[00:00:01]
MY CHAIR WHENEVER YOU'RE READY.
IT'S, UH, 6 32 AND WE'LL, UH, WE'LL START THE MEETING AT THIS TIME.
WOULD YOU LIKE TO GO THROUGH THE FIRST ITEM AND GO THROUGH THAT AND WE'LL MOVE FORWARD, APPROVE THE MINUTES.
ANY QUESTIONS ABOUT THOSE? ANY CHANGES? NOT FROM ME.
WE, WE DO NEED TO HAVE A CHANGE.
OH, WHY DON'T YOU CHANGE MY, UH, YOUR NAME'S ON HERE, UH, FOR OH PERSON THAT WE'RE RUNNING THE MEETING.
SO MIKE LANDERS AND SHE SAYS SHE'S GONNA FIX THAT IN THE RECORD.
IS THAT BEFORE I CAME? IS THAT HOW THAT YEAH.
YOU WEREN'T HERE AT THE LAST YEAH, I WAS TRAVELING OUT OF THE COUNTRY.
THAT'S THE REASON I COULDN'T BE HERE.
JUST BECAUSE HE WAS HERE SITTING FOR THE APPROVAL.
THAT'S THE ONLY CHANGE THAT NEEDS TO BE MADE.
ANYTHING ELSE? UH, ALL IN FAVOR OF APPROVAL OF THE MINUTES? SAY AYE.
WHO OPPOSED PASSES UNANIMOUSLY THEN? YEAH.
THE SECOND WE NEED, JUST NEED TO OPEN IT UP FOR PUBLIC COMMENT IF ANYONE'S HERE THAT WANTS TO COMMENT, BUT WE DON'T HAVE ANY SPEAKER CARDS.
SO WE CAN OPEN IT UP FOR, SO NO ONE FOR PUBLIC COMMENTS.
WE'LL MOVE ON TO THE NEXT ITEM.
MR. CHAIRMAN, IF YOU WILL, I WOULD LIKE TO, UM, SWITCH THREE A AND THREE B IF WE DON'T MIND.
UH, I WOULD LIKE TO LISTEN TO AND MAKE A DECISION ON THE EXTENSION OF THE, OF THE, UH, TERMINATION DATE BASED ON THE PROPOSALS THAT ARE GONNA BE DISCUSSED IN B.
IT'S PROBABLY A GOOD SUGGESTION.
DOES ANYONE HAVE A PROBLEM WITH THAT? I HAVE A QUESTION SWITCH.
YOU ALL HAVE AN OUTLINE, WAS THERE A PARTICULAR REASON WHY YOU HAD AN OUTLINE THAT WAY? WHERE IT MAKE MORE ASSIST TO DO IT THAT WAY OR DOES IT NOT MATTER? HONESTLY, WHAT WE WILL PROBABLY DO IS LET DAVID JUST RUN THROUGH HIS ENTIRE PRESENTATION SO YOU CAN GET ALL OF THE DETAIL IF Y'ALL ARE OKAY WITH THAT, OF EVERYTHING THAT HE'S GOING TO BE PROPOSING, UH, FOR THIS AMENDMENT.
AND THEN WE CAN COME BACK TO ANY ACTION ITEMS AFTER THAT IF THAT'LL WORK.
SO THAT WAY YOU CAN GET ALL THE CONTEXT, WE CAN ANSWER ALL THE QUESTIONS AND WE'LL JUST KNOCK IT ALL, ALL AT ONCE.
TO ANSWER YOUR QUESTION, THERE'S NO RHYME OR REASON, MATTHEW, YOU PUT THAT TOGETHER AND I SAID THAT'LL WORK.
IT COULD BE IN A DIFFERENT ORDER.
SO I DO HAVE ALSO WOULD LIKE TO REVISIT A PROPOSITION, THE PROPOSAL THAT WAS MADE LAST MEETING AS WELL.
SO WHY DON DON'T YOU GO THROUGH THE PRESENTATION AND THEN WE WILL COME BACK AND ADDRESS THAT ISSUE IF YOU'D LIKE TO.
ANY OTHER QUESTIONS BEFORE WE MOVE ON? WHAT, WHAT IS YOUR NAME? I WAS GONNA INTER I'LL INTRODUCE EVERYONE.
IF YOU DON'T WANT, DON'T MIND.
I'LL QUICKLY INTRODUCE MYSELF AGAIN.
I'M THE CFO FOR THE CITY OF GARLAND.
UH, I'M TYPICALLY INVOLVED IN MOST OF THE TIFFS.
WE HAVE ENGAGED MR. DAVID PETIT TO HELP WITH THIS TIFF MAINLY BECAUSE IT'S A FAIRLY OLD TIFF, UM, WHICH, UH, PROBABLY NEEDS SOME REWORK.
AND, UH, HE'S, UH, SOMEONE THAT WORKS WITH A LOT OF CITIES.
YOU MAY HEARD HIM TALKING BACK THAT HE'S WORKING WITH 30 PLUS CITIES NOW, BUT DAVID PETIT'S, UH, JUST KIND OF A GUY YOU CALL WHEN YOU NEED HELP WITH ECONOMIC DEVELOPMENT ISSUES OR YOU NEED HELP WITH TAX, INCREMENTAL FINANCING OR OTHER, UM, OUTSIDE THE BOX, UH, YOU KNOW, LEGAL TYPE ISSUES WHEN IT COMES TO, UM, UH, UH, FINANCING THAT, UH, TO GET, UH, CITY MOVING FORWARD.
SO WE'VE ENGAGED, I'M AN ATTORNEY.
STAY AT A HOLIDAY IN EXPRESS LAST NIGHT.
AND I SAY THAT I HAVE A PARTNER THAT'S ABOUT 10 YEARS YOUNGER THAN ME.
SHE GOES, WHY DO PEOPLE LAUGH AT THAT? AND, UM, SHE'S TOO YOUNG TO KNOW.
EVERYBODY REMEMBERS THOSE COMMERCIALLY, RIGHT?
YOU MIGHT BE A LITTLE TOO YOUNG TO REMEMBER THOSE
UM, SO THE, THE CITY HAS ASKED, UM, UM, US TO TAKE A LOOK AT, UM, THE, THE TIFF THAT'S COMING TO A CONCLUSION, UM, ON PAPER, UM, FROM THE ORIGINAL ORDINANCE FOR 20 YEARS.
UM, ALSO, I, I GUESS WE'RE REFER TO IT AS THE SOUTH BOARD TIFF.
UM, I, I WANNA REORIENT, UM, AND I KNOW WE HAVE SOME NEW MEMBERS HERE ABOUT WHAT A TIFF IS AND WHAT A TIFF ISN'T.
FIRST OF ALL, A TIFF IS NOT A NEW TAX.
UM, IT'S ESSENTIALLY YOU REDIRECT A PORTION OF THE TAXES GENERATED FROM NEW DEVELOPMENT AND NEW INCREMENT WITHIN, UH, A DESIGNATED ZONE.
SO WHEN THIS TIP WAS CREATED, THEY SET A BASE YEAR OF
[00:05:01]
2025.AND SO THIS REPRESENTS A 50 50 SPLIT, BUT ALL THE NEW INCREMENT GOES INTO A SPECIAL FUND AND IT PAYS FOR PUBLIC INFRASTRUCTURE.
AND IN 2005, IT CAN PAY FOR ECONOMIC DEVELOPMENT WITHIN THAT ZONE.
AND SO BASICALLY, A GOOD EXAMPLE WHY YOU WOULD DO A TIFF IS, UM, I, I LIVE IN FORT WORTH.
THE BASS FAMILY WAS THINKING ABOUT INVESTING IN DOWNTOWN AND THEY SAID, WHEN'S THE LAST TIME THE CITY SPENT BOND MONEY DOWNTOWN? AND THEY GO 1972.
AND THEY SAID, WELL, UM, WE HAVE $500 MILLION WORTH OF VALUE THAT WE PAY TAXES.
WHERE'S THAT MONEY GOING? AND IT'S GOING UP TO ALLIANCE, IT'S GOING DOWN SOUTH.
IF WE MAKE A BILLION DOLLARS WORTH OF INVESTMENT, HOW CAN WE MAKE SURE THAT THOSE TAXES ARE BEING REINVESTED IN OUR ZONE? THE TIFF IS THE PERFECT MECHANISM FOR THAT.
SO YOU DRAW BOUNDARIES FOR A TIFF TO CAPTURE INCREMENT AND ALSO TO SPEND INCREMENT.
SO THOSE ARE THE TWO KEY COMPONENTS WITH A, WITH A TIFF.
SO I WANNA MAKE CLEAR, I DID THIS A COUPLE NIGHTS AGO AND A GENTLEMAN GOES, WELL, SO WHY WOULD SOMEBODY MOVE HERE IF THEY'RE GONNA PAY ADDITIONAL TAXES? YOU PAY THE SAME AMOUNT OF TAXES.
THIS IS JUST A POLICY DECISION FROM THE CITY COUNCIL AND FROM THE TIFF BOARD THAT YOU'RE TAKING THOSE NEW DOLLARS AND YOU'RE PUTTING 'EM INTO A SPECIAL FUND TO BE SPENT IN THAT AREA.
I KNOW IT'S KIND OF, YOU KNOW, FUNDAMENTAL AND RUDIMENTARY, BUT THERE'S JUST TWO SIMPLE WAYS TO GENERATE INCREMENT.
NEW CONSTRUCTION INVESTMENT OR ANNUAL APPRECIATION.
SO YOU HAVE A TAX BASE OF A HUNDRED MILLION THAT GOES TO 3% PER YEAR.
THAT 3% IS GOING INTO THE INCREMENT, THE BASE STAYS THE SAME.
THOSE ARE THE ONLY TWO WAYS YOU GENERATE INCREMENT.
IT'S NO MORE COMPLICATED THAN THAT.
AND WE SHOULDN'T MAKE IT MORE COMPLICATED.
A LOT OF PEOPLE WILL TRY TO MAKE IT COMPLICATED.
AND IT'S LIKE, NO, WHAT WE'RE TRYING TO DO IS FOCUS THE, THE ATTENTION TO THE AREA.
COULD I ASK YOU A QUESTION OR DO WE NEED TO WAIT TILL THE END? DO THAT? WELL, ABSOLUTELY ANYTIME.
SO DOWN THE SOUTH AREA, WE HAD A TORNADO FIVE OR SIX YEARS AGO AND IT WIPED OUT, UM, SOME, UH, MULTIFAMILY NEIGHBORHOODS.
UM, SO, AND THEN PRETTY QUICKLY THEREAFTER, NEW, UH, MULTIFAMILY WAS PUT IN AND REESTABLISHED.
SO, SO IS THERE SOME ADJUSTMENT FOR THE TAXES OR THE VALUATION ON THE OLD THAT WAS REMOVED VERSUS THE NEW THAT CAME IN? HOW, HOW, FROM AN ACCOUNTING STANDPOINT OR FROM A SIMPLE LOGIC STANDPOINT, HOW, HOW DOES THAT WORK? SO YOU'RE TALKING TO A PERSON THAT HAS A LOT OF EXPERIENCE WITH THIS.
I WAS IN FORT WORTH WHEN THE TORNADO WENT DOWNTOWN.
SO I HAD A BUILDING THAT WAS WORTH $41 MILLION.
IT WAS CALLED THE, UM, BANK ONE BUILDING.
IT WENT FROM $41 MILLION TO $3 MILLION.
BECAUSE IT WAS ON AN INCOME BASIS, YOU KNOW, THERE'S THREE WAYS YOU APPRAISE PROPERTY, YOU HAVE THE, YOU KNOW, COST APPROACH, THE COMPARABLE APPROACH AND THE INCOME APPROACH.
SO ON THE INCOME APPROACH, IT HAD NO INCOME.
SO THEY ASSIGNED THE LAND VALUE 3 MILLION BUCKS.
SO I LOST $38 MILLION WORTH OF VALUE.
AT THE SAME TIME I ALSO LOST, UM, THEY PUT IN THE TANDY CENTER WHERE RADIO SHACK WAS RIGHT AT 56, WHERE THE OLD ICE RINK WAS.
BUT THE APPRAISER, THE CHIEF APPRAISER, WHO WAS MY OLD COLLEGE BUDGET PROFESSOR
SO THE WAY WE MADE THAT WORK WAS WE REMOVED THAT PIECE OF PROPERTY FROM THE RADIO SHACK AND YOU REMOVE THE PIECE OF PROPERTY, WHAT IT WENT IN AT, NOT WHAT IT'S CURRENTLY AT.
AND SO THAT CREATED A POSITIVE CASH FLOW THAT HELPED PAY FOR THE REDEVELOPMENT OF THE, THE TALLY.
SO, UM, THERE ARE ADJUSTMENTS THAT YOU CAN MAKE.
TYPICALLY WHEN WE'RE DOING TIFFS, WE WANT TO BE CAREFUL THAT WE DON'T WANT TO INCLUDE PROPERTIES THAT COULD POTENTIALLY LOSE VALUE.
'CAUSE THAT COULD RUIN THE ENTIRE TIFF.
AND SO YOU TYPICALLY, THAT'S WHY TIFFS AREN'T JUST, UM, PROJECT SPECIFIC LIKE ON ONE OR TWO BLOCKS.
THEY'RE DIVERSE, THEY INCLUDE A LARGE NUMBER OF PROPERTIES.
SO IF YOU HAVE SOMETHING LIKE THAT OCCUR, YOU CAN ALLOW IT TO RE REBOUND OR YOU KNOW, YOU CAN ACTUALLY MAKE AN AMENDMENT AND REMOVE IT FROM THE TIFF TO SAVE THE TIFF.
THAT WAS GONNA BE MY QUESTION.
HOW, WHAT IS THE APPROVAL PROCESS TO MAKE THAT AMENDMENT? OH, I KEEP HITTING THIS THING.
SO, UH, WOULD IT BE A BOARD OR, AND WITH A COORDINATION WITH LIKE YOU OR WHOMEVER ELSE, HOW WOULD YOU MAKE SUCH AMENDMENT? 'CAUSE ANYTHING COULD HAPPEN ANY TIME, OBVIOUSLY.
RIGHT? SO, SO, UM, ULTIMATELY THE, THE LEGISLATIVE AUTHORITY IS WITH THE CITY COUNCIL.
SO IT WOULD BE KINDA LIKE WHAT WE'RE DOING HERE IS BRIEFING THE TIF BOARD, BUT IT'D BE A LEGISLATIVE ACT OF THE COUNCIL
[00:10:01]
THAT WOULD MAKE AN AMENDMENT.SO ANYTIME YOU ADD PROPERTY OR YOU INCREASE COST OR YOU CHANGE THE BOUNDARY, YOU HAVE TO HAVE A PUBLIC HEARING.
AND SO YOU HAVE A SEVEN DAY PUBLIC HEARING AND THEN IT'S JUST CALLED AN AMENDMENT TO THE CREATION ORDINANCE THAT CREATED.
SO YOU'LL SEE THE ORDINANCE THAT'S IN THERE AND IT JUST CHANGES THOSE BOUNDARIES AND ON FOR THOSE SIGNIFICANT ACTIVITY.
NOT LIKE ANY LITTLE MINOR ADJUSTMENT, NO ANYTHING, EVEN THE MINOR.
SO YOU, YOU CAN'T TAKE ONE PROPERTY OUT WITHOUT GOING THROUGH THAT LEGISLATIVE PROCESS.
UM, SO SINCE THE, THAT TORNADO DID HAPPEN WITHIN THIS TIFF, WAS THAT AMENDMENT MADE, UH, TO THAT TO, TO MY, TO MY KNOWLEDGE, UM, THE TIFF WEATHER, THE STORM UHHUH
YOU MAY RECALL AT THE LAST MEETING, I, I SHOWED A GRAPH OF HOW THIS TIFF PER HAS PERFORMED REALLY BAD AND THEN STARTED BACK UP.
THIS, THE PROBLEM WITH THIS TIFF WAS THE 2008 GREAT RECESSION, WE LOST ABOUT EIGHT YEARS AND IT WAS THE ENTIRE TIFF.
SO WE WEREN'T LOOKING FOR A PICKING AND CHOOSING.
WE WERE TRYING TO GET AS MUCH VALUE AS POSSIBLE OUT OF THAT GOING ON THERE.
SO, AND AND I ALSO HAVING ADMINISTERED, WHEN I CAME OUT OF THE, THE PUBLIC SECTOR ADMINISTERED THE DOWNTOWN FORT WORTH TIFF, AND WE HAD PIER ONE LEAVE A TOWER, ONE OF THE, THE BASS TOWERS, WHICH ARE VALUED AT $220 MILLION.
WHEN YOU HAVE EIGHT FLOORS THAT LEAVE, THEIR VALUE GOES DOWN.
SO YOU'LL HAVE EBB AND EBBS AND FLOWS.
AND SO I THINK THE MA UH, THE CHART THAT MATTHEW'S TALKING ABOUT YOU, YOU KINDA HAD SOME GROWTH AND THEN WE, EVERYBODY SAW A LITTLE DIP IN THE RECESSION AND THEN, YOU KNOW, KIND OF COME UP.
AND SO, UM, THOSE ARE INEVITABLE.
BUT, UM, WHAT YOU TRY TO DO IS JUST PROVIDE THAT YOU HAVE A DIVERSE, UM, TIFF SO IT CAN KIND OF WEATHER THE STORM.
SO, UM, JUST A LITTLE BIT OF THE, THE LEGAL, UM, DETAILS.
UM, IT'S CHAPTER THREE 11 OF THE TEXAS TAX CODE OUTLINES THE, UM, THE TIF ACT.
AND SO THERE'S TWO MAIN DOCUMENTS FOR CREATING AN AMENDING.
A OCCURS, AND I SAY TS AND TIFF INTERCHANGEABLY.
TIFF IS THE VERB TAX INCREMENT FINANCING.
SOME CITIES HAVE JUST DECIDED TO ADOPT CALLING IT A TIFF, WHICH IS A VERB TAX INCREMENT FINANCING.
