMN WHERE IT SAYS LEGAL POSITION, UHHUH, , UH, SOME OF THE SLIDES HAVE BULLET POINTS. ARE THOSE THINGS THAT SOMEONE IN LEGAL TOLD YOU OR A PART OF YOUR STAFF? UM, NOT MY STAFF. SO I WORKED DIRECTLY WITH THE, UH, CHIEF OF THE REAL ESTATE DIVISION, WHO ALSO WORKED WITH SEVERAL ATTORNEYS THAT REPRESENTED THE LEGAL TEAM. UM, THE LEGAL TEAM PROVIDED A MUCH MORE THOROUGH LEGAL, UH, DOCUMENT THAT HAD LEGAL ANALYSIS WITH MULTIPLE, MULTIPLE BULLET POINTS. I BELIEVE WHEN I SENT OUT THE EMAIL TO THE COUNCIL MEMBERS THAT HAD THE MAJORITY, I MADE AN INVITATION AND SAID, IF YOU NEEDED ADDITIONAL INFORMATION REGARDING THE LEGAL ANALYSIS, PLEASE ADVISE ME AND I'LL MAKE SURE THAT I CAN SEND YOU THE EXCERPT THAT HAS THE DETAIL ANALYSIS. IT WAS JUST TOO MUCH INFORMATION TO TRY TO PUT ON THE SLIDE DECK. AND WOULD THE CHIEF OF THE REAL ESTATE ESTATE SECTION BE, UH, MS. KIM? UH, TAMMY KIM. TAMMY? YEAH. YES. OKAY. THANK YOU. YOU'RE WELCOME. AND I WOULD LIKE TO SEE THAT LEGAL ANALYSIS. SURE, YEAH. PRIOR TO IT COMING, UH, ON THE AGENDA. UM, SO [00:50:01] THAT'S DIFFERENT FROM THE, UM, THE RED LINE. SO I'M HAPPY TO SEND YOU THE LEGAL DOCUMENT, UNDERSTAND THAT. YEAH. I'M HAPPY TO SEND YOU THE LEGAL DOCUMENT AS WELL AS THE RED LINE. THANK YOU. YOU, UH, AND, AND I NOTICE THAT THE, THE PARTNERSHIP HAS PROVIDED A LETTER OF SUPPORT. YES. UH, DID YOU PROVIDE THE LANGUAGE, THE ACTUAL LANGUAGE OF THE OFFERED AMENDMENTS TO THE PARTNERSHIP? PRIOR TO THEIR, UH, OFFERING THE LETTER OF SUPPORT, I PROVIDED THEM WITH THE SAME DOCUMENT THAT I CIRCULATED ON FRIDAY, WHICH WAS THE PROPOSED AMENDMENTS, THE LEGAL ANALYSIS, AN EXCERPT OF THE LEGAL ANALYSIS AND OUR RECOMMENDATION. SO THIS SLIDE DECK, IN OTHER WORDS, UH, IT WAS A DOCUMENT BEFORE THE SLIDE DECK? IT HAD MORE DETAIL. IT HAD MORE DETAIL, YES. OKAY. WAS THAT PROVIDED TO THE COUNCIL MEMBERS? UM, IT WAS PROVIDED TO COUNCIL MEMBERS AT THE REQUEST AND THAT'S WHAT I OFFERED TO SUBMIT AS WELL. OKAY. AND, AND, UH, CAN YOU PROVIDE THAT AS WELL? ABSOLUTELY. ALRIGHT. THANK YOU. COUNCIL MEMBER SALINAS. THANK YOU. I JUST HAD A FEW ADDITIONAL QUESTIONS. OKAY. UM, SO WITH REGARDS AS I UNDERSTAND IT, UM, IT SHOULD BE ITEM SIX REGARDING STRENGTHENING APPRENTICE PROGRAM. UM, I THINK IT'S A GREAT SUGGESTION TO HAVE THAT SORT OF PENALTY THAT ONE FOR ONE. UM, AND AS I UNDERSTAND IT, THE PROPOSAL IS WE WILL HAVE THE MINIMUM 15% REQUIREMENT AND THEN, AND THIS WILL BE THE PENALTY FOR THOSE THAT DON'T MEET IT. DO I UNDERSTAND THE RECOMMENDATION CORRECTLY? THAT IS CORRECT. OKAY, GREAT. UM, AND THEN FOR, UH, RECOMMENDATION FOUR AND FIVE, UM, AGAIN, AS I, I THINK I UNDERSTAND YOU TO BE SAYING, UH, THIS WILL GO INTO THE APPLICATION PROCESS, WHICH IS WHY YOU NOTED 44 1 23 B. UM, BUT THIS WOULD ALSO BE A REQUIREMENT WHICH WOULD INDICATE IT'D ALSO BE IN 44 1 20 C. DO I UNDERSTAND THAT CORRECTLY? THAT SOUNDS CORRECT, BUT I'D HAVE TO GO BACK TO THE ORDINANCE AND MAKE SURE THAT E AND C IS EXACTLY AS I'M ENVISIONING IT. OKAY, PERFECT. UH, APPRECIATE THAT. UM, AND THEN I ASSUME THAT'S THE SAME FOR THE WORKERS' COMPENSATION LANGUAGE, UM, WHERE IT WOULD BE BOTH IN 1 23 B AND 44, 1 20 C FOUR. SO THAT'S CORRECT. SO IN THE AREA WHERE, WHERE I MAKE TWO REFERENCES, ONE IS TO MAKE SURE THAT COMPANIES FULLY UNDERSTAND THAT THAT IS GONNA BE PART OF THE APPLICATION PROCESS. AND SO IN SOME CASES, BECAUSE THEY'RE, YOU KNOW, WE'RE ASKING THEM TO BE ABLE TO COMPLY ON THE BACKEND, BUT WE ALSO WANT SOME KIND OF EVIDENCE ON THE FRONT END AS PART OF THE APPLICATION THAT THEY UNDERSTAND THIS EXPECTATION AND THAT THEY'RE CERTIFYING OR ATTESTING THAT THEY WILL PROVIDE THIS DOCUMENTATION. SO THEY'RE CERTIFYING AND ATTESTING THAT I WILL PRO I WILL PROVIDE WORKERS' COMPENSATION FOR CONSTRUCTION WORKERS, UH, THROUGH SUBCONTRACTORS AND CONTRACTORS. I WILL PROVIDE HEALTH BENEFITS, MAKE AVAILABLE HEALTH BENEFITS TO ALL FULL-TIME EMPLOYEES. SO THEY WILL CERTIFY OR THEY WILL TEST THAT ON THE FRONT END AS PART OF THE APPLICATION AND ON THE BACK END THEY'LL HAVE TO PROVIDE EVIDENCE. GOT IT. AND THEN WE'LL PUT THAT IN THE CODE SO EVERYONE KNOWS FROM HERE ON OUT. GREAT. I APPRECIATE, UH, THAT CLARIFICATION. SURE, SURE. THANK YOU. IF NO FURTHER QUESTIONS, UM, DIRECTED TO COUNCIL MEMBER DAVIS. YES, THANK YOU MADAM CHAIR, REAL QUICKLY, I WAS INTEND TO ASK IN THE FIRST ROUND THAT'S OKAY. THE TIMELINE, WHEN WE SUPPOSED TO GET BACK THE, UM, THE INFORMATION THAT YOU'RE GONNA PROVIDE TO US. WHAT YOU SAID 30 DAYS, WHAT? WELL, 30 DAYS IS THE, THE LONGEST, UH, BEFORE WE SEND, I HAVE THE CHAPTER 44, UH, ORDINANCE BEFORE CITY COUNCIL AGAIN. RIGHT. BUT ON MONDAY I'M GOING TO CIRCULATE THE ACTUAL LANGUAGE IN CHAPTER 44, WHICH IS THE RED LINE, WHICH IS GONNA REFLECT THE AMENDMENTS THAT WE DISCUSSED TODAY IN FULL FORM IN A LEGAL DOCUMENT. GOT IT. SO YOU'LL HAVE AN OPPORTUNITY TO SEE HOW WHAT I PRESENTED TODAY TRANSLATES INTO CHAPTER 44 AS A LEGAL DOCUMENT. ALL RIGHT. VERY GOOD. WHICH IS GONNA GIVE YOU AND OTHER COUNCIL MEMBERS AN OPPORTUNITY TO SAY YES, I AGREE. YES. OR MAKE SOME ADDITIONAL, UH, RE UH, RECOMMENDATIONS FOR EDITS BEFORE WE HAVE A FINAL RED LINE, WHICH IS GOING TO BE THEN, UM, CONVERTED OR, OR TRANSLATED INTO CHAPTER 44. VERY GOOD. THANK YOU. THAT WAS MY QUESTION. YOU'RE WELCOME. THANK YOU CHIEF TILLETT AND BILL, I APPRECIATE ALL THAT YOU WELCOME. GREAT WORK THAT YOU DID TO GET THIS DONE. YOU. THANK YOU. UH, NEXT COUNCIL MEMBERS, JENNIFER CUR, UH, JENNIFER CURLEY, ASSISTANT DIRECTOR WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT WILL PRESENT