Jan 10, 2026 Special Work Session

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JANUARY 10TH, 2026 SPECIAL MEETING OF THE GARLAND CITY COUNCIL. WE'RE HERE EARLY ON A SATURDAY MORNING TO TALK ABOUT THE CAPITAL IMPROVEMENT BUDGET, AMONG OTHER ITEMS. FIRST ITEM ON OUR AGENDA IS PUBLIC COMMENTS ON SPECIAL WORK SESSION ITEMS. MADAM SECRETARY,

[1. Update on the City's Financial Outlook]

LOOKING AT INTO 2026, THE APPRAISAL DISTRICT STARTING TO SHARE SOME PRELIMINARY INFORMATION ABOUT WHAT THAT TAX BASE AND WHAT HOW A PROPERTY VALUES LOOKING TO MOVE THERE ARE LARGELY COMMUNICATING THAT IT WILL BE A SIMILAR YEAR TO 2025 FROM THE CITY'S PERSPECTIVE. AND SOME HOMEWORK I'VE BEEN WORKING ON AND WILL START ENGAGING WITH, OUR ECONOMIC DEVELOPMENT DEPARTMENT IS TRYING TO QUANTIFY WHAT WE THINK THAT NEW CONSTRUCTION WILL LOOK LIKE THIS YEAR, BECAUSE THAT WAS A LARGE PART OF WHY WE SAW AN HEALTHY TAX BASE IN THE CURRENT YEAR. IF YOU LOOK AT THAT CHANGE IN EXISTING PROPERTY, WE HAD ABOUT 3.5% ASSOCIATED WITH OUR EXISTING PROPERTY. THAT'S EQUIVALENT TO OUR CAP. SO AT THIS POINT IN TIME, IF DCAD AND THE APPRAISAL DISTRICTS ARE COMMUNICATING WILL BE THE SAME YEAR, WE NEED TO REALLY START TRYING TO GET A HANDLE ON WITH OUR OTHER DEPARTMENTS THAT ARE MORE INVOLVED AND ENGAGED ON THE DEVELOPMENT FRONT TO START ESTIMATING OUT THAT THAT NEW CONSTRUCTION, SO WE CAN SET THE EXPECTATION ON WHAT THAT UNCAPPED REVENUE IS GOING TO LOOK LIKE, COMPARING US TO DALLAS COUNTY FOR 2025, YOU'LL SEE THAT THE CITY OF GARLAND

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OUR CAPITAL IMPROVEMENT PROGRAM. YOU THINK OF OUR TAX SUPPORTED PROJECTS, IN PARTICULAR OUR BOND PROGRAMS, LOOKING AT THE AD VALOREM TAX RATE CALCULATION FOR A CITIZEN. IF YOU'RE UNDER 65 BUT HAVE A HOMESTEAD EXEMPTION OF 11% ON YOUR PROPERTY, YOUR TOTAL TAX BILL, OR YOUR CITY OF GARLAND TOTAL TAX BILL FOR 20 2526 WOULD HAVE BEEN $1,837, WHICH WAS AN INCREASE OF $96, PRIMARILY DUE TO CHANGES IN THE YOUR RESIDENTIAL HOME VALUE, NOT DUE TO A CHANGE IN OUR TAX RATE. AND THEN IF YOU WERE A SENIOR OR DISABLED AND ALSO HAVE A HOMESTEAD, YOU'RE OVER 65 AND YOU HAVE A HOMESTEAD, YOU GET THAT ADDITIONAL SENIOR EXEMPTION OF $60,000 OFF YOUR TAXABLE VALUE. YOU HAD A TOTAL CITY OF GARLAND TAX BILL ON AVERAGE OF $1,423, WHICH WAS AN INCREASE OF $68 FROM THE PRIOR YEAR. WE'RE NOT THE ONLY TAXING ENTITY THAT OUR CITIZENS RECEIVE A TAX BILL FROM. OF THE TOTAL COMBINED PROPERTY TAX RATE, THE CITY GARLAND GARLAND IS ROUGHLY 29%. AND SO ALL OF THESE ENTITIES ARE SUBJECT TO SB TWO JUST LIKE WE ARE. SO THESE TAX RATES ADJUST ON AN ANNUAL BASIS. THIS PAST YEAR, GISD GOT APPROVAL TO INCREASE THEIR TAX RATE, WHICH IS REFLECTED HERE, WHICH TOOK THEM FROM, YOU KNOW, ROUGHLY 45% BACK UP TO ALMOST 50% OF THE TAX BURDEN FOR A GARLAND RESIDENT. THAT'S ALSO IN THE GISD ZONING. AND IN DALLAS COUNTY. IN TERMS OF OUR PROPERTY TAX RATE PRIOR TO SB TWO, AFTER WE ADOPTED OUR 2019 BOND PROGRAM, THE CITY COUNCIL THAT FALL OF 2019 DECIDED TO INCREASE OUR TAX RATE ON THE DEBT SERVICE SIDE, SIX AND A

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MAJORITY OF IT WAS BUILT BEFORE 1990. AND BECAUSE WE HAD OUR MAJOR HOUSING BOOM IN THE 1970S AND THE 1980S, THAT LEADS OUR HOUSING STOCK TO BE SMALLER THAN, YOU KNOW, OTHER CITIES WITHIN THE DALLAS COUNTY APPRAISAL DISTRICT. THE TIME THE HOMES BEING BUILT DURING THAT TIME PERIOD WERE SMALLER. IT WAS LOOKING AT MORE OF A TRADITIONAL FAMILY WHERE YOU HAD, YOU KNOW, MAYBE 3 OR 4 FAMILY MEMBERS, AND IT WAS A MUCH MORE MODEST HOUSING MARKET AT THAT TIME. SINCE THEN, THE DEMAND HAS CHANGED AND THAT PEOPLE ARE WANTING HOMES THAT ARE GREATER THAN 2000FT■S. THEY WANT, YOU KNOW, MAYBE HAVE EXTENDED FAMILY OR, YOU KNOW, ADDITIONAL ATTACHMENTS TO THEIR HOME FOR A DIFFERENT TYPE OF FAMILY DYNAMIC OR JUST A LARGER FOOTPRINT OVERALL. AND THIS STUDY CAN SPEAK MUCH MORE INTELLIGENTLY ON THAT THAN I CAN. BUT THE OVERALL OVERALL RESIDENTIAL HOUSING MIX, MAJORITY OF OUR HOMES ARE ABOUT 74% ARE LESS THAN 2000FT■S, AND WHICH IS MORE MODEST. AND IT LEADS TO THE THE LOWER THAN AVERAGE TAXABLE HOME VALUE, AND IS SOMETHING THAT WE'LL NEED TO THINK ABOUT AS WE LOOK AT DEVELOPMENT AND REDEVELOPMENT, PARTICULARLY ON OUR RESIDENTIAL SIDE, AS WE MOVE FORWARD, OUR OVERALL MARKET VALUE COMPARED TO OUR METROPLEX CITY, OUR AVERAGE RESIDENTIAL SQUARE FOOT HOME. WE'RE IN THE MIDDLE OF THIS GRAPH BASED ON THE 2025 TAX BASE. PRIOR, WHEN WE PRESENTED THIS TO YOU, WE'VE BEEN SECOND TO LAST, AND IT'S BECAUSE OF A POLITICAL CHOICE MADE BY THE TARRANT COUNTY APPRAISAL DISTRICT. THIS PAST YEAR, THE TARRANT COUNTY APPRAISAL DISTRICT DID NOT REAPPRAISE HOMES OR PROPERTIES WITHIN THEIR APPRAISAL DISTRICT.

THEY KEPT VALUE RELATIVELY FLAT. SO WE'VE SEEN MOVEMENT WITH GRAND PRAIRIE, FORT WORTH AND ARLINGTON DROPPING DOWN BELOW US IN TERMS OF THEIR RESIDENTIAL SQUARE FOOT HOME.

BUT WE WOULD ANTICIPATE THAT HAD THOSE PROPERTIES BE BEEN REAPPRAISED, AS IS TYPICALLY DONE ON A, YOU KNOW, 1 OR 2 YEAR BASIS, THAT WE WOULD STILL BE IN THAT SECOND TO LAST SPOT JUST BASED ON OUR HOUSING PICKS AND AND HISTORIC METROPLEX COMPARISONS. LOOKING AT THE TOTAL TAXABLE VALUE FOR PER CAPITA, EVEN THOUGH IF YOU LOOK AT THE PRIOR GRAPH THAT WE'RE KIND OF TOWARDS MOVING TOWARDS THE MIDDLE IN TERMS OF OUR AVERAGE AVERAGE RESIDENTIAL VALUE, SQUARE FOOT HOME OF TAXABLE VALUE, OUR PER CAPITA. EARNINGS BASED ON OUR HOUSING STOCK IS STILL LOWER. IT'S STILL MORE MODEST THAN THOSE FORT WORTH BASED CITIES. AND HAD ARLINGTON HAD MORE PROPERTIES BE REAPPRAISED, I WOULD I WOULD ANTICIPATE WE'D BE IN THE SECOND TO LAST SPOT STILL. SO WE STILL HAVE ABOUT A 40 K GAP BETWEEN US AND THE AVERAGE METROPLEX CITY IN TERMS OF OUR OUR PROPERTY TAXABLE VALUE PER CAPITA, BECAUSE OUR PROPERTY VALUE AND REVENUE PER CAPITA IS LOWER, WE NEED A HIGHER TAX RATE IN ORDER TO ACHIEVE THE SAME AMOUNT OF REVENUE. SO LOOKING AT THIS GRAPH, YOU'LL SEE THAT THE CITY OF GARLAND IS ON THE SECOND HIGHEST TAX RATE OF OF OUR METROPLEX CITIES. AND WHEN YOU HAVE A MORE MODEST TAX BASE TAX BASE, IT TAKES A HIGHER RATE TO ACHIEVE A SIMILAR AMOUNT OF REVENUE. LOOKING AT OUR OVERALL ANNUAL SALES TAX REVENUE, THE PAST COUPLE YEARS, REALLY SINCE THE PANDEMIC AND SOME CHANGES FROM THE STATE LEGISLATURE AND SALES TAX SOURCING WITH THE WAYFAIR ACT, WE'VE SEEN A LARGE GROWTH PERIOD IN OUR SALES TAX REVENUE FROM 2021 REALLY INTO 2024 SINCE THEN. AND WHAT YOU'LL SEE HERE REFLECTED IN THE IN THE DARK BLUE AT THE TOP OF THOSE GRAPHS IS OUR SALES TAX HAS LARGELY STAGNATED OUT SINCE 2024. AND WE'RE

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AND THE INFORMATION FROM THE APPRAISAL DISTRICT IS NOT REALLY GIVING US ANY, ANY OTHER INDICATION THAT WE MIGHT SEE ANY OTHER CHANGES OR GROWTH IN THE RESIDENTIAL HOUSING MARKET OR GROWTH TO EXISTING PROPERTY TAX OR EXISTING PROPERTY VALUES. ON OUR SALES TAX, WE'RE LARGELY SEEING STAGNATION. SO WE'RE ASSUMING KIND OF OUR HISTORICAL GROWTH AVERAGE OF 2.5%. IN TERMS OF OUR GPD ROI, THIS IS A FIXED RETURN METHODOLOGY THAT WE CALCULATE ON AN ANNUAL BASIS.

THIS EQUATES TO ABOUT 8%. AND WE'RE ASSUMING A 3% INCREASE IN OUR LANDFILL REVENUE OVER THE COURSE OF THIS FIVE YEAR MODEL. OF COURSE, EXPENDITURES DON'T. EXPENDITURE GROWTH DOESN'T TAKE INTO ACCOUNT YOUR RESTRICTIONS ON YOUR REVENUE GROWTH. SO JUST TO OFFER OR PROVIDE OUR GENERAL FUND EMPLOYEES A THREE AND A HALF 3% MERIT IS ROUGHLY $5 MILLION, WHILE A THREE 3.5% GROWTH ON OUR PROPERTY TAX ALONE IS 2.5 MILLION. SO YOU'RE ALREADY SHORT HALF THE COST TO GIVE A MERIT TO GENERAL FUND EMPLOYEES JUST STARTING OUT THE GATE. AND THAT'S NOT THE ONLY COST PRESSURE WE HAVE ON AN ANNUAL BASIS. WE'VE BEEN SEEING ANYWHERE FROM 6 TO 8% IN OUR MEDICAL INSURANCE TREND GROWTH. WE'VE SEEN 8% GROWTH IN PROPERTY AND LIABILITY INSURANCE, 7% IN OUR IT AND SECURITY, CYBERSECURITY, INFRASTRUCTURE INVESTMENTS. AND THEN THROUGH THE 2019 BOND PROGRAM, WE'VE ADDED NEW FACILITIES. WE'VE HAD SOME GROWTH IN OUR MAINTENANCE FOOTPRINT THERE, BUT WE ALSO OPERATE A LARGE NUMBER OF OTHER CITY FACILITIES THAT HAVE NOT BEEN RECENTLY RENOVATED OR HAD MAJOR MAINTENANCE ACTIVITIES ON.

SO THE COSOST TO MAINTAIN THOSE FACILITIES HAS GROWN OVER TIME. AND WE ARE, YOU KNOW, TACKLING SOME OF THAT WITH SOME EXISTING FACILITY IMPROVEMENTS THROUGH THE CIP. AND WE'LL HAVE BILL WILSON HERE TO PRESENT ON THE ACTIVITIES RELATED TO THAT PROGRAM LATER. BUT IT'S STILL A GROWING COST ON THE OPERATION OPERATING SIDE TO, YOU KNOW, PHYSICALLY MAINTAIN AND MAINTENANCE THOSE FACILITIES. AND UNDER THIS MODEL, WE ARE NOT A MODELING OUT ANY NEW SERVICES. WE HAVE ITERATIONS WHERE WE'RE PROJECTING OUT AND THAT CAN BE, YOU KNOW, DISCUSSED WITH THE CITY COUNCIL. BUT THIS IS WHAT WE CALL OUR BASELINE MODEL. SO THIS IS JUST MAINTAIN WHAT WE HAVE AND KEEP OFFERING THE SERVICE LEVELS WE CURRENTLY HAVE. ON A TYPICAL YEAR, WE DO HAVE SALARY AND EXPENDITURE SAVINGS. SO WE ARE ASSUMING THAT ON THAT THAT COULD BE AS GOOD AS 1.5 MILLION IN SAVINGS. YOU KNOW BETTER THAN BUDGET BY THE TIME WE FINISH THE YEAR. BUT EVEN TAKING THAT INTO ACCOUNT, WE'RE LOOKING AT ABOUT A $5 MILLION DEFICIT JUST FROM THE BASELINE FINANCIAL MODEL. AND TN, AS THE CITY COUNCIL RECALLS, IN THIS PAST OPERATING BUDGET, WE HAD TO FUND AND WE ASKED THE COUNCIL'S APPROVAL TO FUND ON FOR THE FY 26 YEAR, ABOUT 2.7 MILLION OF ONGOING EXPENDITURES, WITH ONE TIME RESOURCES. SINCE FY 26 IS LARGELY BEEN SEEN AS OUR KIND OF OUR BRIDGE YEAR TO GO TO THE VOTERS IN NOVEMBER FOR A TAX RATE CHANGE. JUST BRIEFLY TALKING ABOUT OUR LONG TERM STRATEGY WITHOUT TAX BASE GROWTH, ECONOMIC DEVELOPMENT, REDEVELOPMENT CHANGES IN OUR OVERALL REVENUE OUTLOOK, WHICH WERE LARGELY SEEN, MOST OF OUR REVENUE SOURCES STAGNATE, AND A FUTURE O&M TAX RATE INCREASE OR SHIFT OUR ABILITY TO MAINTAIN OUR SERVICE LEVELS, MAINTAIN OUR FACILITIES AND AND MAINTAIN OUR STAFFING, WHETHER THAT'S THROUGH, YOU KNOW, MAINTAINING COMPETITIVE COMPENSATION. SO

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THANK YOU. THANK YOU SIR. ANY OTHER QUESTIONS? I HAD A QUESTION ON SLIDE 11. IF YOU GO BACK TO THAT ONE, IT'S THE ONE ABOUT THE AVERAGE RESIDENTIAL SQUARE FOOT HOME FOR THE VARIOUS CITIES. ARE ALL THOSE SQUARE FOOTAGES ACROSS THE CITY'S EQUIVALENT, OR ARE THEY VARIED BASED UPON THE INDIVIDUAL CITY? IT'S BASED ON THE INDIVIDUAL CITY. SO THEY EACH OF THESE CITIES ON HERE WILL HAVE A DIFFERENT HOUSING STOCK. BUT BY PUTTING IT ON A PER CAPITA BASIS, YOU'RE AVERAGING IT OUT PER PERSON BASED ON, YOU KNOW, KIND OF

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ANY OTHER QUESTIONS COUNCIL. COUNCILMEMBER WILLIAMS THANK YOU. MAYOR. CITY MANAGER ARE THERE PLANS ARE THERE PLANS IN IN MOTION NOW TO RETAIN THE SERVICES OF A CONSULTANT TO HELP US? THE MESSAGING FOR THE NOVEMBER ELECTION? YES, SIR. YOU'RE GOING TO WORK VERY INTENTIONALLY AND CAREFULLY TO MAKE SURE THAT THE VOTERS WILL UNDERSTAND WHAT IT IS THAT THE CURRENT FINANCIAL SITUATION IS AND WHAT THE ASK IS THAT THEY UNDERSTAND WHAT WE'RE ACTUALLY DOING AND WHAT'S THE TIMELINE FOR THAT CONSULTANT RETENTION WORKING ON THAT PRESENTLY? I THINK WE HAVE A MEETING NEXT WEEK. INTERVIEW CONSULTING GROUP. WE WILL CONTINUE AFTER THAT TO INTERVIEW. IF WE DON'T FIND A SUCCESSFUL GROUP TO HELP US WITH MESSAGING. THANK YOU.

