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GOOD EVENING AND WELCOME TO THE DECEMBER 4TH, 2023 WORK SESSION FOR THE GARLAND CITY COUNCIL.GETTING INTO OUR AGENDA ITEM ONE, PUBLIC
[1. Public Comments on Work Session Items]
COMMENTS ON WORK SESSION ITEMS. I DON'T BELIEVE WE HAVE ANYONE SIGNED UP TO SPEAK THIS EVENING.ITEM FOUR F AND IT'S DEREK JOHNSON.
AND IF YOU COULD GIVE US YOUR NAME AND ADDRESS FOR THE RECORD, SIR.
AND YOU'LL HAVE THREE MINUTES.
UH, GARRETT JOHNSON, 6 9 0 1 LA MANGA DRIVE, DALLAS, TEXAS.
I WANNA THANK STAFF FOR BEING AS RESPONSIVE AS THEY ARE TO DEVELOPERS.
UH, I'VE DONE A COUPLE OF PROJECTS IN GARLAND.
I DID THE STARBUCKS, I'VE DONE THE STORAGE DEAL OVER, UM, ON JUPITER AND BUCKINGHAM.
THE, THE, THE MAIN THING I WANT TO TALK ABOUT TONIGHT IS HOW THE PROCESS IS FROM A ZONING STANDPOINT AND A-C-U-P-S-U-P STANDPOINT.
WHEN WE COME IN AS A DEVELOPER, YOU KNOW, WE'D LIKE TO USUALLY JUST DO CONCEPTUAL PLANS AND HAVE COUNCIL AND P AND Z AND STAFF MAKE COMMENTS ON THOSE CONCEPTUAL PLANS.
AS FOR GARLAND, YOU HAVE TO DO FULL DRAWINGS IN ORDER TO GET YOUR ZONING DONE BEFORE, BEFORE YOU CAN PRESENT TO COUNCIL.
AND IT IS DELAYING CONSTRUCTION STORE OPEN TENANT INTEREST BY ABOUT SIX MONTHS.
SO, IF, YOU KNOW, THAT'S WHY I'M HERE TODAY TO DISCUSS, AND HOPEFULLY YOU GUYS TALK ABOUT CHANGING THE, THE ORDINANCE TO HAVING JUST A CONCEPTUAL PLAN AND AS OPPOSED TO FULL DRAWINGS NEEDED.
'CAUSE THESE DRAWINGS CHANGE AFTER CITY COUNCIL VOTES ON IT AS WELL.
THE TENANTS WILL CHANGE THE GRADING DRAINAGE, THEY'LL CHANGE SITE PLAN LAYOUTS.
SO YOU'RE DOING ALL THIS WORK TWICE, AND I'M SURE IT'S DOUBLING STAFF'S EFFORTS AS WELL AS WE, AS THEY GO THROUGH DIFFERENT ITERATIONS OF THE DRAWINGS, DEGRADING DRAINAGE AND EVERYTHING LIKE THAT.
SO THAT IS MAINLY WHY I'M HERE, JUST FROM A DEVELOPER STANDPOINT.
LOVE DOING BUSINESS IN GARLAND CITY'S GREAT.
JUST THAT IS REALLY HINDERING OUR ABILITY TO OPEN THESE STORES AND GET PEOPLE, YOU KNOW, SERVICED IN THE COMMUNITY.
[2. Consider the Consent Agenda]
CONSIDER THE CONSENT AGENDA.UH, HAVEN'T SEEN ANY REQUESTS FOR ANY ITEMS TO BE PULLED, BUT OBVIOUSLY THERE'S STILL TIME TO DO THAT.
[3. Written Briefings]
BRIEFINGS UNDER ITEM THREE, ITEM THREE A 2023 EDWARD BYRNE, MEMORIAL JUSTICE ASSISTANT GRANT.AND WE'RE GONNA COME BACK TO, UH, CUSTOMER WILLIAMS HAS ASKED FOR FURTHER DISCUSSION ON ITEM THREE B, BUT I'M GONNA GO AHEAD AND GO THROUGH THE OTHER ITEMS FIRST.
UM, ITEM THREE C, ORDINANCE CHANGE CONCERNING FOOD EXCELLENCE AWARDS AND WAIVING OF THE PERMANENT FEES CUSTOMER HEDRICK.
I'D LIKE A LITTLE MORE EXPLANATION ON THIS ITEM IF POSSIBLE.
I JUST WANNA KNOW THE GENESIS OF WHY THE CHANGE AND, UH, A LITTLE BIT OF HISTORY BEHIND IT.
YEAH, SORRY, I'VE NEVER HAD ONE ASKED QUESTIONS DURING, SO I WASN'T SURE.
SO THIS, UM, ACTUALLY WAS, NEEDS TO BE PROBABLY CONSIDERED WHEN LOOKING BIG PICTURE AT, UM, A YEAR THAT WE'VE HAD.
UM, WITH, WITH HOUSE BILL 27 78, UM, IT TOOK AWAY A LOT OF, UH, THE OTHER FEES THAT WE COULD COLLECT.
AND SO IT WAS A COMBINATION OF THINGS.
WE LOST A LOT OF REVENUE, SORT OF ALL AT ONE TIME.
UM, THE MOBILE FOOD UNITS, WHICH WE'RE GONNA TALK ABOUT LATER, UM, WE'RE LOSING A REVENUE OF ABOUT 36,000 A YEAR.
AND THEN WITH, UM, THERE'S SEVERAL OTHER THINGS, AND I THINK SHE'S GOT THE LIST HERE SHE CAN GO OVER WITH YOU.
UM, WHERE WE'VE LOST, WE ALSO LOST REVENUES FOR, UH, FOOD MANAGERS OR FOOD REGISTERED FOOD MANAGERS.
AND THEN THIS WAS JUST ONE MORE.
SO WE WERE LOOKING AT, UM, HOLISTICALLY TRYING TO FIGURE OUT HOW CAN WE KIND OF OFFSET SOME OF WHAT WE'RE LOSING.
AND THAT WAS THE BEST THING WE COULD COME UP WITH WITHOUT DOUBLING OR DOING SOMETHING CRAZY WITH REVENUES.
UM, WE DIDN'T NECESSARILY KNOW THAT ALL THAT WAS COMING UNTIL IT HAPPENED.
AND SO THAT'S WHAT WE WERE JUST TRYING TO RECOUP, UH, THAT AMOUNT OF MONEY SO THAT WE COULD APPLY IT TO REGULAR SERVICES.
DO YOU HAVE AN ESTIMATE ON THE TOTAL LOSS REVENUE FROM ALL THE CHANGES FROM ALL OF IT? DO YOU HAVE THAT, IS THAT LIST REALLY GIVING? NO, BUT I CAN BRING IT BACK TO YOU.
WE JUST NEED TO CALCULATE IT LIKE THAT.
I'D BE CURIOUS TO SEE THAT BECAUSE I'M, I LIKE THIS PROGRAM.
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SOMETHING TO STRIVE FOR.AND EVEN IF WE CHANGE IT WHERE A LOWER PERCENTAGE OR THEY JUST GET A HALF REBATE, MAYBE SOMETHING LIKE THAT.
IT'S SOME, FOR THOSE TOP PERFORMERS TO REALLY HAVE AN INCENTIVE TO DO WELL AND BE RECOGNIZED.
AND I, I WAS LOOKING THROUGH, UH, OUR WEBPAGE, THE CITY'S WEBPAGE LOOKS LIKE SOMETHING NOTHING HAS BEEN DONE SINCE 2019.
MAYBE I, I COULDN'T FIND ANYTHING IF SO, BUT I'D LOVE TO SEE MORE RECOGNITION MADE AND MORE OF A, A BIG DEAL, ESPECIALLY THE ONES THAT HAVE THE HIGHEST RANKINGS, MORE PUBLICITY ABOUT IT.
BUT I'M JUST CURIOUS TO SEE IF WE COULD STILL KEEP SOMETHING FOR THOSE TOPNOTCH.
I KNOW THERE'S 12 DIFFERENT CATEGORIES, AND EVEN IF THE, THE TOP PERFORMER MAY BE THEM, AND SOME ARE, YOU KNOW, THE GOVERNMENTAL HOLD, BUT THEY DON'T PAY FEES ANYWAY.
BUT THE REST OF 'EM, I'D LOVE TO HAVE SOME KIND OF INCENTIVE IF POSSIBLE.
AND YEAH, I GOT SEVERAL CALLS TODAY FROM, FROM CITIZENS WHO SAW THIS IN THE NOTES AND WERE, UM, THEY WERE CONCERNED ABOUT IT.
UM, I REALLY DON'T WANT US TO LIGHTLY JERK AWAY.
CARROTS AND BENEFITS THAT PEOPLE HAVE GROWN ACCUSTOMED TO THE CITY IS ON A VERY POSITIVE, UM, M MOVEMENT FORWARD.
AND I THINK AT THE POINT THAT WE START DOING THAT, THAT'S GOING TO, UH, SLOW THE MOMENTUM AND SLOW THE ENTHUSIASM.
AND RIGHT NOW WE'VE GOT A FAIR NUMBER OF NEW RESTAURANTS, INCLUDING SOME REALLY INTERESTING ONES, UH, LOOKING AT US.
AND, AND THIS JUST DOESN'T FEEL LIKE THE RIGHT TIME FOR THAT.
SO IF WE NEED TO, UH, REALLY LOOK FOR SOME OTHER REVENUE SOURCES INSTEAD TO MAKE UP, WE DON'T ONCE YOU ON A STARVATION DIET, UM, BUT TO MAKE UP THE DEFICITS IN SOME OTHER WAY, I, I WOULD REALLY LIKE TO LOOK HARD BEFORE WE WENT WITH TAKING AWAY THIS BENEFIT.
I, I'D LIKE TO SEE WHAT THE NUMBERS WOULD LOOK LIKE IF YOU JUST HAD A SMALLER PORTION OF, UH, A SMALLER PERCENTAGE, MAYBE LIKE THE TOP 1% OR MAYBE THE TOP FIVE RESTAURANTS.