ON OUR FINANCIAL POLICIES. MS. CURLEY, THANK YOU FOR BEING HERE. GOOD AFTERNOON EVERYONE. THANK YOU FOR INVITING ME. TURN OFF MY OTHER MICROPHONE. OKAY. UM, UM, GOOD AFTERNOON, MAYOR, UM, MAYOR PRO TIM, VICE CHAIR COUNCIL MEMBERS AND STAFF. UM, THIS AFTERNOON I'LL BRIEF THE COMMITTEE ON THE, I'LL BRIEF THE COMMITTEE REGARDING THE THREE 80 AGREEMENTS, TAX ABATEMENTS AND TEXAS ENTERPRISE ZONE NOMINATIONS MADE BY CITY COUNCIL. ADDITIONALLY, I'LL PROVIDE AN UPDATE ON THE INDUSTRIAL DISTRICT ASSESSMENTS. [00:55:02] NEXT SLIDE, PLEASE. NEXT SLIDE, PLEASE. AS STATED IN THE RECITALS FROM THE 1987 ORDINANCE, THE INTENT OF THE FINANCIAL POLICIES IS TO PROMOTE SOUND. FINANCIAL PRACTICE ENHANCED THE CITY'S FINANCIAL POSITION WITH RATING AGENCIES AND OFFER GUIDANCE IN THE MANAGEMENT AND CON CONDUCT OF THE FISCAL AFFAIRS OF THE CITY FINANCIAL POLICIES. AND IS AN INTEGRATED FRAMEWORK WITHIN WHICH THE MAYOR, CITY COUNCIL, CITY CONTROLLER, FINANCE DIRECTOR, AND ALL DEPARTMENT DIRECTORS SHALL DEFINE AND ADHERE TO A PRE PRESENCE OF INTEGRITY, ETHICS, COMPETENCE, AND A POSITIVE INTERNAL CONTROL ENVIRONMENT. ECONOMIC DEVELOPMENT POLICIES ARE STATED IN SECTION M, LOCAL ECONOMIC DEVELOPMENT POLICIES. THE MAYOR'S DESIGNEE SHALL REPORT ANNUALLY TO THE ECONOMIC DEVELOPMENT COMMITTEE DETAILING THE PROGRESS OF EACH ACTIVE PROJECT IN WHICH THE CITY HAS PROVIDED AN INCENTIVE THROUGH THE TAX ABATEMENT CHAPTER THREE 80 PROGRAM AND THE TEXAS ENTERPRISE ZONE ENDORSEMENTS. SUCH REPORTS WILL BE PUBLISHED PROMINENTLY ON THE CITY'S WEBSITE WITHIN 30 CALENDAR DAYS. A PRESENTATION TO THE APPROPRIATE COMMITTEE. WE'LL START WITH THE TAX ABATEMENT PROGRAM. UM, IT WAS FIRST ESTABLISHED IN 1988 BY ORDINANCE 1988 DASH 1 0 4, CHAPTER 44, ARTICLE FOUR OF THE CITY CITY'S CODE OF ORDINANCES. STATE LAW REQUIRES THAT TAX ABATEMENT GUIDELINES AND CRITERIA EXPIRE AFTER TWO YEARS AND LIMITS THE TERM OF THE AGREEMENTS TO 10 YEARS. THERE HAVE BEEN MULTIPLE AMENDMENTS SINCE 1988. THE MOST RECENT RENEWAL WAS IN AUGUST OF 2026. AND OF COURSE, UM, UM, MS. TILLSON JUST DISCUSSED THE, UM, AMENDMENTS TO THE PROGRAM ON THIS NEXT SLIDE. UM, ON, ON THIS IS SLIDE SIX AND, UM, SLIDE ON SLIDE SIX AND SEVEN SHOWS ALL OF THE ACTIVE TAX ABATEMENT AGREEMENTS. THERE ARE 11 OF THEM. OF THE 11, UM, OF THE 11, UM, WE'RE ONLY PAYING AN ABATEMENT ON ENERGY PROPERTY PARTNERS, KROGER, UPS, SKANSKA AND BLACKS EXCHANGE. ON THE FIRST PAGE WHERE YOU HAVE, UM, COLIN APARTMENTS AND M-C-O-P-L-L-C, THEY WERE NOT IN COMPLIANCE. SO THERE'S NO ABATEMENT WITH THOSE TWO AGREEMENTS. AND THEN ON PAGE SEVEN, THERE ARE BRAND NEW AGREEMENTS THAT HAVE NOT, UM, PROVIDED THEIR INFORMATION JUST YET. SO THE ABATEMENT PERIOD HASN'T STARTED. SO GENERALLY WHAT THESE PARTICULAR DOCUMENTS WILL SHOW THE YEAR THE ACTUAL AGREEMENT IS EXECUTED, NOT THE YEAR THAT THE ABATEMENT STARTS, BUT THE THE YEAR THE THE AGREEMENT WAS EXECUTED. THE COUNCIL, THE COUNCIL DISTRICT WHERE THE AGREEMENT IS LOCATED IN THE INVESTMENT, COMMITTED IN THAT INFORMATION IS IN THE ACTUAL AGREEMENT. AND THEN, UM, WHAT WE RECEIVE IS WHAT THEIR S INVESTMENT ACTUAL IS. THEN WE TAKE A LOOK AT THEIR HCA DATA TO SHOW WHAT MARKET VALUE THEY HAVE WITH REGARD TO, UH, WE GET THEIR APPRAISED VALUE OF THE PROPERTY AS WELL AS THE PERSONAL PROPERTY. AND THEN, UM, PER THE AGREEMENT, IF THERE ARE NEW JOBS AS PART OF THE AGREEMENT OR RETAIN JOBS IN THOSE LAST TWO COLUMNS, WE, IN THE SECOND TO LAST COLUMN, WHAT WE'RE SHOWING IS WHAT'S IN THE AGREEMENT. AND THEN IN THE LAST COLUMN, WE'RE SHOWING THE ACTUAL JOBS ON THE COMPLIANCE UPDATE. ACTIVE TAX ABATEMENT AGREEMENTS, WHERE IT SHOWS THE, SHOWS THE 10 YEAR PROJECTION VERSUS, SO IT'S SHOWING THE ECONOMIC, THE VALUE 10 YEAR PROJECT PROJECTION AND THE ECONOMIC GROWTH YEAR TO DATE ACTUAL. SO WHAT'S IN THE ECONOMIC VALUE COLUMN IS THE AMOUNT THAT WHEN WE ORIGINALLY, WHEN COUNCIL ORIGINALLY EXECUTED THE AGREEMENT THAT WAS THE PROPOSED OR PROJECTED IN THAT AGREEMENT, WHAT THE VALUE WAS OVER A 10 YEAR PERIOD. AND SO AS WE MOVE YEAR TO YEAR, WE'RE PROJECTING OUT BASED UPON THE CURRENT INVESTMENT VALUE. SO, FOR EXAMPLE, IF THE AGREEMENT IS 10 YEARS, UM, WE'RE TAKING TAX YEAR 25 AND GROWING IT OUT [01:00:01] 4% FOR A 10 YEAR PERIOD IF THEY ONLY HAVE FIVE YEARS LEFT IN THE AGREEMENT BASED UPON THE SCHEDULE. SO WE'RE TAKING, WE'RE LOOKING AT TAX YEAR 25 AND ONLY GROWING IT OUT 4% OVER A FIVE YEAR PERIOD. SO IT'S BASICALLY SAYING WITH THE, BASED UPON THE AMOUNT OF YEARS LEFT ON THE AGREEMENT, THIS IS THE PROPOSED GROWTH. SO TRYING TO COMPARE WHAT WE THOUGHT THE GROWTH WOULD BE VERSUS THE ACTUAL GROWTH CURRENTLY. SO CITY, CITY OF HOUSTON, CHAPTER THREE 80 PROGRAM, IT WAS CREATED IN 1999 BY ORDINANCE 1999 DASH 74. HISTORICALLY, WHAT WE'VE DONE IS USED THE PROGRAM TO REIMBURSE FOR PUBLIC INFRASTRUCTURE OR TO LEVERAGE THE STATE'S, UM, ECONOMIC DEVELOPMENT PROGRAMS. UM, THE HOW IT WORKS IS THE PRIVATE BUSINESS OR DEVELOPER PAYS FOR THE PUBLIC IMPROVEMENT IN ADVANCE AND IS REIMBURSED BY THE TAX INCREMENT GENERATED BY THE IMPROVEMENTS ON THE PROPERTY. UM, THE PROJECT, UM, ONLY RECOVERS AS IF, IF IT PERFORMS AS PLANNED DEVELOPER ASSUMES THE RISK OF FAILURE TO PERFORM PUBLIC IN THE PUBLIC INFRASTRUCTURE PORTION OF THE AGREEMENTS IS A CITY ASSET. AND IT'S, IT'S CONVEYED TO THE, THE CITY AFTER CONSTRUCTION. UM, THREE 80 PROGRAMS ALSO INCENTIVIZE JOB CREATION OR PUBLIC ACCESS TO PRIVATE SPACE. THE NEXT SLIDE SHOWS ALL OF OUR ACTIVE, UM, THREE 80 AGREEMENTS. AND WHEN I SAY ACTIVE, NONE OF THE AGREEMENTS HAVE EXPIRED, BUT