THANK YOU MAYOR. THANK YOU SIR. ANY OTHER QUESTIONS? I SEE NONE. THANK YOU VERY MUCH. ALLISON.

[2. Presentation of Garland Housing Strategic Plan-This item will be held in the Austin State Room adjacent to the Work Session Room at City Hall.]

BUT WE'LL BE RECORDING IT AND HOPEFULLY EVERYONE WILL BE ABLE TO HEAR US. THE BEGINNING OF THE PRENTATION WILL BEGIN IN HERE. THERE'LL BE AN ACTUAL PRESENTATION FIRST, AND THEN WE'LL MOVE INTO THE WORKSHOP. LET'S DO THAT THEN. THEN YOU'LL GET TO SEE US FOR THE FIRST HALF OF IT. WE'RE MAYOR. GOOD MORNING. GOOD MORNING. YOU KNOW HOW TO OPERATE THIS. MORNING.

MAYOR AND COUNCIL. I'M BECKY KING, MANAGING DIRECTOR OF COMMUNITY AND NEIGHBORHOOD DEVELOPMENT. AND WITH ME ARE CHARLES AND AMBER LYNCH FROM KCSB CONSULTING. THIS IS THEIR THIRD TIME TO APPEAR BEFORE COUNCIL, AND THEY ARE HERE TO GIVE US AN UPDATE ON THE HOUSING STUDY. AND LET ME JUST PULL THAT UP REAL QUICK. OVER THE LAST. TWO. THIS IS ALWAYS THE MOST ENTERTAINING PART. THIS HAPPENED AND IT'S IT'S THOSE THINGS ARE JUST A MYSTERY TO ME. YES. WHEN YOU THINK ABOUT THE TECHNOLOGY OKAY. THERE YOU GO. CHALLENGE OF THE MORNING. YEAH. THIS IS HOW YOU WEED OUT YOUR GUESTS, RIGHT? IS CAN THEY CAN THEY WORK THE PRESENTATION? DO YOU WANT US TO JUMP RIGHT IN OR PLEASE GO RIGHT AHEAD. YES, MAYOR.

COUNCIL. CITY MANAGER. I'M CHARLES BUCKY, ONE OF YOUR HOUSING CONSULTANTS. GLAD TO BE HERE. YOU MAY RECALL WE HAD A SPEEDY SESSION LATE IN THE EVENING SOME MONTHS AGO, MAYBE A FEW WEEKS PRIOR TO THANKSGIVING AND THEN THE TAIL END OF SUMMER. WE HAD AN EARLIER SESSION, SO I'M GLAD TO BE HERE WITH YOU ALL TODAY. WE'RE NOT AS RUSHED. WE CAN WORK THROUGH THINGS AT A NICE PACE, AND I THINK GET TO THE HEART OF SOME OF THE HOUSING CHALLENGES. IN DUE COURSE, I'M JOINED BY MY COLLEAGUE AMBER LYNCH. SHE IS OUR STAFF EXPERT ON THE TRANSFORMATION OF SINGLE FAMILY HOMES. THAT'S SUPER IMPORTANT GIVEN THAT 74% OF OUR HOUSING STOCK IS IS IN SINGLE FAMILY HOMES. SO WE'RE AWFULLY GLAD TO HAVE HER HERE, BECAUSE SO MUCH OF THE FUTURE ALSO IS GOING TO BE DEPENDENT ON HOW YOU THINK ABOUT CORRIDORS AND INTERSECTIONS AND THE FACT THAT THEY'RE GOING TO GIVE YOU OPPORTUNITIES. ON THE MULTIFAMILY SIDE. I HAVE TWO OTHER COLLEAGUES HERE FOR THE WEEKEND AND THROUGH MONDAY TO

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THERE'S SAD TO SAY FOR YOU ALL. THERE'S 68 OF THEM. SO BUT WE'LL DO WE'LL DO OUR BEST. SO LET'S GO AHEAD AND KNOCK THEM OUT. WE'LL DIVIDE TODAY. IN ANY CASE AT LEAST OUR AMBITION IS TO DIVIDE TODAY INTO ABOUT 30 35 MINUTES WITH ME AND AMBER RIGHT NOW, YOU KNOW, WALKING THROUGH SORT OF A REVIEW. LET'S JUST BE SURE WE'RE ALL LEVEL SET, OKAY? SO WE'LL GO THROUGH A SET OF SLIDES THAT REALLY COVER THE DOCUMENT YOU HAVE IN FRONT OF YOU, WHICH IS HOUSING STUDY. OKAY. IF THE I'M SORRY IT'S IT'S IN THE. OKAY. SORRY. IT'S IN THE OTHER ROOM. WE'LL GET WE'LL GET THEM TO YOU OKAY. AND THEN WE'LL, WE'LL SHIFT OVER. WE'VE GOT A FEW BREAKOUT EXERCISES THAT WILL HELP US ACTUALLY SORT THROUGH SOME SOME OF THE CHALLENGES WITH BUDGET PRIORITIES, SPATIAL ISSUES. YOU KNOW, WE CAN ROLL UP OUR SLEEVES AND AND WORK IN SMALL GROUP. WE'LL DO THAT FOR A BIT. WOULD IT BE WORTH HAVING THAT DOCUMENT IN FRONT OF US HERE, OR SHOULD WE WAIT TILL WE. THE COUNCIL WOULD LIKE IT NOW WE'LL HAVE SOMEBODY BRING THEM IN.

OKAY. AND SO WE'VE GOT THE BALANCE OF THE MORNING. WHY DON'T WE JUST JUMP RIGHT INTO THE CONTENT IF YOU'RE OKAY WITH THAT. SO THIS THIS SLIDE IS ACTUALLY IT'S A REALLY GOOD SLIDE. I SORT OF THINK OF THIS AS 68 SLIDES IN ONE. RIGHT. SO IF, IF, IF EVERYTHING GOES DARK IN 15 MINUTES THIS IS THE SLIDE TO PAY ATTENTION TO. I'LL WALK YOU THROUGH THIS. LET'S LET'S TAKE A LOOK AT THE RIGHT THE RIGHT THE RIGHT DIAGRAM OVER THERE WHICH IS AN IMPORTANT DIAGRAM TO PAY ATTENTION TO, SHOWS A CONTINUAL CYCLE IN GARLAND. IT SPEAKS VERY QUALITATIVELY TO THE PRESENTATION MADE ON SSIP THIS MORNING. I THINK. I THINK ALLISON MADE THIS MORNING. IT WAS IT WAS, BY THE WAY, AN EXCELLENT PRESENTATION, I THOUGHT. AND SO HERE IN THIS DIAGRAM, YOU SEE, IF YOU START, YOU KNOW, AT 2:00, YOU HAVE OLDER, SMALLER HOMES IN, IN CHALLENGING SET OF CONDITIONS AND LOWER TIER COMMERCIAL. AND THAT LEADS TO IN A REGION AND IN THIS REGION A LOWER LEVEL OF DEMAND, WHICH IN TURN FEEDS LOWER LEVELS OF PRICES. AND THAT GIVES YOU LOWER AVERAGE INCOMES AND THAT TURNS INTO LOWER LEVELS OF DISPOSABLE INCOME. SO EVERYBODY SORT OF GET THAT SENSE OF IT OKAY. IT'S AND SO IN ANY CYCLE, IN ANY ECONOMIC CYCLE, AND I THINK THIS IS SPEAKS TO THE HEART OF THE WORK TODAY AND WHERE WE'RE REALLY SEEKING YOUR GUIDANCE AS WE PIVOT FROM ANALYSIS TO STRATEGY. RIGHT, IS WHAT IS THE EXTENT IS IS THE EXTENT TO WHICH THIS THIS CYCLE IS LOCKED IN. RIGHT. WHAT IS THE EXTENT TO WHICH IT, YOU KNOW, HOW, HOW IF, IF AND HOW IT CAN BE UPENDED. RIGHT. AT WHAT COST? IN WHAT WAYS? OVER WHAT LENGTH OF TIME? I MEAN, THAT'S REALLY THE ESSENCE OF IT. OKAY. IF THAT IF THAT CYCLE IS GIVING YOU WAS GIVING YOU TRENDING DATA OPPOSITE OF WHAT ALLISON PRESENTED, RIGHT? YOU WOULD YOU WOULDN'T YOU WOULDN'T HAVE THAT CHALLENGE. RIGHT. OR YOU'D HAVE A DIFFERENT SET OF CHALLENGES. OKAY. SO WHEN YOU TAKE, TAKE, TAKE THIS, THIS CYCLE AND THE TRENDS, THAT SORT OF BECOMES YOUR IMPERATIVE. I THINK HOW TO THINK ABOUT THAT VIS A VIS HOUSING. SO WHAT FEEDS INTO THAT IS THAT IF WE WORK, WORK OUR WAY DOWN ON THE ON THE LEFT SIDE, RIGHT. SO YOU'RE STRUGGLING TO ATTRACT HOUSEHOLDS WHO HAVE A WIDE RANGE OF CHOICES. THAT'S ABSOLUTELY CRITICAL. OKAY. AND SO CONSEQUENTLY YOU HAVE LESS LESS PRESSURE ON THE STOCKS. AND PRICES RISE. BUT THEY DON'T RISE AT THE RATE THEY'RE RISING EVERYWHERE ELSE. WHICH MEANS THE RATE OF WEALTH ACCUMULATION IS A BETTER BET ELSEWHERE. ELSEWHERE. RIGHT. SO THAT BECOMES CRITICAL. AND AND SO YOU END UP WITH A SITUATION WHERE YOU HAVE A LOWER PRICED STOCK THAT IS A PERFECT MATCH FOR HOUSEHOLDS WITHOUT A LOT OF PURCHASING POWER. AND THAT IN MANY RESPECTS IS IS WHERE YOU'RE LOCKED IN. OKAY. NOW THE CHALLENGE BECOMES HOW TO COPE WI THAT BECAUSE THERE ARE FISCAL IMPLICATIONS. RIGHT. NEXT SLIDE. SO IF WE SUM UP SORT OF WHERE WE ARE AS A BOTTOM LINE, THERE'S IF YOU WERE TO JUST TALK TO EVERYBODY IN THE COMMUNITY RIGHT. YOU WOULD NOT I WOULD NOT BE SURPRISED. NOR WOULD I EXPECT YOU TO BE SURPRISED FOR FOLKS TO SAY HOUSING COSTS A LOT OF MONEY. HOUSING IS EXPENSIVE. RENT IS EXPENSIVE. MY MORTGAGE PAYMENT IS EXPENSIVE. MY TAXES ARE EXPENSIVE. EXPENSIVE, RIGHT. AND THAT'S BECAUSE THEY ARE

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OKAY. SO THAT'S THAT THAT THAT CAN'T BE IGNORED. RIGHT. THERE'S A SECOND PIECE TOO, WHICH IS THAT IN ANY COMMUNITY YOU HAVE INCOMES TIMES, YOU KNOW, THE POPULATION, RIGHT.

GIVES YOU SOME DEGREE OF PURCHASING POWER IN THE RETAIL MARKET. RIGHT. AND YOURS TENDS TO BE LOWER THAN YOUR NEIGHBOBO. RIGHT. AND SO RETAILERS MAKE DECISIONS THAT MORPH THAT, THAT ARE MORE FAVORABLE TO YOUR NEIGHBORING JURISDICTIONS. RIGHT. SO ON A REGIONAL BASIS, YOU ABSOLUTELY HAVE ALL OF THE SERVICES YOU WANT, BUT WHERE THEY'RE LOCATED ON THE REGION TURNS OUT TO TO WORK TO YOUR DISADVANTAGE ON THE TAX SIDE. RIGHT. DOES THAT MAKE SENSE. SO YOU CAN GO RIGHT ACROSS THE CITY LINE AND GET ALL THE SERVICES YOU WANT. BUT RIGHT ACROSS THE CITY LINE THEY'RE GETTING ALL THE TAXES. SO THAT THAT THAT'S PART OF THAT THAT FEEDBACK LOOP OKAY. AND SO THAT'S INEXTRICABLY CONNECTED. AND ALLISON MADE THIS POINT EARLIER TO A HIGH PERCENTAGE OF YOUR HOUSING STOCKS. NOT ONLY THAT ARE SINGLE FAMILY, BUT OF THE SINGLE FAMILY THAT ARE OLDER AND SMALLER. SO THEY FETCH LOWER LEVELS OF DEMAND ON THE MARKET. RIGHT. THAT LEAVES YOU AGAIN THEN THEREFORE, ON THE GENERAL FUND SIDE AND ELSEWHERE, WITH A LIMITED CAPACITY TO MAINTAIN, MUCH LESS UPGRADE ON THE CAPITAL SIDE, YOUR INFRASTRUCTURE. RIGHT. SO GO TO THE NEXT SLIDE THAT YOU WILL RECALL THAT BRINGS YOU TO THIS CHALLENGE, WHICH IS THAT, NUMBER ONE, IT'S DECADES IN THE MAKING. THIS DIDN'T HAPPEN OVERNIGHT, RIGHT? TWO YOU KNOW, CAN YOU ADDRESS IT AND CAN YOU ADDRESS IT CONDITIONALLY? CAN YOU ADDRESS IT WITHOUT DISPLACING YOUR VULNERABLE HOUSEHOLDS? CAN YOU ADDRESS IT WITHOUT BECOMING A SOULLESS PLACE? I THINK SOME OF YOUR NEIGHBORS, YOU KNOW, THEY'RE T MY CLIENTS. I'M FREE TO SAY WHAT I THINK HERE. THEY'RE FAIRLY SOULLESS. I THINK THAT'S THAT'S YOUR COMPETITIVE ADVANTAGE, IS THAT THAT'S NOT WHO YOU ARE, RIGHT? SO CAN YOU PIVOT RIGHT? CAN YOU PIVOT TO BEING FISCALLY STRONGER WITHOUT DISPLACEMENT AND WITHOUT LOSING CHARACTER? RIGHT. AND I THINK, YOU KNOW, THE ANSWER IS ABSOLUTELY YES. BUT IT'S IT'S A YES IF OR YES. BUT RIGHT. AND THAT IS YOU KNOW, ARE YOU ABLE TO REALLY WORK TOGETHER TO FIGURE OUT WHAT ARE OUR STRENGTHS, DECIDE TO BUILD ON THOSE STRENGTHS, FOCUS GEOGRAPHICALLY, RIGHT. AND THEN BE SURE THAT YOU ARE ABSOLUTELY COMMITTED TO HELPING THE MOST VULNERABLE. SO THAT'S HOW YOU WOULD WIND UP, YOU KNOW, IF YOU HAVE FIDELITY TO THOSE ISSUES AT THE BOTTOM. I THINK THAT'S HOW YOU CAN INTERVENE SUCCESSFULLY AT THE TOP. NEXT SLIDE, I WANT TO TAKE YOU NOW TO, I THINK, JUST A COUPLE OF QUICK IMAGES THAT I THINK ARE IMPORTANT TO TO KIND OF PAY ATTENTION TO HERE. WHAT'S THAT? YOU KNOW, LET'S, LET'S, LET'S COME BACK TO THAT. SO HERE ARE TWO SLIDES THAT I'M SURE THAT YOU ALL CAN RECOGNIZE THIS.