BUT PER THE STATUTE IS THAT IT IS TECHNICALLY A TAX INCREMENT REINVESTMENT.
SO IF I SAY IT INTERCHANGEABLY, DON'T PAUSE, DON'T MISS A BEAT.
UM, SO WE HAVE A CREATION ORDINANCE, UM, AND THEN WE ALSO HAVE, UM, A TIFF BOARD PREPARED PROJECT AND FINANCING PLAN.
AND THEN THAT COMES BACK TO CITY COUNCIL FOR A SEPARATE APPROVAL.
SO THERE'S TWO ORDINANCES WE CALL SOMETIMES THE TEXAS TWO STEP.
YOU DO THE CREATION ORDINANCE THAT CREATES THE TIF BOARD, THE TIF BOARD, AND THERE'S A PRELIMINARY PLAN.
THE TIF BOARD FINALIZES THAT PLAN AND THEN IT COMES BACK TO CITY COUNCIL.
SO THOSE ARE THE TWO ORDINANCES.
THE CREATION ORDINANCE ESTABLISHES FIVE KEY ELEMENTS, WHICH IS THE BOUNDARY, THE TERM, THE CITY PARTICIPATION, THE TURS BOARD, AND THE PRELIMINARY PROJECT AND FINANCING PLAN.
WHEN YOU'RE AMENDING IT, UM, YOU'RE DOING THE SAME THING.
UM, YOU JUST HAVE, UH, A CHANGE IN THE, THE BOUNDARY, THE TERM, UM, CITY PARTICIPATION AND THEN THE PRELIMINARY AND WE CALL IT A PRELIMINARY AMENDED PROJECT FINANCING PLAN.
AND YOU'LL SEE A LITTLE BIT OF A GLIMPSE OF THAT LATER ON IN THIS PRESENTATION.
ONCE THAT'S APPROVED BY CITY COUNCIL, WE DO A SEVEN DAY PUBLIC HEARING NOTICE, UM, HAVE A PUBLIC HEARING, CLOSE THE PUBLIC HEARING AND VOTE ON THE ORDINANCE.
THEN YOU HAVE A PRELIMINARY PLAN, COME BACK TO THIS TIF BOARD AND IT CAN'T GO FORWARD UNTIL THE, THIS TIF BOARD APPROVES IT OR RECOMMENDS APPROVAL.
YOU RECOMMEND APPROVAL AND THEN IT'S APPROVED BY THAT, UH, AMENDED, UM, PROJECT AND FINANCING PLAN ORDINANCE.
SO THAT'S THE PROCESS THAT ESSENTIALLY WE GO THROUGH.
AND THAT'S THE SAME FOR CREATING AND FOR AMENDING.
BEFORE YOU GO FORWARD, UM, IS CHANGING.
SO I GUESS THE FIRST QUESTION I NEED TO ASK IS, UM, BACK ON YOUR PREVIOUS, UH, SLIDE, DO WE KNOW WHAT YEAR THE BASE YEAR REAL PROPERTY VALUE IS BASED ON? YES SIR.
AND SO, UM, I'M BE A HUNDRED PERCENT TRANSPARENT WITHIN, WE WERE FOLLOWING WHAT'S IN THE ORDINANCE.
UM, THE ORDINANCE SAID THAT THE BASE YEAR WOULD BE JANUARY 1ST, 2025 PURSUANT TO THE STATUTE.
IT'S, I'M TALKING ABOUT, I'M TALKING ABOUT THE CURRENT TIFF AS IT IS RIGHT NOW.
THAT 2000 AND, WELL, IT WAS 20 YEARS AGO, WAS IT NOT THAT, THAT'S WHAT I'M ADDRESSING RIGHT NOW.
SO, SO CURRENTLY WITHIN THE ORDINANCE, IT BASICALLY SAYS IN THE ORDINANCE THAT THE BASE YEAR SHALL BE JANUARY 1ST, 2025.
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IN DECEMBER OF 2024 PER THE STATUTE.IT'S JANUARY ONE OF THE YEAR IN WHICH IT WAS ESTABLISHED.
SO WE'VE REALLY SHORTENED OURSELVES A YEAR, BUT WE HAVE TO FOLLOW THE ORDINANCE.
AND SO THE ORDINANCE REALLY KIND OF TAKES PRECEDENT.
SO AS WE KIND OF GO FORWARD, UM, WE WILL ALLOW FOR AN ADDITIONAL CAPTURE, BUT IT'S THE, SO THE REASON I GET SO BUSY IN DECEMBER, 'CAUSE EVERYBODY WANTS TO HAVE A TIFF IN PLACE.
SO IT HAS A JANUARY 1ST, 2025 BASE YEAR.
SO THEY CAPTURE INCREMENT IN 2026.
AND THAT REVENUE COMES IN IN 2027 BECAUSE YOU HAVE A BASE YEAR, JANUARY 1ST, 2026, THEY DO THE APPRAISAL, THEY SEND OUT THE TAX BILLS.
THOSE AREN'T DUE UNTIL JANUARY 31ST OR 2027.
THAT'S WHY WE HAVE 30 TIFS THAT WE'RE CREATING RIGHT NOW.
SO YOU KEEP SAYING 2025, BUT WAS IT, ARE YOU TRYING TO SAY 2000? I MEAN, I'M SORRY, 2005 IT THANK YOU.
THAT'S WHAT I, THAT'S WHY I WAS LIKE, WHY ARE YOU SAYING 25? I THOUGHT THIS HAPPENED 20 YEARS AGO, SO, NO, I GET IT.
I WAS THINKING THE SAME THING.
SO, AND THERE WASN'T A LOT OF CLARITY BACK IN THOSE DAYS JUST 'CAUSE THEY WERE SO NEW AND SO, BUT UM, THROUGH CASE LAW AND EVERYTHING ELSE, IT'S, IT'S THE YEAR IN WHICH THE COUNCIL APPROVES IT.
SO YOU CAN'T SIT THERE AND SAY I'M GONNA APPROVE A TIF AND THE BASE YEAR IS GONNA BE THREE YEARS FROM NOW.
BUT SO TECHNICALLY IT SHOULD HAVE BEEN 2020 OR 2004.
SEE, ALMOST DID THE SAME, CORRECT.
SHOULD HAVE BEEN 2004, BUT IT NOT 24 4
I HAD TO MAKE FUN OF MYSELF ON THAT ONE.
SO MY, MY, SO YOU CAN GO ONTO THE NEXT SLIDE AND MY, SO YES, IT WAS BEEN IN, BEEN 2004 OR 2005 ACTUALLY.
SO THE, THE WAY THAT WE'VE BEEN ACCOUNTING FOR IT HERE IS THE BASE YEAR WAS 2025.
SO THE FIRST INCREMENT YEAR IS 2026.
SO LOOKING AT THE, THE NEXT SLIDE, UH, I'M SORRY, TWO SLIDES AFTER, I GUESS, YEAH.
SO ON THE CREATION OF THE ORDINANCE THAT ESTABLISHES THE FIVE ELEMENTS, IF WE'RE CHANGING BOUNDARY TERM, UM, IF WE'RE CHANGING ANY OF THOSE, IS THAT GOING TO FORCE US TO REESTABLISH A NEW BASE? LET ME LOOK AT THE TERMINOLOGY THAT WAS ON HERE.
THE NEW BASE YEAR REAL PROPERTY VALUE.
SO WE'RE GONNA BE ABLE TO RETAIN THAT FROM 2005 GOING FORWARD THE NEXT 20 YEARS, CORRECT? UH, CORRECT.
AND AND JUST COINCIDENTAL, YOU COULDN'T DO THAT TILL 2005.
SO I LIKE TO DEAL ON REAL WORLD EXAMPLES.
KELLER HAD A TIFF THAT THEY PUT IN PLACE AND IT WASN'T PAYING OFF IN TIME AND THEY SAID, WE'LL JUST EXTEND THE TERM.
AND THE STATE COMPTROLLER AND THE ATTORNEY GENERAL SAID, NO, IF YOU AMEND A TIFF, IT'S GONNA HAVE A NEW BASE YEAR.
SO YOU'RE STARTING OVER AGAIN.
SO THE LEGISLATURE TOOK UPON THEMSELVES TO CHANGE THE LAW IN 2005 THAT SAYS IF YOU AMEND IT, YOU KEEP THE SAME BASE.
SO PRIOR TO 2004, YOU'RE CORRECT.
IF YOU AMENDED IT, WE WOULD START OVER AND WE'D HAVE A NEW BASE AS OF 2025.
BUT BECAUSE IN 2005 THE LEGISLATURE MADE THAT CHANGE, YOU CAN NOW EXTEND THE BOUNDARIES AND YOU CAN EXTEND THE TERM.
THANK YOU FOR THE EXPLANATION.
SO, UM, THERE'S SOME THINKING THAT GOES BEHIND THIS AND I WANT MATTHEW TO UM, KIND OF GIVE KIND OF SOME INSIGHT OF THE CITY BUDGETING AND, AND UM, REASONS FOR, UM, MAKING THE AMENDMENT.
BUT WE DO HAVE A TIFF THAT, UM, YOU KNOW, IT TAKES THREE TO FIVE YEARS FOR A TIFF TO GET GOING.
YOU KNOW, YOU HAVE THE RECESSION.
UM, I CAN TELL YOU JUST FROM RUNNING THE NUMBERS, THE TIF, THE TIF TO DATE, UM, HAS GENERATED $14 MILLION.
SO ALL THIS WORK'S GENERATED $14 MILLION, ABOUT $12 MILLION IN CITY MONEY AND ABOUT 1.9 MILLION IN COUNTY MONEY.
UM, AND SO, UM, THAT'S DUE TO A NUMBER OF THINGS THAT TAKES A NUMBER OF YEARS FOR IT TO CAPTURE UP.
YOU HAVE THE RECESSION AND SO YOU HAVE 20 YEARS THAT IT WASN'T EVEN GENERATING A MILLION DOLLARS A YEAR.
SO OVER THE TOTALS ON THAT AGAIN PLEASE.
IT WAS, UM, $14 MILLION, 14 MILLION FOR COUNTY OR, UH, IT WAS, UH, 12.5 FOR THE, UM, YEAH, LET, LET, LET SAY IT WAS 12 1 12, 12 0.1 FOR THE COUNTY AND I MEAN FOR THE CITY.
AND, UM, 1.9 FOR THE, THE COUNTY.
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AND THAT WAS FROM 2005 TO DATE? TO DATE.
AND SO WE HAVE APPROACHING A TERMINATION OF THE TIFF OF DECEMBER 31ST, UM, OF 2025.
UM, AND SO WE HAVE A SIGNIFICANT BASE, UM, THAT HAS BEEN ACCUMULATED.
UH, I CAN PULL OUT THE NUMBERS FOR YOU HERE, BUT DO YOU RECALL WHETHER THAT IS, IT'S, IT'S OVER, IT'S GONNA BE PROJECTED TO BE OVER $3 MILLION NEXT YEAR? NO, THE BASE TAXABLE VALUE BASE, TAXABLE VALUE BASE, UH, IT STARTED OUT AT 75,000,400.
I THINK THAT WAS IN LAST MONTH'S.
IT WAS FOUR HUNDRED FOURTEEN MILLION FOUR HUNDRED FIFTEEN MILLION FOUR HUNDRED FIFTEEN WAS THE TAX BASE.
SO JUST NOW IS IT STARTING TO KIND OF GET STRIDE IF YOU WILL? DOES THAT MAKE SENSE? 75 MILLION IN 2005 WAS THE BASE, WAS THE BASE YEAR 415 MILLION 2025, WHICH WOULD BE OUR NEW BASE.
AND YOUR 75 IS THE, I'M SORRY, YOUR CURRENT IS 400 AND WHAT 415 MILLION CURRENT YEAR? CORRECT.
SO I ALWAYS LIKE TO SAY A MINUS B EQUAL C.
SO
THAT'S HOW MUCH GOES INTO THE TIFF.
SO I THINK THIS YEAR, UM, WE HAD ABOUT TWO POINT HOW MUCH, HOW MUCH DID WE HAVE COMING IN THE TIFF THIS YEAR? I THINK IT WAS A TOTAL OF 2.5.
IT WAS 2.3 FROM THE CITY AND ABOUT TWO, 2.3 MILLION AND TWO AND IT'S 250,000 FROM THE THE COUNTY.
SO, UM, IF YOU DID NOTHING NOW AND YOU JUST EXTENDED THAT OH THAT'S RIGHT.
AND YOU JUST KEPT THE BASE GROWTH, THAT WOULD BE $2.5 MILLION A YEAR FOR 20 YEARS WITH NO APPRECIATION.
AND NO CONSTRUCTION WITH THAT, THAT AREA.
SO, UM, THE THOUGHT PROCESS AND, AND I'LL LET MATTHEW KIND OF TALK ABOUT HOW SOME OF THE DYNAMICS THAT THE CITIES, NOT JUST IN GARLAND, BUT THE CITIES ACROSS THE STATE OF TEXAS ARE DEALING WITH ON THEIR TAX RATE.
UM, 'CAUSE OF THE, THE STATE HAS BASICALLY PUT A CAP ON A THREE AND A HALF PERCENT GROWTH CAP ON WHAT YOU CAN GROW YOUR REVENUE BY.
SO THE THOUGHT PROCESS IS TO AMEND THIS FOR AN ADDITIONAL 20 YEARS.
UM, AND A AMEND THE BOUNDARY TO CAPTURE ADDITIONAL ACTIVITY WITHIN THE AREA.
ANYTIME WE AMEND THE BOUNDARY, WE CALL IT TWO AND TWO A, IT'S JUST KIND OF NOMENCLATURE OF HOW WE DO IT IN STEPHENVILLE.
I DID ONE AND WE'RE RIGHT NOW AT UM, ONE H, SO WE HAVE ONE A, B, C, D, E, FH AND THEN FINALLY MY ASSOCIATE SAID I CAN NO LONGER KEEP UP WITH ALL THESE DIFFERENT BASES.
'CAUSE EACH YEAR YOU EXPAND IT AS A DIFFERENT BASE.
UM, THE, THE IDEA HERE IS TO AMEND THE PROJECT AND FINANCING PLAN TO REP REPRESENT THAT 50% CAPTURE THAT GOES INTO THE TIF AND 50% DISTRIBUTION GRANTED TO THE CITY'S GENERAL FUND TO SUPPORT PUBLIC SAFETY O OPERATIONS.
UM, AND THEN THE REMAINING 50% IN THE TURS TO BE USED FOR ECONOMIC DEVELOPMENT, UM, ALONG I 30 AND HARBOR POINT.
NOW ANYTIME THERE'S GONNA BE A REQUEST FOR THAT ECONOMIC DEVELOPMENT MONEY, THERE'S GONNA BE TWO MOTHER MAY I, MOTHER MAY I TO THE TIF BOARD AND TO THE CITY COUNCIL.
SO THE IDEA IS TO EXTEND THIS AND WE HAVE THAT AUTOMATIC TWO AND A HALF MILLION DOLLARS PLUS WE HAVE A BASE AND WE'VE MADE SOME ADDITIONAL ADJUSTMENTS.
I'M GONNA PAUSE RIGHT HERE AND LET UH, MATTHEW KIND OF TALK ABOUT SOME OF THE, HOW HE DOES HIS TAX CALCULATIONS AND WHAT THIS WILL DO TO HELP THE CITY FUND ITS POLICE FORCE AND FIRE, UM, UM, SAFETY.
UM, AND THEN I'LL TALK ABOUT SOME OF THE ADDITIONS ON THE MAP 'CAUSE THAT'S WHAT WE'VE BEEN LOOKING FOR.
SO IT, HE HE'S COMPLETELY RIGHT.
SO, UH, IT, IT'S CALLED SENATE BILL TO IT PASSED IN 2019 AND IT'S PUT A THREE POINT A HALF PERCENT CAP ON OUR M AND O PORTION OF OUR TAX RATE, WHICH IS OUR OPERATIONS.
AND SOME OF Y'ALL HAVE PROBABLY HEARD US SAY THE GENERAL FUND, GENERAL FUND SUPPORTS PUBLIC SAFETY AND GENERAL FUND SUPPORTS, CODE ENFORCEMENT, BUILDING INSPECTION, PARKS AND REC, CULTURAL ARTS, ALL THESE THINGS.
AND ON THE DEBT SERVICE SIDE OF THE COIN, THEY HAVE NO CAP ON THAT SIDE.
BUT WE'RE, WE'RE STRUGGLING RIGHT NOW IS WE HAVE A VERY MODEST TAX BASE HERE IN THE CITY OF GARLAND.
AND IN ORDER TO GET JUST MERIT RAISES, UH, HEALTH INSURANCE IS GOING UP SEVEN 8% PER YEAR.
YOU HAVE PROPERTY INSURANCE GOING UP SEVEN 8% PER YEAR.
WE TALKED A LOT ABOUT, WE TALKED ABOUT BACK, YOU KNOW, BACKSTAGE EARLIER, AI, CYBERSECURITY
[00:25:02]
TECHNOLOGY, ALL THESE THINGS ARE INCREASING AT A PRICE HIGHER THAN A 3.5% ON A MUCH LOWER TAX BASE.NOW I'D LOVE TO BE FRISCO AND HAVE A THREE AND A HALF PERCENT CAP ON THEIR TAX BASE, BUT ON A ALREADY MODEST TAX BASE, IT'S MADE IT VERY DIFFICULT TO GET BY.
SO HONESTLY, WHEN WE WERE FIRST LOOKING AT TIFFS AND EXPANSION OF THESE TIFFS, IT WAS SOMETHING THAT I WASN'T REAL KEEN ON BECAUSE I NEED THE MONEY BACK AT THE GENERAL FUND TO COME TO FIND OUT.
WHEN YOU LOOK AT THE CALCULATION OF 3.5%, THE TIFF PORTION IS NOT INCLUDED IN THAT.
SO WHAT IT DOES IS, AND WHAT I LIKE TO SAY IS IT PROTECTS THAT REVENUE STREAM TO BE UTILIZED FOR PUBLIC SAFETY.