THERE'S A COUPLE OF AGREEMENTS ON THIS PAGE THAT WE HAVEN'T PAID OUT ON JUST BECAUSE THEY HAVEN'T MET THE REQUIREMENTS OF THE AGREEMENT. SO, UM, ON THIS PARTICULAR PAGE, WHAT WE'RE SHOWING IS THE COUNCIL DISTRICT FROM LEFT TO RIGHT, THE NAME OF THE COMPANY, THE COUNCIL DISTRICT TYPE OF PROJECT, WHETHER IT'S, UM, UM, JOBS, INFRASTRUCTURE, THE STATUS WHERE WE ARE WITH REGARD TO, UM, THE PROCESS OF EVALUATING, UM, THAT PARTICULAR PROJECT. SO MOST OF THESE ARE UNDER CONSTRUCTION. SO WE HAVE BEGUN REIMBURSEMENT ON THESE PROJECTS. UM, THE ORIGINAL INVESTMENT THAT WAS IN THE PARTICULAR IN, UM, THE VARIOUS AGREEMENT AND THEN THE ACTUAL INVESTMENT, SOME, MOST OF THE AGREEMENTS DID NOT REQUIRE AN ACTUAL INVESTMENT AMOUNT. SO WHERE YOU SEE NCR, THEY, IT WASN'T A REQUIREMENT FOR THE AGREEMENT. THE PUBLIC INVESTMENT, UM, COLUMN IS BASICALLY SHOWING WHAT PORTION OF THAT AGREEMENT INCLUDED A PUBLIC INVESTMENT AMOUNT. THE MARKET VALUE IS THEIR CURRENT HCA, UM, VALUATION FOR THE, THE, UM, PROJECT SITE AND, UM, JOB. UM, THE LAST TWO COLUMNS ARE REFLECTIVE OF WHETHER OR NOT THE AGREEMENT HAD A JOBS COMPONENT AND THEN THE ACTUAL JOBS THAT WERE, UM, CREATED BY THE AGREEMENT. SO THE, THE THE THREE 80 AGREEMENTS THAT WE'RE NOT PAYING CURRENTLY CENTER POINT HOTELS, THEY HAVE NOT SUBMITTED FOR REIMBURSEMENT YET, AND THAT AGREEMENT'S ABOUT TO EXPIRE. IT'LL, IT HAS ONE MORE YEAR LEFT. AND THEN, UM, WE'RE PROCESSING MEOW WOLF, UH, YEAH, MEOW WOLF CURRENTLY. AND SO WE SHOULD HAVE THAT DONE BY THE END OF THE YEAR. THIS NEXT SLIDE REFLECTS THE AGREEMENTS THAT HAVE A COMMUNITY BENEFITS COMPONENT AND A LIST OF THOSE COMMUNITY BENEFITS. OKAY. THE TEXAS ENTER INTER, THE TEXAS ENTERPRISE ZONE PROGRAM IS ADMINISTERED BY THE STATE, THE REIMBURSEMENT OF STATE REIMBURSEMENT. IT'S A REIMBURSEMENT OF STATE SALES TAXES FOR QUALIFYING PROJECTS. LOCAL MUNICIPALITIES ARE ALLOTTED ALLOTTED NINE NOMINATIONS PER BIENNIUM. NOMINATIONS DO NOT REQUIRE ANY FUNDING FROM THE LOCAL MUNICIPALITY. THE COUNTY CAN ONLY NOMINATE A PROJECT THROUGH AN INTERLOCAL AGREEMENT WITH THE CITY IN WHICH THE PROJECT IS LOCATED. UM, THERE ARE FIVE NOMINATIONS IN THE CURRENT BIENNIUM, AND THE END OF THE BI ENUM IS AUGUST 31ST, 2027. SO IF YOU HAVE ANY RECOMMENDATIONS, UM, YOU KNOW THAT WE HAVE FIVE MORE SLOTS AND THE END OF THE BIENNIUM IS 2027. SO THE [01:05:01] NEXT TWO PAGES COVERS ALL OF THE, UM, CURRENT OR ACTIVE TECH TEXAS ENTERPRISE ZONE PROJECTS AND THE, AND THOSE ARE MONITORED BY THE STATE. THE DATA THAT'S IN THIS PARTICULAR SLIDE WE GET FROM THE STATE. NEXT SLIDE PLEASE. INDUSTRIAL DISTRICTS. SO INDUSTRIAL DISTRICTS IS NEW TO THE COMMITTEE. UM, ARTICLE 11, SECTION FIVE OF THE TEXAS CONSTITUTION ALLOWS FOR CITIES WITH A POPULATION GREATER THAN 5,000 TO LEVY, ASSESS AND COLLECT TAXES AS MAY BE AUTHORIZED BY LAW OR THEIR CHARTER SECTIONS. 43.136 AND 42.044 OF THE TEXAS LOCAL GOVERNMENT CODE PROVIDE FOR THE DESIGNATION AND GUIDELINES FOR CREATION OF AN INDU INDUSTRIAL DISTRICT BY MUNICIPALITY WITHIN ITS EXTRA TERRITORIAL JURISDICTION, WHAT WE CALL THE ETJ. UM, THE CITY OF HOUSTON HAS INDUSTRIAL DISTRICT CONTRACT AGREEMENTS WITH MORE THAN 100 COMPANIES LOCATED WITHIN THE ETJ FOR A PERIOD OF 15 YEARS. UM, IT'S A CONTRACTUALLY REDUCED AVALOR, UM, ASSESSED VALUATION FEE IS CALCULATED AND BILLED ANNUALLY TO EACH COMPANY IN LIEU OF THE PROPERTY BEING ANNEXED AND SUBJECT TO THE CITY OF HOUSTON PROPERTY TAXES. NEXT SLIDE. SO THIS PARTICULAR SLIDE, UM, REPRESENTS WHAT A BILL LOOKS LIKE TO THE ORIGINAL COMPANY. UM, AT THE VERY TOP, YOU HAVE THE PRO THE PROPERTY OWNER'S INFORMATION, HA ACCOUNT. IT INCLUDES THE OLD, UM, UH, CITY SYSTEM AND THE NEW CITY SYSTEM ACCOUNTS. AND THEN WHEN YOU LOOK IN THE BODY WHERE IT SAYS HCA VALUE, CONTRACT, CONTRACT VALUE AND AMOUNT. SO THE HCA VALUE COMES FROM HC AD WE GET EVERY YEAR AROUND APRIL, WE'LL GET A BATCH OF THESE, OF THE DATA TO PUT INTO THESE INVOICES. UM, AND THEY, THEY PROVIDE IT TO US. AND AS YOU CAN SEE ON THE CONTRACT PART, AND THIS IS WHY WE PUT IT INTO THE SLIDE, IT SHOWS THE DIFFERENT RATES THAT WE ARE, UM, ASSESSING THE PROPERTY OWNER. SO YOU HAVE A HUNDRED PERCENT ON THE LAND VALUE ON THE IMPROVEMENTS YOU HAVE 73.4%, SO IT'S NOT THE FULL 100%. AND THEN FOR VARIOUS, UM, CATEGORIES OF, OF CONSTRUCTION. SO FOR THE FIRST, FOR YEAR TWO TO, FOR BETWEEN YEAR ONE AND THREE, WE'RE CHARGING THEM, UM, THE 40% OF THE APPRAISED VALUE OF THE PROPERTY THAT THEY ARE CONSTRUCTING. FROM THE YEARS FOUR TO FOUR TO FIVE, WE'RE CHARGING THEM 45%. AND THEN, UM, SIX YEAR SIX TO SEVEN, WE'RE CHARGING THEM 50% IF THERE'S, THERE'S NO VALUE IN THIS PARTICULAR CASE, BUT IF THERE WERE, WE WOULD BE CHARGING THEM 50%, UM, OF THEIR, ON THE, OF THEIR APPRAISED VALUE. OF COURSE, ONCE THEY FINISH CONSTRUCTION, IT ROLLS UP INTO THE IMPROVEMENT VALUE. AND THEN AT THE VERY BOTTOM, WE'RE CHARGING THEM ON THE PERSONAL PROPERTY AT 73.4%. SO BASICALLY THE CALCULATION IS THE VALUATION TIMES THE PERCENT TIMES THE CURRENT TAX RATE. NEXT SLIDE. SO NEXT SLIDE SHOWS THE INDUSTRIAL DISTRICT. OF ALL THE INDUSTRIAL DISTRICTS. THE LIGHT BLUE IS THE CITY OF HOUSTON. THE GREEN IS PASADENA, THE PINK IS LAPORTE, THE YELLOW IS BAYTOWN. AND, UM, THE PURPLE IS DEER PARK. THIS IS AN EXHIBIT FROM HCAD. SO YOU CAN SEE HOW EXPANSIVE THE INDUSTRIAL DISTRICT AREA IS FOR THE CITY OF HOUSTON. THAT, UM, OH, SORRY. SO OVER TIME, THIS IS HOW MUCH REVENUE COMES FROM THE INDUSTRIAL DISTRICT? UM, WHEN I FIRST STARTED IN, UH, WELL, NO, UH, I WAS ACTUALLY, I'VE ACTUALLY BEEN IN THE DIVISION