THIS SHOULD BE FAIRLY FAMILIAR, RIGHT? I WANT TO I WANT TO DWELL ON THESE TWO SLIDES FOR A QUICK SECOND, OKAY. BECAUSE THEY TELL IMPORTANT STORIES. RIGHT. YOU HAVE A LOT OF AGING AND OUTDATED HOUSING, RIGHT? AGING AND OUTDATED HOUSING IS IN ANY MARKET, RIGHT? THE REPOSITORY OF WHAT BECOMES NATURALLY AFFORDABLE AS AS THE MARKET RIGHT CHOOSES AND PREFERS NEWER AND LARGER HOMES. RIGHT. THE OLDER AND SMALLER HOMES FALL IN PRICE. RIGHT? AND THEY BECOME NATURALLY AFFORDABLE. RIGHT. AND THEY ALSO, IF THEY'RE NOT UPDATED AND MAINTAINED AT A HIGH LEVEL, THEY BECOME LESS DESIRABLE. RIGHT. AND SO THE KEY PIECE HERE IS, UNLESS OTHERWISE SUBSIDIZED. RIGHT. SO THIS THIS THIS IS KEY. THE MARKET BY ITSESELF RIGHT, IS DELIVERING THIS CONDITION HERE. RIGHT. NEXT SLIDE. RIGHT. SO IF WE SORT OF JUST A LITTLE WORD TRICK HERE, IF WE IF WE SUBSTITUTE OUT LESS DESIRABLE HOUSING FOR OLDER SMALLER AND LESS WELL MAINTAINED THEN WHAT WHAT'S OCCURRING JUST ACROSS CITY LINES. RIGHT. YOU END UP WITH THIS STOCK AGAIN UNLESS OTHERWISE SUBSIDIZED. RIGHT.

NEXT SLIDE. RIGHT. ONE MORE SLIDE. AND HERE'S I THINK WHERE THIS ALL SORT OF COMES TO A HEAD. YOU HAVE 20,000 OF THESE. YOU DON'T HAVE 200 AND YOU DON'T HAVE 2000. YOU HAVE 20,000. RIGHT. AND SO ALL OF YOU WOULD WOULD YOU KNOW, WHAT I WANT YOU TO DO IS QUICKLY GRASP, YOU KNOW, SORT OF THE X AND Y OF THIS IF, IF THE HOUSE ON THE LEFT IS A $10,000, YOU KNOW, PROJECT OR A $20,000 PROJECT OR A $50,000 PROJECT, AND THE HOUSE ON THE RIGHT IS A 5000 OR 10,000 OR $20,000 PROJECT TIMES 20,000. YOU'RE DEALING WITH VERY BIG NUMBERS,

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THEREFORE, AT BEGGING THE QUESTION, OKAY, IF IT DOESN'T GET TO ZERO ON ITS OWN, HOW IS IT GOING TO GET TO ZERO, RIGHT? OTHERWISE? RIGHT. WHICH IS REALLY SORT OF HOW YOU BEGIN TO UPEND THAT, THAT, THAT, THAT SET OF CHALLENGES. NEXT SLIDE. SO HERE'S SORT OF THE WAY WE WOULD ENCOURAGE YOU TO THINK ABOUT THIS WORKING LEFT TO RIGHT. IN IN ECONOMICS, THIS MIGHT SOMETIMES BE CALLED A STOCK FLOW WAY OF THINKING, A STOCK FLOW ANALYSIS WAY OF THINKING. AND SO IF WE MOVE LEFT TO RIGHT, YOU SEE A REPRESENTATION OF A HOUSEHOLD PAUSING TO ASK, YOU KNOW, TWO QUESTIONS. WHERE, WHERE WOULD WE PREFER AND WHICH WOULD, WHICH CAN WE AFFORD? OKAY. THE HOUSES, THE HOMES ON THE RIGHT ARE SIMPLY PLACEHOLDERS. THEY COULD BE PLACEHOLDERS FOR APARTMENTS, PLACEHOLDERS FOR DUPLEXES, PLACEHOLDERS FOR WHATEVER GARLAND IS OFFERING AND WHATEVER THE COMPETITION IS OFFERING. WHAT I'M SHOWING HERE, BY THE WAY, IS RICHARDSON AT THE TOP, YOU KNOW, AND A GARLAND HOME ON THE LEFT, AN AVERAGE RICHARDSON NOT A NOT A BELOW AVERAGE RICHARDSON. THIS IS THIS IS THIS IS IMPORTANT RIGHT. AND SO WHAT ENDS UP HAPPENING IS THE HOUSEHOLD ASKS THESE QUESTIONS. RIGHT. AND AT THE SAME TIME THE CITY NEEDS TO ASK THE QUESTIONS. WHAT IF THIS THIS THIS FAMILY CHOOSES US? AND WHAT IF THIS FAMILY DOESN'T CHOOSE US? OKAY, IF THIS FAMILY CHOOSES US, RIGHT? YOUR DEMAND GOES UP, YOUR SUPPLIES HELD STEADY, YOUR PRICES BEGIN TO RISE, YOUR PRICE INCREASE.

SENATE BILL CHANGES NOTWITHSTANDING. THAT CREATES AN INCREMENT THAT YOU CAN WORK WITH, RIGHT? IF THE HOUSEHOLD CHOOSES TO GO SOMEPLACE ELSE, YOUR DEMAND SOFTENS YOUR INCREASE IN PRICES. SOFTEN YOUR YOUR INCREMENT SOFTENS YOUR TAX BASE SOFTENS. RIGHT. SO MUCH OF THE TASK IS THEN TO FIGURE OUT HOW BADLY DO WE WANT THAT HOUSEHOLD AND WHAT ARE WE WILLING AND ABLE TO DO TO, TO, TO, TO BRING THAT HOUSEHOLD IN. THAT'S, THAT'S THAT'S THE WORK.

RIGHT. HOW HOW DO YOU ALL THINK ABOUT THE MARKET OUT THERE AND COMPETING FOR YOUR SHARE OF HOUSEHOLDS? NEXT SLIDE. AND SO WHEN WE LOOK AT AT THE THE THE ENTIRE REGION RIGHT. AND WE TRY TO PUT ALL THE PIECES TOGETHER. RIGHT. WHAT YOU SEE IS THAT THE MARKET FOR GARLAND, RIGHT.

REALLY IS AT, AT THE, AT THE BOTTOM THIRD RIGHT OF THE REGION. OKAY. THE LEVEL OF DEGREE TO WHICH GARLAND IS ABLE TO COMPETE FOR THOSE HOUSEHOLDS, RIGHT ON THE LEFT IS AT THE BOTTOM, THIRD RIGHT. AND IT PUTS YOU AT WHAT IS NOW A FAIRLY STRUCTURAL DISADVANTAGE.

OKAY. SO UNSUBSIDIZED INVESTMENT IS GOING ELSEWHERE IN THE REGION, RIGHT. RETURNS ARE BETTER THERE. YOUR OLDER AND SMALLER HOMES ARE A MAJOR FACTOR IN THAT. AND SO THOSE OLDER AND SMALLER HOMES AND I THINK THIS IS A POINT WORTH REMEMBERING. THOSE OLDER AND SMALLER HOMES AS AS THEY ARE TODAY. OKAY. THERE IS AS GOOD AS THEY'RE EVER GOING TO BE.

RIGHT? THEY'RE NOT GOOD. YOU'RE NOT GOING TO WAKE UP NEXT MONDAY AND THEY'RE GOING TO BE BETTER. RIGHT? UNTIL, UNTIL AND UNLESS THE REGION WERE TO HAVE A REGIONAL GROWTH BOUNDARY.

RIGHT. YOU'RE GOING TO YOU'RE GOING TO FIND THAT THESE HOMES ARE AS GOOD AS THEY'RE EVER GOING TO BE UNLESS YOU INTERVENE. RIGHT. AND SINCE 75% OF YOUR HOUSING STOCK IS NOW AS GOODS IT'S EVER GOING TO BE, REALLY RAISES SOME CRITICAL LONG TERM FISCAL QUESTIONS.

OKAY, SO THAT REALLY BECOMES THE DEFINING FACTOR OF YOUR MARKET. UNDERNEATH THAT IS A CAPACITY ISSUE WHICH IS. WHAT ARE THE ACTIONS BEING TAKEN BY PROPERTY OWNERS. RIGHT. AND SO CAPACITY IS THE ABILITY AND WILLINGNESS OF YOUR OWNERS TO MANAGE CHANGE ON A CONSTANT BASIS TO CONTINUALLY GOOD OUTCOMES. RIGHT. SO WHEN YOU SEE AND I'M NOT PICKING ON SEACREST HERE, RIGHT, I HOPE NONE OF YOU ARE THE, YOU KNOW, LIMITED PARTNER IN SEACREST.

BUT AND I'M NOT PICKING ON SEACREST HERE, BUT WHAT IS WHAT DOES THAT TELL YOU WHEN YOU LOOK AT THAT SIGN? WHAT DOES THAT TELL YOU? SETTING ASIDE FIRST IMPRESSIONS THAT FOR EVERYBODY ELSE WHO MIGHT SEE IT, WHAT DOES THAT TELL YOU THAT TELLS YOU THAT THAT THAT THEY DON'T COUNT, COUNCILMAN BASS, THEY DON'T CARE. RIGHT. AND YOU AND YOU ONLY HAVE 100 OF THOSE

[00:55:02]

RIGHT. SO A NEW TRUCK, A NEW CAR, A NEW A NEW BOAT, RIGHT, IS A BETTER INVESTMENT THAN, THAN THAN INVESTING ONON THE HOUSE. RIGHT. SO THIS SPEAKS THEN TO THE STRATEGIC WAY OF DIGGING OUT FROM THIS. RIGHT. ANY QUESTIONS SO FAR. THERE'S GOOD NEWS IN ALL THIS. DON'T DON'T WORRY OKAY. THANK YOU. WE JUST HAVE TO GO. WE HAVE TO GO LOW BEFORE WE CAN GO HIGH.

WHERE ARE WHERE ARE WE? ALL RIGHT. SO WHERE YOU SEE THIS ACTUALLY PLAY OUT IS SINGLE FAMILY PRICE BY DECADE ON THE TOP. RIGHT. OKAY. SO YOU CAN SEE RIGHT. JUST THE LEVEL OF COMPETITION. AND IN POINT OF FACT WHAT YOU REALLY ARE FUNCTIONING LIKE IS MORE OF AN EXTENSION AS YOU WELL KNOW. RIGHT. MORE OF AN EXTENSION OF PARTS OF DALLAS AND RIGHT THAN YOU ARE OF OF THE SUBURBS THAT REALLY GREW 15 YEARS LATER THAN YOU GREW. OKAY. YOU JUST EXPLODED REALLY FROM 1955 TO 1980. RIGHT. AND THEN EVERYBODY ELSE CAME AFTER. AND WHEN THEY CAME AFTER, THEY WERE JUST BUILDING, YOU KNOW, SLIGHTLY LARGER. RIGHT? OKAY. LET'S KEEP GOING. ALL RIGHT. SO ALL OF THIS TOGETHER IS IMPORTANT BECAUSE IT SENDS IT SENDS REALLY CRITICAL SIGNALS TO THE MARKET. OKAY. SO CAN WE GO BACK TO OUR CYCLE FOR INSTANCE. AND I REALLY WANT TO DRAW ATTENTION YESO TO HOW THIS WORKS. SO WHAT YOU HAVE IS THE CONDITION.

LOOK A AT T CONDITION IN THE MIDDLE OF THAT CHART. YOU CAN SEE THE CONDITION HERE. RIGHT.

SO YOU HAVE THE CONDITION OF A PIECE OF PROPERTY. RIGHT. SO THINK OF THE SEACREST. SEE THAT'S A THAS A BILLBOARD. BASICALLY THAT SIGN IS SAYING IT'S SAYING, WELL IF OUR SIGN IS LIKE THIS, IMAGINE WHAT OUR UNITS LOOK LIKE. RIGHT? OKAY. IF OUR SIGN IS LIKE TS, IMAGINE HOW RESPONSIVE WE'RE GOING TO BE WHEN YOU CALL US AND ASK FOR, YOU KNOW, YOUR SINK TO GET REPAIRED. RIGHT. ALL RIGHT. SO THAT SENDS AN IMAGE, RIGHT. THAT'S IT.

PROJECTS AN IMAGE TO THE MARKET RIGHT NOW. AND AS FOLKS ARE DRIVING BY,Y, THEY'RE LIKE, WOW, I DON'T KNOW WHAT TO MAKE OF THAT, BUT MAYBE I'LL KEEP DRIVING AND LOOK FOR ANOTHER PLACE, RIGHT? OR IN THE CASE OF JUST CITIES, MAYBE I'M COMING UP SOUTH GARLAND AVENUE A AND 'S LIKE, MAYBE I'LL GO TO THE NEXT CITY, RIGHT? DOESN'T DOESN'T REALLY LOOK LIKE THEY'RE TAKING CARE OF BUSINESS HERE, RIGHT? MAYBE I'LL GO TO THE NEXT CITY AND SEE WHAT THAT LOOKS LIKE. LOOKS A LITTLE TOO TIRED, A LITTLE WORN AROUND THE EDGES, THE SEA AGAIN. I WANT TO PICK ON SEACREST. THE SEACREST SIGN IS EFFECTIVELY EMBLEMATIC FOR 75% OF GARLAND. THAT'S THE IMAGE THAT'S BEING SENT. THE COLD, HARD FACT. OKAY. AND SO THAT IMAGE TURNS INTO YOUR MARKET, RIGHT? YOU END UP WITH A MARKET MATCH, RIGHT? AS PRICES, AS PRICES REFLECT, FOLKS WHO'VE GONE BY SEACREST AND SAY, I'M NOT GOING THERE AS SOON AS THEY DECIDE NOT TO GO THERE, SEACREST HANGS OUT A FOR LEASE SIGN, RIGHT? SPECIALS ON, YOU KNOW, SPECIALS, YOU KNOW, MONTHLY RENT SPECIALS, OKAY. AND SO PRICES COME DOWN, PRICES COME DOWN, AND THEN YOU END UP WITH A CAPACITY THAT GETS A LITTLE BIT LOWER. RIGHT. SO WE CAN KEEP GOING. THAT'S THAT'S SUPER CRITICAL. SO NOW WE COME HERE TO THAT AGAIN THAT IMAGE. AND DURING YOUR OWN COMPREHENSIVE PLANNING PROCESS. RIGHT I THINK VIRGINITY YOU KNOW, ASKED THIS QUESTION. DO YOU THINK THE CONDITION YOUR NEIGHBORHOOD IS GETTING BETTER OR WORSE. YOU KNOW, SO 3,030% ARE SAYING IT'S GETTING BETTER, RIGHT. BUT 70% DON'T SEE IT THAT WAY. RIGHT. SO IT'S IT'S YOUR OWN VALIDATION, RIGHT? I THINK OF OF PRICING AND IMAGE AND SIGNALING OKAY. NEXT SLIDE.

ALL RIGHT. SO THEN WHAT WE DID WAS WE TOOK A LOOK AT ALL OF THE SINGLE FAMILY NEIGHBORHOODS IN THE CITY. RIGHT. AND WE BEGAN TO WORK THROUGH, YOU KNOW, WHAT'S GOING ON IN EACH AND EACH AND EVERY ONE OF THOSE NSAAS. RIGHT. AND WHAT WE FOUND IS THAT THERE ARE THREE DISTINCT SUBMARKETS THERE, THOSE YOU'LL SEE AT THE PINK IN PINK, RIGHT, THAT ARE JUST THEY'RE KILLING IT. THEY'RE DOING GREAT. OKAY. THEY'RE JUST THEY'RE FROM EVERY EVERY ANGLE.