AND I'M, I'M GLAD DAVID POINTED OUT THAT THERE IS ALWAYS TWO MOTHER MAY EYES.
WHAT WE'RE ASKING FOR HERE IS THE, THE, THE EXTENSION OF THE TIFF HAVING THIS SET ASIDE FOR PUBLIC SAFETY AND 50% TO THE GENERAL FUND.
AND THEN EVERYTHING ELSE WILL BASICALLY HAVE TO JUST COME BACK FORWARD AND BACK AND FORTH, BACK AND FORTH FOR APPROVAL.
'CAUSE WE DON'T HAVE ANY OTHER PLANS FOR THE ECONOMIC DEVELOPMENT PORTION OF THIS AT THIS TIME.
AND I WOULD LIKE TO ADD TO THAT.
SO CITIES ACROSS THE STATE ARE USING THE TIFF MECHANISM.
'CAUSE CURRENTLY RIGHT NOW, WHAT IS THE FORM? IS IT 59 86, WHICH YOU DO IT, IT IS CALLED YOUR NO NEW EFFECTIVE TAX RATE.
SO BASICALLY THE STATE SAYS WHAT IS YOUR TAX RATE TO WHERE YOU HAVE NO INCREASE IN REVENUE? OKAY, WELL WE ALL KNOW THERE'S COST OF LIVING INCREASES.
SO YOU HAVE TO CALCULATE THAT TAX RATE, BUT YOU TAKE THE TOTAL TAXABLE VALUE WITHIN THE CITY, LESS NEW CONSTRUCTION.
'CAUSE THAT GETS, GETS A ONE YEAR EXEMPTION.
AND THEN LESS WHAT'S IN A TIF.
SO BASICALLY IT'S A, UM, A, A TAX EXEMPTION THAT THE STATE ALLOWS.
IF YOU PUT PROPERTY WITHIN THE TIF THAT DOESN'T COUNT TOWARDS YOUR THREE AND A HALF PERCENT GROWTH CAP.
THERE SEEMS TO BE A OBVIOUS CONFLICT OF INTEREST BETWEEN THE CITY AND THE TIFF.
THE CITY WANTS MORE OF THAT MONEY AND THE TIFF WANTS MORE OF THAT MONEY.
AND YOU'RE PROPOSING 50 50 HERE.
WHAT HAS IT BEEN? WELL, AT THE, PRIOR TO THIS, ALL THIS TIFF DID WAS PAY BACK DEBT SERVICE, DEBT SERVICE FOR THE BASS PRO SHOP HASN'T BEEN AN ISSUE, FRANKLY.
I MEAN THE, THE DEBT SERVICE ALONE FOR THAT WAS WELL OVER $35 MILLION.
SO THIS TIFF, ALL OF Y'ALL, I KNOW WE'VE HAD SOME NEW MEMBERS, BUT THIS TIFF HAS BEEN ABANDONED FOR ALL INTENSIVE PURPOSES SINCE 2005 BECAUSE THE GREAT RECESSION HAPPENED.
AND WHATEVER MONEY WE COULD GET OFF OF THAT, WE WOULD JUST HELP PAY OFF THAT INFRASTRUCTURE DEBT THAT WE HAD.
SO WE'RE COMING BACK NOW WITH, YES, THERE IS A CONFLICT BETWEEN THE GENERAL FUND, WHICH IS ME AND MS. ALLISON BELL, OUR BUDGET DIRECTOR OVER HERE, AND WHAT A TIFF CAN DO.
SO WE'VE LUCKILY BEEN ABLE TO, YOU KNOW, TALKED WITH DAVID ABOUT THIS AND THIS IS A METHOD THAT WE CAN GET THAT 50% BACK TO THE GENERAL FUND BECAUSE HOW WE PICK 50% IS MOST S ARE JUST A 50% TUR.
TYPICALLY YOU'RE NOT GONNA WANNA THROW YOUR ENTIRE TAX RATE AT A TS.
BUT BY DOING THIS, WHERE BEING ABLE TO TAKE THAT PIECE, TAKE THAT, LIKE HE SAID, A TAX EXEMPTION OFF OF OUR 3.5% AND STILL HOLD THAT AS A TRANSFER BACK TO THE GENERAL FUND TO DO THE THINGS THAT WE NEED TO DO IN THE GENERAL FUND.
AND THEN WE'VE LEFT THE REMAINING PIECE.
'CAUSE IT TYPICALLY, AGAIN, A OCCURS FOR ECONOMIC DEVELOPMENT.
THAT'S 50% WE'VE LEFT THAT REMAINING PIECE FOR ANY ECONOMIC DEVELOPMENT ACTIVITY INTO THE FUTURE.
IT'S BASICALLY, UH, A COMPROMISE, IF YOU WILL, ON THE PUSH AND PULL THAT COMES FROM CITY TAXES VERSUS A TOURIST TAX.
SO HOW DOES THIS TIFF COMPARE? 'CAUSE I KNOW THE OTHER ACTIVE TIFFS IN THE CITY.
SO THAT 50 50, THE 50 50 SPLIT, HOW DOES THAT COMPARE TO THOSE? IS IT EQUITABLE OR BOTH OF THE, BOTH.
ALL OF OUR TIFFS RIGHT NOW ARE A HUNDRED PERCENT TIFFS.
SO THIS WOULD BE, SO THIS WOULD BE A A NEW, UM, BASED ON THE NEW MODEL.
AND I WANT TO, UH, ADDRESS, IT'S, IT'S REALLY NOT A A, A TIFF OR A CONFLICT CONFLICT BETWEEN THE TIFF AND THE CITY.
'CAUSE ULTIMATELY THE CITY'S GONNA MAKE THE DECISION.
IT'S MORE A CONFLICT BETWEEN THE CITY AND THE STATE.
THE STATE HAS PUT THESE GUARDRAILS AND IT'S REQUIRING YOU TO WORK ON LESS AND LESS AND LESS REVENUE.
AND SO YOUR PUBLIC SERVICES ARE, YOU'RE HAVING TO PROVIDE LESS PUBLIC SERVICES.
AND SO THIS EXEMPTION IS ALLOWING THE CITY TO CONTINUE TO PROVIDE EXCELLENT PUBLIC SAFETY.
UM, AND SO ONE WAY TO COMPENSATE FOR THAT IS TO ADD MORE LANDMASS TO TRY TO GET THE BASE HIGHER CORRECT.
THAT'S WHERE WE'RE HEADED, RIGHT? YES, SIR.
UM, YOU GET THE DIRECT, UM, UM, AND I I ALSO MUST MENTION THAT PRIOR TO 2005, YOU COULD ONLY PAY FOR WITHIN A TIFF, UM,
[00:30:01]
PUBLIC INFRASTRUCTURE.AND SO, UM, I'M DOING A NUMBER OF TIFFS RIGHT NOW IN GRAND PRAIRIE WILL BE A T PRIOR TO 2005 HAD TO BE CONTIGUOUS.
YOU CAN NOW DO NON-CONTIGUOUS TIFFS.
SO IN GRAND PRAIRIE, WE HAVE I THINK 17 LEVEL AREAS AND THEY'RE ALL AT A HUNDRED PERCENT.
SO YOU CAN TAKE MONEY FROM ONE AREA AND SPEND IT IN THE OTHER AND YOU CAN KIND OF MOVE IT AROUND.
SO THEY'RE TAKING ADVANTAGE OF THAT EXEMPTION AS WELL, BECAUSE THEY DON'T HAVE A FOUR A FOUR B TO GO OUT THERE AND DO ECONOMIC DEVELOPMENT AND ENCOURAGE THINGS.
UH, ANOTHER CITY THAT WE'RE WORKING WITH, WHICH IS COLLEYVILLE.
UM, THEY'RE IN, UM, HITTING THEIR 20 YEARS AND THEY'RE EXPANDING THEIR 20 YEARS AND THEY'RE USING SOME OF THEIR TIF MONEY FOR GIFT CARDS FOR THEIR CITIZENS TO SPEND WITHIN THE TIF.
SO YOU HAVE THIS, IT'S CALLED ECONOMIC DEVELOPMENT GRANTS.
SO IT'S NO LONGER PUBLIC INFRASTRUCTURE, IF YOU CAN SAY THAT THAT EXPENSE BENEFITS THE ECONOMIC VIABILITY WITHIN THE ZONE.
WHAT KIND OF AUDIT? I MEAN,
WELL, I, I DON'T WANNA RELAY THIS CONVERSATION, BUT WHAT KIND AUDITING, IF, IF WE, IF THERE WERE SOME UNIQUE SITUATION WHERE WE ESTABLISHED SOMETHING LIKE THAT, WE KIND OF AUDITING TO MAKE SURE THAT THAT WAS ON THE UP AND UP, THAT THAT WAS.
SO ANYTIME THERE'S GIFT CARDS THERE ANYTHING THAT, YOU KNOW, UNUSUAL KIND OF PAYMENTS TO INDIVIDUALS AND BUSINESSES AND THINGS THAT DOESN'T SEEM, SO I WANNA SAY THAT, UM, MAYBE I'M NOT UNDERSTANDING.
THERE'S, THERE'S TWO GOVERNING BODIES THAT, UH, WOULD OVERSEE TIFS.
THAT'S THE STATE COMPTROLLER IN THE AGS OFFICE.
AND SO IF THE AG SAYS IT'S, IT'S LEGAL, IT'S LEGAL, AND THE COMPTROLLER REQUIRES ANNUAL REPORTING.
AND SO BASICALLY HOW YOU'RE SPENDING THE MONEY, THOSE ARE SUBJECTIVE FINDINGS OF THE COUNSEL.
DOES THAT MEET THE CONDITIONS WITHIN THE STATUTE? AND THE COURTS HAVE BEEN VERY DIFFERENTIAL TO THE CITY BECAUSE IT'S THEIR MONEY, HOW THEY WANNA SPEND IT.
WE'RE NOT SUGGESTING GIFT CARDS.
I'M JUST, I'M SORRY I TOOK THAT EXTREME.
NO, NO, I
YOU KNOW, I JUST WANTED TO MAKE SURE THAT THERE WAS SOME, SOME, SOME KIND OF AUDITING CONTROLS IN PLACE TO ENSURE NO MISUSE.
SO LAST OR TWO MONTHS AGO, UH, UM, MATT, YOU, THE PROPOSAL THAT WAS ON PAGE 12 OF YOUR SLIDE POINT STATED THAT 50% OF THE TIF FUNDS, AND YOU HAVE $1,059,058 TO THE GENERAL FUND TO SUPPORT PUBLIC SAFETY OPERATIONS ALONG I 30.
UM, AND THEN THE REMAINING 50% OF ECONOMIC DEVELOPMENT SUPPORT ALONG I 30, EXCUSE ME, AT HARBOR POINT, THEY GAVE AN EXPECTED GENERATION, UH, AN EXPECTED GENERATION OF $35 MILLION FOR ECONOMIC DEVELOPMENT OVER THE 20 YEARS.
SO THE WAY THAT THIS PROPOSAL WAS MADE, AND THE, FROM WHAT I'VE BEEN ABLE TO FAMILIARIZE MYSELF WITH STATUTE THREE 11, WE CAN'T ACTUALLY, LIKE, I BELIEVE THAT WE JUST LIKE VOLUNTARILY GAVE YOU THE THUMBS UP AND SAID WE VOLUNTARILY GIVE YOU THIS MONEY FOR PUBLIC SAFETY OPERATIONS ALONG I 30.
I KNOW WHAT YOU'RE TRYING TO DO, BUT A TIFF MONEY CAN BE USED FOR PROJECTS AND PUBLIC SAFETY IS NOT A PROJECT THAT'S AN OPERATION EXPENSE.
AM I, AM I CORRECT IN MY ASSESSMENT OF WHAT I'VE FAMILIARIZED MYSELF WITH THREE 11, UH, CHAPTER, UM, THE, THE ADDITION OF CHAPTER THREE 80 OF THE LOCAL GOVERNMENT CODE OKAY.
AFFORDS THAT YOU CAN PAY FOR PROJECTS THAT AREN'T CAPITAL IMPROVEMENTS, INCLUDING PUBLIC SAFETY.
SO CITIES ARE NOW, SO I WILL, I WILL, I WILL STATE THAT ALL THESE LITTLE PARENTHESES AND LITTLE BLUE LINKS THAT TAKE ME TO GENERAL GOVERNMENT CODE AND ALL THIS, IT WAS JUST ALL I CAN DO TO GET THROUGH THREE 11.
I WASN'T GONNA GO SEARCHING THROUGH EVERYTHING ELSE AND TRY TO TIE IT TOGETHER.
SO THAT'S THE REASON WHY I'M BRINGING THIS UP TO MAKE SURE I HAVE AN UNDERSTANDING WHAT THIS BOARD APPROVED TWO MONTHS AGO WAS IN OUR ABILITY TO DO THAT.
DO YOU SEE WHAT I'M SAYING? YEAH.
AND REALLY, AND TO BE HONEST, Y'ALL REALLY HAVEN'T APPROVED ANYTHING.
IT WAS MORE OF A, IT WAS A THUMBS UP, UP TO MOVE FORWARD FORWARD.
WE HAVEN'T APPROVED ANYTHING FORWARD.
JUST TO MOVE FORWARD WITH THAT, THAT LANGUAGE GOING FORWARD.
I'M SORRY, I'VE CLEANED UP THAT LANGUAGE GOING FORWARD.
SO IT DOES MEET THE LETTER OF THE LAW.
BECAUSE YOU ARE ABSOLUTELY CORRECT WITHIN THE STATE STATUTE, THERE IS NOTHING IN THERE THAT SAYS YOU CAN PAY FOR, UM, UM, PUBLIC SAFETY INITIATIVES WITH THE EXCEPTION OF THE ECONOMIC DEVELOPMENT GRANTS CATEGORY.
AND I'LL GET INTO THAT IN HERE IN JUST A MINUTE.
UM, YOU, SO THE PROPOSAL WAS THAT IT WAS TO SUPPORT THE PUBLIC SAFETY OPERATIONS AND WE'RE INDICATING THAT YOU'RE
[00:35:01]
GONNA DO THAT THE SAME HERE FOR THE 50%.MY CONCERN IS, WELL FIRST OF ALL, MY QUESTION IS, IS HOW MUCH FROM 2005 TO CURRENT HAS THE TIFF GAINED IN AVAILABLE FUNDS? THAT'S NOT INCLUDING WHAT HAS GONE BACK TO DEBT SERVICES TO TAKE CARE OF THOSE EXPENSES FROM BASS PRO ZERO ZERO? NO, I'M SAYING HOW MUCH CAME IN BEFORE IT WENT BACK TO DEBT SERVICES TO PAY THAT ALL, ALL OF IT WENT TO THE DEBT SERVICE, WHICH IS DONE NOW.
RIGHT? I'M NOT, I'M NOT A I GUESS YOU'RE NOT IN IT HEARING MY QUESTION.
HOW MUCH WAS PUT, HOW MUCH DID THE TIFF WOULD THE TIFF HAVE HAD HAD WE NOT PAID IT BACK TO DEBT SERVICES OVER THE PAST 20? BACK TO WHAT I WAS JUST SAYING BEFORE, IT'S ABOUT 14 MILLION.
2.1 FROM THE CITY AND ABOUT 1.9 FROM THE THANK YOU.
AND HOW MUCH THEN ALL OF THAT WENT BACK TO DEBT SERVICES.
HOW MUCH WAS PAID OVER THAT PAST 20 YEARS TO BASSPRO OR TO WHOEVER WE WERE PAYING OUTTA DEBT SERVICES? I WOULD HAVE TO GET THAT DEBT SERVICE NUMBER.
I COULD HAVE IT BY THE END OF THE MEETING.
THE TOTAL DEBT SERVICES, THE REASON I ASK IS, IS, UM, I DON'T, I DON'T MIND, UM, IF THERE WAS, IF THERE WAS SOME SORT OF LOAN AGREEMENT.
SO MY UNDERSTANDING FROM CONVERSATIONS WITH A GUY THAT I'M CONSULTING WITH THAT HAS TALKED TO JED, SO YES, THIS IS, I HAVEN'T CONFIRMED WITH JUDD RATHER, NOT JUDD, BUT JUDD, UH, CAL, UH, CITY MANAGER, JUDD REON, I'LL BE, I'LL BE VERY FORMAL HERE.
UM, IS THAT THE INTENT OF THIS 50% ISN'T REALLY TO GO TOWARDS PUBLIC SAFETY, BUT YET, AND, AND OBVIOUSLY WHEN IT GOES BACK INTO THE GENERAL FUND, THE CITY CAN SPEND IT ON WHATEVER THEY WANT TO, BUT HE'S TRYING TO RECAPTURE SOME OF THOSE FUNDS THAT WERE PAID OUT.
BUT IS THERE A LOAN AGREEMENT OR SOMETHING THAT SAYS, HEY, YOU KNOW, FOR THE, FOR EVERYTHING GOING FORWARD, Y'ALL HAVE TO REPAY DEBT SERVICES FOR STUFF THAT Y'ALL COULDN'T COVER BACK THEN.
YOU KNOW, BUT THAT WAS, THEY TOOK 14 MILLION OUTTA HERE.
THE, THE, THE TIFF WAS PRETTY MUCH DEAD FOR 20 YEARS.
YOU KNOW, WE HAVE AN OPPORTUNITY NOW TO GO FORWARD AND MAKE SOME SERIOUS CASH HERE AND MAKE SOME SERIOUS IMPACT IN THE TIFF ZONE, YOU KNOW, AND ALSO THE CITY JUST PASSED OR THE, THE, THE CITIZENS JUST PASSED A $70 MILLION, YOU KNOW, BOND PROGRAM FOR HARBOR POINT.
SO HOW MUCH MORE DOES THE TIFF NEED TO GIVE TO SUPPORT HARBOR POINT? I THINK THAT THAT'S KIND OF COVERED UNDER THE ECONOMIC DEVELOPMENT, $70 MILLION.