IT'S EARLY FIVE, BUT I WAS MAYBE 3%.
UM, CAN YOU TELL ME ABOUT HOW MUCH MORE MONEY WOULD BE GENERATED BY REMOVING THIS BENEFIT FOR THE, FOR THOSE REVENUES? MM-HMM,
IT'S A LITTLE BIT MORE THAN THAT THIS YEAR BECAUSE WE HAVE MORE RESTAURANTS.
ANY ADDITIONAL QUESTIONS ON THIS ITEM? UH, WE'RE GONNA GO AHEAD AND LET'S BRING THIS BACK, UM, TO THE SECOND MEETING IN JANUARY, AND SO WE CAN HAVE SOME OF THOSE NUMBERS AND, AND LOOK AT SOME OF THOSE DETAILS.
UH, LET'S SEE, WHERE ARE WE HERE? ITEM 3D, NEIGHBORHOOD VITALITY MATCHING GRANT, FALL 2023 APPLICATIONS.
AND SO NOW WE WILL COME BACK TO ITEM THREE B, GARLAND CHAMBER, ECONOMIC DEVELOPMENT SERVICES AGREEMENT, RENEWAL.
COUNCIL MEMBER WILLIAMS HAD ASKED FOR THIS FOR FURTHER DISCUSSION.
UM, MAYOR, AFTER LOOKING AT THIS, I, I HAD SEVERAL QUESTIONS I'D LIKE TO ASK STAFF TO WHO'S GOING TO COME FORWARD, AND I'M SURE THEY CAN ENLIGHTEN, UM, OKAY.
AND I, AND I, I NOTICED IN, IN THE PACKET THAT WAS A, UH, SOME SLIDES THAT YOU'RE NOT GONNA SHARE THOSE TONIGHT, RIGHT? ARE ARE YOU OR YOU? I CAN, IF YOU CAN YOU PLEASE? YES.
WOULD YOU LIKE ME TO GO THROUGH THE PRESENTATION OR WOULD YOU LIKE TO SHOW YOU A COUPLE SLIDES IF YOU WANTED ME TO SHOW YOU SOME SLIDES? WELL, WHY DON'T WE, IN THE INTEREST OF TIME,
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UM, IS MR. HASSER JOINING YOU TONIGHT OR JUST THE TWO OF EXCUSE HE CUT IN CLASS TONIGHT? HMM.WILL YOU JUST GO BACK TO THE BEGINNING OF YOUR SLIDE PRESENTATIONS? AND, AND I'VE GOT SEVERAL QUESTIONS THAT I'VE GOT HERE AND, AND THEN YOU CAN, UH, STOP THERE.
UH, WOULD YOU JUST GO THROUGH THE SLIDES BRIEFLY AND SUMMARIZE WHAT, WHAT YOU PROVIDE TO COUNCIL? SURE.
SO THIS ITEM IS FOR THE GARLAND CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT SERVICE AGREEMENT, RENEWAL REQUEST.
THIS IS REALLY THE BRIEF, MAJOR HIGHLIGHTS AND BACKGROUND.
UH, 1985 IS THE ONE FIRST TIME CITY DEPARTMENT RESPONSE, 1985.
CITI HAD A DEPARTMENT ECONOMIC DEVELOPMENT DEPARTMENT IN 1995.
UH, AIRLINE ECONOMIC DEVELOPMENT PARTNERSHIP FORMED.
THAT IS THE TIME THIS, UM, SERVICE AGREEMENT WAS IN PLACE OVER THE YEARS.
AND, UM, WE RENEWED THE SEVERAL TIMES.
AND RIGHT NOW IT'S, UH, JANUARY 9TH, 2024 IS THE ONE EXPIRING IN THIS CURRENT AGREEMENT.
SO THIS IS THE, UH, LAST, UM, SINCE 1995, UM, 1, 2, 3 TIMES IT WAS RENEWED.
NOW THIS IS THE ECONOMIC DEVELOPMENT RESPONSIBILITIES.
AGAIN, THIS IS REALLY ECONOMIC DEVELOPMENT EFFORT IS REALLY COLLABORATION.
SO WE, WE WORK VERY CLOSELY, UH, GARLAND CHAMBER, SMALL BUSINESS DEVELOPMENT WORK, WORK WORKFORCE DEVELOPMENT, RETENTION, EXPANSION.
GARLAND CHAMBER IS LEAD ON THIS EFFORT.
UM, STRATEGIC PLAN, UM, APRIL, 2023, UM, COUNCIL ADAPTED THE FIRST EVER ECONOMIC DEVELOPMENT STRATEGIC PLAN.
UM, WE ARE REALLY, UH, WORKING TOWARD THIS, OUR GOAL BASED ON THIS STRATEGIC PLAN.
AND IN THE PART OF THE STRATEGIC PLAN, IT RECOMMENDS CREATING MORE ORGANIZATIONAL CAPACITY.
IT'S REALLY, WE WANTED TO HAVE A CLEAR DIRECTION, GOALS, DIRECTION, RESPONSIBILITY.
SO THIS PROPOSAL, UH, FOR THIS YEAR, UH, IS RENEWABLE CONTRACT INCREASE THE BASE OF ANNUAL PAYMENT TO $600,000 BY 2026.
SO NEXT THREE YEARS, IT'S GONNA BE 27,000 INCREASE, UH, RENEW AUTOMATICALLY UNLESS EITHER PARTY WISHES TO TERMINATE AND THE PAYMENT OF THE ANNUAL INCREASE BASED ON THE SUCCESSFUL COMPLETION OF ANNUAL ACTION PLAN TO BE PERFORMED BY THE GARLAND CHAMBER.
AND THE RECOGNIZE VALUE OF A HISTORY OF AN ONGOING PARTNERSHIP.
AND IT'S REALLY HAS TO BE ALIGNED WITH THE ECONOMIC DEVELOPMENT STRATEGIC PLAN.
SO CURRENT AGREEMENT IS 2023, AND IT, IT WAS 516,000.
SO IN ORDER FOR US TO BE, TO BUY THE 2026, IT'S GONNA BE $600,000.
SO IT'S GONNA BE $27,760 INCREASE.
UM, AND THEN FOR AFTER THE 2026, THIS IS REALLY, I PUT THE 3%, BUT IT'S REALLY MATCHING THE PERCENT MERIT INCREASE, WHAT CITI IS PROVIDING.
SO THIS IS JUST KIND OF, THIS WAS THE LAST YEAR'S 3%.
UM, SO FROM NOW ON, UH, WE ARE PROPOSING TO QUOTE, EVERY QUARTER WE ARE GONNA HAVE A MEET WITH THE CITY DEPARTMENT AND THE CHAMBER STAFF.
WE WILL MEET AND IT JUST KIND OF REPORTING EACH OTHER WHAT WE'VE DONE AND IT, WHAT'S THE PROGRAM STATUS.
AND THEN TWICE A YEAR AGO, AND CHAMBER WILL COME REPORTS TO COUNCIL MIDYEAR PROGRAM UPDATES, AND AT END OF THE YEAR, THERE'S GONNA BE ANNUAL REPORT AT THE ANNUAL REPORT END OF THE YEAR, IT WAS ANNUAL ACTION PLAN FOR THE FOLLOWING YEARS WILL BE PRESENTED AT, AT THAT TIME.
AND THAT SHOULD BE INCLUDING SPECIFIC AND TANGIBLE GOALS EACH YEAR.
AND THAT HAS TO BE ALIGNED WITH THE ECONOMIC DEVELOPMENT STRATEGIC PLAN.
WILL YOU GO BACK TO YOUR SLIDE WHERE YOU SHOW THE TERMS, UH, LENGTH OF THE CONTRACT? IT WAS THE FIRST OR SECOND SLIDE.
THEN I'LL GO THROUGH MY QUESTIONS RIGHT QUICK.
UM, MY FIRST QUESTION, QUESTION HAS TO DO WITH, UM, YOU'VE SHOWN US THE CURRENT TERMS AND THE RECOMMENDATION, AT LEAST THE PROPOSAL, AND THAT'S IN YOUR PRESENTATION, IS, IS, UM, EXTENDING THE, THE LENGTH OF THE AGREEMENT TO HOW MANY YEARS IT WOULD BE AN ANNUAL RE AUTOMATIC RENEWAL UNLESS EITHER PARTY, UH, DECIDED TO, UH, NOT RENEW THE AGREEMENT.
SO RATHER THAN A FIVE-YEAR TERM, WHICH HAS BEEN IN THE PAST, IT'S AN ANNUAL SELF-RENEWING UNLESS EXPRESSLY, UH, WRITTEN BY EITHER PARTY.
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OKAY.ON THE, UM, CAN YOU EXPLAIN, UH, TO ME HOW WE LANDED ON THAT PROPOSAL OF AUTOMATIC RENEWALS? I WANT, I WANT, I DIRECT, I WANT, EXCUSE ME, PAUL.
I WANT, I WANTED TO DIRECT THIS TO STAFF.
WELL, THERE WAS A REQUEST FROM US, BUT THAT'S, YEAH, I, I'M, I'M GONNA COME, I'M GONNA COME TO YOU.
BUT CAN YOU, CAN YOU, CAN YOU HELP ME A LITTLE BIT TO UNDERSTAND THAT WAS WHAT A CHANGE IN THE TERMS REQUESTED BY THE CHAMBER? YES, SIR.
WELL, WELL, I'LL TELL YOU, I, I, UH, HAVE, HAVE, HAVE, HAVE SOME CONCERN ABOUT AUTOMATIC RENEWALS.
UM, AM I CORRECT AUTOMATIC RENEWALS IF WE, IF WE CAN SEND IT TO THAT, UH, THAT COMMITS, UH, THIS AND, AND, UH, FUTURE COUNSELS TO THE TERMS OF THAT AGREEMENT.
HOWEVER, EITHER PARTY CAN, UH, HANG ON A SECOND.
I THINK OUR ATTORNEY HAS SURE.
IT DOESN'T COMMIT FUTURE COUNSELS TO ANYTHING.