THEY'RE COMPETITIVE. RIGHT. THEY'RE THEY'RE RATE OF GROWTH IN EQUITY IS IS SOLID. AND IT SHOULD BE NO SURPRISE THOSE ARE NEWER LARGER STRUCTURES OKAY. MORE RECENTLY DEVELOPED OKAY.

AND THEN THERE'S AT THE OTHER END OF THE SPECTRUM REALLY THE OLDER STOCKS FROM THE LATE 40S.

RIGHT. ALTHOUGH THERE'S VERY FEW LATE 40S FROM THE LATE 40S REALLY TO, YOU KNOW, 19, 1964, 65, 66. OKAY. AND SO THOSE, YOU KNOW, ARE FAR LESS COMPETITIVE. THEY'RE REALLY YOUR LEGACY STOCKS, RIGHT? THOSE ARE THE SMALLEST AND OLDEST HOMES THAT YOU HAVE IN THE CITY, GENERALLY SPEAKING. NOW, IT'S INTERESTING. THEY ACTUALLY TEND TO BE ON SOME OF THE MOST WELL LAID OUT

[01:00:04]

WE'VE ORGANIZED IT. AND WHAT YOU HAVE HERE IN THOSE PINK AREAS, PRICES ARE REALLY, REALLY HIGH. AND THEY'RE, THEY'RE THEY'RE YEAR OVER YEAR VALUES ARE IN GOOD SHAPE. THEN STEP DOWN. YOU'VE GOT MUCH OF THE REST OF THE CITY WHERE PRICES ARE MORE WITHIN STRIKING DISTANCE OF AVERAGE HOUSEHOLDS. RIGHT. AND THEY'RE APPRECIATING AT A LOWER RATE. AND THEN YOU'VE GOT YOUR LEGACY AREAS WHERE THE PRICES ARE EVEN A LITTLE BIT LOWER AND APPRECIATING AT STILL A LOWER RATE. OKAY. SO THIS REFLECTS DEMAND. AND AND IMPORTANTLY WITHIN THIS, EVERYTHING THAT'S NOT BLUE AND PINK, NOT NOT THE NOT THE COMMERCIAL AREAS, EVERYTHING THAT'S NOT BLUE AND PINK. 50% OF THAT IS GOING IN THE WRONG DIRECTION. IF YOU DON'T INTERVENE. RIGHT. THAT MAP IS GOING TO BE A LOT MORE BLUE. SO IF WE GO TO THE REGIONAL MAP, RIGHT, IT'S GOING TO BE A LOT, A LOT MORE BLUE TEN YEARS IF YOU DON'T FROM NOW, IF YOU DON'T INTERVENE, A LOT LESS PINK, RIGHT? RIGHT. OKAY. SO WHAT THAT DOES IS IT GIVES YOU SORT OF A WAY, A WAY TO THINK ABOUT THESE AREAS. RIGHT? THOSE LEGACY AREAS REALLY REQUIRE STABILITY. RIGHT? THERE'S TOO MUCH DISORDER. RIGHT. ON A DAY IN DAY OUT BASIS. RIGHT. THERE'S NO WHAT WE WOULD CALL A STANDARDS FLOOR. RIGHT. SO IT'S CRITICAL TO ACTUALLY ESTABLISH A FLOOR. AND HEALTH AND SAFETY IS IS ABSOLUTELY ABSOLUTELY VITAL RIGHT NOW IF YOU SEEK TO CHANGE THE CONDITIONS IN THOSE BLUE AREAS, IN THOSE LEGACY AREAS.

RIGHT, YOUR LEVERAGE RATIO IS GOING TO BE LOW, RIGHT? SO YOU'RE GOING TO PUT A DOLLAR IN AND YOU'RE NOT LIKELY TO BE PARTNERED ON THE PRIVATE SECTOR WITH MUCH MORE THAN ZERO OKAY.

SO YOU'RE REALLY YOU AND OR OTHER PUBLIC SECTOR PARTNERS ARE SHOULDERING ALMOST 100% OF THE WORK. OKAY. SO THAT'S THAT'S IMPORTANT. AS YOU SHIFT TO THE RIGHT THE BIG MIDDLE AREAS, CAN WE GO TO THE MAP, ALL THOSE BIG AREAS. RIGHT. YOU KNOW, WHERE THE MAJORITY OF THE CITY IS NOW GO BACK. GO FORWARD. YEAH. THAT YOUR JOB REALLY IS IT'S NOT TO STABILIZE. IT'S LET'S GROW THE VALUE THERE. RIGHT. LET'S LET'S REALLY STRENGTHEN THOSE LET'S MAKE THOSE AREAS REGIONALLY COMPETITIVE. THAT'S WHERE YOUR FUTURE TAX BASE IS. RIGHT. AND SO THERE WE HAVE IT'S NOT SO MUCH THAT WE HAVE THERE'S NOT DISORDER RIGHT. THERE'S A LACK OF CONFIDENCE THAT IT MAKES A HECK OF A LOT SENSE. RIGHT. TO PUT THAT SECOND BATH IN TO UPGRADE THE KITCHEN. YOU'RE RIGHT. TO PUT AN ADDITION ON RIGHT TO INVEST IN LANDSCAPING.

ALL OF THOSE THINGS ARE NEEDED. MANY OF THOSE HOUSEHOLDS CAN DO THAT AND ARE CHOOSING NOT TO.

RIGHT. AND HERE THAT'S WHERE THE PUBLIC SECTOR HAS A GREAT OPPORTUNITY TO PLAY A ROLE IN WHAT WE CALL COAXING, COAXING THAT CAPITAL AND THAT PRIVATE SECTOR ENERGY RIGHT OFF THE SIDELINES. AND YOU'VE GOT YOU'VE GOT REAL LEVERAGE THERE. RIGHT. SO WE THINK YOUR LEVERAGE IS AT A MINIMUM, RIGHT. YOU KNOW, IT'S A IT'S A IT'S A 1 TO 2. RIGHT. SO I THINK THAT YOU'RE LOOKING YOU MIGHT PUT IN 2525 $0.30 AND GET 50, $0.70, YOU KNOW, AS A IN RETURN. RIGHT.

SO I THINK THAT THOSE MIDDLE AREAS HAVE CERTAINLY BETTER THAN ZERO LEVERAGE. RIGHT. BUT NOT NOT REALLY EYE POPPING LEVERAGE. OKAY. IF YOU MOVE TO THE FAR RIGHT WHERE YOU'VE GOT SOME VERY HIGH PERFORMING NEWER NEIGHBORHOODS RIGHT THERE, YOUR JOB IS JUST MAKE SURE YOU DON'T TAKE YOUR FOOT OFF THE GAS PEDAL. RIGHT. IT'S IT'S THOSE ARE CROWN JEWELS, RIGHT? MAKE SURE THEY CONTINUE TO PERFORM WELL. DON'T DO ANYTHING TO UNDERMINE THEIR THEIR MARKET STRENGTH. KEEP THEM COMPETITIVE. CONTINUE THE PROGRAMING AND SERVICES THAT YOU'VE GOT. YOU KNOW, AND AND IF YOU WERE TO CHOOSE TO INTERVENE IN THOSE AREAS, YOU WOULD EXPECT AN ASTOUNDING LEVERAGE RATIO. OKAY. RIGHT. THERE'S MORE FINANCIAL CAPACITY, RIGHT. BOTH ON THE PATIENT SIDE AND ON THE ABILITY SIDE. RIGHT. AS WELL AS. THE UNDERLYING DEMAND FOR THOSE AREAS WILL GIVE YOU A RATE OF RETURN THAT WOULD JUSTIFY ANY PUBLIC INVESTMENT. SO I HAVE A QUESTION FOR YOU, COUNCILMAN WILLIAMS. THANK YOU. I NOTICED ON YOUR YOUR YOUR GROWTH SLIDE.

[01:05:01]

THE TREES WERE BUILT, WERE PLANTED INTENTIONALLY THERE. AND THEY'RE NOW THE YOU KNOW, THEY GOT THEY GOT THEY GOT KIDS. RIGHT, RIGHT. THOSE TREES. SO HOW HOW CAN YOU, HOW CAN YOU HOW CAN WE MAXIMIZE PRIVATE SECTOR FUNDING TO ATTRACT PARTNERSHIPS TO, TO ACHIEVE SOME OF THE THINGS THAT YOU'RE TALKING ABOUT AS FAR AS LEVERAGE IS CONCERNED? THAT'S A GREAT QUESTION. I'M GOING TO PASS THAT TO AMBER. SO IN THIS CASE, FIRST AND FOREMOST, WHEN WE'RE TALKING ABOUT SINGLE FAMILY NEIGHBORHOODS, THE PRIVATE SECTOR SHARE IS ACTUALLY YOUR EXISTING PROPERTY OWNERS. SO WHAT WE'RE TALKING ABOUT HERE IS LEVERAGING PRIVATE PROPERTY OWNER DOLLARS, WHETHER THEY'RE HOMEOWNERS WHO ARE ALREADY LIVING IN THESE NEIGHBORHOODS OR RENTAL PROPERTY OWNERS OR WHAT HAVE YOU, TO SHARE THE COST WITH, PUBLIC DOLLARS OF REINVESTING IN THOSE SAME HOMES TO UPGRADE THEIR CONDITION AND TO UPGRADE THE AMENITIES THAT THEY COME ALONG WITH, PERHAPS IN SOME CASES, EVEN ADD SPACE TO THEM ON THOSE EXISTING LOTS. SO THAT'S THE MAJORITY OF WHAT WE ARE LOOKING AT HERE WHEN WE TALK ABOUT THE GROWTH AREAS IS HOW DO WE TAKE SOME PUBLIC DOLLARS AND SHARE THE COST OF IMPROVEMENTS WITH PRIVATE PROPERTY OWNERS IN ORDER TO MAKE THOSE PROPERTIES MORE VALUABLE OVER TIME? OKAY. ALL RIGHT. THANK YOU. THANK YOU. ABSOLUTELY. SHOULD WE KEEP GOING? ONE MORE QUESTION, COUNCILMEMBER MOORE. I REALLY WANTED TO WAIT AND LET YOU FINISH YOUR PRESENTATION. THAT'S ALL MAKING SENSE. BUT I'M ALSO THINKING THIS MAY BE A VERY GOOD TIME TO JUST BRING THIS IN. I'M THINKING THAT IT SEEMS LIKE WE'RE FOLLOWING A TREND OF WHAT'S CALLED URBANIZATION, MEANING BRAND NEW PROJECT BUILDING, PROJECT HOUSING. THE NEXT THING THAT HAPPENS IS. PEOPLE BEGIN TO MOVE INTO THAT AREA THAT THE PEOPLE WHO ARE ALREADY THERE DON'T LIKE, DON'T WANT TO BE COME IN AND THE NEXT THING THAT HAPPENED, I GUESS IT'S KIND OF LIKE AN APARTMENT COMPLEX. AND THAT IS IT STARTS OUT BEAUTIFUL, BUT OVER A PERIOD OF TIME, DIFFERENT PEOPLE COMING IN AND IT SEEMS LIKE IT JUST GOES DOWN FROM THERE. AS YOU'RE TALKING. I'M THINKING THAT. WHAT IS THE MENTALITY, THOUGH, OF THE GREEN HOUSES THAT YOU'RE SPEAKING ABOUT? MOST OF THESE PEOPLE, THEY'RE RETIRED NOW. THEY'RE ON SET INCOMES, THEY'VE PAID FOR THEIR HOMES. AND THE GREATEST THING IN THE WORLD IS IN A CLIMATE SUCH AS WHAT WE'RE IN PRESENTLY, WE'RE TALKING INFLATION. PRICES ARE HIGHER ON EVERYTHING. THE MOST DIFFICULT THING FOR THEM TO DO, IN MOST INSTANCES IS INDEED TO UPGRADE, TO RENOVATE AND SO ON AND SO FORTH. THE CITY OF GARLAND HAS ALWAYS WE HAVE PROGRAMS IN PLACE PRESENTLY, SUCH AS THE THING THAT YOU'RE SPEAKING OF WHERE WE ARE, WE'RE GIVING AWAY MONEY, LOVE TO GIVE IT AWAY. BUT WE HAVE A MENTALITY. WE HAVE A MINDSET THAT WHY SHOULD I? I'M GOOD, I'M FINE, EVERYTHING IS GREAT. AND SO I'M DON'T GET ME WRONG, I HEAR EXACTLY WHAT YOU'RE SAYING. YES, WE DO NEED TO SOME TYPE OF WAY INTERVENE AND GET INVOLVED THERE ON A P3 TYPE OF SITUATION. YOU KNOW, THE PARTNERSHIP, THE CITY AND SO ON AND SO FORTH.

I'M JUST WAITING NOW AND THAT'S WHY I SAY I PROBABLY SHOULD HAVE WAITED UNTIL AFTER YOU GOT

[01:10:02]

HOW DO YOU CHANGE THAT MENTALITY? HOW DO YOU CHANGE THAT STANDARD? HOW DO YOU CHANGE THAT TRADITION? THAT'S WHAT I'M BECAUSE IT'S MORE PSYCHOLOGICAL TO ME, MENTAL THAN IT IS AT THIS POINT. FINANCIALLY, I THINK IT'S I THINK IT'S A GREAT QUESTION.

AND SO I THINK THE THE SHORT, THE SHORT ANSWER IS, IS IT IT'S GOING TO REQUIRE SORRY. MY WIFE SAYS I SLOUCH ALL THE TIME. SO THIS IS A GOOD EXCUSE FOR ME TO SIT UP. SO COUNCILMAN MOORE, IT'S A GREAT QUESTION. I THINK OUR EXPERIENCE SUGGESTS THAT IT'S LIKE TURNING THE QUEEN MARY. RIGHT. SO IT TAKES IT'S IT TAKES A LONG TIME. IT'S A LOT OF STEPS AND IT'S SLOW AND BUT IT DEPENDS ON WHERE YOU START. AND IT DEPENDS ON BEING SURE THAT YOU ARE. AND PART OF THAT IS, IS TAPPING INTO THOSE PARTS OF THE CITY THAT ARE MORE OPEN TO CHANGE, STARTING THERE, THAT THEY'RE MORE OPEN TO CHANGE, RIGHT, MORE READILY ABLE TO PARTNER WITH, WITH, WITH THE CITY AND THEN BUILDING ON INCREMENTAL ON, ON, ON THE OUTPUTS IN, IN A METHODICAL, INCREMENTAL WAY. RIGHT. NUMBER ONE. NUMBER TWO IS. MOST CITIES. AND I THINK GARLAND FALLS INTO THIS CATEGORY. RIGHT. HAVE A HISTORIC TENDENCY TO GATHER UP WHATEVER RESOURCES THEY HAVE TO ADDRESS THE KINDS OF CHALLENGES WE'RE TALKING ABOUT THIS MORNING AND SPRINKLE THEM A LITTLE BIT EVERYWHERE. RIGHT. AND THEY DO SO FOR COMPLETELY UNDERSTANDABLE, YOU KNOW, PARENTHESES, POLITICAL REASONS. RIGHT. BUT THAT WHAT ENDS UP HAPPENING IS UNLESS THE AMOUNT BEING SPRINKLED RIGHT ACROSS A WIDE AREA IS SO LARGE AND IT ALMOST NEVER IS RIGHT, YOU'RE SPENDING TOO LITTLE ACROSS TOO LARGE AN AREA TO ACTUALLY GET THE EFFECT YOU WANT, RIGHT? SO SO PRIORITIZE. SO THERE'S TWO WAYS YOU HAVE TO PRIORITIZE. ONE IS YOU HAVE TO PRIORITIZE SORT OF, YOU KNOW. HOW MUCH WORK TO DO HERE, HOW MUCH WORK TO DO HERE, HOW MUCH WORK TO DO HERE. BUT BUT WITHIN THAT, HOW, YOU KNOW, THE EXTENT TO WHICH YOU MIGHT BE FOCUSED HERE AND HERE VERSUS HERE VERSUS SCATTERED ACROSS. RIGHT. AND SO IT MIGHT BE THAT WE'VE GOT ENOUGH TO ACTUALLY DO ALL THE ACCOMPLISH ALL OF OUR GOALS, ABSOLUTELY ACCOMPLISH OUR GOALS.

RIGHT. RIGHT IN HERE. OKAY. BUT IF WE SPREAD THAT ACROSS ALL OF THOSE AREAS HERE, NONE OF THEM ACTUALLY GET THE EFFECT OF WORKING. IS THAT RESPONSIVE TO YOUR QUESTION? I HEAR YOU, OKAY.