SO I GUESS MY QUESTION IS, IS ARE WE ON THE HOOK FOR GIVING Y'ALL 50% TO KIND OF MAKE UP FOR WHAT Y'ALL PAID OVER THE PAST 20 YEARS OR THE SHORTFALLS? UM, OR, YOU KNOW, ARE Y'ALL JUST TRYING TO PUT IT IN THERE? I UNDERSTAND THE CITY'S HURTING.
I WANT TO HELP, YOU KNOW, WHEREVER I CAN, BUT I ALSO WANT THINGS TO BE TRANSPARENT.
IT'S NOT REALLY GOING TOWARDS PUBLIC SAFETY.
IT'S GOING INTO AN OPERATING, IT'S GOING INTO Y'ALL'S OPERATION FUNDS TO BASICALLY PICK UP ANY SHORTFALLS AND HELP ANY SHORTCOMINGS THAT ARE, THAT ARE COMING UP.
AND YOU AND I BOTH KNOW WE'RE IN DISCUSSION THAT I I HAVE TO, I HAVE TO SAY LEGALLY THAT'S NOT TRUE.
SO IF THERE'S ANY ALLOCATION FROM THE TIF FUND AND IT BASICALLY SAYS THAT IT HAS TO GO FOR PUBLIC SAFETY AND THOSE FUNDS GO INTO THE GENERAL FUND MM-HMM
THEY HAVE TO, THROUGH AN AUDIT, BE USED FOR PUBLIC SAFETY INITIATIVES.
HOW ARE YOU GONNA QUALIFY IF YOU ARE PAYING PUBLIC SAFETY? ARE YOU GONNA HAVE DESIGNATED POLICE OFFICERS THAT ARE JUST ON I 30 AND THAT'S ALL THEY CAN DO? UM, I I'M NOT THE ONE THAT'S GONNA BE I KNOW, I'M JUST, I'M JUST SAYING HOW DO YOU QUALIFY THAT? WELL WOULD HAS PASSED.
THERE WOULD HAVE TO BE, THERE WOULD HAVE TO BE A TRACKING MECHANISM OF MM-HMM
AND SO IT'S NOT UNCOMMON FOR PEOPLE TO PAY FOR STAFF POSITION AND OTHERS FOR SPECIFIC AREAS LIKE A DOWNTOWN AREA AND OTHERS.
AND SO IT'S A TRACKING OF THEIR TIME AND MAKING SURE THAT, THAT THOSE DOLLAR AMOUNTS EQUAL THE TIME AND DOLLARS THAT ARE SPENT FOR THAT STAFF AND OTHER EXPENSES.
OKAY, SO YOU'RE TRACKING, YOU KNOW, EMS SERVICES, FIRE EMS GOING OUT THERE FOR ACCIDENTS ON I 30.
UM, YOU'RE TRACKING, UM, HOWEVER MANY TIMES WE HAVE OFFICERS THAT ARE SET UP OUT THERE DOING, UM, YOU KNOW, PUBLIC SAFETY WORK RADAR AT WORKING AN ACCIDENT SCENE, RIDING TICKETS, WHAT HAVE YOU.
I MEAN, IT SEEMS LIKE THERE'S A LOT OF TRACKING GOING ON.
WELL, IN REALITY, WHAT WOULD PROBABLY HAPPEN IF, IF, IF, IF I WAS ADMINISTERING IT, UM, YOU WOULD SAY, WHAT'S THE TOTAL CITY'S PUBLIC SAFETY BUDGET?
[00:40:02]
AND YOU WOULD SAY IT'S X AMOUNT.AND IF WE'RE PUTTING $2.5 MILLION INTO IT, WHAT PERCENTAGE OF THAT IS IT? AND THEN WHAT IS THE PERCENTAGE OF THIS AREA THAT TAKES UP THE PUBLIC SAFETY'S BUDGET? AND THAT'S HOW YOU DO THE ALLOCATION.
BECAUSE THAT'S HOW I WOULD ASSUME THAT'S 50% JUST DIDN'T, ALTHOUGH IT IS A NICE ROUND NUMBER, I WOULD ASSUME THAT THERE WAS SOME KIND OF ANALYSIS THAT WAS DONE TO COME UP WITH THAT NUMBER.
SO THAT, THAT, BACK TO THE ADAGE OF 50% OF THE TIP, TYPICALLY TIPS ARE ESTABLISHED AT 50%.
I JUST KNOW THAT IT WILL BE WELL OVER THE $1 MILLION THAT WE ARE ASKING FOR IN THIS, IN THIS, UH, PROPOSAL.
IS THIS THE, IS THIS THE ONLY THING THAT YOU'RE, 'CAUSE YOU'RE LOOKING AT DOING 50% GOING FORWARD AS WELL, CORRECT? THAT WOULD BE THE, THE HOPE, YES.
AND IT WOULD BE SOMETHING THAT WE COULD BRING BACK EVERY YEAR IN THE BUDGET PROCESS ADJUSTMENT AND TALK ABOUT IS A BUDGET ADJUSTMENT IF THAT'S THE WILL OF WHICH I WANT.
AND AND THE OTHER WORD IS TO SUPPORT IT, TO SUPPORT PUBLIC SAFETY.
WE'RE GONNA, WE CAN SUPPORT IT, BUT WE CAN USE THE MONEY ELSEWHERE IS WHAT I'M THINKING.
THE PLAY ON WORDS HERE IS, I JUST WANNA MAKE SURE THAT I'M UNDERSTANDING AND THAT I'M CLEAR ON WHAT WE, WHAT THE ME IS.
AND I DEFINITELY WANT Y'ALL TO BE CLEAR TOO, AND I'M YEAH.
AND THAT'S THE REASON WHY IT'S LIKE, IT'S LIKE, OKAY, YOU KNOW, TWO MONTHS AGO, MY FIRST MEETING YEAH.
I WASN'T UP ON THREE 11 AT THE TIME.
I DOVE AS FAST AND AS HARD AS I COULD ON IT, AND IT HAS RAISED QUESTIONS.
SO THAT'S THE REASON WHY I'M BRINGING THESE UP AT THIS POINT.
I'VE BEEN DOING THIS 18 YEARS AND I HAVE TO HAVE A CONSULTANT HELP, SO I GET IT
BUT, BUT, BUT WHEN I HAVE SOME, WHEN I HAVE SOMEBODY THAT I, I TRUST WHO HAS BEEN WITH THE CITY BEFORE WHO HAS WORKED IN A, IN A CAPACITY OF COUNSEL, AND HE TELLS ME THAT HIS CONVERSATION WITH JUDD IS THAT THEY'RE TRYING TO RECOUP THE MONEY THAT WAS PUT OUT FOR THAT.
THAT'S A CONFLICT OF WHAT YOU'RE PROPOSING HERE.
THAT'S TWO DIFFERENT THINGS I'M HEARING.
AND I WOULD LIKE TO HAVE CLARIFICATION FROM JUDD EXACTLY WHAT HE MEANT BY WE'RE TRYING TO GET 40 MILLION BACK OF WHAT WE SPENT IN THE PAST.
SO IF, IF I COULD SAY THAT THERE'S, THERE'S TWO STEPS AS I TALKED ABOUT THE TEXAS TWO STEP, I THINK WE'RE GETTING INTO HOW THE MONEY WILL BE SPENT.
BECAUSE BEFORE YOU CAN EVEN HAVE THAT CONVERSATION, YOU DO HAVE TO EXTEND THE TERM AND YOU DO HAVE TO CREATE THE PRELIMINARY PROJECT, EXTEND THE TERM, AND EXPAND THE BOUNDARIES.
AND THEN YOU HAVE TO HAVE A PRELIMINARY PROJECT AND FINANCING PLAN.
AND THEN YOU HAVE TO APPROVE THE PROJECT AND FINANCING PLAN.
THEN YOU HAVE TO APPROVE AN ALLOCATION.
AND THAT'S WHERE THE TWO MOTHER MAIS, AND THAT'S WHERE YOU PUT THE MEAT INTO THE AGREEMENT THAT HOW YOU'RE ALLOCATING THOSE FUNDS AND HOW THEY WILL BE SPENT.
SO LET ME ASK YOU, CAN ALL OF THIS MOTHER, MAY I STUFF BE AVOIDED IF CITY COUNCIL JUST PASSES THE ORDINANCE? IT SAID WE'RE TAKING 50% OF THIS AND IT'S GONNA GO TOWARDS PUBLIC SAFETY, OPERATIONS, WHATEVER.
AND, YOU KNOW, DO WE HAVE TO APPROVE THAT? OR IT'S AN ORDINANCE THAT HAS TO BE DONE? OBVIOUSLY IT'S PART OF YOUR FIVE STEP PROCESS.
IT'S A PUBLIC HEARING PROCESS FOR THAT.
IT'S A, THE, THE, THE, THE AMENDMENT IS A PUBLIC HEARING PROCESS.
AND THEN, UM, THAT PUBLIC HEARING, THERE'S NOT ANOTHER PUBLIC HEARING.
YOU APPROVE THAT PROJECT AND FINANCING PLAN.
CITY COUNCIL APPROVES THAT BY ORDINANCE.
ALL THAT MEANS IS THEY HAVE THE ABILITY TO DO THAT.
THERE STILL NEEDS TO BE AN AGREEMENT BETWEEN THE TS AND THE CITY TO REIMBURSE THAT 50% AND ANY SUBSEQUENT REIMBURSEMENTS THAT COME OUT OF THE TIF FOR THE NEXT 20 YEARS.
SO WE'RE, WE'RE, WE'RE SEVERAL BEATINGS DOWN THE ROAD BEFORE YOU CAN DO THAT.
COUNCIL CANNOT JUST ARBITRARILY WITHOUT GOING THROUGH THE TIF BOARD, APPROVE THIS AND THEN JUST START ALLOCATING.
THEY HAVE TO GO THROUGH THE TIF BOARD OKAY.
AND WHAT WE, WE INTERRUPTED YOUR, UH, PRESENTATION AND WE NEED TO GET BACK ON TRACK WITH THAT IF YOU DON'T MIND.
AND THEN WE'LL, WE'LL ASK ALL THESE QUESTIONS.
I DON'T, I'M NOT CUTTING YOU SHORT.
JUST WE WERE JUST AT THAT POINT THAT, THAT MY QUESTIONS.
SO I THINK THAT HOPEFULLY SOME OF THESE QUESTIONS WILL BE ANSWERED AND I DO APPRECIATE IT.
NO, NO, NO, NO, NO, NO, YOU'RE, YOU'RE, YOU'RE, YOU'RE FINE.
IT'S, IT'S, UH, I'VE BEEN DOING THIS 31 YEARS WITH JUST CHAPTER THREE 11.
SO
UM, THE ORIGINAL BOUNDARIES, UM, AS I MENTIONED BEFORE, ABOUT 12.1 MILLION HAS COME TO FROM THE CITY.
UM, ABOUT 1.9 MILLION HAS COME FROM THE, THE COUNTY, UM, COUNTY, UM, HAS NOT EXPRESSED INTEREST IN RE-UPPING THROUGH THE AMENDMENT.
UM, IT'S ALMOST NOT WORTH THE WORK THAT YOU HAVE TO GO THROUGH THE HOOPS TO KIND OF DO IT.
UM, BUT THEN WE WERE ASKED TO KIND OF LOOK AT SOME ADDITIONAL PROPERTIES AND, UM, WORKING
[00:45:01]
WITH, UH, MATTHEW AND STAFF, WE KINDA LOOKED AT AN AREA HERE, UM, THAT BASICALLY INCLUDED, UM, IT'S ABOUT 580, UM, UM, ACRES.UM, THE TOTAL, UM, UM, LOT COUNT IS A, UM, 1700 LOTS.
THE TOTAL TAXABLE VALUE IS 500 AND UM, OR UM, $685 MILLION.
YOU'LL NOTICE THAT THERE'S A BIG HOLE RIGHT HERE, AND MATTHEW, I'LL LET YOU EXPLAIN THE HOLE, UM, IN, IN OUR, UM, EXPANDED AREA.
SO THE HOLE THAT WE'VE PUT THERE IS, UH, THERE IS PLANS FOR, UH, GEORGE BUSH TO BE EXTENDED TO ALONG THROUGH THIS TRACT.
AND THE PLANS HAVE BEEN APPROVED THROUGH THAT TRACT OVER TO I 20.
SO IN DISCUSSIONS WITH DAVID, WE THOUGHT IT WAS BEST JUST TO GO AHEAD AND EXCLUDE IT.
NOW WE'VE BEEN TALKING, YOU KNOW, PREVIOUSLY ABOUT HOW YOU CAN TAKE THINGS IN AND TAKE THINGS OUT, BUT SINCE WE KNOW WHAT'S GOING TO GO ON, WE WENT AHEAD AND JUST SAID, LET'S JUST REMOVE THAT FROM THE TIP MOVING FORWARD.
AND IT IS A SIGNIFICANT ASSET.
SO WE TALKING ABOUT, I WANNA MAKE SURE THIS HOLE OH, RIGHT IN OKAY.
DONUT HOLE, BECAUSE I SAW THAT OTHER THING, THE OTHER PARCEL.
I WAS, AND WE CAN EXPLAIN THE OTHER PARCEL TOO.
SO THIS OTHER PARCEL HERE IS ACTUALLY, UH, RELATED TO DART, THAT IS THE DARTS RIDE DART SHARE RIDE FOR, UH, UH, LAKE RAY HUBBARD.
UH, THERE'S A PARKING LOT THERE.
ONLY THING WE PICKED UP WAS THAT, AND THE ONLY REASON WE DID THAT IS WE ARE IN, UH, MULTIPLE DISCUSSIONS WITH DART AND PARTICIPATION.
YOU'VE PROBABLY SEEN IN THE NEWS THERE'S BEEN SOME CITIES FIGHTING WITH DART.
UH, THEY HAVE EXPRESSED INTEREST IN MAYBE PARTICIPATING IN TIFFS FOR TRANSPORTATION RELATED PROJECTS.
SO WE THOUGHT WE MIGHT AS WELL JUST GO AHEAD AND INCLUDE, INCLUDE IT NOW IT'S A TAX EXEMPT PROPERTY, DOESN'T HELP THE TIFF, BUT SAY COME DOWN THE ROAD, UH, UH, DART SAYS, YOU KNOW, I WILL PARTICIPATE IN TIFFS AND WE'LL ENTER INTO AN, IN OUR LOCAL AGREEMENT AND WE'LL GIVE YOU SO AND SO AMOUNT OF OUR SALES TAX FOR A TRANSPORTATION RELATED PROJECT.
WE HAVE IT IN THE TIFF ALREADY.
SO THIS IS THE ENTIRE, I'M SORRY, GO AHEAD.
THIS IS THE ENTIRE DARK STATION.
THIS BLUE AREA IS IN ADDITION TO THE RED AREA OR THIS BLUE IS A REPLACEMENT FOR THE RED AREA.
THIS WOULD BE, SO WHEN I MENTIONED YOU HAVE YOUR ORIGINAL AND THEN YOU HAVE HAVE YOUR, YOUR EXPANDED, SO WE CALL IT T TWO ANDT TWO A.
SO, UM, AND SO T TWO HAS THAT 2005 BASE YEAR, SO IT WOULD CONTINUE THAT $75 MILLION BASE WOULD CONTINUE ON TILL 2045.
THET TWO A WOULD HAVE A SEPARATE BASE YEAR OF 2025 THE YEAR THAT IF WE PASS IT THIS YEAR.
AND, AND I HAVE A SCHEDULE THAT I'VE PUT UP HERE FOR YOU GUYS AND SO THAT WOULD GO FOR AN ADDITIONAL 20 YEARS.
UM, THAT LITTLE SLIVER ALONG THE NORTHERN SHORE THERE, THAT, UH, IS WATERFRONT PROPERTY, THAT'S TAKE AREA AS I RECALL.
UH, HOW IS THAT A BENEFIT TO THE TF? UH, THE ONLY BENEFIT WOULD BE IS THERE IN A LOT OF THE, WHAT'S ADDED HERE IS BASED OFF OF A HARBOR POINT MASTER PLAN THAT WAS CREATED, AND I CAN GET THAT SENT OUT TO EVERYBODY, BUT THERE IS THOUGHT PROCESS OF POSSIBLY HAVING TRAILS AND CONNECTIVITY TO, UM, I'M TRYING TO THINK OF THE NAME OF THE OTHER PARK WIND, JOYCE BAY PARK, AND, UM, OVER TO, UM, THE HARBOR POINT AREA.
SO THAT'S WHAT THE, THE IDEA IS THERE'S IT, RIGHT NOW IT'S JUST TAX, TAX EXEMPT, BUT SAY IN FIVE, 10 YEARS THE TIFF BOARD WANTS TO MAYBE HELP OUT WITH A PROJECT ALONG THERE.
AND AS I MENTIONED BEFORE, YOU, YOU, YOU CREATE BOUNDARIES TO ONE CAPTURE TIFF AND THEN EXPEND TIF DOLLARS.
SO IF IT'S NOT IN THE TIF ZONE, YOU CAN'T REALLY SPEND THOSE DOLLARS.
SO I THINK THAT'S WHAT MATT'S TALKING ABOUT.
THERE COULD BE SOME SORT OF PUBLIC IMPROVEMENT.
IF IT'S NOT, IT'S NOT, WE CAN TALK ABOUT THIS LATER, SO I DON'T TAKE UP EVERYONE'S TIME.
BUT, UH, THAT AREA IS MOSTLY LEASED BY THE, UH, ADJACENT PROPERTY OWNERS.
UH, THAT'S BACKS UP TO MY PROPERTY THERE.
AND SO, UH, THERE ARE UH, UH, LEASE AGREEMENTS FROM THE CITY, UM, TO CONTROL THAT PROPERTY.
AND SO THOSE LEASES WOULD HAVE TO EXPIRE OR BE BROKEN, UH, FOR SOME REASON.
AM I ON THE RIGHT TRACK WITH THAT? YOU ARE.
AND, AND OBVIOUSLY THERE WOULD HAVE TO BE A, EITHER THE LEASE IS BROKEN APART OR SOMEHOW IN A NEGOTIATION WITH THE CITY FOR THAT TO HAPPEN.