IN FACT, IN, IN MANY WAYS, UM, THE FACT THAT IT'S NOT A FIVE YEAR CONTRACT OR A 10 YEAR CONTRACT, COUNSEL HAS MORE FLEXIBILITY AT THE BEGINNING OF EACH TERM TO DECIDE WHETHER OR NOT THEY WANT TO CONTINUE THE CONTRACT.
SO IN FACT, IT GIVES COUNSEL MORE OPTIONS AT THE END.
IT GOES FROM A FIVE YEAR COMMITMENT TO A ONE YEAR COMMITMENT, BASICALLY.
AND THEN IF COUNSEL WANTS TO CONTINUE IT, THEY NEED TO TAKE NO ACTION.
IT JUST CONTINUES AUTOMATICALLY.
WHAT, WHAT IS THE, WHAT IS, WHAT IS THE ADVANTAGE OR DISADVANTAGE OF GOING QUOTE AUTOMATICALLY VERSUS ANNUAL RENEWALS AS WE'VE DONE BEFORE? WHAT'S, WHAT'S THE ADVANTAGE OR DISADVANTAGE? THE ADVANTAGE IS THIS COUNCIL WILL HAVE THE OPTION AT ANY YEAR, IN ANY BUDGET YEAR, TO DECIDE WHETHER OR NOT THEY'RE GONNA ALLOCATE MONEY FOR THE FOLLOWING YEAR FOR THIS CONTRACT.
THE DISADVANTAGE WOULD BE, UM, UM, A LONG-TERM FINANCIAL SECURITY FOR THE CHAMBER.
IT'S REALLY BENEFITS THE CITY MORE THAN IT DOES, QUITE FRANKLY, THAN IT DOES THE CHAMBER.
MY NEXT QUESTION HAS TO DO WITH, UH, THE PROPOSED, UH, ANNUAL INCREASE.
I THINK WE LANDED THE DIFFERENCE OVER THE NEXT THREE YEARS, 27, 7 60, AROUND THERE.
MM-HMM,
SO PART OF THAT NUMBER IS BASED ON 3%.
IT JUST HAPPENS TO BE THE 27 6, I BELIEVE.
AND SO IT WAS, AGAIN, A, A, A COMPROMISE BETWEEN THE INITIAL, UH, REQUEST AND PAST, UH, AMOUNTS IN OF INCREASE.
SO IT WAS KIND OF SPLITTING THE DIFFERENCE.
YOU CAN SEE OVER TIME, THERE'S BEEN VARYING CONTRACT TERMS BETWEEN FIVE AND 10 YEARS.
THERE'S BEEN VARYING TERMS OF INCREASE FROM EACH YEAR TO THE NEXT.
SO SOME YEARS HAVE BEEN 5%, SOME HAVE HAD ZERO, SOME HAVE BEEN TIED TO, UH, THE CONSUMER PRICE INDEX FOR THAT BUSINESS SECTOR.
SO IT WAS A, A COMPROMISE BETWEEN A LARGER REQUEST AND WHAT WAS DONE IN THE PAST.
AND IT, AND IT WORKED OUT TO BE 3% ON AN ANNUAL BASIS.
OTHER, OTHER THAN THE STRATEGIC PLAN, I'M BORROWING YOUR TERMINOLOGY THERE.
AND, UH, PAUL, YOU CAN, YOU CAN JUMP IN HERE.
THE STRATEGIC PLAN, UH, WHAT, WHATEVER, WHAT OTHER PERFORMANCE MATRIX CRITERIA ARE YOU GONNA USE AND, AND GETTING TO, IF, IF THAT, UH, THE, THE, THE COMPROMISED REACHED AND THE INCREASE.
WHAT, WHAT, WHAT MATRIX, MATRIX IS, I CAN'T SAY THE WORD.
UH, ARE WE GONNA USE WHAT PERFORMANCE MATRIX, UH, TO DETERMINE YEAR BY YEAR, UH, AND, AND, AND REACHING THAT, THAT MILESTONE THERE.
WELL, ACCOUNTABILITY HAS ALWAYS BEEN KEY FROM, FROM THE VERY BEGINNING.
AND WHEN YOU TALK ABOUT INCREMENTAL CHANGE, IF YOU LOOK BACK AT THE BEGINNING, UH, IN 1995, THE INVESTMENT FROM THE CITY WAS $250,000.
AND BASICALLY AT THAT TIME, IT WAS TO, TO COLLAPSE THE CITY DEPARTMENT, WHICH WAS ABOUT $800,000, AND DO A JOINT VENTURE, WHICH WE FORMED THE PARTNERSHIP.
SO THE CITY PUT IN 250 THE CHAMBER PUT IN A LIKED AMOUNT, AND THEN LATER ON THE SCHOOL DISTRICT.
SO WE'VE GROWN IT INCREMENTALLY.
AND SO I THINK THE BIG, THE BIG IMPETUS FOR THE CHANGE, OR, OR THE INCREASE IS THE, THE ASK AND THE ASK BY VIRTUE OF THE STRATEGIC PLAN, WAS TO GET VERY INTENTIONAL ABOUT RETAINING OUR, OUR MAJOR TAXPAYERS, UH, WORK WITH WORKFORCE, WHICH IS A HUGE
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ISSUE AROUND RETAINING OUR MAJOR OR ALL EMPLOYERS.AND THEN SMALL BUSINESS, WHICH YOU AND I HAVE BEEN WORKING ON FOREVER.
AND SO THE, THE GOING FORWARD, UH, THE INCREASE AMOUNT, AND IT'S, YOU KNOW, IT'S, IT'S ALL IT COST OF LIVING AND, AND BEING ABLE TO MAINTAIN PROGRAMS AND GROWING IT SLOWLY OVER TIME.
THIS INCREASE WILL ALLOW US TO BRING ON A FULL-TIME SOLELY DEDICATED PERSON FOR SMALL BUSINESS.
BUT WE'VE NEVER HAD THAT BEFORE.
SO SOMEBODY, AND SO THE ACT, THE, THE PART OF THAT IS, IS HIRING THAT PERSON, AND THE JOB OF THAT PERSON IS, IT KNOWS TO, KNOWS WITH SMALL BUSINESS.
AND I KNOW THERE WAS A QUESTION ABOUT SOMETHING PART, OH, EXCUSE ME.
BUT AS I READ THE PROPOSAL, CORRECT ME IF I'M WRONG, THAT THE PROPOSED INCREASES, YOU'RE PROPOSING NOT TO BASE IT ON THE ECI TO CHANGE THAT.
AM I CORRECT ACTUALLY, AM I CORRECT? YEAH.
ECI HAS BEEN, WELL, IT'S, IT'S CHANGED.
IN 19 20 19, IT WAS 2% INCREASE.
IN, UH, 2022, IT WENT TO 4%, BECAUSE INFLATION WENT UP, 23 WAS 4%.
SO ACTUALLY IT WOULD BE THE, THE INCREASE, THE 3% INCREASE WOULD ACTUALLY BE LOWER AMOUNT THAN WHAT THE 4% IS.
BUT IT'S ABOUT, AND IT'S TIED TO WHATEVER, 3% IS WHATEVER THE CITY DOES.
IF THE CITY DOESN'T DO, UH, BARRETT INCREASES THAT YEAR FOR WHATEVER REASON, THEN IT'S ZERO.
IF THE CITY DOES 2%, THEN IT'S 2%.
SO BECAUSE THE BULK, ALL THIS MONEY IS GOING INTO SALARIES, AND SO TO SAY TO KEEP THE PROGRAM MOVING, YOU'VE GOT TO INCREASE THE REVENUES TO DO THAT.
SO, AM I ANSWERING YOUR QUESTION, BJ? UH, YEAH, YEAH.
YOU, YOU, YOU'RE GETTING THERE.
DID YOU, BUT YOU SAID THAT YOUR LAST STATEMENT, BUT I WON'T ADD TO THIS.
UH, YOU SAID ALL, ALL THE REQUESTED INCREASE IS GOING TO SALARY.
THAT'S, THAT'S NOT WHAT IT SAYS.
IT SAYS SALARY, SALARY SLASH PROGRAMMING.
WELL, THE BULK OF IT, I MEAN, WHEN YOU DO A, WHEN YOU DO A JOINT VENTURE AND YOU KNOW, THE, THE REVENUES AS THE CITY IS PAIRED WITH THE REVENUES FROM THE CHAMBER AND, AND OTHER, YOU KNOW, NON-NEW REVENUES, UH, THAT GO TOGETHER TO, TO FUND THE WHOLE PROGRAM BECAUSE YOU'VE GOT BUILDING AND, AND, UH, INFRASTRUCTURE AND ALL THOSE OTHER KINDS OF COST.
UH, THE BULK OF THE MONEY'S ALWAYS IN ANY KIND OF ENTERPRISES AROUND SALARIES.
AND SO KEEPING CURRENT WITH THE SALARIES, UH, AND THEN BEING ABLE TO EXECUTE THE PROGRAM IS, IS WHERE THOSE INCREASES.
WE TIED IT TO A, TO A COST OF LIVING INCREASE, UH, WHICH GOES UP AND DOWN.
AND SO RIGHT NOW, UH, WE'RE, WE'RE ABOVE WHAT WE'RE ASKING FOR, FOR THE FUTURE AT 4% IF THAT GOES DOWN IN THE CITY, BECAUSE YOU HAVE TO DO YOUR RAISES BASED ON COST OF LIVING AND, AND GETTING PEOPLE, UH, TO WHERE THEY NEED TO BE.
NOW, BACK TO YOUR QUESTION ABOUT ACCOUNTABILITY AND, AND, YOU KNOW, WHAT ARE THE, WHAT ARE THE METRICS? SO, UH, AND I'M JUST FOCUSING ON SMALL BUSINESS RIGHT NOW BECAUSE THE OTHER PIECE OF THAT IS THE BIGGEST TAXPAYERS, WHICH IS, WHICH IS A BIG PART OF WHAT WE DO.
AND THAT'S WHAT, IT'S WHAT I DO.