AND IN OUR NEXT WORKSHOP, WE'RE GOING TO WORK THROUGH THE I THINK THE MECHANICS OF THAT PIECE BY PIECE. I KNOW I'M BEHIND SCHEDULE, I ALWAYS AM. FORGIVE ME, I APOLOGIZE TO YOU.

BUT LIKE I SAY, YOU SHOULD HAVE JUST LET YOUR MAYOR. WAS THERE MORE? WE'VE GOT A FEW MORE QUESTIONS, BUT I'M GOING TO ASK CAN THESE QUESTIONS OR SHOULD WE LET GET THROUGH THE PRESENTATION? AND IF YOU'RE IF YOU'RE WILLING TO WAIT, I'M HAPPY. OR WE CAN. PLUS I HAVE A WHITEBOARD IN THE NEXT ROOM, WHICH IS WHERE WE CAN ACTUALLY WORK THROUGH IT. SO IT'S UP TO THE COUNCILMEMBER. COUNCILMEMBER DUTTON, YOU'RE NEXT IN THE QUEUE, MA'AM, I JUST HAVE A QUICK COMMENT. SO WHILE SOME PEOPLE MIGHT STRUGGLE WITH THE MENTALITY, A LOT OF THAT IS OUR FAULT AS A CITY BECAUSE WE HAVE BEEN REACTIVE INSTEAD OF PROACTIVE.

WE'VE HAD CODE COMPLIANCE THAT WE WERE COMPLETELY OKAY WITH BEING COMPLAINT DRIVEN. AND SO THAT'S GOTTEN US INTO A LOT OF THE SITUATIONS THAT WE'RE IN. SO I DON'T WANT TO SIT AND SAY THAT IT'S IT'S OUR RESIDENTS MENTALITY BECAUSE GUESS WHAT? WE THAT'S HOW WE SET THEM UP AS A COUNCIL FOR WHEN WHEN I GOT ON TO COUNCIL, WE DIDN'T WANT TO GIVE ANYONE FINES. WE DIDN'T WANT OUR CODE COMPLIANCE TO BE PROACTIVE. WE WANTED WE WANTED IT A CERTAIN WAY. AND WE'VE WE SET THE TONE BY CODDLING EVERYONE INSTEAD OF HOLDING STANDARDS TO WHAT WE EXPECT OUR

[01:15:01]

YEAH. ALL RIGHT. SO AS, AS WE SORT OF LOOK AT, LOOK AT YOUR SINGLE FAMILY NEIGHBORHOODS.

RIGHT. AND WE BREAK THEM INTO DIFFERENT DIFFERENT TYPES OF, OF OR DIFFERENT CATEGORIES SO THAT WE CAN UNDERSTAND WHAT KIND OF CONDITIONS, YOU KNOW, ARE WE LOOKING AT. ARE WE LOOKING AT SMALLER HOUSES, MEDIUM HOUSES, LARGER HOUSES, OLDER HOUSES, NEWER HOUSES, SMALLER LOTS, OLDER LOTS ELDERLY, YOU KNOW, YOUNG FAMILIES, YOU KNOW, WE WORK ALL THAT OUT. IT BEGINS TO TELL US WHAT WHAT ARE OUR WORK MAY BE IN THE NEXT FIVE, 10 OR 15 YEARS IN DIFFERENT GEOGRAPHIES. RIGHT. AND SO LATER THIS MORNING WE'RE GOING TO WE'RE GOING TO WORK THROUGH ABOUT A DOZEN SINGLE FAMILY INCENTIVE PROGRAMS THAT THAT HAVE BEEN IN PLACE IN, IN THE REGION AND ELSEWHERE IN THE UNITED STATES, AND LOOK AT THEIR APPLICABILITY TO, TO GARLAND ON THE SINGLE FAMILY FRONT. RIGHT. ONE WAY TO SORT OF SET THAT UP, WITHOUT GOING INTO TOO MUCH DETAIL IS TO SAY, OKAY, IF WE WERE TO TAKE THIS EXACT SAME, YOU KNOW, ORGANIZATION OF GARLAND AND, AND, AND AND NOW STEP AWAY WITH A LARGER ZOOM OUT TO A LARGER GEOGRAPHY, RIGHT THEN WHAT YOU BEGIN TO SEE IS I THINK THIS IS ALSO CONSISTENT WITH SOME OF THE BAR CHARTS THAT WAS WERE PRESENTED ON THE SIP DISCUSSION. YOU KNOW, AT THE OUTSET, THE OUTSET TODAY IS, YOU KNOW, ACROSS THE BOARD, YOU'RE REALLY PARKED IN THIS SPACE HERE, RIGHT? MUCH LESS SO THAN TO THE FAR RIGHT. AND SO AN INCENTIVE PROGRAM THAT RICHARDSON HAS, RIGHT, IS VERY RESPONSIVE TO DIFFERENT MARKET CONDITIONS. RIGHT. AND SO YOUR INCENTIVE PROGRAMS WE YOU TO THINK OF, YOU KNOW, DEVELOPING SOMETHING LIKE THAT WOULD BE NEED TO BE RESPONSIVE TO, YOU KNOW, NOT TO NOT NOT SORT OF AS IF WE WERE RICHARDSON. BUT SINCE WE ARE GARLAND, YOU WANT IT TO TAILOR MADE TO YOUR OWN CIRCUMSTANCES. SO WE'LL WORK THROUGH THAT.

OKAY. NOW A PIVOT QUICKLY TO TO MULTIFAMILY. RIGHT. SO 74% OF THE STOCKS ARE SINGLE FAMILY.

THE BALANCE ARE MULTIFAMILY. THE SINGLE FAMILY STOCK WITH YOU KNOW ARE THEY STRUGGLE TO BE COMPETITIVE REGIONALLY. THE MULTIFAMILY IS MUCH MORE COMPETITIVE OKAY. BUT BEAR IN MIND ABOUT 20,000 OF YOUR MULTIFAMILY UNITS ARE OLDER, RIGHT. AND SUFFICIENTLY DEGRADED TO TO TO NEED ATTENTION. OKAY. SO THAT'S ANOTHER BIG NUMBER. RIGHT. SO THTHAT'S 20,000 ON THAT SINGLE FAMILY SIDE THAT NEED A LOT OF ATTENTION, 20,000 ON THE MULTIFAMILY SIDE THAT NEED A LOT OF ATTENTION RIGHT NOW. THERE'S SORT OF KIND OF A HIDDEN LAYER OF GOOD NEWS HERE, WHICH IS FEDERAL FEDERAL EQUITY. I MEAN, FEDERAL TAX CREDIT EQUITY IS ACTUALLY MUCH IT'S READILY AVAILABLE TO ADDRESS THIS ISSUE. RIGHT. SO YOU ACTUALLY HAVE, YOU KNOW, THERE'S A CLEAR PATH TO PARTNERSHIP ON THE UPGRADING OF THESE UNITS. RIGHT. SO WE SHOULD TALK ABOUT THAT. YOU KNOW, AS WE PIVOT TO STRATEGY.

SO I'M JUST I JUST WANT YOU TO BE AWARE OF THE ORDER OF MAGNITUDE THAT IT'S SIGNIFICANT.

NOW LET'S SEE. LET'S GO TO AFFORDABILITY GAPS I THINK THIS IS REALLY CRITICAL OKAY. SO JUST AS A WORKING EXERCISE HERE ON THE LEFT AND ON THE RIGHT ARE HOUSEHOLDS ONE HAPPENS TO

[01:20:03]

NOW YOU HAVE TO MAKE REALLY HARD CHOICES ABOUT BUS FARE, ABOUT CAR INSURANCE, ABOUT FOOD, ABOUT, YOU KNOW, OTHER OTHER ITEMS ON YOUR ON YOUR BUDGET. OKAY. AND SO YOU'LL TEND TO EAT INTO THOSE ITEMS. AND AT SOME POINT, RIGHT, HOUSEHOLDS WILL SOONER BE LATE ON RENT THAN FORGO THOSE OTHER COSTS. RIGHT. SO THAT 30% IS IS REALLY IT'S A IT'S A IT'S A POINT AT WHICH THE MARKET STOPS OR CEASES TO WORK QUITE EFFECTIVELY. OKAY. SO WHAT YOU SEE ON THE AFFORDABILITY GAP IS FOR THAT $50,000 HOUSEHOLD ON THE LEFT, WHAT ENDS UP HAPPENING IS THAT.

ALL WE HAVE TOO IS HAVE MORTGAGE RATE CHANGES FOR VULNERABILITY TO CHANGE. RIGHT.

YOU YOU HERE HAVE LOTS OF SENIORS ON FIXED INCOMES, RIGHT? SO EVEN IF THEY'RE ON A FIXED RATE MORTGAGE, RIGHT. THEY CAN THEY CAN BARELY TOLERATE CHANGES IN TAXES. RIGHT? THEY CAN BARELY TOLERATE CHANGES IN INFLATION. SO THEIR GROCERY BILL. RIGHT. SO THIS THIS SHOWS THAT FOR THAT $50,000 HOUSEHOLD, IT JUST TAKES VERY LITTLE TO TO MAKE IT VERY HARD FOR THAT HOUSEHOLD. RIGHT. AND IT'S AND AND THEIR MAXIMUM PURCHASING POWER IS ABOUT $180,000.

TODAY'S INTEREST RATES WHICH MEANS RIGHT, WHICH MEANS THEY CAN'T LEAVE. THEY'RE LOCKED IN.

RIGHT. EVEN IF THEY EVEN IF THEY WANTED TO. RIGHT. SO IF I, IF I OWN A, LET'S SAY, A $230,000 HOUSE, OKAY. AND I PAY OFF SOME OF MY MORTGAGE AND I END UP WITH, U KNOW, A LITTLE BIT LEFT OVER AND A LITTLE BIT OF PURCHASING POWER. WHERE AM I GOING TO GO? RIGHT. THE REGION'S SO EXPENSIVE, I JUST I CAN'T GO ANYWHERE VERSION OF THAT HAPPENS TO RENTERS ON THE OTHER SIDE. RIGHT. SO THEY CAN THEY CAN AFFORD 1375. BUT BUT THEY'RE VULNERABLE TO LANDLORDS HIKING RENTS. RIGHT. LANDLORDS THEMSELVES ARE VULNERABLE TO INFLATION. IN MANY CASES THEY HAVE TO RAISE RENTS. RIGHT. MANY OF YOUR LANDLORDS HAVE OLDER UNITS WHICH REQUIRE NEW ROOFS AND NEW BOILERS. THEY'VE GOT TO BORROW MONEY TO, TO REPAIR THOSE. THEY'RE GOING TO PASS THOSE COSTS ON TO RENTERS. RENTERS SUDDENLY CAN AFFORD 1375. AND THEN RENTS HAVE GONE UP TO 1500. AND NOW THEY'RE IN A REAL FIX. RIGHT. SO THAT'S YOUR THAT'S YOU HAVE YOU HAVE TENS OF THOUSANDS OF HOUSEHOLDS. THERE ARE ABOUT 30, YOU KNOW, 30,000 JUST JUST STRUGGLING WITH THAT OKAY. RIGHT. NEXT SLIDE. CONVERSELY ON THE MARKET SIDE RIGHT. IF WHEN WE LOOK AT ALL OF THE VALUE AND AGAIN YOU KNOW, YOUR SIP PRESENTATION THIS MORNING LAID IT OUT BEAUTIFULLY. ON THE MARKET SIDE, THE VALUE OF THE SINGLE FAMILY HOMES IS $100,000 LOWER ON AVERAGE THAN YOUR NEIGHBORS. RIGHT. THE VALUE ON YOUR MULTIFAMILY SIDE, RIGHT? YOUR RENTS RIGHT, ARE SEVERAL HUNDRED DOLLARS A MONTH LOWER. ON THE AVERAGE SIDE, THE CAPITALIZED VALUE OF THOSE UNITS IS $100,000 PER UNIT LOWER RIGHT. SO WHAT YOU END UP WITH IS THIS, THIS MARKET GAP, RIGHT. THAT THAT IS MOST REVEALED IN THE CITY'S. LOWER CAPACITY TO RETAIN AND AND COMPETE FOR, YOU KNOW, MIDDLE AND UPPER INCOME HOUSEHOLDS.

AND THEY ARE YOUR KEY RIGHT TO THE TAX BASE. RIGHT. SO THAT'S A IT'S A DOUBLE FIX. YOU'RE IN.

RIGHT. THAT AFFORDABILITY SIDE. RIGHT. YOU'VE GOT LOTS OF HOUSEHOLDS WHO ARE STRUGGLING AND THE MARKET SIDE RIGHT. WHICH IS LOTS OF HOUSING VALUE. RIGHT. THAT IN THE AGGREGATE ISN'T SUFFICIENT TO DRIVE THE TAX BASE TO PAY FOR THE SERVICES. YOU WANT TO RUN THE

[01:25:02]

RIGHT. RIGHT. WE'RE GOING TO HAVE AMNESIA AND FORGET THE, THE B THE B PART OF THE BILLION.

RIGHT. AND WE'RE JUST IT'S TOO BIG TO WORRY ABOUT OKAY. AND WHAT WE'RE GOING TO DO IS WE'RE GOING TO WE'RE GOING TO WORK WITH $10 MILLION. WE'RE GOING TO WORK WITH WHAT IS A REALISTIC AMOUNT OF MONEY, RIGHT, TO ADDRESS EACH OF THESE PROBLEMS. RIGHT. AND THEN WE'RE GOING TO FIGURE OUT HOW TO SPEND THAT, HOW TO SPEND THAT. WHAT ARE THE WAYS TO SPEND IT.

WHAT WOULD BE THE BENEFITS? WHAT WOULD BE THE COSTS. WHAT WOULD BE THE OPPORTUNITY COSTS.

RIGHT. AND HOW TO WORK THROUGH THAT SO THAT WE CAN THEN, YOU KNOW, HAVE SOME SENSE OF REALLY WHICH PROBLEMS ARE MOST AT THE TOP OF YOUR LIST TO ADDRESS AND HOW YOU WANT TO GO ABOUT DOING IT. SO THAT'S WHAT WE'LL WORK THROUGH. MAYOR PRO TEM LOOKED I'M I'M REALLY IMPRESSED WITH THE WAY THAT YOU HAVE THIS SET UP. I LIKEN IT TO CLEANING HOUSE. IF YOU IF YOU HAVE AN ENTIRE HOUSE THAT NEEDS ATTENTION AND YOU GO THROUGH AND YOU TRY TO CLEAN EVERY SINGLE ROOM AT THE SAME TIME, YOU'RE NOT GOING TO GET IT WHERE YOU WANT IT. IF YOU JUST FOCUSED ON ONE ROOM AT A TIME, AND SOME ROOMS ARE MORE IMPORTANT THAN OTHERS, IF YOU HAVE GUESTS COMING OVER, PROBABLY NEED TO FOCUS ON THE BATHRO. SO AND, AND I THINK THAT THAT'S WHAT YOU'RE SAYING HERE BECAUSE YOU MAY NOT NEED, YOU KNOW, THE BATHROOM MAY NOT NEED A NEW TUB. BUT IF YOU, YOU KNOW, CLEAN THE FAUCETS OFF AND EVERYTHING, THEN YOU'VE GOTTEN WAY MORE BANG FOR YOUR BUCK WITH YOUR VISITOR. AMAZING WHAT A TUBE OF CAULK WILL DO. OH, YEAH. RIGHT. NICE WHITE CAULK WILL SOLVE ALMOST EVERY PROBLEM. AND THAT DOESN'T MEAN THAT YOU NEGLECT THE OTHER ROOMS IN YOUR HOME YOU PICK UP THERE, BUT YOUR FOCUS IS GOING TO BE WHERE THOSE GUESTS WILL HAVE A MORE ENJOYABLE TIME THAN THEY WOULD OTHERWISE. SO THAT'S KIND OF

[01:30:01]

SO I ASSUME THAT WHEN WE GO IN THERE, WE'RE GOING TO LOOK OVER AREAS AND KIND OF DECIDE AS A GROUP LIKE WHERE WHERE THOSE FOCUS AREAS ARE GOING TO BE. WELL, I DON'T IF I WOULD JUST AMEND ONE THING, IT'S NOT SO MUCH THAT WE'RE MAKING ANY DECISIONS SO MUCH AS WE'RE SORT OF GOING, GOING FORWARD TOGETHER, RIGHT, TO FIGURE OUT, OKAY, WHICH AREA, YOU KNOW, WHAT DO WE THINK ARE OUR CHANCES OF SUCCESS ARE HERE VERSUS THERE? AND HOW DO WE THINK ABOUT IT. RIGHT. SO THAT I THINK DECISION TIME IS PROBABLY. YOU KNOW, MARCH, APRIL, MAY. RIGHT. SOMETHING LIKE THAT. BUT IT'S CERTAINLY GETTING THERE. IT'S BUILDING IT UP. YOU KNOW GETTING DEFINITELY SETTING THE THE PATHWAY. YES. OKAY. GREAT. THANK YOU SO MUCH FOR YOUR PRESENTATION I APPRECIATE IT. ALL RIGHT. WELL WITH THAT WE ARE AS I MENTION EARLIER FOR THOSE VIEWING WE'RE GOING TO MOVE INTO AUSTIN STATE ROOM. WE DON'T HAVE WE DON'T HAVE VIDEO IN THERE BUT WE DO HAVE AUDIO. SO COUNCIL I'M GOING TO GIVE EVERYONE A TEN MINUTE BREAK TO GRAB THEIR TOILET BRUSHES AND THEIR GLOVES AND THEIR TUBES OF CAULK, AND WE'LL MOVE INTO THE NEXT ROOM. SO WE'LL MEET IN AT IN TEN MINUTES. WE ARE IN RECESS.