YEAH, WE JUST PUT IT IN JUST IN CASE.
GOING BACK TO A POINT THAT JASON MADE EARLIER AROUND THE, AND I'M NOT, I DON'T UNDERSTAND
[00:50:01]
ALL THE MAPS AS OF YET, BUT HE DID BRING UP THE $70 MILLION ECONOMIC DEVELOPMENT FOR HARBOR POINT.THAT'S UNDER DISCUSSIONS, ET CETERA, APPROVED.
WHAT IS THIS? IS THAT PART OF, I'M TRYING TO UNDERSTAND WHAT THE CORRELATION THE IS, ARE THEY COMPLETELY SEPARATE? BECAUSE I DON'T THINK WE GOT A COMPLETE ANSWER ON THAT PIECE OF IT.
I JUST WANNA MAKE SURE I UNDERSTAND THAT PIECE.
SO I, I, IF, IF I CAN JUST SAY, I THINK HARBOR POINT WAS A DECISION THAT WAS MADE BY COUNCIL YEARS AGO.
AND THAT OBLIGATION HAS BEEN PAID OFF.
WE DON'T HAVE THE OPPORTUNITY TO GO BACK.
UM, I, THE, THE OTHER CONVERSATION THAT YOU'RE HAVING, I THINK MATTHEW WOULD NEED CLARIFICATION ON WHAT THAT IS, BUT I MEAN, STRICTLY SPEAKING AS FAR AS THIS PROPOSAL, IT'S FOR ECONOMIC DEVELOPMENT WITHIN THE CORRIDOR, THEY WOULD HAVE TO COME BEFORE YOU AND GET YOUR APPROVAL AND RECOMMENDED TO COUNCIL AND THE OTHER 50% FOR PUBLIC SAFETY INITIATIVES.
SO, UM, THE, THE, THE HARBOR POINT PREVIOUS EXPENDITURE WAS A PREVIOUS COUNCIL'S DECISION.
AND SO WE ALWAYS LIKE TO SAY THAT, YOU KNOW, YOU CAN'T BIND FUTURE COUNCILS.
SO IT'S THIS COUNCIL'S TRYING TO MAKE DECISIONS ABOUT HOW THEY'RE KIND OF MOVING FORWARD WITH BUDGETING AND FINANCE.
SO, UM, I THINK THAT'S JUST A CLARIFICATION.
AND THEN TO ADD ONE THING, WE DID ALSO HAVE OUR 2025 BOND PROGRAM AND HARBOR POINT WAS ONE OF BIG EMPHASIS DURING THAT.
SO THERE'S THE $75 MILLION ECONOMIC DEVELOPMENT PROPOSITION, UH, WITH PORTIONS OF THAT, YOU KNOW, BEING TARGETED INTO THE SAME BLUE AREA.
IN MY OPINION, THE BLUE AREA SHOULD HAVE BEEN IN THE TIF ORIGINALLY.
I GUESS POLITICALLY IT WASN'T AN ATTRACTIVE THING TO DO, BUT THAT MAKES A LOT MORE SENSE TO ME THAN THE, THAN THE RED BOUNDARY DISTRICT.
I THINK ONCE YOU SEE THE NUMBERS, YOU'LL SEE THE ADVANTAGES.
SO THE, THE OVERLAY, ISN'T IT REALLY LIKE SUPPOSED TO GO UP TO THE RED LINE AND KIND OF ZIGZAG AROUND THE RED LINE? SO THE RED LINE IS THE STUFF IN THE MIDDLE OF THE RED IS THE OLD STUFF AND THE NEW STUFF'S AROUND THE SURROUNDING.
IT'S NOT LIKE A TELEPHONE OVERLAY AREA CODE.
YOU KNOW WHAT I'M TALKING ABOUT? OH, OH, OKAY.
THE ONLY THING THAT, UM, THAT THAT LINE, THIS AREA RIGHT HERE, YES, YOU'RE ABSOLUTELY CORRECT.
IT, IT BASICALLY, IT KIND OF COMES UP TO THIS AREA AND KIND OF WORKS ITS WAY AROUND, BUT WE'RE, WE'RE CAPTURING PARCELS, RIGHT? AND SO THERE'S NO PARCEL HERE.
THAT'S REALLY, BECAUSE THAT'S ALREADY CAPTURED.
IF THE PARCELS IN THE RED, IT WILL BE ON THE 2005 BASE YEAR.
IF THE PARCEL'S ONLY IN BLUE, IT'S UH, GOING TO BE THE 2025.
IT'S JUST THE WAY THE MAPPING YEAH.
YOU KNOW, I I I'LL NEED TO TALK, JUST MAKE PRETTY PERSON.
FOR MY OWN CURIOSITY, CAN YOU TELL ME WHAT THE BOUNDARIES ARE OF THE DONUT HOLE AND WHAT THAT AREA IS? IS THAT, ARE THOSE APARTMENTS OR IT'S A, THE, THE 60 MILLION THAT HE REFERENCED IS AN APARTMENT COMPLEX.
SO IT IS AN APARTMENT COMPLEX, ONE COMPLEX.
THAT ONE COMPLEX IS 60 MILLION.
IS THERE, AND WHY, WHY ARE WE TAKING IT OUT OF THERE? GEORGE BUSH, UH, IN TERMS DISPLAY END EXPANSION AND IT GOES RIGHT THROUGH THE MIDDLE OF IT.
AND THEN IT WOULD GO TAX EXEMPT.
AND FOR MY COLLEAGUES' QUESTION, CAN YOU POINT OUT EXACTLY THE HARBOR POINT AREA THAT IS BEING REFERENCED UP THERE FROM THE HARBOR POINT MASTER PLAN THAT I WAS MENTIONING? THEY WOULD BE THE BLUE.
SO THE BLUE, THIS IS HARBOR POINT MASTER, ALL OF THAT IS BLUE AND THAT'S THE HARBOR 0.7.
THE $75 MILLION OR PART OF THE $75 MILLION BOND, A 30 PORTION OF IT.
YOU TALKING ABOUT THE BOND BOND B OR WHATEVER IT WAS? YEAH, THAT THAT WAS, YEAH, PROPOSITION B, WHICH PASSED WAS A 70 MILLION, 70 OR $75 MILLION BOND, BUT IT WAS FOR HARBOR POINT AND SEVERAL OTHER THINGS.
BUT I WAS JUST, SHE ASKED WHAT IS HARBOR POINT? AND I'M LIKE, WELL, I WOULD LIKE TO HAVE THAT.
BUT YEAH, I DIDN'T THINK IT WAS EVEN THAT FAR DOWN, BUT IT'S EVERYTHING IN THE BLUE.
SO IT INCLUDES WINDSURF BAY, THE HARBOR POINT.
SO IF WE LOOK AT, UM, UNDER, UM, JUST THE PROPOSAL, THE FIRST 20 YEARS, WE HAD A HUNDRED PERCENT FROM THE CITY OF GARLAND GOING INTO THE TIFF FOR THE RED AREA AND 50%.
SO THAT'S HOW WE GET TO OUR $14 MILLION.
12.1 IS GENERATED FROM THE CITY, AND THEN WITH THE 50% FROM THE COUNTY, ABOUT $1.9 MILLION GOING FORWARD, WE'RE LOOKING AT JUST A HUNDRED PERCENT FOR YEARS.
21 THROUGH 41 ON THE ENTIRE AREA, THE ENTIRE RED AREA AND THE ENTIRE BLUE AREA.
SO IF YOU LOOK AT THOSE NUMBERS, YOU'LL SEE THAT FROM INCEPTION YOU'RE LOOKING AT ADDITIONAL $112 MILLION OVER THAT 1212 OR THAT 20 YEAR PERIOD BEING GENERATED.
AND THAT'S A COMBINATION OF THE $2.5 MILLION PER YEAR.
[00:55:01]
MATH, THAT'S $45 MILLION.BUT YOU ALSO HAVE $685 MILLION.
AND THE ONLY THING THAT I'VE INCLUDED IN HERE IS A THREE AND A HALF PERCENT GROWTH.
GROWTH, NO NEW CONSTRUCTION, NO NEW NOTHING.
AND SO THAT GENERATES THE ADDITIONAL $80 MILLION THAT IS COMING INTO THIS TIFF.
SO TO YOUR POINT, THIS BLUE AREA GENERATES A LOT OF INCREMENT, RIGHT? 'CAUSE IT HAS A LARGE BASE, RIGHT? AND IT'S ALREADY BUILT OUT.
I MEAN, IT'S ALREADY BUILT OUT.
AND SO IT'S JUST THE ANNUAL APPRECIATION OF THAT BASE.
AND SO THAT GENERATES $126 MILLION.
SO BACK TO YOUR QUESTION ABOUT HOW YOU USE THESE FUNDS.
SO WHEN I SAW MATT'S PRESENTATION, I, I THINK WE CAN BE TRANSPARENT HERE.
I SAID, MATT, YOUR WORDING IS A LITTLE OFF BECAUSE PUBLIC SAFETY IS NOT ONE OF THOSE EXPENDITURES IN THERE.
SO WHAT I WAS PROPOSING, UM, WAS, UM, PUBLIC INFRASTRUCTURE.
SO COUNTY MONEY CAN ONLY BE USED FOR THOSE TRADITIONAL, UM, IT WAS 1.89 MILLION.
SO 1.89, UM, 1,890,458 WAS THE COUNTY MONEY THAT CAN ONLY BE USED FOR PUBLIC INFRASTRUCTURE.
OKAY? SO THAT'S OVER AND DONE WITH.
AND WE'VE USED IT FOR PUBLIC INFRASTRUCTURE ON THE DEBT SERVICE.
SHOULDN'T IT BE 98% INSTEAD OF 99 FOR PUBLIC INFRASTRUCTURE? YEAH.
WELL, SO HERE'S WHAT WAS FUNNY.
IT WAS BECAUSE I HAD TO, I HAD TO HARD CODE THE COUNTY, OKAY.
AND THEN, UM, SO I'LL MAKE SURE THAT THAT'S CLEANED UP.
THIS IS, I WAS MENTIONING BEFORE I WAS IN PORT LAVO IN PORT COMFORT, AND THIS IS MY FIFTH TIFF MEETING OVER THE PAST THREE DAYS.
SO, UH, UH, I WILL CLEAN THAT UP.
BUT, UM, WHEN WE TALK ABOUT ECONOMIC DEVELOPMENT GRANTS, IF WE PUT THE REMAINDER OF THESE FUNDS, AND SO I DID THIS IN, UH, UM, UH, UH, GRAPEVINE.
SO GRAPEVINE MILLS TIFF WAS BUILT AND THEY DID $30 MILLION.
AND IT WAS TO PAY FOR THE, UM, PARKING LOT.
WELL, IT HAD SCHOOL DISTRICT PARTICIPATION AND EVERYTHING ELSE.
AND I SAID, HEY, WE HAVE THIS ECONOMIC DEVELOPMENT GRANTS.
AND THEY SAID, WELL, WE CAN'T PAVE THE PARKING LOT IN GOLD.
IT'S NOT GONNA BRING ANYBODY HERE.
HOW DO WE USE THESE FUNDS? AND I SAID, WELL, WE CAN CHANGE THAT TO AN ECONOMIC DEVELOPMENT GRANTS FROM THE TIME OF INCEPTION, AND WE CAN USE THAT TO INCENTIVIZE PEOPLE TO COME BECAUSE MALLS ARE DYING.
AND SO WHAT WE ENDED UP DOING WAS THAT BROUGHT IN LEGO LAND, THE RIPLEY'S AQUARIUM, AND ALL THE ADDITIONAL TENANT IMPROVEMENTS.
SO WE'RE ABLE TO DO THOSE GRANTS AND WE ALLOWED US TO USE THAT EXCESS MONEY.
AND WE AMENDED THE TIFF AND BOUGHT RAFAEL PALMERO HAD 185 ACRES.
WE PURCHASED THAT FOR $30 MILLION.
AND THAT'S NOW THE HOME HEADQUARTERS OF KUBOTA, DAIMLER CHRYSLER.
AND THEY'RE BUILDING A NEW HOTEL.
AND SO WE WERE ABLE TO USE ALL OF THAT THROUGH THE ECONOMIC DEVELOPMENT GRANT.
SO, SO THAT'S WHERE THIS, IT'S KIND OF A, A, A, A SILVER BULLET, IF YOU WILL, ON HOW YOU CAN FUND A LOT OF THESE DIFFERENT PROJECTS THROUGH A TIF.
AND SO, WHAT, UM, I WANTED TO GET INTO HERE.
MATT ASKED ME, HE GOES, WHAT ARE ADMINISTRATIVE COSTS? YOU DON'T HAVE TO SPEND THEM, BUT THE STATE STATUTE SAYS THAT YOU HAVE TO OUTLINE ADMINISTRATIVE COST.
AND SO THAT'S THE COST THAT THE CITY STAFF SPENDS ON THE TIFF.
UM, AND SO, UH, MY PARTNER, UH, NATALIE AYALA, UM, SHE USED TO WORK FOR THE CITY OF FORT WORTH ADMINISTERING THEIR 16 TIFFS.
SO EVERY TIME SHE WORKED ON A TIFF, SHE WOULD GO, I SPENT THREE HOURS ON TIFF ONE, AND THE TIFF WOULD REIMBURSE THE CITY FOR HER SALARY.
SO THAT JUST IS MY STATE STATUTE.
SO I JUST PUT IT AS A DE MINIMUS NUMBER, 0.5%.
I COULD PUT IT TO TWO FIVE, WHATEVER YOU LIKE.
BUT, SO LET ME EXPLAIN THE ECONOMIC DEVELOPMENT GRANTS.
SO ECONOMIC DEVELOPMENT GRANTS INCLUDE GRANTS, LOANS, AND ITS SERVICES.
SO INCLUDE SERVICES FOR PUBLIC AND PRIVATE DEVELOPMENT.
SO THIS IS WHERE WE JUMP OUTSIDE CHAPTER THREE 11.
AND, AND WONDERFUL THING ABOUT STATE STATUTES IS THEY REFERENCE OTHER STATUTES.
AND SO CHAPTER THREE 80 OF THE LOCAL GOVERNMENT CODE GRANTS MUNICIPALITIES TO OFFER GRANTS AND LOANS OF PUBLIC FUNDS TO STIMULATE ECONOMIC DEVELOPMENT AND BUSINESS COMMERCIAL ACTIVITY WITHIN THE ZONE.
OKAY? SO CHAPTER 3 11 0 1 0 8 OF THE TEXAS GOVERNMENT CODE DETAILS, THE AUTHORITY OF HAVING CHAPTER THREE 80 WITHIN A PROJECT AND FINANCING PLAN FOR ACTIVITIES THAT BENEFIT THE ZONE AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY WITHIN THE ZONE.
SO THAT'S A FINDING THAT THE COUNCIL WOULD MAKE THAT IF WE SPEND THAT 50% ON PUBLIC SAFETY INITIATIVES, WILL IT, YOU KNOW, BENEFIT THE ZONE STIMULATE BUSINESS AND COMMERCIAL ACTIVITY WITHIN THE ZONE.
AND I THINK IN MY MIND, I THINK THE ANSWER'S YES, BUT THAT'S, ONCE AGAIN, THE COURTS DEFER TO THE, THE COUNCIL ON THEIR SUBJECTIVE FINDING ON THAT.
[01:00:01]
PUBLIC SAFETY, OKAY? BUT GIFT CARDS, THEY STIMULATE THE BUSINESS AND COMMERCIAL ACTIVITY WITHIN THE ZONEOKAY? SO, UM, AND, AND, AND HAPPY TO TAKE MORE QUESTIONS, BUT, UM, SO THE PURPOSE OF THE AMENDMENT IS TO FUND THE A HUNDRED PERCENT OF THE CITY'S INCREMENT AND DISPERSE FUNDS, FUNDS FROM THE TIF FUND, 50% FOR ECONOMIC DEVELOPMENT GRANTS FOR PROJECTS WITHIN THE ZONE.
SO THAT'S GONNA BE OVER THE NEXT 20 YEARS.
MOTHER MAY I, YOU KNOW, DEVELOPERS COME FORWARD.
CAN WE, UM, ANYBODY COMES FORWARD TO THE TIF BOARD? CAN WE USE THIS 50% THAT YOU'RE CAPTURING WITHIN THE TIF TO GO BACK TOWARDS OUR PROJECT AND YOU MAKE A RECOMMENDATION TO COUNCIL, THEN IT'S, OR YOU DENY IT.
UM, AND THEN 50% TO THE PUBLIC SAFETY INITIATIVES.
WHAT I WAS PROPOSING IS THAT WE HAVE THE 50% TRANSFERRED ANNUALLY TO THE GENERAL FUND WITH THESE RULES AND CONDITIONS ABOUT HOW THEY WOULD BE SPENT.
AND THAT WOULD BE BY A RESOLUTION AND THEN RATIFIED BY CITY COUNCIL.
AND SO IT WOULD LAY OUT THE CONDITIONS OF HOW THOSE FUNDS WOULD BE TRANSFERRED TO THE GENERAL FUND.
SO IT CAN'T JUST GO INTO GENERAL FUND.
IT HAS TO BE USED FOR PUBLIC SAFETY INITIATIVES THAT WOULD, UH, STIMULATE THE BUSINESS COMMERCIAL ACTIVITY.
AND SO, UM, IN THE TIFFS IN THE TIERS, WITHIN THE TIERS, WITHIN THE TIERS, I LOVE HOW YOU USED TIERS.
SO, UM, AS I MENTIONED BEFORE, THE, I HAVE THIS AND ONE OTHER SLIDE.
UM, WE WERE GONNA TRY TO, UH, TAKE THIS BECAUSE THERE'S SOME WORK I HAVEN'T PUT TOGETHER.
THE PROJECT AND FINANCING PLAN, THE OLD PROJECT AND FINANCING PLAN, LET'S JUST SAY THAT THEY USED TO BE REAL CLUNKY AND THEY REFERRED TO PAGES.