AND WHAT WE'VE HIRED A DEDICATED PERSON AROUND THAT TO FOCUS ON KEEPING THOSE FOLKS, UH, HAPPY.
SO PART OF THE METRICS IS, IS THE OUTREACH.
HOW MANY PEOPLE ARE WE OUT THERE CONTACTING? WE ON SMALL BUSINESS, EVERY NEW BUSINESS COMES INTO TOWN, WE CONTACT THEM.
THIS WITH THE EXPANDED RESOURCE AROUND A PERSON.
WE'LL BE EXPANDING TO MORE, TO MORE PEOPLE GETTING NOSE TO NOSE.
UH, AND AS YOU KNOW, BETTER THAN I DO OR AS WELL AS I DO, THAT SMALL BUSINESS IS, IS A BIG, UH, BROAD EXPANSE OF, OF WHAT THE NEEDS ARE.
YOU'VE GOT SOME STARTUPS AND YOU'VE GOT SOME PEOPLE THAT ARE VISITING BUSINESS.
THEY'RE, THEY'RE HERE TO PEAK.
AND SO IT'S, IT'S MITIGATING WHAT THOSE ISSUES ARE.
UH, ONE, ONE-ON-ONE, UH, THE QUESTION THAT CAME UP ABOUT, YOU KNOW, TIFF GETTING INVOLVED WITH, WITH DOWNTOWN BUSINESSES AND DOING THAT KIND OF THING, THE CHAMBER'S RESPONSIBILITY HAS BEEN GARLAND IN TOTAL.
SO, SO A LOT OF IT, THE METRICS IS, IS JUST PURE ACTIVITY.
HOW MANY PEOPLE WE OUT THERE TOUCHING? AND THEN IT'S, THEN IT'S MEASURING EFFECTIVENESS.
UH, ONE OF THE, ONE OF THE PROGRAMS, ONCE WE HAVE THE PERSON IN PLACE IS TO DEVELOP WHAT WE CALL THE, THE SMALL BUSINESS 100.
YOU KNOW, THAT'S A GROUP OF 100 THAT WILL, THAT WILL EBB AND FLOW AS PEOPLE COME IN.
WE IDENTIFY WHAT THEIR NEEDS ARE, WE GROW THEM.
WE, WE CHART THEIR PROFITABILITY, THEIR, THEIR INCREASE THEIR SUCCESS, AND THEN PEOPLE GRADUATE FROM THAT AND WE BRING 'EM IN.
SO THAT'S A RECURRING PROGRAM.
UH, IT, IT'S, IT'S, YOU KNOW, YOU DON'T WANNA JUST DO IT ON OUT THERE, UH, KNOCKING ON DOORS, BUT YOU WANT TO DO IT ON PRODUCTIVITY INCREASES.
SAME THING WE'RE DOING WITH, WITH MANUFACTURERS AND BIG BUSINESSES.
WHAT IS THEIR VALUE? ARE THEY INCREASING THEIR TAX BASE? ARE THEY BUILDING MORE EQUIPMENT? ARE THEY HIRING MORE PEOPLE? ARE THEY USING MORE ELECTRICITY? ALL THOSE THINGS.
AND MY LAST, MY LAST QUESTION IS, YOU, YOU, YOU MENTIONED ACCOUNTABILITY SEVERAL TIMES AS PROPOSED HERE WITH THAT INCREASE.
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ARE THERE GOING TO BE, YOU DON'T NECESSARILY HAVE TO ANSWER THIS TONIGHT.WILL THERE BE ANY, ANY CHANGES IN ACCOUNTABILITY? UH, RIGHT NOW? I KNOW, I KNOW THE REPORT CYCLE, I KNOW ALL OF THAT, BUT IF THIS, IF THIS GOES AS PROPOSED AND THE CITY IS INCREASING ITS INVESTMENT, OKAY.
UH, HAVE, HAVE THERE BEEN ANY DISCUSSION OF, UH, IMPROVE WORKING ON BUILDING ON THE ACCOUNTABILITY BACK TO THE CITY AS IT WORKS WITH OUR ED FOLK SO THAT, SO THAT OUR CITY MANAGER AND COUNCILS WILL, WILL, WILL, WILL HAVE A, GONNA HAVE A BETTER GRASP OF, OF, UH, THIS INCREASED INVESTMENT AS IT GOES THROUGH THE YEARS.
UH, ANY THOUGHTS? MR. MR, MR. UH, ANDY HAS, ANDY, WOULD YOU, WOULD YOU COMMENT ON THAT THEN? I'M DONE.
SO ONE, ONE OF THE, UH, STAFF SUGGESTIONS IN CONSIDERING THIS WOULD BE, UH, THAT WE USE THE ECONOMIC DEVELOPMENT STRATEGIC PLAN, WHO DID AN EXTENSIVE, UH, LOOK AT BOTH CHAMBER AND CITY, UH, FUNCTIONS, RELATIONSHIPS, AND, AND POSSIBILITIES.
SO THAT, THAT WOULD BE THE BENCHMARK TO PULL SOME DELIVERABLES.
UM, WE'VE GOT BEEN WORKING ON KIND OF A DRAFT, IT'S A PAGE OR TWO SO FAR FROM THAT PLAN SO THAT THERE ARE SOME TANGIBLE DELIVERABLES IN DECIDING, UH, UH, WHETHER OR NOT THAT'S BEEN MET OR NOT.
AND THEN THAT 3% IS ALLOCATED OR NOT.
SO WE WOULD BE, UH, LOOKING AT THAT ON AN ANNUAL BASIS FOR SOME MEASURABLE DELIVERABLES.
AND LASTLY, MR. CITY MANAGER, CAN I COME TO YOU? UH, CAN YOU RESPOND TO THAT QUESTION FROM, FROM WHERE YOU SIT AS FAR AS ACCOUNTABILITY AS IF, IF AS PROPOSED, THIS PLAN IS ADOPTED FROM AN ACCOUNTABILITY STANDPOINT? UH, WHAT IT, WHAT ARE YOUR THOUGHTS? YEAH, TWO THOUGHTS.
ONE IS THAT, UH, THIS CONTRACT HAS PROPOSED, UH, AS I THINK OUR CITY ATTORNEY POINTED OUT, GIVES THE CITY A LOT OF FLEXIBILITY WITH, WITH THE CONTRACT.
UM, AND THE SECOND PART IS, AND I DON'T REMEMBER THE EXACT FREQUENCY, BUT, UH, THERE'S A REPORTING BACK TO CITY COUNCIL ON THOSE POINTS OF ACCOUNTABILITY.
SO, I MEAN, YOU'RE, YOU'RE NOT ONLY HAVE THE OPPORTUNITY TO RENEW THAT CONTRACT ON AN ANNUAL BASIS, BUT YOU'RE GONNA HEAR FROM PAUL MORE FREQUENTLY ON THOSE, ON THOSE POINTS TWICE A YEAR.
IS THAT RIGHT? THAT'S CORRECT, YES, SIR.
SO, I, I, I'M PRETTY HAPPY WITH THAT.
UM, AND, AND TO THE, TO THE DOLLAR AMOUNT PART OF THAT, WE HAVE SOME CATCH UP TO DO IN, IN REAL DOLLARS.
WE'RE GIVING THE CHAMBER LESS THAN WE DID BEFORE.
AND, AND THAT'S WHAT WE'RE TRYING TO ACCOMPLISH HERE IS, IS A LITTLE BIT OF CATCH UP.
UM, THERE'S BEEN A LOT OF INFLATION, WAGES HAVE GROWN A LOT MORE OVER THE LAST FEW YEARS.
AND, UM, THAT'S WHY WE, FOR THE FIRST FEW YEARS OF THIS CONTRACT ARE TRYING TO GET UP TO THAT $600,000 AMOUNT AND THEN TIE IT BACK TO, UM, MERIT INCREASES AFTER THAT POINT, SO THAT IN, IN REAL DOLLARS.
UM, WE'VE, WE'VE SHORTED THE CHAMBER OVER, OVER THE PAST FEW YEARS.
IT'S DEBATABLE, BUT WE'RE NOT HERE TO DEBATE.
THANK YOU, MAYOR, FOR YOUR TIME.
THANK, THANKS EACH OF YOU FOR THE INFORMATION.
AND PAUL, YOU TOUCHED ON IT BRIEFLY, BUT I WANTED TO ASK ABOUT THIS, THAT FROM OUR STRATEGIC ECONOMIC DEVELOPMENT STRATEGIC PLAN SAID WE NEED TO CLARIFY AND DELINEATE THE ROLES OF THE CHAMBER AND OF THE CITY.
AND IN THIS PRESENTATION ON ONE OF THE ITEMS UNDER THE COLUMNS OF THE CHAMBER'S RESPONSIBILITY WITH SMALL BUSINESS DEVELOPMENT, AND THEN FROM OUR TIF ONE PRESENTATION, LAST WORK SESSION, IT HAD SEVERAL SLIDES ON SMALL BUSINESS GENERAL SUPPORT AND SMALL BUSINESS DEVELOPMENT PROGRAM THAT THEY'RE, WE'RE GONNA PUT MILLIONS OF DOLLARS INTO AS WELL.
CAN YOU HELP CLARIFY THOSE? AND I JUST WANNA MAKE SURE WE'RE NOT, I READ YOU DOUBLING OUR EFFORT THERE.
I READ YOUR COMMENTS AND SO I APPRECIATE THAT.
AND AS, AS I'M DEFINING OR AS I'M UNDERSTANDING ABOUT TIFF, IT'S REALLY FOCUSED IN THE TIFF AREAS.
YOU KNOW, YOU SPEND TIFF DOLLARS FOR TIFF AND THOSE, AND REALLY THAT'S A LOT OF DOWNTOWN MM-HMM.
AND SO OUR, OUR SCOPE IS, IS CITYWIDE.
AND, UH, WHEN YOU START TALKING ABOUT SMALL BUSINESS, UH, I THINK THE CITY AND, AND I DON'T KNOW THE SPECIFICS OF THE TIFF TIFF, WHAT, WHAT THAT'S GONNA LOOK LIKE, BUT A LOT IN PAST IT'S LOOKED LIKE, YOU KNOW, INFRASTRUCTURE, YOU KNOW, FACADE IMPROVEMENTS AND THE, AND EVENTS AND THINGS LIKE THAT, THAT OURS IS MUCH MORE TACTICAL.