SO THAT WE'RE GOING TO DO NOW IS WE'RE GOING TO HAVE A WORKSHOP AND WORK THROUGH SOME OF THESE ISSUES AND TALK ABOUT SOME OF THE POTENTIAL STRATEGIES WE MIGHT COME UP WITH. AND WITH THAT, I'LL. THANKS. THANKS. THANKS. SO I KNOW WE ALWAYS FEELS LIKE WE BLOW THROUGH SLIDES FAST, YOU KNOW, AND OR SOMETIMES YOU MAY FEEL LIKE I'M GOING TOO SLOW. DO YOU HAVE ANY QUESTIONS? YOU KNOW, WE'RE GOING TO TRY TO SORT OF RIGHT NOW FIGURE OUT. HOW YOU ALL WANT TO THINK ABOUT THIS ISSUE. YOU KNOW, NOW THAT YOU'VE YOU'VE GOT THE FACTS, RIGHT, YOU KNOW, BOTH IN BROAD STROKES AND IN GREAT DETAIL, YOU KNOW, BUT BEFORE WE DO THAT, ARE THERE ANY QUESTIONS AT ALL. JUST SORT OF ABOUT ABOUT MARKET CONDITIONS, ABOUT HOW HOUSING WORKS, ABOUT HOUSING FINANCE, ABOUT THE ROLE OF LAND, YOU KNOW, INFLATION, MORTGAGE RATES, ANYTHING THAT THAT MIGHT HELP YOU WRAP YOUR HANDS AROUND THE ISSUE. IS THERE ANYTHING WE CAN DO TO HELP? YES. COUNCILMAN WILLIAMS, PLEASE GO BACK TO THAT QUESTION. WE'VE GOT AN OFFICE OF NEIGHBORHOOD VITALITY. YES. CITY EFFICIENT ONE. HOW DO WE HOW DO WE ATTRACT PARTNERSHIPS TO HELP THEM IN WHATEVER WE'RE GOING TO DO? I THINK I THINK IN GENERAL, WE SO WE LIKE THE PROGRAM. WE LIKE THE WAY IT'S BEEN THINKING. I THINK IF THERE'S A SMALL C CRITICISM, RIGHT, IT'S NOT SUFFICIENTLY IT'S NOT AS AS ROBUST AS IT NEEDS TO BE. RIGHT. AND AND IT'S IT'S OFTEN AN HISTORICALLY, YOU KNOW, THE RANGE OF PROGRAMS HAVE BEEN GEOGRAPHICALLY SPREAD A LITTLE BIT TOO THIN. RIGHT. SO THE COUNTER REALLY IS THE WAY TO MAXIMIZE YOUR EFFORTS BOTH IN TIME AND DOLLAR. YOU GET COMPRESSION TIME, YOU GET A RATE OF RETURN AND YOU GET A HIGHER LEVERAGE RATIO. IF YOU IF YOU'RE IN T THE IF YORE IN VERY SPECIFIC GEOGRAPHIES WITH TOLD TO NOT DROP ANY F-BOMBS BECAUSE WE'RE MIKED VERY SPECIFIC GEOGRAPHIES WITH A LOT OF MONEY, THAT'S HOW YOU DO IT.

SO IT'S REALLY THE YOU REALLY HAVE TO PIVOT TOWARD MORE AND MORE FOCUSED, RATHER THAN LESS AND MORE DISPERSED AND IN IN A WAY AND IN A WAY, IF, IF MY WHOLE TEAM SORT OF, YOU KNOW, GOT HIT BY A BUS, YOU KNOW, AFTER LEAVING TODAY AND YOU REMEMBER NOTHING ELSE, YOU WILL DO REALLY WELL JUST TO REMEMBER MORE AND MORE FOCUSED. RIGHT? RATHER THAN LESS AND MORE JUST MORE SPREAD OUT. SO THAT'S THAT'S POLITICALLY DIFFICULT. RIGHT. SO YES, MAYOR. AND THAT'S WHAT I WANT TO BRING UP BECAUSE WE THERE'S A QUESTION OF EQUITY. WE HAVE EIGHT COUNCIL DISTRICTS IN THE CITY. AND IF IT'S ALL FOCUSED ON ONE SINGLE COUNCIL DISTRICT, THE OTHER 7TH MAY HAVE A PROBLEM WITH THAT AND UNDERSTANDABLY SO. AND SO THAT AND SO WE NEED DIRECTION FROM YOU, WHICH IS KIND OF WHAT THIS EXERCISE IS, IS, IS, IS GOING TO BEGIN TO TELL US, RIGHT, WHICH IS WHAT IS THE EXTENT TO WHICH WHAT YOU ALL. CAN YOU ALL, YOU KNOW, LOOK AT, LOOK AT A WHOLE CITY. RIGHT. IT'S IT'S IT'S QUITE CLEAR. SOMETHING OF A MIRACLE.

THAT HAS OCCURRED HERE RIGHT IN GARLAND SQUARE. SO I MEAN, IT'S QUITE CLEAR THAT THE BASELINE

[01:35:07]

RIGHT. AND THAT THE CITY CAME TOGETHER ON A SPECIFIC GEOGRAPHY, RIGHT. IS IT PERFECT? NO. CAN IT BE IMPROVED YET? OF COURSE. SHOULD YOU TAKE THE FOOT OFF THE GAS PEDAL FOR DOWNTOWN? ABSOLUTELY NOT. RIGHT. YOU KNOW, SO REALLY, I THINK STRETCHING AS INDIVIDUALS AND THEN WORKING COLLECTIVELY TO FIGURE OUT WHERE ELSE CAN WE GET THAT KIND OF POLITICAL SUPPORT FOR CONCENTRATED WORK, RIGHT, IS POSSIBLE RIGHT NOW ON THE HOUSING FRONT. THAT DOES NOT MEAN WE'RE JUST PICKING ONE AREA. YOU REALLY YOU KNOW, YOU BOTH HAVE THE NEED TO BE IN A HANDFUL OF AREAS, RIGHT? SO THERE'S A DIFFERENCE BETWEEN 3 OR 4 AREAS AND 24 AREAS. RIGHT.

SO OUR RECOMMENDATION AFTER LOOKING AT THE MARKET NOW FOR FOR 6 OR 7 MONTHS WITH PRETTY GREAT PAIR IS TRY TO AVOID WORKING IN 24 AREAS. RIGHT. RIGHT. BUT DON'T DON'T INTERPRET OUR ADVICE TO CONCENTRATE AS, AS AS US TELLING YOU ONLY WORK IN ONE.

RIGHT. I THINK YOU CAN YOU CAN YOU CAN AFFORD TO DO ROBUST, DEEP WORK IN TWO, THREE, FOUR, FIVE AREAS. RIGHT? BUT YOU CAN'T AFFORD TO DO ROBUST, DEEP WORK IN TWO DOZEN AREAS. RIGHT? I WOULD THINK THAT THAT IF TWO, THREE, FOUR, FIVE, SIX ARE WITHIN YOUR PRICE RANGE, YOU'RE BEGINNING TO CHECK SOME POLITICAL BOXES AND BROAD CONSTITUENCY BOXES TOO. SO I THINK THERE'S A, THERE'S A, THERE'S A, THERE'S A THROUGH LINE. IT'S NOT AN EASY ONE.

RIGHT. IT'S, YOU KNOW, IT'S, IT'S BUT YOU CAN GET THERE IF I, IF I COULD JUST TO CLARIFY TOO, THAT DOESN'T MEAN THAT THERE'S NOT A BASELINE OF SERVICES PROVIDED CITYWIDE. I THINK THERE'S A SLIDE IN THE NOVEMBER 3RD PACKET THAT YOU HAVE THAT TALKS ABOUT THESE. THESE KINDS OF SERVICES ARE A BASELINE. AND YOU PROVIDE THOSE CITYWIDE. IT'S IT'S MORE WHEN WE GET INTO THE DEEP DIVE INCENTIVE REVITALIZATION KIND OF THINGS WHERE WE'RE TALKING ABOUT FOCUSED WORK, THERE SHOULD BE NO MISUNDERSTANDING THAT THAT ALL CURRENT BASELINE SERVICES ARE 100% CITYWIDE. THAT WOULD NEVER THAT'S NOT ON. IT SHOULDN'T BE ON THE TABLE, YOU KNOW, TO HORSE TRADE. RIGHT. THAT'S THAT'S THAT'S THAT'S WHERE YOU START. NOW YOU SORT OF SAY OKAY. IN ADDITION TO THAT, HOW WOULD WE MAXIMIZE WHAT WE SPEND ADDITIONAL TO THAT? HOW WOULD YOU KNOW AND HOW WOULD WE, YOU KNOW, GET THE BEST THE BEST RETURN. RIGHT.

AND RETURN IS MEASURED IN ALL KINDS OF WAYS. AND I WANT TO MAKE A POINT TO MR. WILLIAMS QUESTION, AND THAT THAT FOLLOWS UP ON WHAT YOU SAID YOUR SMALL C CRITICISM WAS WITH RESPECT TO NEIGHBORHOOD VITALITY. THE COUNCIL IS AWARE FROM OUR DISCUSSIONS, ONE OF THE FIRST THINGS THAT I DID WAS LOOK AT THE A2'S THAT I HAD THERE AND REALIZED SCOTT BOLLINGER, WHO WAS IN A2, THAT WE NEEDED HIM BACK IN NEIGHBORHOOD VITALITY. AND I'VE HAD DISCUSSIONS WITH SCOTT ABOUT THE IMPORTANCE OF THAT ROLE AND THE FACT THAT WE NEED TO BE MORE ROBUST IN WHAT WE'RE DOING IN NEIGHBORHOOD VITALITY TO MAKE SURE THAT WE CAN ACCOMPLISH WHAT IT IS. AND THAT WAS ONE OF THE FIRST THINGS BEFORE WE EVEN SAW THIS STUDY AND AND HEARD THE SMALL C CRITICISM. I'M HEARING THAT THE FIRST TIME TODAY FROM YOU. WE HAVEN'T DISCUSSED THIS BEFORE, BUT IT WAS SOMETHING THAT THAT I LOOKED AT AND SAID, THIS IS WHAT NEEDS TO HAPPEN. THIS I SAID, SCOTT PLAYS CRITICAL ROLE THERE, AND HE GRACIOUSLY AGREED TO GO BACK AND LEAD A MORE ROBUST EFFORT IN NEIGHBORHOOD VITALITY. AND WE'RE GRATEFUL TO GET HIM BACK, I WOULD ADD. SO AS AS MUCH AS THE A ROLE ASSISTS THE OTHER THINGS THAT WE DO AS CITY MANAGEMENT, TO ME, MY MY VIEW WAS IT WAS MORE IMPORTANT FOR THE CITY AND MORE FOCUSED TO MAKE SURE THAT WE HAD SCOTT, WHO HAS DONE TREMENDOUS WORK THERE, PUT HIM THERE AND GIVE HIM A MORE ROBUST TEAM OF PEOPLE AND AND MORE FUNDING TO MAKE SURE THAT HE CAN ACCOMPLISH WHAT IT IS THAT WE WOULD ACCOMPLISH TO BOTH ADDRESS THE ISSUE YOU RAISED AND THE SMALL C CRITICISM THAT THAT YOU'VE POINTED OUT THIS MORNING. AND I APPRECIATE YOU MENTIONING THAT. SORRY. KEEP GOING PLEASE. OKAY. ALL RIGHT. SO WE'VE SAID, I THINK REPEATEDLY IN ALL THE TIMES WE'VE MET. AND THEN IN SOME OF OUR SIDEBAR CONVERSATIONS, RIGHT. YOU'VE GOT WHAT WE THINK OF AS THESE TWO BIG CHALLENGES. RIGHT. GOT A LOT OF FOLKS WHO STRUGGLE WITH AFFORDABILITY, RIGHT. SO THAT'S A BIG CHALLENGE. WE'VE GOT A LOT OF HOMES, WHETHER THEY'RE SINGLE FAMILY HOMES, SMALL APARTMENT BUILDINGS, LARGE APARTMENT BUILDINGS. RIGHT. WE'RE ON A BY UNIT BASIS. WHERE? THEY'RE REALLY LAGGING IN VALUATION ON

[01:40:04]

RIGHT. BUT I CAN'T I DON'T WANT TO PRESUME. RIGHT. SO WE NEED YOU KNOW, WE NEED TO FIGURE OUT THAT REALLY WHERE YOU WANT TO WORK. SO WHEN WE PUT ALL THOSE CHALLENGES TOGETHER. EXCUSE ME.

CAN YOU USE A BLACK MARKER? WE CAN'T SEE THE GREEN ON THE WHITE WITH THE GLARE OF THE LIGHTS. OKAY, SURE. OF COURSE. WELL, TO BE FAIR, NOTHING I'VE WRITTEN IS IMPORTANT, SO DON'T WORRY. OKAY. THANK YOU. BLACK WILL SHOW UP MUCH BETTER. YOU'VE GOT AN EXPENSIVE, AFFORDABLE HOUSING CHALLENGE. YOU'VE GOT AN EXPENSIVE MARKET CHALLENGE YOU DON'T HAVE. AND TOGETHER IT'S VERY EXPENSIVE. YOUR WALLET ONLY CONTAINS SO MUCH MONEY. SETTING. JUST SETTING POLITICS ASIDE. YOUR WALLET IS ONLY SO GOOD. OKAY, SO NOW WE WANT TO FIGURE OUT, OKAY, HOW MUCH DO WE SPEND ON THIS AND HOW MUCH DO WE SPEND ON THIS? WHY? WHERE? HOW ARE WE GOING TO DO IT OKAY. SO THAT'S GOING TO FORM THE BACKBONE OF THE STRATEGY. SO WHAT WE'VE DONE IS WE'RE GOING TO BREAK YOU UP INTO GROUPS BEFORE YOU MOVE ON. JUST JUST FOR THE COUNCIL. AND AND SO WE CAN THINK ABOUT THIS. JUST GIVE US EXAMPLES OF WHAT YOU MEAN, OF WHAT THE SPEND THERE WOULD LOOK LIKE AND WHAT THE SPEND WOULD LOOK LIKE. SO WE HAVE CONTEXT TO UNDERSTAND WHAT YOU'RE TALKING ABOUT. TWO BUCKETS. SO WE DON'T MIX IT UP WITH SHORT WITH SHORTHAND. I THINK IT'S GREAT. THANKS FOR THE HELP. SO. I HAVE A HOUSEHOLD HERE OKAY.

WHO CAN AFFORD $1,000 A MONTH IN RENT? OKAY. RENT IS $500 RIGHT NOW. $1,500. $500 MORE THAN THEY CAN AFFORD. THAT TURNS OUT TO $6,000 A YEAR THAT THAT THAT THEY THAT IT RENTS ARE OUTPACING WHAT THEY CAN AFFORD FOR US TO TURN TO CREATE A UNIT AND COVER THAT GAP, OKAY, IS GOING TO COST ABOUT 200 AND. ABOUT $325,000, RIGHT. THE MARKET WILL SUPPORT MAYBE A $225,000. SO THERE'S GOING TO BE A GAP OF $100,000 THAT WE'RE GOING TO HAVE TO CLOSE. RIGHT.