WE LIKE TO CREATE SOMETHING THAT JUST SIMPLE AND IT SAYS, THIS IS THE TIFF AND THIS IS HOW WE'RE GONNA USE THE MONEY.
AND THIS IS HOW IT MATCHES UP WITH THE STATUTE.
OKAY? YOU MAKE THE DISBURSEMENTS, YOU KNOW, FROM THE PROJECT COST.
AND SO, UM, WE WOULD HAVE A, A, A PUBLIC HEARING, THEY WOULD ADJUST THE BOUNDARY, THE TERM TS BOARD WOULD STAY THE SAME, THE CITY PARTICIPATION WOULD STAY THE SAME.
AND THEN WE WOULD HAVE THAT AMENDED PROJECT AND FINANCING PLAN, WHICH WOULD INCREASE THE COST TO THAT $126 MILLION.
AND THEN WE WOULD BRING THAT BACK TO THIS BOARD.
AND SO IF YOU LOOK HERE AT OUR SCHEDULE, UM, WE ARE ON A LITTLE BIT OF A TIME CLOCK.
'CAUSE THERE'S ONLY SO MANY CITY COUNCIL MEETINGS MM-HMM
AND I NEED SEVEN DAYS TO, I NEED TO HAVE THE WORK PREPARED.
I HAVE TO PREPARE THE ORDINANCES.
UM, AND THEN WE HAVE TO ADVERTISE THAT IN THE PAPER, HOLD THE PUBLIC HEARING, CLOSE THE PUBLIC HEARING VOTE, AND THEN COME BACK TO YOU GUYS.
SO THE THOUGHT PROCESS WAS THAT, UM, TONIGHT WE'RE HERE, UM, ASKING FOR A RECOMMENDATION FOR A BOUNDARY EXPANSION, THE TERM EXPANSION, AND THE DRAFT AMENDED PRELIMINARY PROJECT AND FINANCING PLAN.
IF YOU GIVE US THE GO AHEAD, WE'LL GET THAT ALL PREPARED AND WE'LL GET IT READY IN A WEEK.
BY THE END OF NEXT WEEK, WE'LL HAVE IT READY.
SO YOU'LL HAVE A FULL PROJECT AND FINANCING PLAN.
THEN WE WOULD, UH, SUBMIT THAT TO THE CITY FOR REVIEW.
THERE'S A NOTICE IN THE PAPER.
UM, THEN THEY WOULD HAVE ALL DOCUMENTS DUE FOR THE PUBLIC HEARING.
WE'D HAVE A PUBLIC HEARING ON THE 18TH.
AND REALLY ALL THAT HAPPENS ON THAT DATE IS THERE'S A NEW ORDINANCE AND IT SAYS AMENDED, UH, AMENDMENT TO ORDINANCE.
WHAT'S THE ORDINANCE NUMBER IN HERE? I THINK IT'S 5 6 8 7.
AND IT'LL SAY A COUPLE OF THINGS OF CHANGING THE TERM FROM, YOU KNOW, 2031 TO 2055 OR 2025 TO 2045.
AND THEN IT WOULD SAY, WE'RE ALSO CHANGING THE BOUNDARY TO REFLECT THIS.
CAN I ASK A QUESTION? YES, SIR.
MAYBE IT'S, AGAIN, I'M, I'M STILL UNDER TRYING TO UNDERSTAND AND PUT MY ARMS AROUND A LOT OF THIS, THE PROJECT PLAN, AND OBVIOUSLY YOU LAID OUT HOW LE WHAT KIND OF LEVEL OF DETAIL ARE THERE GONNA BE SOME RECOMMENDATIONS? I KNOW YOU EXPAND IN THIS AREA, THIS HARBOR POINT AREA, ET CETERA, WHATEVER THAT COULD BE.
BUT DO, WELL YOU HAVE SPECIFIC PROJECTS ALREADY IDENTIFIED THAT WOULD BE LIKE, NO, SIR.
SO I'M TRYING TO UNDERSTAND LIKE, 'CAUSE 'CAUSE IF I'M A CITY COUNCIL, I'M THINKING, I WOULD LIKE TO UNDERSTAND, OKAY, YEAH, YOU, YOU EXPANDING THE DISTRICT, BUT THAT'S NICE.
BUT AS FAR AS INCREMENTAL INCREASES OVER THE YEAR, 'CAUSE I WOULD LIKE TO THINK, I WOULD LIKE FOR TO SEE THE THING CONTINUE TO GROW OVER YEAR, OVER YEAR AS MUCH AS POSSIBLE.
SO IN ORDER FOR ME TO PROBABLY APPROVE IT IN MY HEAD, IF I'M UNDERSTANDING THIS CORRECTLY, I, I WOULD BE LIKE, WELL I, I KNOW THAT THERE'S A LOT OF OPPORTUNITY AT X AREA LOCATION BECAUSE OF THIS NEW HEBS COMING HERE.
I MEAN A NEW APARTMENT COMPLEX.
SO MY POINT IS, ARE THERE SOME IDENTIFIED PROJECTS THAT MAYBE NOT, MAYBE NOT, HAVE NOT BEEN, ARE NOT READY YET FOR CONSTRUCTION OR NOT EVEN DEVELOPED YET, BUT ARE IN TALKS OR DISCUSSIONS THAT WILL MAYBE SOLIDIFY CITY COUNCIL'S THOUGHTS LIKE, YOU KNOW, WE SHOULD DEFINITELY MOVE FORWARD WITH THIS.
DOES THAT MAKE SENSE? I'M TRYING TO NO, NO, IT MAKES PERFECT SENSE.
JUST MY EXPERIENCE DOING THIS FOR
[01:05:01]
31 YEARS IS WE CAN MAKE THOSE ASSUMPTIONS.'CAUSE YOU KNOW WHAT, YOU KNOW, IF YOU DON'T KNOW WHAT YOU DON'T KNOW, CORRECT.
SO WHEN YOU END UP PUTTING THAT INTO THE PLAN, YOU END UP COMING BACK AND MAKING AMENDMENTS BECAUSE WHAT YOU THOUGHT WAS GONNA HAPPEN IS NOT WHAT ACTUALLY HAPPENS.
SO WHAT WE LIKE TO SAY IS, THIS IS THE ELIGIBLE CATEGORY, BUT STILL I'M GONNA HAVE TWO MOTHER MAY EYES ONE TO YOU OF THAT 50%.
ARE YOU GONNA ALLOW ME TO USE A PORTION OF IT FOR AN HEB OR FOR THIS PROJECT HERE OR FOR THIS.
SO ANYTHING THAT'S GONNA COME, THAT'S GONNA HAVE TO COME THROUGH YOU AND THROUGH CITY COUNCIL.
SO THAT'S THE WHAT I LIKE TO CALL BELTS AND SUSPENDERS ON THE OVERALL PLAN.
AND THAT'S, THAT'S HOW WE'VE MOVED TOWARDS WANTING TO DEVELOP OUR TIFF.
WE'VE TALKED A LOT ABOUT THE, THE PROBLEMS THAT TIF TWO HAD OVER THE, OVER THE YEARS.
AND ONE REASON WHY TYPICALLY DON'T LIKE TO DO TIFF'S LIKE, LIKE TIF TWO IS BECAUSE IT CAME, THERE WAS ONE BIG PROJECT AND A PROJECTION WAS MADE.
WHAT WE'RE LOOKING TO DO HERE IS, IS WE'RE JUST GETTING THE BOUNDARY SET AROUND WHERE A MASTER PLAN WAS LOOKED, A CATALYST AREA.
UH, WE HAVE A, A ONGOING REVENUE STREAM.
SO LET'S SET THAT IN STONE AND THEN WE'LL, WE'LL FIND THE PROJECTS TO FIT THAT BOX DOWN THE ROAD.
THE ES THERE'S IDEAS OF PROJECTS, BUT AS FAR AS WE DON'T HAVE SOMETHING IN MIND TO SPEND THAT 80, THE $80 MILLION THAT'S SITTING THERE ON THE PIECE OF PAPER, DIVERSIFYING THE USAGES IN THE TF THAT YOU DIDN'T HAVE IN THE FIRST TIFF BASICALLY.
SO YOUR HANDS ARE TIED WITH THE FIRST TIFF.
YOUR HANDS WERE DEFINITELY TIED WITH THE FIRST TIFF.
THEY, YOU HAVE, YOU KNOW, CARTE BLANCHE ABOUT HOW THIS TIFF BOARD AND HOW THE CITY COUNCIL WOULD LIKE TO SPEND THESE FUNDS AS THEY KIND OF COME IN.
YOU ALSO HAVE THE TAX ADVANTAGES FROM, UM, THE BUDGETING STANDPOINT.
SO IT MAKES GOOD FISCAL SENSE FOR THE CITY AS WELL.
CAN YOU PRESENT THIS TO THE PUBLIC? WILL YOU HAVE IT IN WORDING THAT THEY UNDERSTAND WHAT TI TIFF MEANS? OH, ABSOLUTELY.
UM, I, I DO, I DO DO THE TIFFS QUITE A BIT.
AND, AND SO, UM, AND THE DEFINITIONS WITH AND THEN EX UH, EXAMPLE
SO, UH, YOU GONNA INCLUDE TIF AND TIER
SO, UH, WE, WE TYPICALLY, UM, HAVE A LITTLE BIT LONGER OF A, A PRESENTATION BECAUSE PURSUANT TO THE, THE STATUTE, YOU DO HAVE TO, AT THE PUBLIC HEARING EXPLAIN THE TIFF CONCEPT.
AND WE PUT THAT AT A VERY KIND OF, PROBABLY A FOURTH, FIFTH GRADE LEVEL.
UM, I DID NOT DO THAT HERE AND I APOLOGIZE, I DIDN'T WANNA TAKE ALL NIGHT KIND OF EXPLAIN.
UM, BASICALLY WHAT THE TIFF IS AND ESSENTIALLY WHAT IT DOES.
AND THEN, UM, ONCE AGAIN, IT'S NOT A NEW TAX, SO EVERYBODY'S PAYING THE SAME AMOUNT OF TAXES.
IT'S JUST, IT'S REALLY A CITY COUNCIL DECISION ABOUT DO WE DEDICATE THAT INTO A SPECIAL FUND AND THEN CAN WE WORK WITH THE TIFF BOARD ON ALLOCATING THOSE DOLLARS THAT BENEFIT THE ZONE JUST LIKE MYSELF, THE SITUATION.
ANY MORE PRESENTATION OR DISCUSSION ABOUT THAT IT, WITH THAT, THIS WAS OUR RECOMMENDED SCHEDULE.
SO I GUESS WE HAVE SOME ACTION TO TAKE.
UH, IT MAKES SENSE TO ME TO DO VOTE ON THREE SEPARATE ITEMS, A, B, AND C INSTEAD OF GROUPING THOSE ALL TOGETHER.
IT MAY BE THE SAME OUTCOME, BUT THERE MAY BE PEOPLE HERE THAT, UH, FEEL DIFFERENTLY.
WHAT WOULD BE THE PLEASURE OF THE BOARD.
SO, UM, IF YOU DON'T MIND, I STILL, I STILL HAVE SOME, SOME CLARIFICATION.
UM, I DON'T KNOW IF I UNDERSTOOD THE, YOUR LITTLE GRAPH THAT GOES UP AND SAYS, YOU KNOW, LAST YEAR IS LIKE THEIR LAST TWO WEEKS.
THE LAST MEETING WE'LL JUST SAY THAT THE ESTIMATED WAS WE WOULD DO 35 BILLION MILLION WITH AN M.
SORRY, I GOT STUFFY ALL OF A SUDDEN.
UH, 35 MILLION OVER THE NEXT 20 YEARS OF THAT 35 MILLION PROPOSED OR ESTIMATED HALF OF THAT.
IS THAT WHAT WE'RE TALKING ABOUT HALF OF THAT? OR IS THAT 35 MILLION? WHAT THE TIFF 35 MILLION IS WHAT I WAS PROJECTING FOR ECONOMIC DEVELOP THE OUTSIDE OF THE 50% THAT WE'RE SAYING FOR PUBLIC SAFETY.
SO YOU'RE LOOKING AT 70 MILLION TOTAL, BUT 35 WOULD STAY IN THE TIFF OR YEAH, THAT'S WHAT MY PROJECTIONS WERE IS ARE A LITTLE BIT HIGHER.
AND THE REASON WHY HIS ARE A LITTLE BIT HIGHER IS WE HAD A DISCUSSION IT'S BETTER TO GO IN 'CAUSE WE ARE NOT GOING TO, WE DON'T HAVE ANY PROJECTS.
SO JUST GO IN WITH A LITTLE HIGHER ESTIMATE SO THAT WE DON'T HAVE TO COME BACK AND CHANGE OUR REVENUE ESTIMATES.
BUT WE KNOW WHAT OUR EXPENDITURES, WHEN WE KNOW WHAT OUR EXPENDITURES WILL BE, WE'LL KNOW THAT WE ONLY HAVE THIS AMOUNT OF MONEY, IF THAT MAKES SENSE.
SO OF THAT 126, UM, SO IF WE HAVE 14 MILLION, THAT'S ALREADY, I'M LOOKING AT THIS ON PAGE 10.
SO IF YOU HAVE THAT 126, YOU'VE ALREADY GENERATED 14 MILLION
[01:10:01]
OKAY.SO, UM, THAT LEAVES YOU WITH 112.
OKAY? IF YOU JUST LOOK AT THAT 75%, UM, BASE, AND WE GENERATED ABOUT $2.3 MILLION THIS YEAR.
YOU JUST TAKE THAT OVER 20 YEARS.
OKAY? THAT'S, UM, $46 MILLION.
I ADDED A THREE POINT A 5% ESCALATOR TO THE BASE.
SO BASICALLY THAT IT WAS GROWING AT THREE POINT A 5%.
SO THAT GAVE ME A LARGER NUMBER.
THEN WE HAVE THAT $685 MILLION AS A BASE FOR T TWO A AND I GROW THAT JUST ONE YEAR OF, IF YOU GROW 680 MILLION AT 3.5%, THAT'S A PRETTY SIZABLE INCREMENT AND THAT GENERATES NEW REVENUE.
SO THAT MAKES UP THE DELTA BETWEEN THE NUMBERS THAT MATT HAD 'CAUSE HE DIDN'T HAVE EXPANSIONS INTO HIS TIFF.
AND SO THAT GETS US, BUT WHAT WE LIKE TO DO IS HAVE THIS SERVE AS A CAP.
AND SO THESE ARE OUR PROJECTIONS.
I WILL TELL YOU THESE ARE VERY CONSERVATIVE PROJECTIONS BECAUSE OF THREE AND A HALF PERCENT GROWTH CAP.
WE SEE A LOT HIGHER GROWTH, PARTICULARLY IN THE DALLAS FORT WORTH AREA, BUT ALSO HAVE NO NEW CONSTRUCTION IN HERE.
SO IF SOMETHING NEW CONSTRUCTION COMES IN HERE, WE COULD HIT THAT EARLIER.
SO IT'S THE TERM OF 20 YEARS OR WHEN YOU HIT THAT CAP, WHICHEVER OCCURS FIRST.
SO SINCE WE'RE ON THE IFS, WHAT IF WE'RE FACING ANOTHER DOWNTURN IN THE ECONOMY, ANOTHER RECESSION, ANOTHER LIKE WE DID IN 2008, HOW ARE WE, ARE WE LOOKING AT ANY KIND? THIS IS AN UNKNOWN, A RECESSION IS UNKNOWN.
HOW ARE WE LOOKING TO BALANCE THAT OUT? IS THERE A WAY, BECAUSE IF WE HIT A RECESSION, THERE'S NOT GONNA BE NEW GROWTH.
THERE'S GONNA BE A DOWNTURN IN TAXABLE IN THE TAX REVENUE.
AND WE COULD QUITE POSSIBLY, WE DON'T HAVE THE EXPENDITURE THAT WE HAD OVER THE PAST 20 YEARS, BUT WE'RE NOT GONNA HAVE THE MONEY COMING IN THAT WE HAD FOR THE NEXT 20 YEARS.
AND MY PHILOSOPHY ALWAYS ON TIFFS IS DON'T EVER, DON'T EVER SPEND ANY MONEY BASED OFF A PROJECTION.
SO WE HAVE $2 MILLION REVENUE STREAM RIGHT NOW.
I WOULD SUGGEST THAT OF COURSE I'M RECOMMENDING THAT WE DO THE 50% BACK TO THE GENERAL FUND.
BUT WHATEVER THAT REMAINING PIECE IS, UNTIL WE KNOW IT'S ON THE BOOKS, THAT WE DON'T SPEND MORE THAN THAT UNTIL WE KNOW WE GOT THE CERTIFIED VALUES THAT SHOW THAT INCREASE.
ALSO HAVE A RESERVE POLICY IN PLACE SO THAT IF THAT RECESSION DROPS, THAT YOU STILL HAVE THE FUND BALANCE TO MEET THE OBLIGATIONS YOU ALREADY HAVE ON THE BOOKS.
AND YOU'LL NOTICE THAT THEY NEVER, UM, IF YOU DO BONDING, YOU CAN'T BOND TIFF FUNDS IF THEY'RE WELL-HEELED, UM, TIFFS AND THEY DON'T HAVE A LOT OF, UM, ON, ON THOSE THREE APPRAISAL APPROACHES, THEY DON'T HAVE A LOT OF INCOME PRODUCING PROPERTY.
UM, YOU STILL CAN'T BOND THEM BECAUSE THEY ARE SUBJECT TO FLUCTUATIONS IN THE MARKET.
SO THE ONLY WAY THAT YOU CAN REALLY DO BONDS IS WITH FULL FAITH AND CREDIT OF THE CITY OR SOME SORT OF BELTS AND SUSPENDERS TO WHERE THERE'S AN ADDITIONAL TAX.
SO THAT'S WHY IT'S THE INHERENT NATURE.
AND SO WHAT MATT IS TALKING ABOUT, YOU DON'T SPEND IT TILL YOU HAVE IT IN THE BANK.
SO WE ARE NOT ON THE HOOK FOR ANYTHING UNTIL WE, HONESTLY, RIGHT NOW THERE IS NO, NO HOOK.