IT'S MUCH MORE GETTING WITH THE BUSINESS AND SEEING WHERE THEY, WHERE THEY ARE.
YOU KNOW, UH, KERRY HOON AND INTRINSIC, YOU KNOW, WE WORKED WITH HIM FOR FIVE YEARS WITH, WITH, WITH SBDC BEFORE HE EVER OPENED HIS DOORS, YOU KNOW, AND SO THOSE KINDS OF THINGS.
AND SO THAT OUR, OUR, OUR JOB IS REALLY ABOUT THE EDUCATION PIECE, THE EXPOSURE PIECE, YOU KNOW, THE, THE, THE CONNECTING PIECE.
AND SO, UH, AND ONE OF THE QUESTIONS I THINK BJ WAS TALKING ABOUT, AND WHAT WILL GO ON BESIDES OUR MEETINGS WITH COUNCIL IS, IS REGULAR MEETINGS WITH, WITH CITY STAFF, YOU KNOW, AND WE STARTED THAT COVID
[00:30:01]
KIND OF MESSED IT UP AND, AND THIS WHOLE PROCESS, BUT, BUT COMMUNICATION.SO WE ACTUALLY KNOW WHAT, WHAT THE TIF PROGRAM IS.
SO THERE WON'T BE ANY OVERLAP.
UH, SMALL BUSINESS, IF YOU WORK WITH IT, IT'S, IT'S A HUMONGOUS, BECAUSE WHAT DO YOU DEFINE SMALL BUSINESS? IS IT A STARTUP WITH TWO PEOPLE? IS IT, IS IT MARK KING WITH, WITH A HUNDRED PEOPLE WHO THE GOV GOVERNMENT CONSIDERS? THAT'S A SMALL BUSINESS.
UH, AND WE WORK WITH ALL THOSE FOLKS IN BETWEEN.
SO, UH, ONE THING YOU SAID IS CONCERNING ME, YOU SAID THERE WON'T BE ANY OVERLAP.
THEN MY QUESTION THEN TO STAFF IS, SHOULD WE TURN OVER THESE RESPONSIBILITIES FOR PROMOTING THOSE BOUND DOWNTOWN DISTRICTS, DOWNTOWN SMALL BUSINESS TO THE CHAMBER? THEY SEEM LIKE THEY'RE THE EXPERTS.
WE WON'T HAVE TO RECREATE ALL THIS INFRASTRUCTURE THEY ALREADY HAVE IN ALL THESE CONTACTS.
AND THEN SECONDLY, SHOULD SOME OF THAT TIF FUNDING GO TO SUPPORT THE CHAMBER IN THEIR ROLE TO SUPPORT SMALL BUSINESS? IF I DON'T, AGAIN, DON'T WANNA DOUBLE UP EFFORTS, IF, UH, THE CHAMBER'S DOING THAT, I THINK THERE'S A CLEAR DELINEATION IN, IN TERMS OF WHAT WILL HISTORY, YOU KNOW, BECAUSE THE INFRASTRUCTURE AROUND, ESPECIALLY IF YOU'RE USING TIF DOLLARS FOR, FOR TIP PROJECTS, IT'S REALLY CONFINED THAT WAY.
UH, I THINK JUST WORKING WITH THESE FOLKS, I'VE WORKED WITH THE ACO FOR ABOUT 20 YEARS, UH, AND, AND, AND WITH THE STAFF FOR THE WHOLE 28 YEARS THAT WE'VE HAD THIS CONTRACT.
SO I FEEL COMFORTABLE THAT WE, WE WILL COMPLIMENT, NOT, NOT CONFLICT, UH, AND IN TERMS OF THE FUNDING, Y'ALL WORKED THAT OUT.
BUT I MEAN, TO, TO CITY MANAGERS COMMENT ABOUT, ABOUT WHERE THE FUNDING IS AND BEING ADEQUATE TO DO THOSE KINDS OF JOBS.
AND SO, UH, I WOULD BE, UH, WRONG TO TAKE ON THINGS THAT ARE OUR, OUR STRENGTH IS RELATIONSHIPS AND BUILDING THOSE KINDS OF THINGS.
WHEN YOU START GETTING INTO PROGRAMS LIKE FACADE AND, AND THOSE KINDS OF THINGS.
THAT'S, THAT'S A WHOLE DIFFERENT ANIMAL.
AND, AND Y'ALL ARE MUCH BETTER.
THAT'S A COMPLETELY SEPARATE PART OF TIFF.
I'M TALKING ABOUT THE PROGRAMS THAT WE'RE TRYING TO RUN OUTTA THE TIFF, NOT JUST THE FACADE FIRM, BUT THE SMALL BUSINESS DEVELOPMENT PROGRAM THAT, THAT WE HAVE.
AND AGAIN, I'M NOT, I'M NOT PRIVY TO WHAT, WHAT THAT LOOKS LIKE, BUT TRUST US THAT, WE'LL, WE'LL FIGURE THAT OUT.
I WOULD ANTICIPATE THAT WE'RE GONNA, WE ALSO COORDINATE QUARTERLY MEETINGS SO THAT WE CAN COMMUNICATE, UM, GOALS OF EACH OTHER'S PROGRAMS. I WOULD IMAGINE THAT WE'RE GONNA CONTINUE TO COORDINATE THAT THEY'RE COMPLIMENTARY AND NOT CONTRADICTORY.
'CAUSE UH, AS PAUL SAID THAT A LOT OF TIMES WHAT THEY'LL FOCUS ON IS GONNA BE, UM, UM, HELPING WITH MARKETING, HELPING WITH, UH, THEY'VE GOT A LOT OF BILINGUAL NEEDS.
THEY'VE GOT A LOT OF TECHNOLOGY NEEDS.
THEY'VE GOT, UH, NEEDS FOR ACCESSING, UH, FINANCIAL RESOURCES AND THINGS LIKE THAT.
SO OUR PROGRAMS ARE NOT LIKELY TO DO THOSE SAME TYPES OF THINGS.
OURS ARE GONNA BE A LITTLE MORE TARGETED BLOCK TO BLOCK BUSINESS TO BUSINESS, MAYBE, YOU KNOW, PHYSICAL IMPROVEMENTS AND THINGS LIKE THAT.
SO, WE'LL, WE'LL, WE'LL CONTINUE TO COORDINATE THOSE EFFORTS.
UM, PAUL, I JUST WANTED TO SAY I'M, I AM REALLY EXCITED ABOUT THE FULL-TIME SMALL BUSINESS EMPLOYEE COMING ON BOARD AND THE ADDITIONAL EMPHASIS ON SMALL BUSINESSES.
UM, THIS IS SOMETHING I HAVE HEARD PEOPLE ASK FOR AND MENTION AND COMMENT ON LITERALLY FOR YEARS.
SO I AM REALLY EXCITED ABOUT THIS.
I'M EXCITED ABOUT MOVING FORWARD WITH THAT.
AND, UH, AND YEAH, SMALL BUSINESS IS, UH, IT'S A LOT MORE, UH, UNWIELDY TO DEAL WITH.
UM, IT MOVES AROUND A LOT AND THERE'S A LOT OF PIECES.
SO, UM, YEAH, I, I COMPLETELY SEE US BEING VERY COMPLIMENTARY IN US WORKING TOGETHER ON THESE THINGS.
BUT, UM, I AM REALLY EXCITED ABOUT MOVING FORWARD WITH MORE EMPHASIS ON SMALL BUSINESS, AS ARE WE, YOU KNOW, COMPLIMENTARY AND COLLABORATIVE.
I MEAN, THIS IS TALKING TOGETHER, AND WE ALWAYS HAVE, BUT THIS GIVES US CONTRACTUALLY A FRAMEWORK TO DO THAT.
ANY FURTHER QUESTIONS ON THIS ITEM? OH, HANG ON.
I JUST KIND OF WANNA STATE MY FEELINGS.
UM,
AND WHERE I SEE THE, UM, THE DELINEATION BETWEEN WHAT THE CHAMBER DOES AND WHAT THE CITY DOES IS THE CHAMBER FOCUSES MORE ON THE SOFTER, SOFTER SIDE OF THINGS.
UM, THE RELATIONSHIP BUILDING, THE SKILLS BUILDING, THOSE KIND OF THINGS.
AND THE CITY FOCUSES MORE ON THE, THE HARD THINGS, THE TANGIBLE THINGS.
SO THAT'S WHERE I SEE THE LINE.
AND I HAVEN'T SEEN THE TWO, UM, CROSSING, BUTTING HEADS AT ALL.
IT'S REALLY WHAT I SEE AS A COLLABORATIVE EFFORT.
SO, UM, I REALLY, AND I HAVE BEEN A MEMBER OF CHAMBERS IN PROBABLY EIGHT DIFFERENT CITIES.
UM, AND I CAN TELL YOU THE HANDS DOWN BY FAR, THE, THE ONE WE HAVE HERE IN GARLAND IS, IS THE BEST.
UM, LIKE NOTHING I'VE SEEN BEFORE.
SO, YOU KNOW, I, I APPRECIATE THE RELATIONSHIP THAT THE CHAMBER HAS WITH ITS MEMBERS AND
[00:35:01]
THE, UH, EFFORTS THEY PUT INTO MAINTAINING THOSE RELATIONSHIPS.AND I APPRECIATE THE RELATIONSHIP THE CHAMBER HAS WITH THE CITY, AND AGAIN, THE EFFORT THEY PUT INTO, UH, MAINTAINING THAT RELATIONSHIP.
AND WITH THAT, WE WILL ACTUALLY MOVE INTO OUR VERBAL BRIEFINGS,
[4.a. Discuss and consider expanding the boundaries of the Downtown | Forest Jupiter TIF(TIF#1) and extending]
DO WE NEED ANOTHER CHAIR? I'LL, I'M GOING TO SIT DOWN AFTER MY BRIEF INTRODUCTION, AND THEN IT'LL BE BRIEF.