SINCE FISCAL YEAR 12, . UM, BUT, UM, HERE IS THE DATA FROM FISCAL YEAR 14 THROUGH FISCAL YEAR 2026. UM, WE STARTED OUT IN FI IN FISCAL YEAR, FISCAL YEAR 14 AT ABOUT 14 MILLION IN IDA ASSESSMENTS. AND NOW WE ARE AT 30 MILLION IN IDA ASSESSMENTS. UM, WE HAVE TO RENEW THE 15 YEAR AGREEMENTS THIS YEAR. AND SO WE'RE ACTUALLY LOOKING AT INCREASING THE FEE. SO WE HAD THAT, THAT FEE SCHEDULE OF 40%, 45%, AND 50%. WE'RE LOOKING AT INCREASING [01:10:01] THAT, THAT, UM, LEGAL DID SOME RESEARCH AND SHOW THAT SOME OF THE OTHER IN INDUSTRIAL DISTRICTS ACTUALLY CHARGE MORE THAN WE DO. SO WE'RE LOOKING AT, UM, INCREASING THE, UM, THE FEE THAT WE'RE CHARGING THE INDUSTRIAL DISTRICTS. DOES ANYONE HAVE ANY QUESTIONS? I DO HAVE A QUESTION. UM, YOU SAID THAT ONE OF THE COMPANIES HAD, HAD NOT SUBMITTED FOR THEIR REIMBURSEMENT. HOW FAR IN ADVANCE DO THEY USUALLY SUBMIT FOR THOSE REIMBURSEMENTS? THEY HAVE TO SUBMIT IT, I BELIEVE BY APRIL. LET ME, LET ME TELL YOU WHAT THE ACTUAL DATE IS AND WHAT IT IS THAT THERE'S A APPLICATION FOR TAX ABATEMENT THAT THEY COMPLETE AND THEY, THEY SUBMITTED TO OUR OFFICE AND THEY ALSO SUBMITTED TO, UM, HCAD. AND SO, UM, THEY DIDN'T SUBMIT THAT DOCUMENT. SO WE CAN'T, WE CAN'T AUTHOR, WE CAN'T AUTHORIZE THE, THE PAYMENT. BUT THEY HAVE ANOTHER YEAR. YES, YES. YEAH. AS LONG AS THEY CAN STILL DO IT. IT JUST FOR THAT PARTICULAR YEAR, THEY JUST HAVEN'T DONE IT. YES. OKAY. WELL, NO, NOT FOR THAT YEAR. THEY'RE DONE BECAUSE IT CLOSED, THEY HAVE TO DO IT BY A CERTAIN DATE EVERY YEAR. I HAVE TO GIVE YOU WHAT THAT DATE IS. OKAY. ALL RIGHT. COUNCIL MEMBER MARTINEZ. THANK YOU, CHAIR. UM, JUST A QUICK QUESTION, UH, DEPUTY DIRECTOR, 'CAUSE SOME OF THE QUESTIONS ABOUT, UM, HOW LONG SOME OF THE ABATEMENTS, THE ABATEMENTS ARE ON AVERAGE, THEY'RE ABOUT 10 YEARS, YOU WOULD SAY? YES. IT'S 10 YEARS BY THE, BY THE, UM, ORDINANCE AND OKAY. AND THEN, UM, BECAUSE SOME FOLKS ARE THINKING THAT THEY'RE PERPETUAL, LIKE WE KEEP GIVING THEM AND RENEWING THEM AND RENEWING THE SAME ONES FOR SOME FOLKS. HAS THAT EVER HAPPENED? WE HAVE. THERE WAS A COUPLE I SAW IN HISTORY THAT WE RENEWED, BUT THEY WERE FOR DIFFERENT PROJECTS. IT WASN'T FOR THE SAME PROJECT. SAME, OKAY. YEAH. IT WAS LIKE THE SAME COMPANY. I AM JUST LOOKING THROUGH THE NOTES 'CAUSE I I, I SAW IT. YEAH. I JUST WANNA ASK THE QUESTION. 'CAUSE WE'VE HAD SOME, UH, COMMUNITY MEMBERS COME IN AND SAY, YOU KNOW, WE KEEP GIVING, UH, TAX ABATEMENTS AND THEY'RE PRETTY MUCH FOREVER. WE'RE NEVER LOOKING AT 'EM. BUT I, I JUST WANTED TO GET SOME CLARITY. THEY, THEY'RE NORMALLY ABOUT 10 YEARS. YEAH. THEY, BY ORDINANCE, THE TAX ABATEMENT IS 10 YEARS. OKAY. AND THEY HAVE TO MAKE SURE THAT THEY'RE IN COMPLIANCE EVERY YEAR. CORRECT. IN ORDER TO GET THE ABATEMENT. AND, UM, THERE WERE A COUPLE OF ONES IN MY MEMORY. I KNOW THAT THERE, I WANNA SAY THERE WERE TWO THAT WE DID. UM, BUT THEY WERE FOR DIFFERENT CAMPUSES, I BELIEVE. OKAY. I CAN TELL YOU WHICH ONE. I CAN GO BACK IN THE OFFICE AND LOOK AT WHICH ONES. I JUST WANTED CLARITY BECAUSE AGAIN, SOME OF THAT CONVERSATION HAS COME TO THE CHAMBERS AND I JUST WANNA MAKE SURE THAT THE COMMUNITY UNDERSTANDS THAT THESE TAX ABATEMENTS AREN'T JUST BEING GIVEN AND THEN ALLOWING THEM TO LAST FOREVER. 'CAUSE THAT'S BEEN SOME OF THE CONVERSATION AROUND. NO, I THINK THE, THE POLICY THAT THE HAS COMMUNICATED, UM, WITH US IS THAT WE ARE ONLY GONNA DO ONE. WE'RE NOT GONNA DO MULTIPLE ONES, ESPECIALLY, YOU KNOW, WHEN WE LOOK AT ANY TYPE OF FINANCIAL INCENTIVE, WHAT WE'RE LOOKING FOR IS THE INCENTIVE THAT'S GOING TO, UM, IGNITE DEVELOPMENT IN THAT PARTICULAR AREA. SO THAT THERE SOMEBODY THAT IT BRINGS IN PRIVATE INVESTMENT FROM OTHER PLACES. I, I JUST, I APPRECIATE THAT CLARITY. AND THEN JUST, YOU KNOW, A, A PERFECT EXAMPLE OF WHAT A GOOD, UH, TAX ABATEMENT IS, IS WE HAVE THE DYNAMO STADIUM AND NOW EAST DOWNTOWN, WHAT USED TO BE A WAREHOUSE DISTRICT, UM, YOU KNOW, PRETTY VACANT. NOBODY REALLY MOVING AROUND. NOW. WE HAVE A AMAZING NEIGHBORHOOD OUT IN EAST DOWNTOWN. SO JUST WANNA SAY, UH, APPRECIATE YOU REMINDING US OF, OF SOME OF THESE, UH, ABATEMENTS THAT WE'VE DONE ALREADY HISTORICALLY. SO THANK YOU. YEAH, I, I WAS, I HADN'T BEEN DOWN THERE IN A WHILE AND I WENT DOWN TO BRASS TACK YESTERDAY. THAT IS A GREAT PLACE. IT IS. YOU CAN'T GET IN THOUGH. BACK IN THE DAYS, JENNIFER AND I USED TO BE IN THOSE TURS MEETINGS ALL THE TIME. ALL THE TIME. AND I HAVEN'T BEEN THERE. I HAD TO ACTUALLY GO BY, UH, SPEAKING OF, UM, ABATEMENT, UM, THREE 80 AGREEMENTS. I HAD TO, UM, DELIVER SOMETHING TO FRANK L'S OFFICE AND I WENT BY BRASS TACKS AND I WAS LIKE, OH, IT'S BUZZING DOWN. IT'S REALLY A GREAT ENVIRONMENT. YEAH. WHICH IS WHAT WE, WHAT WE ALWAYS WANT IS TO, TO BRING LIFE BACK INTO THOSE AREAS. COFFEE SOON AT BRASS TACK. THESE LONG TIMERS, I TELL YOU. COUNCIL MEMBER RAMIREZ. THANK YOU MADAM CHAIR. UH, JENNIFER? YES SIR. COUPLE QUESTIONS. THE SLIDES THAT DEAL WITH ACTIVE TAX ABATEMENT AGREEMENTS, THERE'S A COLUMN FOR NEW JOBS SLASH RETAINED JOBS. RETAINED JOBS. IS THAT A CATEGORY THAT'S, THAT'S REQUIRED TO BE, UH, REPORTED ON? YES. IF IT'S IN THE AGREEMENT. 