THE ONLY HOOK THAT WE'RE ASKING IS FOR THE 50% BACK TO THE GENERAL FUND.
AND IT WOULD JUST BE A PERCENTAGE BASED, NOT A HARD DOLLAR.
AND TO ANSWER A COUPLE OF THE OTHER QUESTIONS, ALLISON PULLED THE, THE ISSUANCE WAS $23.7 MILLION FOR BASS PRO.
SO THAT WAS THE, THE NUMBER OF THAT WAS ISSUED AND WE GENERATED 14 MILLION.
AND SO 9 MILLION IS ALL, IS WAS A SHORTFALL.
WAS THAT THE ISSUANCE OR WAS THAT THE, THAT'S THE ISSUANCE THAT YOU HAVE.
THE, THAT, THAT IS, THAT'S JUST THE PRINCIPAL.
UH, I ALWAYS WANNA MAKE THAT CLEAR BECAUSE
IT'S LIKE WHEN YOU BUY A HOUSE
UM, I'LL, I'LL BE HONEST WITH YOU.
AT, AT, AT, AT SOME POINT OVER THE PAST TWO MONTHS AS I WAS GOING THROUGH THIS, I WAS REALLY, I WAS REALLY AT THE POINT OF JUST MAKING THE RECOMMENDATION WITH THE CITY HURTING THE WAY IT, IS IT NEEDING FUNDS, JUST LETTING THE TIFF EXPIRE AND LET THE CITY CAPTURE 100% OF THE TAX.
YOU'RE NOT GONNA CATCH IT AT THE 20 2004.
I ALMOST DID IT AGAIN AT THE 2004, 2005 RATE.
[01:15:01]
YOU KNOW, WITH THE, WITH THE UNCERTAINTY WHAT'S COMING UP AND I FEEL THERE'S GONNA BE A RECESSION PERSONALLY, THAT'S JUST ME.I'M NOT GENERALLY A PESSIMIST PES I'M NOT GENERALLY A PESSIMIST, BUT THE SIGNS ARE LOOKING THAT WAY.
UM, AND THAT'S JUST GONNA PUT THE CITY IN A HARDER WAY.
AND I HAVE THOUGHT JUST LET THIS TIFF EXPIRE AND THAT'S THE REASON WHY I WANTED TO GO OVER THE GO OVER B BEFORE WE TALKED ABOUT A, SO WITH THIS NEW INFORMATION, I'M KIND OF UNSURE.
I'M GONNA ASK THE CHAIR IF WE CAN TAKE A QUICK RECESS.
LET ME GATHER SOME THOUGHTS AND WE CAN COME BACK AND WE CAN HAVE MORE DISCUSSION IF WE NEED TO.
IS THAT OKAY? IT'S A PLEASURE OF THE BOARD.
WOULD THAT BE ALL RIGHT? HOW LONG IS THIS RECESS? I'D SAY 10 MINUTES.
COME BACK AGAIN AT, UH, TWO MINUTES TO LATE 10 MINUTES.
COURT'S IN RECESS FOR 10 MINUTES.
OKAY, WE READY TO GET STARTED AGAIN? YEP.
UH, WE'LL RECONVENE AT THIS TIME.
UM, SO WE'VE GOT THE ITEMS FOR CONSIDERATION.
WE'VE KIND OF TALKED ABOUT 'EM, UH, ONE BY ONE.
UM, HE'S DONE AN EXCELLENT JOB AT, UH, AT GOING OVER THAT.
IS THERE ANY OTHER QUESTIONS BEFORE WE DELIBERATE ON THIS A LITTLE BIT AND, AND, UH, MAKE A, UH, TAKE UP A VOTE.
ARE WE GONNA DELIBERATE ON A SPECIFIC ITEM? YEAH.
MY RECOMMENDATION, AND I'LL TAKE THE, UH, PLEASURE OF THE BOARD WOULD BE TO TAKE THESE A, B, AND C IN THAT ORDER, UH, AND VOTE ON 'EM ONE AT A TIME IN CASE THERE'S, UH, I, I FIND GROUPING THEM TOGETHER.
SOMETIMES, UH, IT DOESN'T WORK AS WELL.
BUT I WOULD ALSO ASK THAT YOU, UH, REORDER THOSE.
'CAUSE I THINK THAT A, UH, IS DEPENDENT UPON B AND C.
I DON'T HAVE A PROBLEM WITH THAT.
IF THE, IF UH, THE BOARD WOULD AGREE WITH THAT, THAT'S FINE.
SO YOU'RE SUGGESTING B, A AND C? UH, YES.
BECAUSE C WOULD BE BASED ON A AS WELL.
DO WE NEED TO VOTE ON THAT OR JUST HAVE AN AGREEMENT? MATT, DO YOU HAVE AN OPINION? DO SO RIGHT NOW WE JUST NEED A CONSULT WITH MY CONSULTANT
UM, WHAT YOU'RE DOING IS ABSOLUTELY FINE.
SO WHATEVER ORDER YOU WOULD LIKE TO TAKE A MINUTE, DOESN'T MATTER.
THEY'RE JUST LISTED HERE BECAUSE THAT'S WHAT YOUR PRES WHY YOUR PRESENTATION WAS DESIGNED.
SO WE'LL BE CONSIDERING ITEM B, CONSIDER RECOMMENDING TO THE CITY, UH, COUNSEL TIFF.
NUMBER TWO, BOUNDARY EXPANSIONS TO THE BLUE, UH, LINES.
ADDING TO THE RED LINES IS THE BEST WAY I CAN DESCRIBE THAT IN THE OVERLAY THEY ARE SHOWING THERE.
ANY, UH, QUESTIONS? ANYTHING ELSE BEFORE WE, UH, VOTE? SECOND IT.
WE HAVE 1, 2, 3, 4, 5 YESES AND ONE NO MOTION PASSES TO, UH, EXPAND THE BOUNDARIES TO THE, UH, BLUE SEGMENT ADDED TO THE RED.
UH, PER THE BOARD'S, UM, APPROVAL WILL WILL TAKE ITEM A NOW CONSIDER RECOMMENDING TO THE CITY COUNCIL EXTENDING THE TERMINATION DATE PERIOD OF THE TIF NUMBER TWO.
AND I BELIEVE THAT WAS FOR ANOTHER 20 YEARS IS WHAT WE DISCUSSED.
IS THAT CORRECT? DECEMBER 31ST, 2045.
IS THERE A MOTION OR ANY QUESTIONS BEFORE WE, UH, THERE'S A DISCUSSION.
I, I REALLY, I'M REALLY HAVING A HARD TIME, UH, WRAPPING MY HEAD AND PUTTING THIS, LETTING THIS TIFF GO FORWARD.
UM, I THINK THAT THE CITY ITSELF WOULD BENEFIT MORE FROM GATHERING THE TAX ON THIS.
I THINK THAT THE 30 OR 35, 30 MILLION THAT WAS ALREADY ALLOTTED TO THE HARBOR POINT AREA BASED ON THE PREVIOUS, UH, BOND ELECTION, UH, PROPOSITION B, UM, I THINK THERE'S $30 MILLION JUST THERE.
I THINK THAT THE, THE TAX INCOME THAT THE CITY WOULD GET FROM THIS ENTIRE TIF ZONE WOULD BENEFIT THE CITY MORE TO THE POINT TO WHERE FIVE YEARS DOWN THE ROAD, 10 YEARS DOWN THE ROAD, ONCE THE CITY HAS RECOVERED, ONCE WE'RE ABLE TO TAKE CARE OF THINGS THAT OTHER
[01:20:01]
COMMITTEES ARE DISCUSSING AT THIS TIME.UM, I, I THINK THAT EXPIRING THIS TIFF WOULD BE MORE BENEFICIAL TO THE CITY THAN IT WOULD BE TO ADD ADDITIONAL, UH, ECONOMIC DEVELOPMENT OURSELVES.
I THINK THE CITY, ONCE IT'S RECOVERED, THE CITY CAN HANDLE THAT ECONOMIC DEVELOPMENT THROUGH THEIR OWN ECONOMIC DEVELOPMENT PRO UH, PROCESS, INCLUDING ADDITIONAL BONDS IN THE FUTURE IF NECESSARY.
UM, THERE'S NOT A WHOLE LOT OF AREA OUT THERE THAT CAN BE DEVELOPED.
YES, THERE ARE SOME, BUT I DON'T KNOW THAT IT'S ENOUGH THAT WE CAN ACTUALLY GET THE MOST BANG FOR OUR BUCK.
AND IF Y'ALL HAVE, SO TO THE CONTRARY, I WOULD LIKE TO KNOW WELL, UH, CAN I SAY SOMETHING? YEAH, WE'RE HERE TO DISCUSS IT AT THIS POINT.
I JUST WANTED TO SAY THAT, UH, THIS IS LIKE THE, THE SOUTH GARLAND'S CHANCE BECAUSE I'M NOT SURE HOW MUCH OPEN LAND IS AVAILABLE IN GARLAND, BUT I KNOW THEY SAY IT'S LIKE REALLY SHRINKING, LIKE, LIKE THREE OR 5%.
AND THIS, FROM WHAT I LOOK LIKE RIGHT HERE, IT HAS A LOT OF OPEN SPACES THAT STILL HAVE BEEN UNDEVELOPED.
AND I KNOW NORTH CAROLINA WAS LIKE THE PRIDE AND JOY FOR SO LONG.
AND I, I LIVE IN SOUTH CAROLINA, I'D KINDA LIKE TO SEE SOUTH GARDEN PICK IT UP.
AND I WOULD LOVE NOTHING MORE THAN TO BE ABLE TO DO ECONOMIC DEVELOPMENT HERE IN THE SOUTH GARLAND, IN THE SOUTH GARLAND AREA.
IT IS A, IT HAS BEEN IGNORED FOR WAY TOO LONG, BUT I THINK THAT WITH THE CITY WANTING TO TAKE 50%, MIGHT AS WELL GIVE 'EM A HUNDRED PERCENT.
LET 'EM DO WHAT THEY NEED TO DO.
LET 'EM TAKE IT, PUT IN THEIR OPERATING FUNDS, LET THEM BE ABLE TO TAKE CARE OF OUR FIREFIGHTERS, OUR POLICE DEPARTMENTS, BECAUSE THEY'RE SUFFERING RIGHT NOW.
I DON'T KNOW IF YOU'RE PAYING ATTENTION, BUT THERE IS A STAKEHOLDER COMMITTEE THAT IS HAVING TO LOOK AT THE NEW MODEL, POSSIBLE NEW MODEL OF OUR FIRE DEPARTMENT, INCLUDING THE POSSIBLE PRIVATIZATION OR DISCUSSION OF A PRIVATIZATION OF OUR EMS. I DON'T WANNA SEE THAT MYSELF.
AND IF THESE FUNDS CAN GO TO HELP OUR CITY PAY FOR OUR FIREFIGHTERS AND THEY KEEP OUR EMS IN OUR CITY, I THINK THAT THAT'S BETTER.
AND IF IT MEANS WE DON'T DO A TIFF DOWN HERE AND FOR FIVE YEARS THE CITY CAN DO WHAT THEY NEED TO WITH THAT EXTRA CASH, FINE.
I'M GOOD WITH THAT BECAUSE SOUTH GARLAND'S BEEN ABLE TO IGNORED FOR SO LONG.
IT'S BEEN IGNORED FOR 20 YEARS.
AND AS MUCH AS I WOULD LIKE TO SEE THAT AREA THRIVE, THEY'VE GOT 30 MILLION ALREADY.
THEY'RE GONNA START WITH, THERE'S NOTHING TO SAY.
THE CITY CANNOT USE THEIR ECONOMIC DEVELOPMENT IN THE FUTURE IN THE SAME WAY.
PUTTING OUT A BOND AND SAY, YOU KNOW, WE WANT TO DO, NOW WE WANNA FOCUS ON, YOU KNOW, HARBOR POINT.
LET'S GO ON CLOSER TO BELTLINE ROAD, MORE DOWN SOUTH OR WEST ON 30.
ARE YOU, ARE YOU FINISHED? I BELIEVE I AM, YES.
I WANT, WE DON'T HAVE A QUEUE HERE, BUT I'D LIKE TO KEEP PEOPLE IN THE QUEUE AND TRY TO KEEP IT AS ORGANIZED AGAIN.
I JUST REALLY QUICKLY STATE I UNDERSTAND, UM, THE GENTLEMAN'S, UH, UM, MR. COLLIER'S, UM, OLIVES, I'M SORRY RIGHT SENTIMENT UNDERSTAND THAT, BUT UH, BUT TO, BUT THEN ALSO TO UNDERSTAND, BUT TO ALSO, I JUST WANNA NOTE THAT BECAUSE THIS IS THE AREA THAT TO YOUR POINT, HAS BEEN NEGLECTED PURPOSELY OR NOT OR WHATEVER BECAUSE THERE, UM, OTHER DEVELOPMENT HAS HAPPENED ELSEWHERE.
I THINK THIS IS AN OPPORTUNITY, UM, 'CAUSE THERE WAS MOMENTUM GOING ON BE BEFORE THE ECONOMIC RECESSION, BEFORE COVID.
THERE WAS SOME, SOME MOMENTUM GOING ON IN THIS PARTICULAR AREA AND THERE WAS A FOCUS AROUND IT.
I THINK WHAT A TIF ALSO DOES IS JUST ADD EXTRA FOCUS AND ALSO PUTS AN ADDITIONAL, UM, FOCUS, I GUESS IS A GOOD WORD.
BUT IT'S, I THINK IF IN THE PAST WHERE NOT A LOT OF TIF COMMITTEE MEETINGS, ET CETERA, WHAT I THINK IN ORDER FOR IT TO BE SUCCESSFUL, THERE NEEDS TO BE CONTINUED REVIEW, MONITORING IT, UNDERSTAND YOUR CONCERNS.
I THINK THIS ONE TIFF IS NOT GONNA BE THE DECIDING FACTOR OF LARGER DECISIONS AROUND OUR PUBLIC SAFETY AFFAIRS.
SO I CERTAINLY UNDERSTAND THE GENTLEMAN'S CONCERN, ET CETERA, BUT I THINK THIS IS AN OPPORTUNITY THAT WE COULD UTILIZE TO WITHIN THE BOUNDS OF OUR LAWS AND, AND, AND THE WHATEVER THAT'S CONSTITUTED FOR US TO, TO MOVE FORWARD WITH IT FINANCIALLY AND ECONOMIC DEVELOPMENT, I THINK THIS IS A GOOD AVENUE TO HAVE A FOCUS, TO BE ABLE TO REVIEW IT CONSTANTLY REVIEW, MAKE GOOD DECISIONS.
IF I UNDERSTAND THERE MAY BE SOME FLEXIBILITY, HOW WE DO
[01:25:01]
IT ON A REVIEW AND MAKE DECISIONS, SOMETHING WE NEED TO MOVE MONIES AROUND IS NECESSARY.SO BECAUSE OF, FROM WHAT I'M UNDERSTANDING, SOME FLEXIBILITY WITHIN THAT FRAMEWORK, I'M OKAY WITH MOVING FORWARD WITH BECAUSE I THINK THAT'S, IF WE DON'T TAKE ADVANTAGE OF AN OPPORTUNITY TO TAKE ADVANTAGE OF THE SPECIFIC ECONOMIC DEVELOPMENTAL NEEDS IN THIS PARTICULAR AREA, UM, WHICH WE HAVE SUCH PRIME.
YES, I, THAT'S WHY I ASKED THE QUESTION EARLIER 'CAUSE I WAS A LITTLE ON THE FENCE AS WELL BECAUSE I DO UNDERSTAND THAT A PROPOSITION PASSED FOR THE BOND, FOR THE HARBO POINT DEVELOPMENT, ET CETERA.
SO IT'S LIKE, DO WE BELIEVE THIS TOO? BUT, UH, BUT THAT'S NOT THE ONLY AREA THAT'S SUFFERING IN THIS PARTICULAR, IN THIS PARTICULAR AREA EITHER.
SO I JUST THINK THIS IS A GREAT OPPORTUNITY.
DEFINITELY UNDERSTAND THE SENTIMENT CONCERN.
CERTAINLY DON'T WANNA TAKE, UM, MONEY, UM, MONEY AWAY FROM OUR INVESTMENTS, AWAY FROM OUR PUBLIC SAFETY, SAFETY MECHANISMS. I THINK THOSE MEETINGS ARE BEING HELD AND, AND THEY NEED TO BE.
UM, BUT I THINK THEY NEED TO LOOK AT THE WHOLE, THE HOLISTIC NATURE OF IT, THE FULLNESS OF IT, NOT JUST ONE PARTICULAR TIFF, WHICH I DON'T THINK IS GOING TO BE THE, YOU KNOW, THIS PARTICULAR TIFF I DON'T THINK IS GONNA BE THE, THE DEATH OF, UM, ANY, UM, OF THE NECESSARY NEEDS FOR THOSE PUBLIC SAFETY OFFICERS.
SO THAT'S JUST KIND OF WHERE I I HOW I WOULD LIKE TO WEIGH IN.
ANYONE ELSE WANT TO, UH, SPEAK ON THIS? YOU WANNA MIND? I'D JUST LIKE TO ADDRESS 'CAUSE YOU'D ASKED, UH, JUST IF IT'S ALL RIGHT JUST TO GIVE MY, THIS WOULD BE JUST MY OPINION.
UH, AND YOU'RE GOING TO HEAR THIS ON NOVEMBER 12TH.
UH, IT'S GONNA BE MATT'S TIME TO TALK ABOUT WELL EMS AND FIRE AND THE STATE OF OUR CITY.
UH, WE, WE'VE ALWAYS, I'VE COINED THE WORD GARLAND'S CHALLENGE AND WHAT IT IS, IS WE HAVE A LOW PROPERTY TAX BASE.
IF WE WERE JUST AN AVERAGE METROPLEX CITY PER CAPITA, JUST AN AVERAGE FROM PROPERTY TAX AND SALES TAX, WE WOULD HAVE $90 MILLION MORE TO THE GENERAL FUND.