YOU SEEM VERY SKEPTICAL, MAYOR.
BEEN DOING THIS A WHILE,
UM, IT OCCURRED TO ME AFTER THE LAST TIME I SPOKE ON THIS TOPIC, UM, THAT I SPOKE MAYBE 60 SECONDS.
AND I RECEIVED MORE FEEDBACK ON THAT SIX, ON THAT 60 SECONDS ON THIS PARTICULAR TOPIC THAN I HAVE IN YEARS AND YEARS AND YEARS ON ANYTHING.
AND IT WAS FROM Y'ALL, IT WAS FROM FORMER COUNCIL MEMBERS, IT WAS FROM BOARD APPOINTEES, AND ALL OF THEM HAD THE SAME THING TO SAY.
WE JUST DIDN'T KNOW HOW THAT TIFF RELATIONSHIP WORKED OUT.
SO IT OCCURRED TO ME TONIGHT THAT IT MIGHT BE BEST IF I TAKE Y'ALL THROUGH A QUICK COUPLE OF PROVISIONS IN THE STATUTE TO KIND OF DEMONSTRATE WHAT WAS CONTEMPLATED BY THE LEGISLATURE WHEN THEY CREATED CHAPTER THREE 11 OF THE TAX CODE.
SO I'M JUST GONNA WALK Y'ALL RIGHT THROUGH THAT REAL QUICK AND THEN SHOW Y'ALL HOW THE STATUTE, UM, UM, THE ANALYSIS I HAD IN GOING THROUGH THE STATUTE AND HOW IT BREAKS UP THE DIFFERENT RESPONSIBILITIES BETWEEN THE COUNCIL AND THE TIF BOARD.
UH, THE FIRST SECTION I WANT TO DRAW A FOCUS ON, AND, AND PLEASE INTERRUPT ME AT ANY TIME, OF COURSE, UM, I KNOW Y'ALL, UM, USUALLY AREN'T HESITANT TO DO SO, SO
IT'S THE POWER OF THE CITY, IT'S POWER OF MUNICIPALITIES, AND IT SAYS THAT A CITY CAN EXERCISE ANY POWER NECESSARY AND CONVENIENT TO CARRY OUT THIS CHAPTER, INCLUDING THE POWER TO, AND THE RELEVANT PROVISION HERE IS CAUSE PROJECT PLANS TO BE PREPARED.
THAT IS DELEGATE THAT TO THE WHAT WE, WHAT WE WILL COME TO SEE THE TIF BOARD, APPROVE AND IMPLEMENT THOSE PLANS AND OTHERWISE ACHIEVE THE PURPOSES OF THE PLAN.
AND THAT'S GONNA BE THE ADMINISTRATION OF THE PLAN.
UM, AND THEN THE NEXT, UM, RELEVANT PROVISION IS, UM, 0.010, AND THAT'S THE POWERS AND DUTIES OF THE BOARD.
AND WHAT THE BOARD IS BEING CHARGED WITH IS, UM, THE BOARD OF DIRECTORS OF A REINVESTMENT ZONE SHALL MAKE RECOMMENDATIONS TO THE GOVERNING BODY OF THE MUNICIPALITY OR COUNTY THAT CREATED THE ZONE.
THIS IS IMP IMPORTANT LANGUAGE CONCERNING THE ADMINISTRATION OF THIS CHAPTER IN THE ZONE.
OKAY? AND WE WILL TALK ABOUT THAT ADMINISTRATION HERE IN A LITTLE BIT.
IT'S, IT KIND OF RELATES BACK UP TO THE PREVIOUS PROVISION I READ ABOUT ACHIEVING THE PURPOSES OF THE PLAN AND IMPLEMENTING THE PLANS.
IT'S THIS IDEA OF MINISTERING THE, UM, UM, ZONE.
SO THERE'S THIS DISTINCTION ALREADY WE'RE STARTING TO SEE IN LAW BETWEEN ADMINISTRATION AND CREATING AND CREATING THE PLAN.
AND SO YOU GO TO THE NEXT SECTION, 0.011 A, IT TALKS ABOUT PROJECT AND FINANCING PLANS, AND WHO HAS RESPONSIBILITY OF CREATING THOSE AND ADOPTING THOSE.
AND IT'S THE BOARD OF DIRECTORS OF THE REINVESTMENT ZONE SHALL PREPARE AND ADOPT A PROJECT PLAN AND A REINVESTMENT ZONE FINANCING PLAN FOR THE ZONE, AND THEN SUBMIT THE PLANS TO THE GOVERNING BODY OF THE MUNICIPALITY OR COUNTY THAT DESIGNATED THE ZONE.
AND SO HERE, THE CHAPTER THREE 11 GIVES THAT AUTHORITY TO THE BOARD OF DIRECTORS.
AND THEN IN SUBSECTION D IT SAYS, THE GOVERNING BODY, WHICH IS YOU GUYS THAT DESIGNATED THE ZONE, MUST APPROVE A PROJECT PLAN OR A REINVESTMENT ZONE, FINDING SOME PLAN AFTER ITS ADOPTION BY THE BOARD.
NOW, THERE IS SOME AMBIGUITY IN THAT LANGUAGE, WHAT THAT MEANS.
DOES THE MUST APPROVE MEAN THAT ONCE THEY APPROVE THE, ONCE THEY CREATE THE PLAN AND THEY PROPOSE IT TO Y'ALL, Y'ALL HAVE AN OBLIGATION TO APPROVE IT? OR DOES IT MEAN THAT BEFORE IT BECOMES FINALIZED, IT HAS TO BE APPROVED? THERE'S SOME AMBIGUITY THERE AND THERE'S NO CASE LAW ON POINT TO HELP CLEAR THAT AMBIGUITY UP FOR US.
BUT WE CAN GO DOWN TO SUBSECTION E AND IT'LL HELP, I THINK, CLEAR IT UP A LITTLE BIT.
UM, UM, THE APPROVAL MUST BE DONE BY ORDINANCE IN THE CASE OF MUNICIPALITY BY ORDER IN THE CASE OF THE COUNTY THAT FINDS THE PLAN IS FEASIBLE.
SO Y'ALL'S OBLIGATION IS TO LOOK AT THE PLAN.
IF Y'ALL DETERMINED THAT THE PLAN IS FEASIBLE, THERE'S NO DEFINITION OF WHAT THAT MEANS, UM, THEN, UM, Y'ALL
[00:40:01]
MUST APPROVE THE PLAN, GET TO SUBSECTION E AND IT SAYS, THE BOARD OF DIRECTORS OF THE ZONE AT ANY TIME MAY ADOPT AN AMENDMENT TO THE PROJECT PLAN CONSISTENT WITH THE REQUIREMENTS AND LIMITATIONS OF THIS CHAPTER.BUT THE AMENDMENT TAKES EFFECT ON APPROVAL BY THE GOVERNING BODY OF THE MUNICIPALITY OR COUNTY THAT CREATED THE ZONE.
SO THAT SEEMS TO INDICATE THAT, UM, THE APPROVAL'S NOT REQUIRED BY THE COUNCIL, BUT IT'S, IT JUST WON'T BE EFFECTIVE UNTIL IT IS.
AND WE'RE GONNA TALK ABOUT HOW WE'RE APPLYING THESE TO REAL LIFE HERE IN A FEW SECONDS.
THE APPROVAL MUST BE BY ORDINANCE, WHICH WE WILL DO IN THE CASE OF MUNICIPALITY OR BY ORDER IN THE CASE OF A COUNTY.
AND THEN IT TALKS ABOUT IF THE AMENDMENT REDUCES OR INCREASES THE GEOGRAPHIC AREA OF THE ZONE.
THE APPROVAL MUST BE BY ORDINANCE, UM, UM, AS APPLICABLE AND ADOPTED AFTER A PUBLIC HEARING THAT SATISFIED THE PROCEDURAL REQUIREMENTS OF SUBSECTION OH OH THREE C AND D.
AND THEN THERE'S A, A SPECIFIC SECTION THAT TALKS ABOUT CHANGING BOUNDARIES, AND THAT'S WHAT WE'RE HERE TO TALK ABOUT TONIGHT AND ALSO THE TERM.
AND, UM, IT SAYS THAT SUBJECT TO THE LIMITATIONS PROVIDED BY 0.006, THE BOUNDARIES OF AN EXISTING REINVESTMENT ZONE MAY BE REDUCED OR ENLARGED BY ORDINANCE OR RESOLUTION OF THE GOVERNING BODY OF THE MUNICIPALITY.
SO IT SEEMS TO GRANT COUNSEL THE ABILITY TO DO THAT UNILATERALLY.
UM, AND THEN SUBSECTION C, THE GOVERNING BODY OF THE MUNICIPALITY OR COUNTY THAT DESIGNATED A REINVESTMENT ZONE BY ORDINANCE MAY EXTEND THE TERM OF ALL OR PORTION OF THE ZONE AFTER NOTICE AND A HEARING IN THE MANNER PROVIDED FOR THE DESIGNATION IN THE ZONE.
AND SO THIS IS THE APPLICATION OF ALL THAT THAT I JUST READ.
THESE ARE THE ROLES THAT THE, THAT CHAPTER THREE 11 GIVES TO THE CITY COUNCIL.
YOU CREATE THE ZONE BY ORDINANCE.
YOU APPOINT MEMBERS OF THE BOARD THEIR TWO YEAR TERMS BY STATE LAW.
AND THEN THE COUNCIL APPROVES PROJECT PLANS AND FINANCING PLANS, AND THEN Y'ALL ADMINISTER THE PLAN.
Y'ALL SET UP GUIDELINES AND SET POLICIES TO ADMINISTER THE PLAN, AND THEN Y'ALL CAN CHANGE BOUNDARIES AND EXTEND THE TERM UNILATERALLY.
THE ROLE OF THE BOARD IS MAKE RECOMMENDATIONS CONCERNING ADMINISTRATION OF THE ZONE, PREPARE AND ADOPT PROJECT AND FINANCE PLANS, AND MAKE AMENDMENTS TO THE PLAN.