SO THEN I'M GOING TO HAVE TO WRITE $100,000 CHECK FOR EVERY SINGLE ONE, OKAY. OF ABOUT 30,000 FOLKS. SO WHEN WE MULTIPLY THAT TIMES THAT, WE'VE GOT A BIG MONEY, BIG, BIG ISSUE THERE. RIGHT? SO THAT'S THAT'S IT. SO IT'S BASICALLY CLOSING THAT GAP. NOW YOU DON'T HAVE TO DO IT ON THE CAPITAL SIDE. BUT IF YOU DO IT ON THIS SIDE, YOU'RE GOING TO HAVE TO WRITE A MONTHLY CHECK OF $500 TIMES, 30,000 TIMES 12 MONTHS, TIMES FOREVER YEARS. RIGHT. WHICH MEANS THAT'S A BIG, BIG, BIG CHALLENGE RIGHT OVER HERE. I'VE GOT A TYPICAL HOUSE WORTH $250,000 FOR YOU TO COMPETE ON AD VALOREM. IT NEEDS TO BE AT $350,000. THAT $100,000 ALSO NEEDS TO GET ADDRESSED. OKAY. AND HERE, CHECK ME ON THIS. I'M GOING TO GET OVER MY SKIS FAST.

WE'VE GOT 20,000 RENTALS TO TO TO FOCUS ON HERE. AND I THINK WE'VE GOT ABOUT 30. THAT'S ABOUT 40,000 SINGLE FAMILIES TO WORK ON. THAT'S 20. SO NOW I'VE GOT 40,000 TIMES 100,000 AND I'M AT FOUR FOUR ON THAT SIDE. OKAY. AND SO THE WAY WE WOULD CLOSE THIS OKAY IS ASKING OURSELVES THE QUESTION, HOW DO I MOVE $250,000 HOUSE INTO $350,000 SPACE? RIGHT. AND HOW DO WE DO THAT? WELL, MOST OF OUR HOUSES BUILT BETWEEN 1962 AND. 89 OR 1370 FIVE SQUARE FEET. OKAY. THE MARKET DOESN'T WANT THAT. MARKET WANTS 2000FT■. MATH IS BAD. LET'S MAKE IT 1400 600FT■S TIMES $250 A SQUARE FOO. ANYBODY WITH A CALCULATOR WILL TELL ME. THAT'S 150,000 PLUS $150,000 IS NOT GOING TO BE WRITTEN BY THE HOMEOWNER, RIGHT? ALL BY THEMSELVES. THEY'RE GOING TO HAVE TO ACTUALLY HAVE A PARTNER IN THAT. OKAY. AND THE ONLY PARTNER THAT THEY CAN REALLY TURN TO, RIGHT, IS AN INVESTOR, AN EQUITY INVESTOR. SO YOU WOULD FUNCTION ON THE EQUITY SIDE REALLY COME IN HERE, MAYBE DO A 4 TO 1 SPLIT. YOU KNOW, 3 TO 1 SPLIT WHERE YOU

[01:45:08]

YES OKAY. WE'RE GOOD. NO, NO. YES. COUNCILMAN. GO AHEAD. YOU WANT ME TO KEEP GOING? NO, I WANT YOU TO STOP. OKAY. WHAT? YOU WHAT YOU'VE JUST DONE THERE? IT'S JUST. I'M SITTING AS YOU WERE TALKING INITIALLY. I'M SITTING HERE THINKING, OKAY, SO I'VE GOT ALL THESE HOMES DOWN IN MY SECTOR THAT ARE 190 IS GETTING READY TO GO THROUGH 30 OVER TO 80 AND OVER TO 20. NO, ALL THOSE HOMES IN THAT AREA ARE GOING TO BE IMPACTED. THAT'S ALSO THE AREA WHERE A LOT OF MY HOMES WHERE THE PRICES NEED TO BE INCREASED OR THE LAND VALUE NEEDS, SOMETHING NEEDS TO HAPPEN THERE IN THE WAY OF ATTRACTING. AND SO I'M THINKING TO MYSELF, I SAW SOMETHING WHERE I HAD $10 MILLION HERE I'M LOOKING AT I GOT $10 MILLION HERE TO DEAL WITH THAT. I'M THINKING, OKAY, WHAT'S THE THING THAT I CAN REALLY DO IN THAT AREA TO MAKE THE DIFFERENCE, TO MAKE INVESTORS WANT TO GO IN AND I THINK ESTHETICS IMMEDIATELY.

I'M THINKING TO MYSELF, NOT WHAT TYPE OF ESTHETICS, HEY, LANDSCAPING, IMPROVING THE PROPERTY. OH, I GOT 10 MILLION. OKAY. I'VE GOT MAYBE 100, 200 HOMES. I'M THINKING ALONG THOSE KINDS OF LINES. THE MATHEMATICS THAT YOU JUST PUT UP THERE ARE ONLY GOING TO BE ABLE TO DO THAT AS JEFF BASS AND I DON'T TRUST HIS NUMBERS OFTENTIMES. SO I'M JUST KIND OF OF THE SITUATION AND NOT THAT'S A JOKE, JEFF. BUT I'M JUST THINKING TO MYSELF THAT WHAT YOU JUST DID THERE, IT'S A COMPLICATED AND MAYBE YOU'RE GOING TO TEACH US HOW TO DO THAT. YOU DON'T HAVE TO DO THAT. I WAS MERELY ILLUSTRATING SORT OF THE CAPITAL SIDE OF THINGS. YOU'RE ABSOLUTELY RIGHT. YOU CAN GET YOU CAN BEGIN TO CLOSE THAT $100,000 MARKET CAP THROUGH LANDSCAPING, RIGHT THROUGH EXTERIOR TREATMENTS OF THE PROPERTY. RIGHT? YOU HAVE SO MANY FOLKS WHO DON'T MOW THEIR YARDS ON SATURDAY, OKAY, THAT SIMPLY MOWING YOUR YARD ON SATURDAY IS GOING TO ADD $5,000 TO EVERYBODY'S PROPERTY. ALL RIGHT, I'M GOOD. IF PEOPLE COULD LITERALLY MOW AND TRIM AND EDGE RIGHT, EVERYBODY'S HOME IS GOING TO GO FROM 250 TO 255 OVERNIGHT. OKAY, OKAY. AND EVEN IF WE JUST DIDN'T HELP THEM WITH LANDSCAPING ABSOLUTELY. NO QUESTION ABOUT IT. SO ALL RIGHT. TOTALLY. IF YOU JUST DEALT IF YOU IF YOU'RE LOOKING FOR THE HIGHEST BANG FOR UR BUCK. YES. THAT WAS A GOOD EXAMPLE RIGHT THERE. IT'S THAT GUY ON THE LEFT, THAT FENCE RIGHT. YOU ONLY HAVE 30,000 OF THOSE, RIGHT? RIGHT.

THERE WAS WIND IN 1974 THAT NEVER ACTUALLY HAD A HOMEOWNER PAY ATTENTION TO IT. OKAY. THE SAME GUY WITH THAT AVOCADO COUCH AND AND AVOCADO KITCHEN FROM 1974 HAS THAT FENCING.

OKAY, YOU FIX THAT FENCING. AND NOW EVERYBODY COMING UP AND DOWN GARLAND AVENUE IS LIKE, WOW, I COULD LIVE HERE. THAT'S RIGHT. OKAY, I'M WITH YOU THEN. OKAY. I'M WITH YOU. THAT WAS SIMPLY A COUNCILMAN, MORE A MARKET GARDENER ILLUSTRATION. THAT'S IT. ONE OF THE THINGS THAT I FOUND ABOUT. SO SO OFTENTIMES I'M NOT GOING TO SAY IT, BUT WITH ME, I'M SITTING IN THESE MEETINGS, I'M LISTENING TO THIS INFORMATION. I'M ACTING LIKE I UNDERSTAND IT. NO, NO MORE ANYMORE. IF I DON'T UNDERSTAND IT, MY PEOPLE ARE NOT GOING TO UNDERSTAND IT. I CAN'T EXPLAIN IT TO THEM. AND SO, YES, I'M GOING TO BE THE FOOL. I'M GOING TO BE THE ONE TO STOP AND SAY NO. THAT'S WHAT WE NEED. WHAT YOU JUST DID IS EXACTLY WHAT I NEEDED TO HEAR.

THANK YOU SIR. YOU'RE WELCOME. OKAY, LET'S FLIP THROUGH. LET'S GO. LET'S JUMP TO THIS EXERCISE.

YOU SHOULD SEE. YOU GOT IT. IT'S ALREADY THERE. EVERYBODY'S GOT IT. OKAY, GOOD. ALL RIGHT.

SO WE'RE GOING TO BREAK UP I'M GOING TO ARBITRARILY ASK. HOPEFULLY WE HAVE COUNCILPERSONS THOMAS DUTTON, BEARD AND WILLIAMS TOGETHER. YOUR TEAM THE FOUR OF YOU. YEAH.

YOU FOR A TEAM. RIGHT. AND SO WHAT WE'RE GOING TO ASK IF YOU FOLLOW HERE IS. YOU GUYS ARE

[01:50:13]

OKAY. COMPLETELY. NEXT PAGE. OKAY. YOU CAN HELP 250 HOUSEHOLDS SIGNIFICANTLY OR PARTIALLY. OKAY. BECKY OR AMBER, CAN YOU FLIP THE SLIDE TO GET IT TO THE RIGHT PAGE? YOU CAN HELP A THOUSAND HOUSEHOLDS EVICT, OR YOU COULD CHOOSE SOME OTHER COMBINATION. ALL RIGHT.

WHAT? ALL WE ALL WE WANT YOU TO TELL. TELL US. OKAY. JUST WORK AS A GROUP FOR A FEW MINUTES.

IS WOULD YOU RATHER, WITH $10 MILLION, TRY TO REALLY, REALLY HELP 125 HOUSEHOLDS, RIGHT. OR NOMINALLY HELP 1000 HOUSEHOLDS? OKAY. BEING MINDFUL THAT THERE ARE 25, MORE THAN 25,000 OTHER HOUSEHOLDS THAT COULD USE THAT ASSISTANCE. OKAY. RIGHT. AND THIS IS TO BRIDGE THAT GAP.

YOU'RE WORKING ON THIS THIS SIDE OF THE LEDGER OKAY. ALL RIGHT. SO YOU'RE GOING TO DO THAT. THIS GROUP THE FOUR OF YOU ALL COUNCILMAN MOORE SIR, YOU ALL ARE GOING TO BE TACKLING THE RIGHT SIDE OF THE ISSUE. OKAY. GIVE THE SAME $10 MILLION. RIGHT. AND WHAT YOU CAN DO WITH THAT $10 MILLION IS YOU CAN BEGIN TO REALLY TRANSFORM, LET'S SAY, THE THOUSAND SQUARE FOOT HOUSE INTO THE 1800 SQUARE FOOT HOUSE. YOU CAN TRANSFORM THE 1800 SQUARE FOOT HOUSE INTO THE 2200 SQUARE FOOT HOUSE. YOU CAN ADD KITCHENS, YOU CAN ADD BATHS, YOU CAN REDO ROOFS, YOU CAN REDO FOUNDATIONS, RIGHT? IN THAT CASE, YOU WOULD BE HELPING ABOUT 125 HOUSEHOLDS, RIGHT? SIGNIFICANTLY, YOU WOULD BE SPENDING FAR LESS, RIGHT, MAYBE 40,000 A HOUSEHOLD TO HELP TWICE AS MANY HOUSEHOLDS. 250. RIGHT. IS IT UP ON SLIDES RIGHT AGAIN? THEN YOU WOULD SPEND EVEN LESS, LET'S SAY, TO COUNCILMAN MOORE'S POINT, WHICH IS LET'S FOCUS ON LANDSCAPING. LET'S FOCUS ON EXTERIOR TREATMENTS. RIGHT. YOU MIGHT SAY, LET'S DO 1000 HOUSEHOLDS AND DO VERY MINOR REPAIRS, RIGHT. AND OR SOME OTHER COMBINATION. SO YOU'VE GOT $10 MILLION ON THE LEFT SIDE OF THE LEDGER, AND YOU'VE GOT $10 MILLION ON THE RIGHT SIDE OF THE LEDGER. WHAT WE WANT TO HAVE A SENSE OF IS HOW FOCUSED YOU WANT TO BE, RIGHT, HOW DISPERSIVE YOU WANT TO BE. BUT MORE THAN THE ANSWER, WE WANT TO KNOW WHY, WHY, WHY DID YOU SETTLE ON THE ON ON ON YOUR YOUR YOUR DECISION OKAY. SO LET'S TAKE A WE'LL PAUSE FOR ANY QUESTIONS. BUT YOU WANT TO TAKE JUST JUST TEN TEN MINUTES, FIVE MINUTES WORK AS A GROUP. COME UP WITH AN ANSWER BUT MOSTLY COME UP WITH THE REASON OKAY. ALL RIGHT. CLEAR. ANY QUESTIONS. AND JUST LOGISTICALLY IF DO YOU GUYS WANT TO LIKE US TO ROLL TWO CHAIRS OVER WHERE Y'ALL ARE FACING EACH OTHER OR ARE YOU GOOD THAT WAY. YEAH. COOL. LOOKING AT EACH OTHER IF YOU WANT TO DO THAT. THIS. IS.

WHAT'S YOUR TABLE? I'M, I THINK I THINK I THINK I'M ACTUALLY HOPING I'M MULTITASKING JUST VERY QUICK. SO GO THROUGH MY LIFETIME AND SAY RIGHT NOW, WHAT IS ED RIGHT NOW OUT OF THE OUT OF THE TOP THREE. WHERE'S YOUR HEAD? RIGHT, RIGHT BEHIND YOU. SO I READ THE OTHER DAY.

SO SO SO WE DO IT IN A MANNER SO LIKE TO START OFF WITH A CERTAIN ALLOTMENT OF HOMES. IF $2,000 OR MORE IS THE AVERAGE HOUSE PAYMENT OR RENT IS ABOUT THE SAME ABOUT 3000. AND MOST PEOPLE ARE THAT WILL MOST PEOPLE I FEEL LIKE ARE ONE WILL HAVE SO MUCH MORE. ONE MONTH OF NOT HAVING TO WORRY ABOUT EXTERNAL. SO YOU DON'T WANT TO ENABLE THE EARLY EARLY 2000.

AND SO IF YOU DID LIKE MY THINGS LIKE HOUSE, LIKE WE HAVE HERE WITH 800 SQUARE FOOT HOUSES, VERY SMALL SUBDIVISION A MONTH OR TWO. REMEMBER 20 YEARS AGO THE CITY SAID DID THIS EXACT SAME THING. THEY GAVE HIM $50,000 OR $50,000 ON THAT HOUSE AND BUILD AN ALL OR NOTHING. NOW THE LAND VALUE OF THOSE HOUSES WENT 20,000 TO 100,000. SO EVERYONE, ALMOST

[01:55:05]

YEAH, THAT WILL HAPPEN. YEAH. YEAH, YEAH. NOT EVERY $10,000 HOME YOU PUT 8000 TO IT. THAT'S NOT THAT. DOESN'T RESPONSIBLE PEOPLE THAT WERE LIKE OH GOOD. YEAH I'VE GOT A SIX MONTH BREATHER. YEAH. THAT I CAN PUT THAT MONEY ASIDE WITH A HIGHER ADJUSTMENT EMERGENCY. STOCK MY PANTRY. SO IT'S GOT LOTS WORTH OF FOOD IN MY PANTRY AND I CAN, I CAN COME IN SO THAT SIX MONTHS FROM NOW, IF I'M MISSING IT, I'M NOT. BUT WE ALL AGREED ON THE SAME ONE RIGHT OFF THE BAT. REASONING. THE REASONING. OH YEAH, I GOTTA FIGURE OUT HOW MANY I CAN'T MATH THAT SURROUNDING MILLION DOLLARS. THEY GRAB A HOLD, THEY GRAB THAT. AND EVEN IF THEY'RE NOT GETTING THE ASSISTANCE, YOU WANT TO TRY TO REACH MONEY INTO THEIR POCKETS. SO IT'S GOOD FOR 1000 HOM. 8000. I WROTE THIS ONE. I'M TRYING TO THINK OF A BETTER WORD FOR MAINTENANCE.