WHAT WE'RE LOOKING TO DO HERE IS JUST TRY TO PROTECT A VERY SMALL PORTION OF THE GENERAL FUND'S MONEY FOR IT ERODING AWAY.
UM, THE DEBT SERVICE TAX RATE RIGHT NOW IS ELEVATED.
WE ARE LOOKING NEXT YEAR TO DO A TAX RATE SHIFT TO MOVE THE DEBT SERVICE OVER TO THE O AND M TO HELP ADDRESS FUTURE NEEDS.
IF I HAD A CRYSTAL BALL AND I WAS A BETTING MAN, YEAH, THERE'S A RECESSION COMING AND WE'RE ALREADY IN STAGNATION.
ANY WAY I CAN FIND TO PROTECT MONEY IS WHAT I'VE BEEN LOOKING TO DO.
NOW THIS IS JUST MATT WATTS TALKING TO YOU.
SO THAT'S WHAT WE WERE LOOKING TO DO HERE IS JUST TRY TO PROTECT MONEY FOR OUR GENERAL FUND AND YES, PUBLIC SAFETY AND THERE ARE SOME BIG DECISIONS DOWN THE ROAD THAT ARE GOING TO HAVE TO COME AND TAX RATE INCREASES ARE GONNA PROBABLY BE PUT IN FRONT OF, UH, THE CI CITIZENS WITHIN THE NEXT 20 YEARS.
WE'RE JUST CONTEMPLATING A SWAP RIGHT NOW, MEANING MOVING FROM DEBT SERVICE TO M AND O.
BUT I, IF I, AGAIN, IF I HAD A CRYSTAL BALL TAX RATE INCREASES WILL PROBABLY HAVE TO COME IF THERE'S NOTHING CHANGED IN THE LEGISLATURE, IF PROPERTY TAXES IS STILL OUR MAIN INCOME.
SO THIS, THAT'S WHAT THE CONCEPT OF THIS WAS, OF EXTENDING THE TIFF.
UM, REMEMBER THAT THAT OTHER 50% FOR ECONOMIC DEVELOPMENT, WE'RE CALLING IT ECONOMIC DEVELOPMENT, BUT IT COULD BE ROADWAYS.
UH, THERE IS ABOUT 40 ACRES OF VACANT LAND IN HARBOR POINT, WHICH IS VERY HARD TO COME BY OUTSIDE OF WHAT WE HAVE AT SOUTH GARLAND AVENUE.
AND WHAT'S LEFT UP IN FIRE WILL IS PROBABLY THE BIGGEST CHUNK OF UNDEVELOPED LAND.
WE OWN 61 ACRES IN THAT AREA WITH PARK, WHICH IS PARKLAND.
UH, SO THERE'S REAL, THAT'S WHY THE OPPORTUNITIES AND WHY WE WERE LOOKING IN THIS AREA, UH, THE GEORGE BUSH WILL BE GOING THROUGH THERE.
SO ALL KINDS OF INFRASTRUCTURE NEEDS WILL PROBABLY HAVE TO COME FORWARD.
AGAIN, DON'T HAVE A CRYSTAL BALL.
I DON'T KNOW WHAT THOSE NEEDS ARE, BUT THAT WAS THE INTENT OF THIS EXPANSION AND MOVING FORWARD TO TRY TO MAKE SURE THE GENERAL FUND WAS, UH, PROTECTED AND ALSO PROVIDE SOME NEEDED INFRASTRUCTURE ALL ALONG THAT CORRIDOR.
WE'VE HAD SOME DEVELOPMENT ALONG I 30 OVER THE LAST 10 YEARS, LET'S SAY.
BUT THERE'S STILL A FAIR AMOUNT OF DEVELOPABLE LAND, UH, IN THE, IN THE RED, UH, LINES IN THE TIFF DISTRICT, IS THAT CORRECT? THERE IS.
WE AND WE OWN A PORTION OF IT, LIKE IN THE ROSE HILL AREA, RIGHT? WE BOUGHT SOME LAND THERE AND HAVE BEEN HOPING TO, UH, UH, I GOT 15 ACRES IN THE ROSE HILL AREA.
SO YES, THERE IS STILL SOME DEVELOPER LAND AND IT'S GOING TO BE THE INTERSECTION OF, YOU KNOW, 6 35, GOT I 30 AND YOU GOT GEORGE BUSH.
SO IT'S A, AS FAR AS A VERY IMPORTANT ROAD, AND IT'S ALSO THE ONE PIECE, LIKE THAT HARBOR POINT IS THE MOST UNIQUE, I GUESS YOU COULD SAY, PARCEL OF LAND THAT WE HAVE.
IT'S GOT WATER AROUND IT AND IT'S GOT A MAJOR HIGHWAY RUNNING THROUGH IT.
[01:30:01]
THAT, THAT'S WHERE ALL THE CONCEPTS OF THIS, UH, EXTENSION CAME OUT.AND I, I HOPE I KNOW Y'ALL AUDIO, Y'ALL ARE NEW, SO I HOPE THAT WE'VE PRESENTED IT IN A WAY THAT Y'ALL CAN UNDERSTAND.
AND IF NOT, PLEASE TELL US HOW WE CAN DO BETTER.
SO I WILL JUST LEAVE WITH THAT 'CAUSE WE WANNA MAKE SURE Y'ALL KNOW WHAT Y'ALL ARE MAKING DECISIONS ON.
OTHER DISCUSSION I'D LIKE TO ADD, UH, I'VE LIVED OUT THERE FOR 40 YEARS NOW AND, UM, I'VE WANTED TO SEE A SOUTH GARLAND FROM REALLY BELTLINE BACK OUT TO THE VERY POINT, DEVELOPING A LITTLE MORE DESTINATION QUALITY KINDA DEVELOPMENT.
I WAS ON THE PLANNING AND ZONING COMMISSION AND VOTED ON THE BASS PRO PROJECT FROM A ZONING STANDPOINT WHEN IT CAME IN.
AND, UM, NOW THE COUNCIL, UH, OF COURSE MAKES A FINAL DECISION LIKE THIS BODY.
WE WERE AN ADVISORY BODY, BUT, UH, BUT WE RECOMMENDED THAT BECAUSE WE THOUGHT IT WAS THE CITY NEEDED A DESTINATION LOCATION OTHER THAN, UM, FIRE WHEEL AND SOME OF THE OTHER DOWNTOWN AREA AND THAT TYPE OF THING.
AND SO, UM, I HOPE I'M NOT, UH, MAKING COMMENTS FROM A BIAS STANDPOINT BECAUSE I LIVE OUT THERE.
I, I FRANKLY DON'T WANT MORE DEVELOPMENT, BUT FROM, FROM A PERSONAL STANDPOINT, BUT FROM A, UM, A CITY STANDPOINT, I THINK DEVELOPMENT IS IS GOOD.
AND I WOULD LIKE TO SEE FUNDS DESIGNATED FOR THAT AREA TO, UH, TO TRY TO DEVELOP A DESTINATION LOCATION, UH, THAT SAPPHIRE BAY ACROSS AT THE, UH, DOW ROCK ROAD IS NOT DEVELOPED, UH, IN A, FROM A ENTERTAINMENT AND A LEISURE DISTRICT LIKE THEY HAD ORIGINALLY PLANNED.
ALTHOUGH THERE'S A LOT OF NICE RESIDENT STUFF OUT THERE.
BUT, UM, UH, I I GUESS I'D LIKE TO SEE IF THE ORIGINAL THOUGHT PROCESS COULD, COULD, UH, UH, COULD A, A DREAM COULD BECOME REALITY.
SO I'M GONNA BE VOTING, UH, FOR THIS FRANKLY.
ANY OTHER COMMENTS? SEEING NONE.
IS THERE A MOTION? UH, I THINK WE WERE ON B, RIGHT? I'M SORRY.
A, UH, A UHHUH A CONSIDERING CONSIDER RECOMMENDING TO THE CITY COUNCIL EXTENDING THE TERMINATION DATE OF THE TIF NUMBER TWO TO DECEMBER 31ST, 2045.
ANY DISCUSSION? ALL IN FAVOR SAY AYE.
UH, NOW GOING ON TO C RECOMMENDING, UH, CONSIDER RECOMMENDING TO THE CITY COUNCIL UPDATING THE PROJECT AND FINANCING PLAN FOR TIF NUMBER TWO AS WE DISCUSSED.
SO THERE WOULD BE A CHANGE IN THE PLAN VERSUS WHAT WE, THE ORIGINAL TIFF DISTRICT.
UM, I MAKE A MOTION WE APPROVE.
IS THERE A SECOND? I'LL SECOND A MOTION.
ANY DISCUSSION? ANY DISCUSSION? ALL IN FAVOR? AYE.
SO IT'S A UNANIMOUS YEAH, UNANIMOUS VOTE.
WE'RE GONNA, THE FIRST TWO MIGHT AS WELL APPROVE THE SECOND.
UH, I GUESS WE'RE READY TO MOVE ON TO FUTURE AGENDA ITEMS THEN HERE I'LL POINT OUT AGAIN, AS DAVID WENT OVER THIS CALENDAR, UM, AS YOU CAN SEE, WE WILL START THE NEXT WORK OF THIS IS PUTTING TOGETHER THE, THE PUBLIC NOTICES AND THE PRELIMINARY AMENDMENTS.
AND THEN, UH, WE'LL GO TO THE CITY COUNCIL MEETING ON, UH, NOVEMBER 18TH AGAIN ASKING FOR THE TURS AMENDED CREATION ORDINANCE AND HOLD THAT PUBLIC HEARING.
AND JUST SO Y'ALL KNOW, WE ARE, UH, RECOMMENDING THE DAY AFTER.
SO ASSUMING THE COUNCIL APPROVES THAT THE DAY AFTER WE HAVE A TS BOARD MEETING, WHICH IS STILL FALLING IN LINE WITH THE THIRD WEDNESDAY, UH, OF A MONTH, UH, AT SIX 30 FOR THE REME RECOMMENDED APPROVAL OF THAT AMENDED, UH, PUBLIC FINANCE PLAN OR PROJECT AND FINANCE PLAN.
AND THEN THE FINAL, AGAIN, THE FINAL SHOE WILL DROP IF, IF THAT CONTINUES ON PAST THAT WITH AMENDED WITH CITY COUNCIL, MAKING
[01:35:01]
THAT ORDINANCE TO AMEND THE PROJECT PLAN.SO THERE'S SOME STEPS THAT STILL NEED TO OCCUR AND WANNA MAKE SURE EVERYONE'S, UH, OKAY WITH THAT.
ARE ARE, DO YOU FEEL LIKE WEDNESDAY, NOVEMBER THE 19TH IS A, UH, IS MAYBE NOT CUTTING STONE, BUT ALMOST CUTTING STONE FOR US? WE CAN PUT IT ON OUR CALENDARS AS A, UH, I THINK IT'S ALREADY ON OUR CALENDARS FROM LAST TIME.
I THOUGHT LAST MONTH WAS ON OUR CALENDARS TOO, BUT IT WASN'T.
I I I WASN'T HERE WITH THAT ONE.
IT'S GONNA BE ON OUR CALENDARS FOR DE WE CAN DEFINITELY GET IT OUT.
I BELIEVE THIS ONE IS, IT'S ON MY CALENDAR, BUT I, I SQUEEZE, I HAD IT ALREADY WROTE DOWN FROM LAST TIME.
DO Y'ALL, I RECOMMENDED OTHER DAY.
NO, I THINK THAT'S A GREAT DATE.
I MEAN, IF THAT'S THE DAY YOU NEED, THAT'S THE DAY WE'RE COOL WITH.
WE'LL MAKE SURE THAT IT'S OUT.
UM, IS THERE ANYTHING ELSE Y'ALL WOULD LIKE US TO SEND OUT? WE WILL, UH, GET THE, UH, PROJECT PLAN OUT, SO, OKAY.
THE, THE PROJECT PLAN, I, I DO WANNA SAY THAT, UM, THE WAY THAT, UM, WE, WE TYPICALLY STRUCTURE IT IS, AND WE CAN BREAK THIS UP, BUT WE COULD JUST DO APPROVAL OF THE PROJECT AND FINANCING PLAN.
I WOULD LIKE TO, BEFORE THE END OF THE YEAR, HAVE A RECOMMENDATION OF THE ALLOCATION FOR THE PUBLIC SAFETY INITIATIVES AND THAT CAN BE RE-UPPED ON AN ANNUAL BASIS.
UM, BUT THAT WOULD BE BASICALLY IN THE, THE FORM OF A RESOLUTION.
UM, THAT WOULD BASICALLY SAY WE AUTHORIZE THE ALLOCATION FOR THE YEAR 2025 OR THIS, THIS UPCOMING YEAR OF 50% AND THEY WOULD GO FOR THIS.
AND IT HAS TO BE USED IN THESE PURPOSES.
AND SO I'LL TRY TO DO MY BEST TO REFLECT THE LANGUAGE THAT YOU HAD AND SOME OF THE CHECKS AND BALANCES.
UM, THAT DOES NOT HAVE TO HAPPEN.
IT COULD HAPPEN AT A SUBSEQUENT MEETING.
I WAS JUST NOTICING THE, THE VERBIAGE THAT YOU HAVE UP THERE FOR THE NOVEMBER 19TH MEETING WHERE IT SAYS TIFF FUNDS FOR GRANTS TO CITY GENERAL FUND.
BUT THAT NEEDS TO BE CLARIFIED.
THAT IS FOR PUBLIC SAFETY PUBLIC SAFETY INITIATIVES.
THEY ARE TIFF GRANTS THAT STIMULATE BUSINESS COMMERCIAL ACTIVITY AND THE TIFF GRANTS ARE FOR PUBLIC SAFETY INITIATIVES.
SO WE GET BURIED WITHIN THE DEFINITION
AND THAT'LL BE SPELLED OUT VERY CLEARLY AND THAT'S WHY I WANNA BRING THAT.
UM, SO IF YOU APPROVE THE PROJECT AND FINANCING PLAN, THE CITY COUNCIL WILL APPROVE THAT ORDINANCE AND THEN THEY WOULD APPROVE A SEPARATE RESOLUTION THAT COMES FROM YOU SAYING THAT WE AUTHORIZED THE ALLOCATION FOR THIS ONE YEAR OF 50% OF THE INCREMENT IN THE UPCOMING YEAR TO GO FOR PUBLIC SAFETY INITIATIVES UNDER CHAPTER THREE 80 OF THE, A LOCAL GOVERNMENT CODE.
DPED SIGNATURE REVIEW, SUBMIT COMMENTS BACK TO
MY COMPANY WAS DAVID PETIT, ECONOMIC DEVELOPMENT
I FOUND A REALLY GOOD PARTNER AND HER NAME'S A YALA AND I, SHE SAID, YOU KNOW, EITHER PAY ME OR PUT MY NAME ON THE DOOR.
AND I SAID, I'LL PUT YOUR NAME ON THE DOOR.
OH, WE'LL CALL IT A-A-P-P-F-P.
AND WE'LL CALL IT A-F-P-F-P-A FINAL PROJECT AND FINANCING PLAN.
SO IT'S JUST LIKE ANYTIME YOU DEAL WITH HUD, YOU KNOW, THEY GOT A SECTION THAT, AND SO WE'LL TRY TO SPELL THAT OUT AND MAKE SURE THAT WE HAVE THAT.
JUST REAL QUICK, I SAW SOMETHING THAT SAID TAD, WHICH IS SIMILAR TO THIS NOT ON YOUR, NOT IN YOUR PRESENTATION, BUT TAD IS SIMILAR TO THE TIF.
UM, NO, THAT'S A, UM, THE TAX APPRAISAL DISTRICT.
THERE THE ACRONYMS. WE SHOULD PROBABLY GIVE A A A LIST OF ACRONYMS AND WHAT THEY, BECAUSE I STARTED REFERENCING A DIFFERENT GLOSSARY OF TERMS, A GLOSSARY OF TERMS. I STARTED REFERENCING A DIFFERENT, UM, THING AND I THOUGHT IT KINDA HAD A TIE IN WITH THIS, BUT OKAY.
UM, BEFORE WE ADJOURN, I THINK THAT WAS WHAT WAS NEXT.
I WOULD LIKE TO REMIND, I, I WOULD LIKE TO SEE THE, UH, MASTER PLAN FOR THE HARBOR POINT.
CAN YOU EMAIL THAT OUT OR I CAN, AND THEN SEND THAT TO EVERYONE? YEAH.
I GUESS THE, THE EXISTING MASTER PLAN, HOW FAR BACK DOES THAT GO? UH, I WANNA SAY TWO.
UM, I JUST WANNA MAKE SURE IT'S NOT THE 20 2005 ONE
I THINK 2018, IF I'M NOT MISTAKEN HERE, UH, I'LL SEND IT OUT WITH THE DATE.
I'M SORRY, I, I THINK IT'S 2018, BUT I CAN HAVE THE DATE AND THE MASTER PLAN SEND.
IS THERE, IS THERE A, A NEW MASTER PLAN IN, IN, IN WORKS RIGHT NOW OR, OR IN DISCUSSION? I'M NOT AWARE OF ONE, BUT NOTHING'S
[01:40:01]
BEEN BROUGHT TO MY ATTENTION.WHO, WHO WOULD TYPICALLY PUT THE MASTER PLAN TOGETHER? UH, ANDY HESSER AND I CAN ACTUALLY REACH OUT.
I CAN REACH OUT TO THE PLANNING DEPARTMENT TOMORROW AND FIND OUT WHAT OTHER PLANS ARE GOING ON THERE.
WITHIN THE WHOLE, WITHIN THE WHOLE TIFF.
WELL, I THOUGHT IT WAS TEARS TOO, SO.
ANY OTHER DISCUSSION? AND IF THERE'S ANY OTHER QUESTIONS, UH, FEEL FREE TO REACH OUT TO ME OR COURTNEY AND WE WILL GET WHATEVER INFORMATION Y'ALL NEED.
IS THERE A MOTION TO ADJOURN? MAKE A MOTION.