UM, AND THEN IN SUMMARY, I THINK WHAT BEST DESCRIBES CHAPTER THREE 11, IT CONTEMPLATES THAT ONCE THE COUNCIL CREATES A TIF ZONE AND APPOINTS A BOARD, THERE'S THIS SYMBIOTIC RELATIONSHIP.
ONE CAN'T WORK WITHOUT THE OTHER.
THE COUNCIL CAN'T CREATE PLANS, CAN'T IMPLEMENT PLANS UNLESS THE BOARD CREATES THE PLAN AND PRESENTS IT TO Y'ALL.
CHAPTER THREE 11 DOES NOT GRANT THE COUNCIL THE AUTHORITY TO CREATE ANY PLANS.
IN FACT, IT'S CLEARLY THE OTHER WAY AROUND, HOWEVER, SO WHERE'S THE AUTHORITY OF THE COUNCIL COME IN? IT COMES IN PRETTY SUBSTANTIALLY.
Y'ALL HAVE TO MAINTAIN THE POWER OF APPOINTMENT, WHO SITS ON THE BOARD WHAT THE COMPOSITION OF THE BOARD LOOKS LIKE, AND A PURSE, BOTH THE ADMINISTRATION AND THE BUDGET.
SO EACH YEAR, IF THEY PRESENT, IF THE BOARD PRESENTS A PLAN TO YOU GUYS AND Y'ALL DON'T LOCK IT, THEN THEY, THEY DON'T HAVE MONEY TO IMPLEMENT THE PLAN.
UM, AND OF COURSE, Y'ALL ALSO HAVE THE UNILATERAL AUTHORITY TO EXPAND OR REDUCE THE TIFF AREA AND EXTEND THE TERM.
AND Y'ALL DON'T NEED TO HAVE PERMISSION FROM THE BOARD.
I'M NOT SAYING YOU SHOULDN'T GET IT, I'M SAYING BY LAW YOU DON'T HAVE TO HAVE PERMISSION OF, UH, FROM THE BOARD TO EXPAND THE TIFF AREA, UM, BECAUSE OF THE WAY THIS PARTICULAR TIFF WAS SET UP ORIGINALLY.
ANY QUESTIONS? DEPUTY MAYOR PRO TEM MOORE.
SO OFTEN WHEN I'M SITTING AND LISTENING TO THESE TYPES OF DISCUSSIONS, ESPECIALLY AS IT RELATES TO LAW, IT SOUND LIKE SUCH A PLAY ON WORDS, SUCH A PLAY ON INTERPRETATION, SUCH A PLAY
I KEEP SEEING THE WORDS, UH, RECOMMEND PRETTY MUCH THE WAY THAT I SEE MOST BOARDS THAT, UH, SERVE THE COUNCIL.
AND THEN WHEN YOU COME TO SAYING THAT IT IS THE TIFF THAT SETS, ESTABLISHES, AND THEN WE HAVE TO ABIDE BY WHAT THEY SAY ARE, I'M STILL NOT GETTING THAT.
IT'S JUST NOT, IT'S JUST NOT, IT SEEMS TO ME THAT YES, WE DO HAVE THIS SYMBIOTIC RELATIONSHIP WITH THEM, AND WE, I THINK THAT RELATIONSHIP IS QUITE OBVIOUS AND WE HAVE TO HAVE IT, BUT I STILL SEE THAT THIS BOARD IS NOT ESTABLISHING, NOT SETTING ANYTHING.
[00:45:01]
RECOMMENDING TO US AND IS OUR RESPONSIBILITY ONCE THEY RECOMMEND TO APPROVE OR NOT TO APPROVE.IS THAT WHAT YOU'RE SAYING? THAT'S NOT WHAT THE LAW SAYS.
I, I, I, I THINK I UNDERSTAND YOUR SENTIMENT.
WHAT THE LAW SAYS IS THAT THEY HAVE THE AUTHORITY UNDER CHAPTER THREE 11 TO CREATE THE PLAN AND THAT PRESENT THAT PLAN TO YOU, THE COUNSEL FOR APPROVAL.
AND THE PLAN DOESN'T GET IMPLEMENTED UNTIL Y'ALL APPROVE IT, BUT THEY CREATE THE PLAN.
IF THE COUNCIL HAS NO AUTHORITY TO CREATE A PLAN, THEY CAN ONLY VOTE ON WHAT'S PRESENTED TO THEM FROM THE TIF BOARD.
AND SO THAT'S THE IDEA OF THE SYMBIOTIC RELATIONSHIP COUNCIL CAN'T ACT WITHOUT THE BOARD, AND THE BOARD CERTAINLY CAN'T ACT WITHOUT COUNSEL.
BUT DID WE NOT AS A BOARD CREATE THE PARAMETERS BY WHICH TIFF THIS HAS BEEN ESTABLISHED? DID WE NOT SET THE STAGE FOR THEM IN THE WAY OF THIS IS WHAT WE ARE LOOKING FOR, THIS THIS IS WHAT WE WANT YOU TO LOOK AT.
IN OTHER WORDS, WE WE, DID WE NOT DO THAT BROADLY? YES.
UM, BUT NO MATTER WHAT POLICY THAT THE COUNCIL SETS, WHETHER BY ORDINANCE OR JUST BY POLICY, OR EVEN BY CHARTER, QUITE FRANKLY, UM, NO MATTER WHAT THAT MAY SAY, STATE LAW WILL ALWAYS CONTROL.
AND STATE LAW DEFINES THE PARAMETERS AS FAR AS, AS FAR AS ROLES GO BETWEEN WHAT THE RESPONSIBILITIES OF THE BOARD IS VERSUS THE RESPONSIBILITIES OF COUNCIL.
AND THAT'S NOT SOMETHING THAT WE CAN AMEND.
WELL, AND AND I AGREE WITH THAT, AND THAT'S WHAT I'M SAYING BASED ON WHAT I'M READING AND BASED ON WHAT YOU JUST WENT THROUGH, I SEE STATE LAW ACTUALLY GIVING US THE CREDENTIALS THAT YOU'RE SAYING WE DON'T HAVE, BUT YOU ARE THE INTERPRETER THERE.
SO, BUT I, I JUST WANTED TO CLARIFY FOR MYSELF, BUT I'M, I'M OKAY WITH IF IN FACT, YOU SIT THERE AND SAY TO ME THAT YOU AS COUNSEL
AND GUESS WHAT? ALL I NEED TO KNOW IS HOW THE GAME IS PLAYED.
AND THESE ARE REALLY THE, THE CRITICAL DOCUMENTS THAT THE TIF BOARD HAS BEEN, UM, CHARGED WITH ADOPTING OR PREPARING.
AND, AND IT'S CLEAR STATE LAW IS PRETTY CLEAR HERE.
THE BOARD OF DIRECTORS OF REINVESTMENT ZONE SHALL PREPARE AND ADOPT THE PROJECT PLAN AND A REINVESTMENT ZONING FINANCE PLAN FOR THE ZONE, AND THEN SUBMIT THOSE PLANS TO THE GOVERNING BODY OF THE MUNICIPALITY THAT DESIGNATED THE ZONE.
AND THEN SUB SUBSECTION D SAYS THAT THE CITY COUNCIL, THE GOVERNING BODY MUST APPROVE A PROJECT PLAN OR REINVESTMENT ZONE FINANCING PLAN AFTER IT'S ADOPTED BY THE BOARD.
SO NOWHERE IN THAT LANGUAGE IS THERE ANY LANGUAGE THAT SAYS THE COUNCIL IS TO, UH, UM, IMP UH, CREATE, PREPARE, AND ADOPT THE PLAN.
IT'S Y'ALL APPROVED THE PLAN THAT'S BEEN SUBMITTED TO Y'ALL BY THE BOARD, OKAY? AND I'M OKAY WITH THAT BECAUSE IN THE END, WE STILL HAVE THE POWER TO ABSOLUTELY ACCEPT OR TO NOT.
THAT'S WHAT I WANTED TO VERIFY TOO.
THAT PART D RIGHT THERE, THAT MUST IN THAT THREE 11, YES.
AND IF THE TIFF BOARD COMES TO US AND SAYS, WE WANT TO TEAR DOWN OUR NEWLY BUILT SQUARE AND BUILT TAJ MAHAL IN THE MIDDLE OF IT, WE DO NOT HAVE TO APPROVE THAT.
CORRECT? I, I, I BELIEVE THAT'S THE MOST REASONABLE WAY I LOOKED AT THAT LANGUAGE, AND I THOUGHT THAT'S A, THAT'S A PROBLEMATIC WORD.
BUT YOU KNOW, THE LEGISLATURE WRITES BAD STATUTE
AND IF YOU LOOK AT SUBSECTION E WHERE IT TALKS ABOUT THE AMENDMENT WON'T TAKE EFFECT UNTIL APPROVAL BY Y'ALL, I TAKE THAT TO MEAN ALSO THE ORIGINAL PLAN WOULDN'T TAKE EFFECT UNTIL Y'ALL APPROVE IT.
AND SO, YES, I AGREE THAT, UM, YOU, I DON'T THINK Y'ALL ARE MANDATED.
IN OTHER WORDS, I DON'T THINK THE BOARD COULD TAKE YOU TO A COURT AND THEN BY ORDER OF MANUS FROM THE COURT, UM, ORDER Y'ALL TO APPROVE THE PLAN.
I DON'T THINK THAT'S THE CASE AT ALL.
SO WE STILL GET UP OR DOWN, RIGHT? BUT THE PLAN IS AS PRESENTED FROM AS APPROVED BY THE BOARD, RIGHT? THAT'S CORRECT.
ANY ADDITIONAL QUESTIONS BEFORE WE MOVE ON? I SEE NONE.
SEE HOW FAST HE MOVES?
I'M JOSEPH SCHROEDER, THE CHAIR OF TIF BOARD NUMBER ONE, AND, UH, WITH THE COMMENTS OF LAST MEETING, I WILL TURN OVER OUR UPDATED AN EXPANSION OF THE TIFF, ALLOW MR. MATT TO EXPLAIN THE, THE UPDATES TO YOU.