'CAUSE SOME OF THEM DON'T HAVE A REQ, INTERESTINGLY ENOUGH, THEY MAY NOT HAVE A REQUIREMENT IN THE AGREEMENT FOR RETAINED JOBS. IT'S ONLY A REQUIREMENT FOR NEW JOBS CREATED. MM-HMM . IS THE, IS THE IDEA THAT, BUT FOR THE ABATEMENT, THOSE JOBS WOULD'VE GONE AWAY? OR HOW DOES, HOW DOES THAT WORK? I WOULD HAVE TO LOOK AT THE, IN INDIVIDUAL, UM, AGREEMENT TO SEE WHY WE WERE ACTUALLY DOING THAT AGREEMENT. IT JUST [01:15:01] IN GENERAL, AS GENERAL MATTER, UM, IT'S NOT, IT'S NOT JUST THE JOBS THOUGH. IT'S, IT'S THE, ALSO THE DEVELOPMENT. IT COULD BE WHAT THAT PARTICULAR DEVELOPMENT IS BRINGING INTO THAT GEOGRAPHICAL AREA, ESPECIALLY IN THE AREAS THAT ARE BLIGHTED. BECAUSE IT, YOU KNOW, WHEN YOU LOOK AT, WE'VE DONE SOME, UM, RESEARCH ALONG TIME AGO, LIKE WHEN WE'RE ESTABLISHING THE, UM, THE OPPORTUNITY ZONES, FOR EXAMPLE, YOU KNOW, WE'RE LOOKING AT AREAS THAT ARE NOT WELL DEVELOPED. AND SO ANYTIME THAT WE CAN GET MAJOR EMPLOYERS IN THAT AREA, UM, NOT ONLY TO DO IMPROVEMENTS AND THAT IMPROVES THAT, THAT IMPROVES THE TAX BASE. 'CAUSE REMEMBER IN THESE AGREEMENTS, YOU'RE, YOU'RE GIVING THEM THE ABATEMENT, BUT THE ABATEMENT IS NOT A HUNDRED PERCENT, IT MAY BE AS LOW AS 5%. SO ALL THE OTHER MONEY THAT'S COMING IN FROM THE ABATEMENT IS COMING INTO THE CITY'S GENERAL FUND. SO THERE MAY BE A MULTITUDE OF REASONS WHY WE'RE DOING THE ABATEMENT, WHETHER IT BE JOBS, WHETHER IT BE IMPROVING THE, UM, THE, UM, THE VALUE IN THAT PARTICULAR REGION AND TRYING TO ATTRACT MORE PRIVATE INVESTMENT IN THE AREA, OR PUTTING MORE MONEY IN THE GENERAL FUND. SO, YOU KNOW, THERE'S A VARIETY OF REASONS THAT YOU WANNA LOOK AT THE INCENTIVE AGREEMENTS AS A WHOLE TO SEE, OKAY, WHAT ARE THEY BRINGING? ARE THEY BRINGING JOBS, CAPITAL INVESTMENT, ATTRACTING OTHER PRIVATE INVESTMENT INTO A PARTICULAR AREA, BRINGING A GROCERY STORE IN A, UM, IN, IN AN AREA. ALRIGHT. ONE LAST QUESTION, OR I'LL GO BACK IN THE QUEUE. OKAY. SO ON INDUSTRIAL DISTRICTS, SLIDE 17, YOU'VE SHOWN, UM, AN IMAGE OF A CONTRACT INVOICE, INDUSTRIAL DISTRICT CONTRACT INVOICE. YES. AND YOU SAID THIS WAS REPRESENTATIVE OF WHAT THEY LOOKED LIKE, IS THAT RIGHT? YES. UM, THE ONLY THING DIFFERENT IS THAT WE DON'T HAVE THE, AT THE BOTTOM IT'LL TELL YOU WHAT THE CONTACT INFORMATION IS. I JUST CUT THAT OFF. OKAY. BUT OTHER THAN THAT'S WHAT THE INVOICE LOOKS LIKE. OH, ALRIGHT. AND SO WE HAVE MULTIPLE INDUSTRIAL DISTRICTS. SO THE OTHER CONTRACT INVOICES, WOULD THOSE BE AVAILABLE SOMEWHERE ON YOUR WEBSITE OR SOMEWHERE? OH, FOR THE OTHER, UM, INDUSTRIAL DISTRICTS, LIKE, YES. NO, I'VE NEVER SEEN, UM, THE INDUSTRIAL DISTRICTS FOR, UM, I MEAN THE INVOICES FOR, UM, YOU KNOW, PASADENA OR, OR LAPORTE. SO I, I WOULDN'T HAVE ACCESS TO THOSE. I MEAN, I COULD PROBABLY GET ACCESS TO THEM, BUT I NEVER GET, GET THAT. SO THESE ARE ONLY CITY OF HOUSTON INDUSTRIAL DISTRICT INVOICES. OKAY. SO, SO THIS IS IN THE CITY OF, WELL, JACINTO PORT. IS THAT IN THE, UM, ETJ OR IS THAT IN THE CITY? THAT'S IN THE CITY'S ETJ. SO THE INDUSTRIAL DISTRICTS, ALL OF THE INDUSTRIAL DISTRICTS ARE IN THE CITY'S ETJ. ALRIGHT. SO IS, IS THIS, I GUESS WHAT I'M GETTING AT IS THIS COMPLYING WITH THE REPORTING REQUIREMENT, UM, A SAMPLE OF WHAT THEY LOOK LIKE AND THEN A MAP SHOWING WHERE THEY ARE OR, WELL, THERE'S NO REPORTING REQUIREMENT ON IDAS. MM-HMM . OKAY. AND SO WE JUST KIND OF CREATED THIS SLIDE TO KIND OF GIVE COUNCIL A LITTLE BIT OF INFORMATION. NOW, FROM A REVENUE PERSPECTIVE, I WILL PROJECT THE REVENUE FOR FINANCE DEPARTMENT AND TRY TO GIVE THEM AN UPDATE ON WHAT I THINK THE REVENUE'S GONNA BE, SO THAT WHEN WE'RE, WE'RE PREPARING THE, UM, LIKE WHEN WE PREPARE THE 2027 BUDGET, ALL OF THE REVENUE PROJECTIONS ARE DUE TO FINANCE IN FEBRUARY. SO, YOU KNOW, AS A DEPARTMENT WILL, ANY REVENUE WE KNOW IS GONNA COME IN, WE'RE GONNA DO A PROJECTION AND SAY, HEY, THIS IS WHAT'S GOING TO HIT THE, HIT THE GENERAL FUND. POSITIVELY ON THE, ON THE FLIP SIDE OF THAT, IF I, ON THESE, UM, AGREEMENTS THAT REQUIRE PAYMENT FROM THE CITY, I'M ALSO GONNA TELL THEM HOW MUCH I THINK WE'RE GONNA PAY THIS YEAR. BECAUSE LIKE WE SAID, WE HAVE AGREEMENTS IN PLACE, BUT IT DOESN'T MEAN WE ACTUALLY ARE PAYING ON THE AGREEMENTS BECAUSE THEY HAVE TO MEET THE, UM, REQUIREMENTS. SO I'LL GIVE, YOU KNOW, PROBABLY AROUND FEBRUARY, MARCH, APRIL, APRIL AND CONSTANTLY, I'M CONSTANTLY UPDATING ON FINANCE ON WHAT WE'RE ACTUALLY PAYING OUT. ALRIGHT. THANK YOU. MM-HMM . THANK YOU. UM, ASSISTANT DIRECTOR CURLY, WE APPRECIATE YOUR PRESENTATION TODAY. SURE. UH, WE'LL MOVE TO THE MEMBERS OF THE PUBLIC THAT HAVE SIGNED UP TO SPEAK. THE FIRST SPEAKER IS LINDA MORALES. LINDA MORALES. OUR NEXT SPEAKER IS JOSIAH RECTOR. HELLO, JOSIAH. HELLO. GOOD AFTERNOON. UH, MEMBERS OF THE COUNCIL, I'M SPEAKING TODAY AS A MEMBER OF THE TEXAS STATE EMPLOYEES UNION, LOCAL 6 180 6. [01:20:01] AND I'M SPEAKING IN FAVOR OF THE PROPOSED AMENDMENTS TO CHAPTER 44, ARTICLE FOUR OF THE CODE OF ORDINANCES CONCERNING THE CITY OF HOUSTON'S TAX ABATEMENT PROGRAM PROPOSED BY COUNCIL MEMBER SALINAS. SO CURRENTLY HOUSTON LAGS BEHIND OTHER CITIES IN TEXAS LIKE AUSTIN, SAN ANTONIO, AND DALLAS, WHEN IT COMES TO VERY BASIC WORKER PROTECTIONS. WE ALSO LAG BEHIND HARRIS COUNTY, CURRENTLY CONTRACTORS WITH HARRIS COUNTY WHO APPLY FOR TAX ABATEMENTS CAN BE REJECTED IF THEY HAVE ENGAGED IN WAGE THEFT, THEFT, OSHA VIOLATIONS IN THE LAST THREE YEARS. SO, TO SOME OF THE OBJECTIONS, FOR EXAMPLE, RAISED BY COUNCIL MEMBER FLICKINGER, I WOULD JUST SAY, CAN WE GET TO THE STANDARD OF HARRIS COUNTY, PLEASE? IN THE CITY OF HOUSTON, CONTRACTORS WHO STEAL THEIR WORKERS' WAGES, WHO PUT THEIR WORKERS AT RISK WITH OSHA VIOLATIONS AND PROVIDE NO WORKERS' COMPENSATION FOR INJURIES, CAN STILL QUALIFY FOR TAX BREAKS FROM THE CITY. CONTRACTORS WHO PAY BELOW PREVAILING WAGES FOR CONSTRUCTION WORK CONCURRENTLY QUALIFY FOR CITY TAX BREAKS. AND UNLIKE AUSTIN, DALLAS, AND SAN ANTONIO, HOUSTON CITY CONTRACTORS CAN PROVIDE NO HEALTH