AND I WILL REMAIN HERE FOR ANY ADDITIONAL QUESTIONS YOU HAVE.
NOW THAT BRIAN'S MADE EVERYTHING CLEAR AS MUD, I'LL GO OVER AND EXPLAIN A LITTLE BIT ABOUT HOW TIFF'S WORK AND, AND, AND THE FINANCING MECHANISMS ON HOW THE, THE, THE, THIS ACTUALLY GETS REVENUE.
[00:50:02]
SO TAXING REAL FINANCE, WHAT IS THAT REALLY ALLS IT IS, IS A FINANCING TOOL.IT'S A, IT'S AN A TOOL THAT WE HAVE IN OUR TOOLBOX OF ECONOMIC DEVELOPMENT TO DRIVE REVENUE TO A SURFACE CERTAIN GEOGRAPHIC AREA.
SO IF YOU LOOK AT THE DEFINITION OF FINANCING TOOL BY WHICH LOCAL GOVERNMENTS CAN FINANCE NEEDED IMPROVEMENTS OR ENHANCE SERVICES WITHIN A DEFINED AREA CALLED A REINVESTMENT ZONE.
AND HOW IT WORKS CAN BE SEEN IN THIS CHART.
SO IT, I'LL USE THE EXAMPLE OF THE DOWNTOWN FOREST JUPITER TIFF.
IT STARTED IN 2004, AND AT THAT TIME, VALUES IN THAT GEOGRAPHIC AREA WERE ABOUT 102 MILLION.
SO YOU SEE THAT BASE REAL PROPERTY VALUE.
SO IN 2004, THAT BECOMES YOUR BASE.
SO THAT $102 MILLION, WHATEVER TAX PROPERTY TAX REVENUES GENERATED OFF, THAT STAYS FOR GENERAL PURPOSES.
AND WHAT I MEAN FOR THAT GOES TO THE GENERAL FUND OR GOES TO THE DEBT SERVICE FUND BASED ON HOW COUNCIL APPROVES THE TAX RATE.
BUT OVER TIME, WHAT HAPPENS IS, IS ANY INCREASES IN THE VALUES OF THE PROPERTY THAT ARE WITHIN THAT GEOGRAPHIC ZONE GOES TO THE TIFF FUND.
SO FOR THE DOWNTOWN TIFF, LIKE I SAID, THE BASE VALUE YEAR WAS 102 MILLION.
IT HAS CAPTURED 222 MILLION OF INCREASE PROPERTY GROWTH, EITHER THROUGH NEW CONSTRUCTION SUCH AS THE FIFTH STREET CROSSING, OR, UH, THE, THE APARTMENT COMPLEX OFF EDGEWOOD THAT'S IN THE FOREST JUPITER AREA.
ALL THAT COMES IN TO BE USED FOR REVITALIZATION WITHIN THAT ZONE.
AND I, I WANTED ALSO THE, THE LITTLE SQUARE BOX SHOWS THE SIMPLE CALCULATION ON HOW THIS IS DETERMINED.
SO YOU HAVE YOUR CAPPER CAPTURED ASSESS VALUE, WHICH I SAID WAS 222 MILLION, DIVIDED BY 100 TIMES.
THE TAX RATE IS, YOU KNOW, OUR TAX RATE RIGHT NOW IS ABOUT 68 CENTS TIMES THE CAPTURED PERCENTAGE.
AND WHAT THAT MEANS IS, IS EACH GOVERNING ENTITY, EACH TAXING ENTITY CAN PLEDGE A CERTAIN PERCENTAGE OF THEIR TAX RATE.
WE HAVE ALWAYS PLEDGED A HUNDRED PERCENT, AND THAT'S WHAT'S BEEN PROPOSED TO CONTINUE FOR THE DOWNTOWN TIFF.
UH, WE ALSO HAVE DALLAS COUNTY PARTICIPATING AT 55% OF THEIR TAX RATE AND DALLAS COLLEGE AT 50% OF THEIR TAX RATE.
SO FROM, THAT'S HOW YOU GET YOUR INCREMENTAL REVENUE EACH YEAR FOR THIS FUND.
AND BRIAN DID A GOOD JOB OF GOING OVER THE RESPONSIBILITIES.
BUT THE, THE REAL, TO ME, THE REAL PRIMARY RESPONSIBILITY OF THE TIF BOARD IS THIS PROJECT AND FINANCING PLAN AND MAKING THAT RECOMMENDATION TO CITY COUNCIL AND CITY COUNCIL'S RESPONSIBILITY IS TO APPROVE THAT PROJECT PLAN.
BUT I ALSO WANT TO TOUCH ON A LITTLE BIT WHEN BRIAN WAS TALKING ABOUT Y'ALL HOLD THE PURSE EACH YEAR, THESE TIF FUNDS COME FORWARD IN THE OPERATING BUDGET FOR APPROVAL.
SO THAT IS WHERE Y'ALL CAN'T APPROVE OR DENY WHAT GETS EX SPENT OUT OF THIS TIF EACH YEAR.
SO THAT, THAT, THAT IS THE TIME AS WELL AS OUR CIP PROCESS.
WE'RE NOT GOING TO SPEND ANY MONEY WITHOUT GOING THROUGH THAT ANNUAL APPROPRIATION WITH CITY COUNCIL.
I WANT TO TALK A LITTLE BIT ABOUT THE TYPES OF TIFFS.
AND, AND ONE OF 'EM IS WHAT I CALL A PAY AS YOU USE.
AND WHAT YOU'RE TALKING ABOUT HERE IS MORE OF WHAT WE'RE WE SAW AT THE I 30 TIFF, AND THIS IS THE TYPICAL STRUCTURE OF A TIFF.
WHAT YOU'RE LOOKING TO DO AS A DEVELOPER HAS COME WITH A DEVELOPMENT AND HAS ASKED FOR SOME ASSISTANCE FROM THE CITY, AND YOU ESTABLISH A TIFF TO HELP THEM EITHER HELP THEM EITHER FINANCE THE PROJECT OR YOU FINANCE SOME PUBLIC INFRASTRUCTURE AROUND THAT PROJECT TO HELP THEIR BOTTOM LINE.
BUT AS THEY BUILD, THAT INCREMENT COMES IN TO THE TIF TO BE USED TO SERVICE EITHER THAT DEBT OR PAY THE DEVELOPER THAT THAT ECONOMIC DEVELOPMENT INCENTIVE.
SO THIS IS SIMILAR TO HOW THE BASS PRO IS STRUCTURED, AND THIS IS THE MOST COMMON WAY TIFFS ARE SET UP.
YOU CAN ALSO SET 'EM UP AS A PAY AS YOU GO.
AND THIS IS HOW DOWNTOWN IS SET UP.
PAY AS YOU GO MEANS AS YOU GET THE MONEY, AS YOU GET THE CASH, YOU ESTABLISH PROJECTS THAT GO THROUGH THE PROJECT AND FINANCE PLAN PROCESS AND THEN THROUGH THE ANNUAL OPERATING BUDGET PROCESS TO GET THOSE PROJECTS ACCOMPLISHED.
THIS IS A LITTLE BIT SLOWER OF A PROCESS, BUT OVER TIME WHAT YOU'RE DOING IS, IS MUCH MORE, MUCH LESS RISK BECAUSE YOU'RE NOT, YOU'RE NOT BANKING ON A DEVELOPER DOING ALL THIS DEVELOPMENT.
I WANT TO TALK A LITTLE BIT ALSO ABOUT HOW THE TIFF HAS PERFORMED.
SO, LIKE I SAID, THIS TIFF WAS STARTED IN 2004, AND WHAT THIS GRAPH IS SHOWING IS THE CUMULATIVE INCREASE IN THE VALUATION IN MILLION IN MILLIONS OF DOLLARS OVER THE LAST
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19 YEARS.AND YOU'LL SEE IN 2008, THAT IS WHEN THE GREAT RECESSION HAPPENED, THE TIFF ACTUALLY LOST VALUE.
SO JUST AS YOU GAIN VALUE, A TIFF CAN LOSE VALUE IF, IF PROPERTY VALUES GO START MOVING THE WRONG DIRECTION.
SO IT REALLY WASN'T UNTIL ABOUT 2018 THAT THIS TIFF REALLY TOOK OFF.
SO YOU SEE IN THE FIRST 14 YEARS, IT ACCUMULATED ABOUT 98 MILLION OF NEW VALUE IN THE AREA.
AND SINCE 2018, IT'S GOT 124 MILLION OF NEW VALUE, WHICH IS THE WORK OF THE, YOU KNOW, THE FIFTH STREET CROSSINGS COMING ONLINE, ALL THE IMPROVEMENTS, THE BANK OF AMERICA BUILDING THAT WAS RE REDONE.
SO THAT'S ALL THAT COMING ONLINE AND THE ECONOMY JUST STARTING TO BOOM AGAIN.
SO WHAT HAVE WE SPENT THIS MONEY ON? SO SINCE 2004, THE TIFF HAS GOT ABOUT $13.3 MILLION OF ACTUAL REAL REVENUE.
AND IT KIND OF ALL STARTED WITH THE OAKS.
FIFTH STREET CROSSING WAS PRETTY MUCH THE FIRST PROJECT THAT CAME OUT AS, AS WELL AS THE CITY CENTER DEVELOPMENT.
WE'VE ALSO, OVER TIME, THROUGH THE ANNUAL OPERATING BUDGET, ESTABLISHED THE DOWNTOWN DEVELOPMENT OFFICE, WHICH IS LETICIA'S OFFICE AND ALL OF THE ENHANCED PROGRAMMING THAT GOES ON WITH THAT, WHICH IS THE MANAGED DISTRICT SERVICES.
WE STARTED A FACADE IMPROVEMENT PROGRAM TO ASSIST, UH, DOWNTOWN AREA HISTORICAL BUILDINGS TO, TO HELP REVAMP THE FACADES OF THOSE BUILDINGS.