INSURANCE FOR THEIR WORKERS OR THEIR WORKERS' DEPENDENTS. WHY SHOULD ANY CONTRACTOR GET CITY TAX BREAKS IF THEY BREAK THE LAW BY STEALING FROM THEIR WORKERS OR VIOLATING SAFETY STANDARDS IN WAYS THAT CAN GET THEIR WORKERS KILLED OR PERMANENTLY DISABLED, OR PAY THEM TOO LITTLE TO LIVE DIGNIFIED LIVES? NOW, I LISTENED TO THE PRESENTATION FROM MOE AND, UH, I WANT TO URGE APPROVAL OF THE AMENDMENT CONCERNING THE ENHANCEMENT OF AUDITS AND INSPECTIONS OF PAYROLL'S, UH, BENNETS BENEFITS AND COMPENSATION. SO THE MOE'S, UH, RECOMMENDATION ON THAT SPECIFIC AMENDMENT STATES NO CHANGE RECOMMENDED, UH, BUT THE EXISTING ORDINANCE LANGUAGE IS NOT STRONG ENOUGH. UH, HOUSTON CITY COUNCIL SHOULD APPROVE, UH, THE LANGUAGE AND THE INTRODUCED AMENDMENT BY COUNCIL MEMBER SALINAS THAT STRENGTHENS AUDITS AND INSPECTIONS TO INCLUDE NOT JUST PAYROLL RECORDS, BUT ALSO LABOR CLASSIFICATIONS REQUIRED SAFETY TRAINING, WORKERS' COMPENSATION COVERAGE, AND HEALTH INSURANCE BENEFITS. AND AGAIN, THIS SHOULD NOT BE A CRAZY IDEA. THIS IS WHAT HARRIS COUNTY IS ALREADY DOING. UM, SO THESE AMENDMENTS HAVE PUT US IN LINE WITH CITIES LIKE AUSTIN, DALLAS, AND SAN ANTONIO. WE SHOULD NOT WATER IT DOWN IN WAYS THAT MAKE IT EASIER FOR EMPLOYERS TO GET AWAY WITH WAGE THEFT, UNSAFE WORKING CONDITIONS, AND UNLIVABLE WAGES. THE LEAST HOUSTON CAN DO IS CATCH UP WITH HARRIS COUNTY, WITH AUSTIN, DALLAS, AND SAN ANTONIO. THANK YOU. THANK YOU FOR YOUR COMMENTS. AND WE DEFINITELY, UM, WILL, ONCE WE GET THE, UM, VERBIAGE FROM LEGAL, WE'LL CIRCULATE THOSE AGAIN. UM, SO YOU CAN TAKE A LOOK AT IT AND THEN WE, WE WILL BE HAPPY TO, UH, ADDRESS THAT. AGAIN, THANK YOU FOR BEING HERE. UH, THE NEXT SPEAKER IS SPIRITAN HOA. HELLO, MR. HOA. HI. UM, I HOPE YOU'RE WELL. I PROJECT WELL ENOUGH TO, FOR Y'ALL TO HEAR ME, SO WE HEAR YOU FINE. THANK YOU. UM, I AM IN FAVOR OF THE PROMO PROPOSED AMENDMENTS. I THINK THAT WORKER PROTECTIONS ARE GENERALLY GOOD AND LEAD TO GOOD OUTCOMES. I'M ALSO IN FAVOR OF, UM, A RELATIONSHIP WITH, UH, BUSINESS AND A RELATIONSHIP WITH ENTITIES, UH, THAT PROMOTES LIKE, UH, CITY GROWTH FOR EVERYBODY IN HOUSTON INSTEAD OF JUST LIKE A SELECT GROUP OF PEOPLE. I THINK IT'S IMPORTANT THAT WE RECOGNIZE THAT THE COST OF LIVING CRISIS HERE, UH, AND ESPECIALLY LIKE, ESPECIALLY HERE BECAUSE, YOU KNOW, PEOPLE ARE MOVING HERE VARIOUS REASONS, BUT, UH, THE COST OF LIVING IS, IS GROWING AND WE NEED TO SORT OF THINK ABOUT THE AVERAGE HOUSTONIAN. UM, IN TERMS OF THE REDLINING CONCERNS. I AGREE THAT THAT IS SOMETHING THAT Y'ALL SHOULD LOOK AT, BUT I ALSO BELIEVE THAT Y'ALL SHOULD NOT LIKE, UM, SORT OF LOOK PAST THESE AMENDMENTS JUST BECAUSE YOU DON'T HAVE THE, UM, SPECIFIC TEXT YET. I'M A LAW STUDENT. I UNDERSTAND THAT, UH, THE SPECIFIC TEXT IS IMPORTANT, UM, BUT I THINK THAT THE GOALS OF THE AMENDMENTS ARE LAUDABLE. THANK YOU. THANK YOU VERY MUCH FOR YOUR COMMENTS. WE APPRECIATE YOU BEING HERE TODAY. OUR NEXT SPEAKER IS JUAN RUBIO. HELLO, MR. RUBIO. GOOD AFTERNOON EVERYONE. MY NAME IS JUAN RUBIO. I'M THE POLICY COORDINATOR AT WORKERS DEFENSE PROJECT. WE'RE A MEMBER LED ORGANIZATION, WHICH FIGHTS FOR THE RIGHTS AND WELLBEING OF IMMIGRANT WORKERS AND THEIR FAMILIES. AND I'M HERE TODAY TO SPEAK ON THE PROPOSED AMENDMENTS TO THE TAX ABATEMENT POLICY. WE'RE ENCOURAGED TO HEAR ABOUT THE PROPOSED INCLUSION OF IMPROVED LABOR STANDARDS BEING ATTACHED TO THE TAX ABATEMENT POLICY. MANY OF OUR MEMBERS AND THEIR CLOSE FAMILY MEMBERS HAVE BEEN VICTIMS OF SEVERAL WORKPLACE ILLNESSES AND SAFETY INCIDENTS THAT WERE THE RESULTS OF LAX REGULATIONS, WHICH DID NOT PRIORITIZE THE WELLBEING OF OUR WORKERS. WHILE THESE STANDARDS MAY SEEM SUPERFLUOUS TO SOME, WE'VE SEEN FIRSTHAND ACCOUNTS OF LIFELONG HEALTH CONDITIONS DIRECTLY CAUSED BY CONTRACTOR NEGLIGENCE AND WILLFUL VIOLATION OF OSHA STANDARDS. AS WAS MENTIONED DURING THE OPENING PRESENTATION, IF A COMPANY RECEIVES A CITY TAX BREAK, WE SHOULD ENSURE THAT WE'RE CREATING JOBS FOR WORKERS THAT GUARANTEE [01:25:01] FAIR WAGES, SAFE WORKPLACES, AND BASIC BENEFITS. AS SUCH, WE AND OUR LABOR PARTNERS IN THE TRADE UNIONS ARE IN FULL SUPPORT OF AMENDMENTS, WHICH SEEKS TO STRENGTHEN LABOR STANDARDS AS PROPOSED BY COUNCILWOMAN SALINAS. WE ASK THAT AS YOU CONSIDER THESE AMENDMENTS, YOU KEEP IN MIND THE WELLBEING AND HEALTH OF THE WORKERS WHO BUILD THE ESSENTIAL INFRASTRUCTURE THAT MAKES OUR CITY RUN. DOING SO CAN MAKE A WORLD OF DIFFERENCE TO THOUSANDS OF FAMILIES THROUGHOUT THE GREATER HOUSTON AREA WHO DEPEND ON THE CONSTRUCTION INDUSTRY TO PROVIDE FOR THEIR BASIC NEEDS. IN ANY CASE, PLEASE CONSIDER THE WELLBEING OF THE ESSENTIAL WORKERS WHO BUILD OUR INFRASTRUCTURE. YOU'LL FIND THAT THIS LEVEL OF INVESTMENT IN OUR COMMUNITY WILL PAY DIVIDENDS THROUGH HEALTHIER AND HAPPIER RESIDENTS. THANK YOU. THANK YOU MR. RUBIO, FOR BEING HERE. I DID WANNA ASK YOU A QUESTION. UM, DO YOU HAVE ANY INFORMATION ABOUT, UM, THE WAGE THEFT OR ANY OF THE THINGS THAT YOU TALKED ABOUT WITH ANY OF OUR SPECIFIC COMPANIES THAT HAVE RECEIVED TAX ABATEMENTS? I OR WAS THAT A GENERAL STATEMENT? THAT IS A GENERAL STATEMENT. OKAY. IT'S NOT NECESSARILY THE TAX ABATEMENTS. WE HAVE HAD A CASE, I THINK, A FEW YEARS AGO OF A MEMBER OF OUR ORGANIZATION WHO WAS WORKING ON A CITY FUNDED PROJECT. I, I COULD NOT SPEAK IF THAT WAS A, IF THEY WERE PROVIDED TAX ABATEMENT. HE DID, UM, EXPERIENCE A NUMBER OF HEAT RELATED ILLNESSES WHILE WORKING. AND HE IS CURRENTLY IN THE PROCESS OF, UM, HE, HE'S OPEN TO A CASE WITH THE DEPARTMENT OF LABOR, WHICH WE'RE TRYING TO WORK WITH HIM THROUGH. BUT I, I COULDN'T SPEAK TO TAX ABATEMENT ON THAT. OKAY. THANK YOU FOR BEING HERE, AND WE DEFINITELY APPRECIATE YOUR COMMENTS. THANK YOU SO MUCH. YOU'RE VERY WELCOME. UH, DOMINIQUE CHACON. DOMINIQUE CHACON. HI DOMINIQUE. HELLO. HOW ARE Y'ALL? GOOD AFTERNOON. UH, MY NAME IS DOMINIC CHAON. I LIVE IN THE EAST END. UM, AND I AM REALLY GLAD THAT COUNCIL IS TAKING THE TIME TO NEGOTIATE AND IMPROVE THE STANDARDS FOR THESE PROPERTY TAX INCENTIVES. RIGHT? THIS IS THE CONVERSATION THAT WE NEED TO BE HAVING AND EVEN GOING DEEPER, RIGHT? BUT THE CRUX OF THE PROBLEM STILL EXIST. DO THESE, UH, DEVELOPMENT TOOLS ACTUALLY BENEFIT THE LOCAL ECONOMY? AND THE CRUX OF THE QUESTION IS THIS THEORY THAT WE'VE HEARD FROM MANY GENERATIONS OF TRICKLE DOWN ECONOMICS, RIGHT? IF YOU GIVE MONEY TO CORPORATIONS THAT ALREADY HAVE BILLIONS OF DOLLARS IN ANNUAL PROFITS, THE MONEY WILL EVENTUALLY COME DOWN TO THE COMMUNITY. BUT WE'RE NOT SEEING THAT. I THINK ANY PERSON OBSERVING JUST THE BUDGET ISSUE ALONE IS GONNA QUESTION WHY ARE WE HAVING A BUDGET DEFICIT OF RECORD LEVELS? IF THESE ECONOMIC DEVELOPMENT TOOLS ARE REALLY WORKING, WOULDN'T WE HAVE A SURPLUS? RIGHT? SO, SO WE'RE HERE TO ADDRESS THIS ISSUE, AND I, I WANT TO ENCOURAGE COUNSEL TO CONTINUE TO TAKE THESE GOOD FAITH, UH, LANGUAGES AND CODIFY THEM, RIGHT? MAKE THEM ENFORCEABLE. WE NEED TO BE STRENGTHENING OUR ABILITY TO PROTECT AND PRACTICE DUE DILIGENCE IN THE APPLICATION PROCESS, IN THE ACTUAL ORDINANCE LANGUAGE, IN THE REVIEW PROCESS, AND THE ENFORCEMENT. UM, AND THIS IS GONNA HELP NOT ONLY COUNSEL TO DO YOUR ALL'S DUE DILIGENCE, BUT IT'S GONNA ALLOW US AS COMMUNITY MEMBERS TO HOLD THESE CORPORATIONS ACCOUNTABLE AND PROTECT OUR VULNERABLE COMMUNITIES. WE ALSO NEED TO STRENGTHEN OVERSIGHT, THE ABILITY TO AUDIT AND MORE TRANSPARENCY. I'M REALLY HAPPY TO SEE THAT THE, UH, MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT IS PRODUCING THESE VISUALS BECAUSE THAT HELPS COMMUNITY MEMBERS UNDERSTAND. AND CURRENTLY THAT TRANSPARENCY IS NOT AS TRANSPARENT AS IT NEEDS TO BE. UM, AND I'VE BEEN SCOURING WEBSITE FOR SOME OF THESE ANNUAL AUDITS AND REVIEWS, AND I WOULD STILL LIKE TO SEE WHO IS NOT IN COMPLIANCE AND HOW ARE WE GETTING THEM TO COMPLY. SO THERE'S LOTS OF WORK TO BE DONE WHEN IT COMES TO THE IDEAS. UH, MY ORGANIZATION, TEXAS CAMPAIGN FOR THE ENVIRONMENT DISCOVERED THAT $92.9 MILLION OF TAXES THAT SHOULD BE COMING TO CITY OF HOUSTON WASN'T. SO IF THEY'RE, IF WE ARE GETTING 30 MILLION, BUT LOSING 93 MILLION, WHO, WHO IS REALLY BENEFITING FROM THAT AGREEMENT? AND THEN TO YOUR POINT, UH, COUNCIL MEMBER REGARDING THE, THE FOREVERNESS OF THESE ABATEMENTS, IT'S NOT THAT THESE ABATEMENTS LIVE FOREVER, IT'S THAT THESE COMPANIES ARE ALWAYS GONNA BE GETTING, UH, ABATEMENTS FROM SOMEONE. CITY OF HOUSTON IS THE ONE THAT THEY APPLIED THIS YEAR, BUT PASADENA IS ALSO ON THEIR LIST. AND GOOSE CREEK, ISD IS GETTING ANOTHER 300, GIVING THEM ANOTHER 300 MILLION TO EXXONMOBIL, A COMPANY THAT ARE, THEY REALLY GONNA LEAVE THAT REGION AND A PLACE WHERE THEY HAVE THEIR HEADQUARTERS AND A PLACE WHERE THEY'RE, UM, UH, BEEN LIVING FOR A LONG TIME. UM, GENERALLY, I I, I WANNA ENCOURAGE THE CONVERSATION TO CONTINUE AND, AND, AND, UH, IF YOU ALL HAVE ANY QUESTIONS ON OUR TAX RESEARCH AND, UH, THE SORT OF COALITION THAT WE'RE BUILDING, WE'RE MORE THAN HAPPY TO SIT DOWN AND HAVE ANY CONVERSATIONS. THANK YOU. THANK YOU, DOMINIC. WE APPRECIATE YOU BEING HERE TODAY FOR THOSE COMMENTS. COUNCIL MEMBER, FLICKINGER, YOU'RE BACK IN THE QUEUE. YEAH, I HAD A QUESTION FOR DOMINIC. UM, OH, YOU TALKED ABOUT GIVING THESE CORPORATIONS MONEY. YES. YOU REALIZE WE DON'T WRITE 'EM A CHECK. IT'S, [01:30:01] IT'S LIKE, UM, THE TAX BURDEN FALLS ON THE COMMUNITY MEMBERS, RIGHT? SO LIKE, IF A SCHOOL DISTRICT IS NOT PAYING, UH, OR NOT RECEIVING THE FULL TAX PAYMENT THAT THEY WOULD BE FROM A COMPANY, SOMEBODY HAS TO PAY THE, THE, THE BILL. I CAN'T REALLY SPEAK TO THE SCHOOL DISTRICT, BUT YES, ESSENTIALLY WE TELL THESE PEOPLE THAT IF THEY AGREE TO COME IN HERE AND THEY AGREE TO DEVELOP MM-HMM . AND THEY ALSO MEET THESE OTHER CRITERIA THAT RATHER THAN CHARGING THEM THE FULL TAX, THEY WILL ONLY HAVE TO PAY A PORTION OF IT, TYPICALLY HALF OF IT. MM-HMM . AND THAT, THAT HAS A LIFESPAN. AND WHEN IT'S DONE, IT'S OVER. BUT WE DON'T WRITE CHECKS TO THESE COMPANIES. NO, BUT YOU'RE ALLOWING THEM TO POCKET SAVINGS. RIGHT. THAT WOULD'VE TAX DOLLARS OBVIOUSLY PAYING LESS AS A SAVING. YES, EXACTLY. AGREED. AND THAT MONEY WOULD OTHERWISE BE COMING TO CITY OF HOUSTON AND OTHER TAX AGENTS UNLESS THEY DIDN'T GO HERE AT ALL. WHAT DO YOU MEAN? OKAY. THEY'RE AGREEING TO DEVELOP SOMETHING HERE MM-HMM . AND IN RETURN, WE DON'T CHARGE THEM THE FULL TAX RATE. WELL, IF THEY DON'T DEVELOP HERE AT ALL, THEN WE DON'T RECEIVE ANYTHING. THEY DON'T PAY ANYTHING. NOBODY GETS ANYTHING. I THINK THAT THAT STATEMENT IS TRUE DEPENDING ON THE COMPANY. RIGHT? NO, IT'S, IT'S, IS NRG GONNA LEAVE ANYTIME SOON? SO I I I THINK Y'ALL CAN PROBABLY TAKE THAT CONVERSATION OFFLINE. UM, YEAH, THAT'S IT. THANK YOU MR. SHAHAN. WE APPRECIATE, WE APPRECIATE YOU BEING HERE TODAY AND WE APPRECIATE YOUR COMMENTS. THANK YOU. I, AND Y'ALL DEFINITELY CAN OH, VISIT AND TALK ABOUT IT. UH, COUNCIL MEMBER DAVIS, DID YOU HAVE ANYTHING ELSE? YES. I JUST WANTED TO HAVE ONE QUESTION MAD CHAIR AND BE DONE. YOU MADE A STATEMENT, YOU SAID THE VULNERABLE, THE VULNERABLE, VULNERABLE COMMUNITY. CAN YOU EXPLAIN WHO THAT WOULD BE? IS THAT THE WORKER OR THE NUN WORKER? IT'S THE COMMUNITY IN GENERALLY. UH, WHAT WE'RE SEEING, FOR EXAMPLE, IN OUR, IN OUR, UH, STUDY, WE DO, WE DO COUNTYWIDE STUDY AND THEN WE LOOK AT ALL THE ENTITIES WITHIN HARRIS COUNTY SCHOOL DISTRICT CITIES. RIGHT. WHAT WE FOUND IS, IS THE TOP FIVE, UH, PEOPLE, COMPANIES THAT ARE RECEIVING TAX ABATEMENTS ARE THE SAME TOP FIVE VIOLATORS OF THEIR AIR PERMITS WITH THE TEXAS, UH, COMMISSION FOR ENVIRONMENTAL QUALITY. AND THE LOCATION OF THEIR SITES ARE IN VULNERABLE, UH, COMMUNITIES THAT HAVE, WHICH WOULD BE WHAT, THAT'S WHY I WAS TRYING TO WAIT YOU TO ASK BRUCE CREEK. BRUCE CREEK IS SD BAYTOWN, UH, CHANNEL VIEW. ALL THESE AREAS THAT ARE IN THE, UH, EXTRATERRITORIAL JURISDICTION, UM, THEY ARE BASICALLY THESE VULNERABLE COMMUNITIES THAT ARE EXPERIENCING HIGH LEVELS OF AIR TOXINS. OKAY. SO YOUR EMPHASIS IS, YOU MENTION YOURSELF AS ENVIRONMENTAL, RIGHT? YES, SIR. UHHUH. SO THAT'S YOUR FOCUS. SO THAT IS A FOCUS OF OUR, OF OUR TAX RESEARCH, BUT WE DO UNDERSTAND THAT THESE TAX AGREEMENTS EXIST OUTSIDE OF JUST OIL AND GAS. THANK YOU. OKAY. ALL RIGHT. I THANK EVERYBODY. GOT IT ALL OUT. UM, IF THERE ARE NO FURTHER COMMENTS OR QUESTIONS, I DO WANT TO THANK EVERYONE FOR JOINING US TODAY. BEFORE WE ADJOURN, I'D LIKE TO LET EVERYONE KNOW OUR NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING IS OCTOBER THE 21ST AT 2:00 PM IF YOU'RE INTERESTED IN RECEIVING INFORMATION, WE GOT SOMEBODY ELSE. MARY WRIGHT, IS IT TOO LATE? CAN I, I'M SORRY, MS. WRIGHT. YES. REALLY? GO AHEAD. WE'D LOVE TO HEAR FROM YOU. I WAS SUPPOSED TO SHOW UP YESTERDAY AND I COULDN'T, SO THIS IS ACTUALLY, GO AHEAD. YESTERDAY WE DIDN'T HAVE ECONOMIC DEVELOPMENT. I KNOW Y'ALL HAVE SESSION DO HAVE ECONOMIC DEVELOPMENT ISSUE. I DO, I DO. I DO. OKAY, GO AHEAD. UM, HAPPY TO HEAR FROM YOU. THANK YOU. AND I'LL TRY AND MAKE IT AS QUICK AS I CAN. SO, UM, DATA CENTERS ARE GOING IN RIGHT NOW, AND THERE ARE TAX ABATEMENTS THAT ARE BEING GIVEN TO DATA CENTERS. AND THE REASON THAT I REALLY WANTED TO TALK YESTERDAY IS I WENT TO A MEETING IN JACINTO CITY. I WAS THE ONLY PERSON THERE FROM HOUSTON. I BELIEVE THERE WERE ABOUT A HUNDRED, 150 PEOPLE THERE. SO THEY'RE PUTTING IN THE OLD BUDWEISER PLANT. THEY HAVE A BOTTLING CENTER THERE, AND THEY HAVE, UM, A COMPANY RANKINS THE NAME OF IT, AND THEY'RE TRYING TO PUT A DATA CENTER THERE. THE PEOPLE HAVE JUST ENTERED CITY, JUST FOUND OUT ABOUT THIS A COUPLE OF WEEKS AGO. SO THEY WERE DOING IT ALL VERY QUIET. AND I DON'T KNOW HOW IN THE HECK THAT WAS HAPPENING, BUT THE REASON THAT THIS IS IMPORTANT IS WHILE Y'ALL ARE THINKING ABOUT DOING AN ORDINANCE AND MAKING SOMETHING WITH AN ORDINANCE WITH TAX ABATEMENTS, THEY CAN'T DO ANYTHING RIGHT NOW TO STOP THIS FROM HAPPENING. ONCE THEY HAVE A PERMIT, IT'S GONNA HAPPEN. THERE ARE A LOT OF AREAS AROUND HOUSTON THAT WOULD BE PRIME PICKING FOR THIS. WE SEE WHAT'S HAPPENING WITH THE GAS STATIONS RIGHT NOW, RIGHT. NO ONE WANTS ONE OF THESE DATA CENTERS RIGHT NEXT TO THEIR HOUSE IF WE DON'T PUT SOMETHING IN. RIGHT. WE'RE, WE'RE WHERE WE, WE ARE WORKING ON IT. WE APPRECIATE THAT. AND WHERE WERE YOU? WHERE DID YOU GO TO THE MEETING CITY? IT WAS AT THEIR TOWN HALL. WHERE? JACINTO CITY. JACINTO CITY. OKAY. YES, YES, YES, YES. OKAY. I'M SORRY. I SPEAK WITH LIZ, I APOLOGIZE. I'M SORRY. BUD BREWERY. RIGHT, RIGHT. BUT THIS IS REALLY, REALLY IMPORTANT. IF Y'ALL LOOK AT COLORADO [01:35:01] SPRINGS, COLORADO SPRINGS ALREADY HAS A BLUEPRINT. AND IT'S SUPPOSED TO BE FROM WHAT I, THEY WERE SAYING, I DON'T KNOW HOW TRUE THAT IS, BUT HONESTLY, IT'S SOMETHING THAT THE CITY NEEDS TO GET AHEAD OF BEFORE WE'RE BEHIND IT, LIKE WE ARE WITH THE GAS STATIONS. THANK YOU. WE TOTALLY AGREE. THANK YOU FOR ADDING THAT TO THE MEETING. WE APPRECIATE IT. AND I'M SORRY I TOOK TWO MORE MINUTES TO YOUR TIME. NO, NO, YOU, YOU'RE TOTALLY FINE. ALL RIGHT. COUNCIL MEMBERS, BEFORE WE ADJOIN, WHAT DID YOU SAY? LINDA MORALES JUST GOT ON THE LINE. OKAY. SHE CAN UNMUTE, UH, LINDA MORALES. YOU CAN UNMUTE STAR SIX OR UNMUTE. I DUNNO IF SHE DID. CAN YOU UNMUTE LINDA? CAN YOU HEAR US? I CAN UNMUTE HER. OKAY. I CAN'T HEAR HER. WE CAN TAKE, WE CAN TAKE HER. CAN YOU JUST REACH OUT TO HER AND LET, AND LET HER KNOW? YES. OKAY. WE'LL REACH OUT. CAN YOU HEAR ME NOW? OH YEAH. CAN YOU HEAR ME NOW? WE CAN HEAR YOU. OKAY. SORRY. SO LISTEN, I'VE, I'VE BEEN LISTENING A LOT. WHAT'S GOING ON? I APPRECIATE ALL THE COMMENTS. UH, I'M LINDA MORALES WITH THE GULF COAST AREA LABOR FEDERATION, WHERE WE REPRESENT ABOUT 60,000 WORKERS ACROSS 60 OF OUR AFFILIATED UNIONS. APPRECIATED THE BROTHER FROM TSEU SAYING WE NEED, THE CITY NEEDS TO CATCH UP WITH HARRIS COUNTY. UH, I AGREE BECAUSE WE'VE WORKED VERY CLOSELY WITH THE COUNTY AND ALL THESE ISSUES. WE'LL CONTINUE TO WORK CLOSELY WITH, UH, COUNCIL MEMBER SALINAS. WE LOOK FORWARD TO THE REVISED LANGUAGE. I LIKE SO FAR WHAT I'M SEEING. UH, I DO APPRECIATE THAT ON THE APPRENTICESHIP UTILIZATION, UM, THE WORD REQUIRED, NOT IN GOOD FAITH, UM, ALSO AUDITS, CHILDCARE SUBSIDIES. I HAVEN'T HEARD ANYTHING ABOUT THAT, BUT I THANK YOU FOR YOUR TIME AND WE LOOK FORWARD TO THE REVISED LANGUAGE. THANK YOU SO MUCH. THANK YOU, LINDA. WE APPRECIATE ALL THAT YOU DO. THANK YOU, MA'AM. ALL RIGHT, BEFORE WE ADJOURN, THE NEXT MEETING AGAIN IS OCTOBER THE 21ST AT 2:00 PM IF YOU'RE INTERESTED IN RECEIVING INFORMATION ABOUT ECONOMIC DEVELOPMENT, CONTACT, UH, THE DISTRICT K OFFICE COLLEAGUES, THANK YOU FOR YOUR ENGAGEMENT TODAY. THE TIME IS NOW THREE 40 AND WE STAND ADJOURNED. THANK YOU. * 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.