WHERE? SEAT OUT AND WHERE THE WHERE IMPROVEMENTS IN ONE 250 OTHER CONTAGIOUS. THAT'S 25.

BUT IF YOU WANT TO GO INTO HOUSES. BUT IF YOU WANTED TO HELP EVEN MORE PEOPLE ACROSS, SOMETIMES IT'S A POSITIVE SPIN OFF. YOU KNOW, YOU GET THESE POSITIVE. IT'S NOT JUST PEOPLE ACROSS MULTIPLE ZONES. YEAH, THAT'S WHAT I'M CURIOUS ABOUT A MINUTE OR TWO. OH YEAH. OKAY, GOOD. OKAY, GOOD. SO IT WAS THOSE NUMBERS YOU GOT AGAIN. SO $2,000 WOULD 5000. YEAH OKAY.

AND IF THOSE WERE I THINK I THINK ONE OF THE THINGS GRIFFITH ALWAYS WHERE YOU'RE GOING TO BE THOSE HOMES, HOW DO YOU GET THAT CONSENSUS RIGHT. LIKE IT'S NOT GOING TO BE OH I DON'T KNOW. YOU'RE. OH BECAUSE THOSE ARE THE ONES THAT ARE NOT GOING TO BE IT'S NOT GOING TO BE WHAT YOU'RE GOING TO BE. WELL WE DID FOR THE YEAR. THAT'S A LOT OF YOUR DISTRICT A DISTRICT EVERYBODY. MOST OF MY DOWNTOWN I WAS THINKING IN ORDER FOR US TO DO NOT TO EACH OTHER, BUT TO SELL IT TO THE CITIZENS, HAVE TO BE AN AREA LIKE DOWNTOWN, WHERE IT'S AN AREA. LIKE A I'M GOING TO WRAP IT UP NOW AND. WE HAVE A LOT OF, A LOT OF WRAPPED UP. GOOD, GOOD.

YEAH, YEAH. AND I'M NOT SAYING JUST BECAUSE YOU WANT TO PRESENT. OKAY. YEAH. OH YOU CAN WHAT'S YOUR. IT WAS MY IDEA OKAY OKAY. SAY AGAIN. THAT'S GOOD OKAY. ALL RIGHT. LET'S LET'S BRING IT BACK TOGETHER. RIGHT. OKAY. DO YOU WANT TO REALIGN 5000? I THINK WE SHOULD STAY. SO. YOU CAN SEE IT'S HARD TO STRETCH, RIGHT? WOULD EVERYBODY AGREE? I MEAN, IT'S YOU WANT 2030 40 RIGHT. BUT YOU'VE GOT YOU'VE GOT WHAT YOU'VE GOT OKAY. SO LET'S LET'S DO THIS I'VE GOT SOME. WHY DON'T WE START ON THE AFFORDABILITY SIDE. RIGHT CHRIS OR COUNCIL COUNCILPERSON DUTTON COME ON UP. AND YOU KNOW WELL NOT EVERYBODY IS RIGHT. SO WALK US THROUGH. WALK US THROUGH. YOU KNOW YOUR REASONING, RIGHT. ANY DISCUSSION WHERE PEOPLE YOU KNOW WHAT WHAT WERE THE ISSUES. SO WE DECIDED TO DO $2,000 TO 5000 HOMES. OKAY. HANG ON. LET ME TRY TO RECORD SOME OF THIS WHILE WE TALK. OKAY. AND BLACK. THANK YOU. THIS COULD BE LIKE ONE OF THOSE THINGS THAT NEVER COMES OFF. IT'S A GRAFFITI ONE. IT'S FINE. OKAY. ALL RIGHT. SO YOU DID 2000. OH THAT'S RIGHT. $2,000 TO 5000 HOMES. OKAY. AND AND THE REASONING FOR THAT,

[02:00:07]

SIZE OF IMPACT RIGHT. THIS IS REALLY IMPORTANT. LOW INCOME HOUSEHOLDS RIGHT. RIGHT. WHO ARE HOUSING COST BURDENED. RIGHT. IT IT IS EVERY LITTLE BIT HELPS AND A LITTLE BIT AT THE RIGHT TIME CAN CAN ACTUALLY BE THIS DOWN PAYMENT ON NO MORE FUTURE TROUBLE. RIGHT. IT SORT OF IT'S IT MARGIN FOR ERROR IS SO LOW THAT I THINK WHERE YOU'RE GOING IS LET'S RECOGNIZE THAT THE MARGIN FOR ERROR JUST JUST ADDRESSING THAT MARGIN OF ERROR RIGHT CAN GO A LONG, LONG WAY. WE DISCUSSED, YOU KNOW, THAT ONE MONTH OF ONE MONTH OF NO HOUSE PAYMENT OR NO RENT.

YEP. WOULD ALLOW YOU TO MAYBE MAKE AN EXTRA CAR PAYMENT. IT WOULD MAYBE LET YOU STOCKPILE SOME GROCERIES, GET AN EXTRA FENCE, YOU KNOW, REPAIR, DO SOME. REPAIRS. RIGHT. IT ALLOW YOU TO DO THAT THING WITHOUT IT OVERBURDENING YOU. AND YOU KNOW THAT YOU'VE GOT ONE MONTH THAT I DON'T HAVE TO COVER MY HOUSE PAYMENT SO I CAN USE THAT 1500 $2,000 HOUSE PAYMENT FOR SOMETHING ELSE THAT BENEFITS MY FAMILY. THAT'S GREAT. AND BUT TO KNOW THAT YOU'VE GOT THAT, WE DIDN'T WANT TO DO IT ON A BIGGER SCALE, OKAY? BECAUSE THEN YOU GET, OH, WELL, I'VE GOT ALL THIS EXTRA MONEY NOW I CAN GO SHOPPING, OR NOW I CAN GO TO THE CASINO BECAUSE WE'VE WE'VE ALL SEEN THAT HAPPEN WIT SOMEBODY THAT GOT A LITTLE EXTRA WINDFALL AND TOOK A LIMO TO OKLAHOMA INSTEAD OF FIXING A HOUSE. YEAH. CAN WE EAT THE COST OF DEMOLISHING THE HOUSE? YEAH. SO. SO YOU REALLY YOU ALSO. YOU WANT SOME PRUDENCE HERE? YOU WANT TO BE, YOU KNOW, YOU'RE TRYING TO BE REALLY PRUDENT HERE, RIGHT? YOU'R'RE NT YOU'RE NOT YOU'RE NOT TRYING TO JUST WASTE MONEY. YOU'RE CARETAKING THE RESOURCES. RIGHT. AND YOU DON'T WANT THEM TO FEEL THAT. OH, I CALLED MY COUSIN AND I CAN GO AND OKLAHOMA BLOW THIS AND COME BACK BECAUSE, OH, MY COUSIN WILL HELP ME OUT OF THIS. SO DON'T WANT THAT. SO IF WE PIVOT JUST FOR A SECOND TO.

WHY AND THIS IS GOING TO BECOME IMPORTANT. OKAY. BECAUSE IN A MINUTE I'M ACTUALLY GOING TO SAY THAT YOU ONLY HAVE THAT MUCH RIGHT TO DO ALL THE THINGS, ALL THE THINGS THAT THAT TABLE WANTS TO DO AS WELL. RIGHT? SO WHAT'S THE WHY, WHY, WHY LIKE WHAT WOULD BE WHAT WOULD BE THE REASON. WHY DO YOU WANT TO DO THIS. BECAUSE THERE'S THERE'S A MILLION THINGS YOU CAN OTHER THINGS YOU CAN SPEND THIS MONEY ON, NOT LEAST OF WHICH IS NOT SPEND IT AT ALL AND LOWER THE TAXES. RIGHT. SO WHAT'S WHAT'S THE WHY? WHAT SHOULD YOU WHAT DO YOU WANT TO TELL US AS YOUR HOUSING? WHY DO YOU WANT TO DO THIS FOR BETTER QUALITY OF LIFE OKAY. ANYTHING ELSE? COUNCILMAN? TOM? TOM THOMAS? NO. OKAY. WE WOULD SEE THE MONEY BACK. BECAUSE WHEN YOU HAVE EXTRA FUNDS, YOU'RE MORE LIKELY TO SPEND THAT IN THE CITY. SO YOU'RE JUST POURING BACK INTO THE ECONOMY. OKAY. SO THERE IS A RETURN ON THE INVESTMENT HERE. THIS IMPACT. RIGHT? RIGHT. AS WE'RE EXTRA CAR PAYMENTS OR OR GROCERIES OR WHATNOT, THAT'S COMING BACK SOMEPLACE IN HERE AS PART OF YOUR REASONING. IS THAT FAIR? GREAT. OKAY. AND YOU IMPROVE WHAT YOU LIVE. YEAH.

AND YOU, YOU, YOU IT GIVES YOU MORE SENSE OF PRIDE, OKAY. THAN THAN GOING OUT AND AND BLOWING IT, OKAY. AND THEN MAKING IT UP TO SOMEBODY ELSE. ALL RIGHT. SO SO WE'RE GOING TO MAKE IT HARDER IN A FEW MINUTES. SO JUST JUST BEAR BEAR THAT IN MIND. YES. SO IS THIS 2000 PER

[02:05:03]

[02:10:04]

YES. WHY DO YOU THINK? IT'S I THINK THAT THAT'S THAT'S THE PRIMARY CONCERN. WE'VE ALREADY GOT A TRAIN STATION FOUR YEARS AGO. THEY CROPS UP WELL WITH. ABOUT HOW MANY GOES BACK TO.

I'LL GO TO A TWICE. YEAH. IT'S GOING TO HAVE EVERYBODY. EVERYBODY'S GOING TO. I'M NOT SAYING ALL OF IT. OH YEAH. VANGUARD S&P 500 INDEX ONE RIGHT HERE. YEAH EVERYBODY EVERYBODY'S TURNED THAT 2000 INTO 17,000. OKAY. YEAH. JUST BECAUSE WE'VE GOT TO BRING UP OUR TAX BASE. OH. WE HAVE WE HAVE SO 7525. OVER THERE. WE BRING UP OUR SATURDAY OUT ON A ONE TIME BASIS. GREAT. BUT LONG TERM THAT DIDN'T DO ANYTHING OKAY. YEAH THAT'S WHAT I MEAN THAT THE STRATEGY THAT WE STARTED OUT. YEAH I THINK PART OF US THIS IS A PRUDENT USE OF THAT. RIGHT. YEAH. THE THE FINANCIAL FINANCIAL SIDE OF THE BRAIN. AND EVERYTHING HAS BEEN VERY BEGINNING. YEAH. NO. YEAH I ACTUALLY I PROBABLY I MEAN THIS IS A NEW. OKAY. YOU GUYS GOOD. YEAH. BECAUSE GIVE US ANOTHER MINUTE. YEAH. GOOD. YEAH. ONE MORE MINUTE OKAY.

IT'S COMING FROM SOMEBODY WHO'S LIVED IN THIS. LIKE, I WOULD NEVER SAY THIS OUT LOUD, BUT AT THE END OF MAY, RIGHT IN THE MIDDLE OF IT, RAISED OUR MARKET. HOW DO WE SOLVE EVEN IF PEOPLE DID HAVE TO MOVE BECAUSE THEY COULDN'T AFFORD THEIR HOUSING OR WHATEVER, THOSE HOUSES WOULD THEN GET RENOVATED, RIGHT? SO WITH EARLY WARNING, WHAT DO YOU PUT IN THE CLOUDS TO MAKE THE CLOUD SEEDING? WE'RE GOING TO START RIGHT NOW. MAYBE STORMS. YEAH. DESTROY ALL THE HOUSES.

OKAY. THE KIDS DON'T WANT TO. THEY DON'T WANT TO. IT IS RIGHT HERE ON THE OUTER RING. I DO HAVE SOME DATA, BUT I DON'T MAY WANT TO ANNOUNCE THAT AGAIN WHEN IT REALLY LIKE WITH THE GOOD. OKAY. THAT'S REALLY RIGHT. I GOT A SUPER DEAL BECAUSE THEIR PROPERTY OWNERS WILL. I HAD EXTRA MONEY. I PUT IT INTO THE HOUSE. THAT'S NOT HOW I GOT A NEW KITCHEN. I GOT NEW WINDOWS. I PUT MONEY ON THE OUTSIDE OF THE HOUSE AND NOT THE INSIDE OF THE HOUSE, BECAUSE THE OUTSIDE OF THE HOUSE IS IN THE STREET. THAT'S FOR PEOPLE. THAT'S THE FIRST

[02:15:02]

WOULD YOU WOULD YOU DECIDE. ALL RIGHT. YOU CAN SEE FIRST THING WE'RE PRESENTING KIND OF ALREADY THERE. WE VERY QUICKLY SETTLED ON 100% AT MARKET RATE OVER HERE. YES. WE GOT 1010 TO SPEND YEAR HERE 100%. OKAY. AND WALK US THROUGH IT. WELL, PART OF IT WAS THAT THE THOUGHT WAS THAT UNLESSE TIED THE IF YOU GO TOWARDS THE AFFORDABILITY GAP AND IF YOU DON'T HAVE IT WHERE IT'S GOING TO SOMETHING THAT'S ACTUALLY TANGIBLE, SPECIFIC IN A PROJECT, PEOPLE ARE JUST GOING TO USE THE DOLLARS TO SUBSIDIZE BAD BEHAVIORS. OKAY. WHAT'S THE THINKING BEHIND IT? OKAY. AND SO BY GOING AFTER THE MARKET GAP AND THEN GIVING THE MAXIMUM AMOUNT OF SPEND FOR THE PROJECTS, WE CAN PUT A LOT OF LEVERAGE. CAN I PUT WORDS IN YOUR MOUTH FOR A SECOND? SURE. YOU'RE SUBSIDIZING WHAT YOU CONSIDER TO BE BENEFICIAL ACTIONS. YES. IS THAT FAIR? YES. OKAY. KEEP GOING. WE ALREADY HAVE. DON'T WE ALREADY HAVE AFFORDABLE HOUSING? LIKE MORE SO THAN WHAT IS IT, 26 CITIES SURROUNDING OUR OUR CITY. LIKE WE HAVE SOMETHING LIKE TWO TIMES THE AMOUNT OF AFFORDABLE HOUSING. AFFORDABLE HOUSING.

YOU HAVE MORE THAN YOUR FAIR SHARE, BUT NOT GROTESQUELY SO. WERE YOU REALLY UNDER. IT'S MORE THE CASE THAT YOU'RE UNDER A FAIR SHARE ON THE TOP HALF THAN SEVERELY OVER ON THE BOTTOM HALF. RIGHT? RIGHT. SO IF WE'RE IF WE'RE TRYING TO CORRECT UP, YES, CORRECTING FROM THE BOTTOM DOESN'T GET US WHERE WE NEED TO GO. THAT IS THAT IS A THAT IS VERY GOOD. SO YOU'RE TRYING TO LET'S JUST SAY I THINK THAT'S A NICE WAY TO PHRASE IT. YOU'RE TRYING TO CORRECT UP OKAY. THAT'S THAT'S PRETTY GOOD. THANK YOU. YES. DID YOU WANT TO SAY MORE SPLITTING THE DOLLARS INTO TOO MANY AREAS. AGAIN IT DEFEATS THE PURPOSE. EVERYTHING THAT YOU'VE DONE IN THE EXERCISE SO FAR HAS LED US TO BELIEVE THAT, IN FACT, WE NEED TO TRY AND FOCUS. OKAY? LIKE 100% IN THAT AREA. IF ATTEMPTED FOCUSING FOR OUR EFFORTS ARE GOING TO BE MADE. OKAY. RIGHT. ANYTHING ELSE YOU WANT TO ADD AT THAT TABLE? YEAH. ANOTHER POINT.

YEAH. SO PLEASE, IF YOU JUST LOOK AT OUR LOOK AT WHAT WE'VE DONE WITH OUR 2019 BOND AND OUR 2025 BOND, THOSE ARE AIMED TOWARD MARKETABILITY. THEY'RE AIMED TOWARD MAKING THE CITY MORE ATTRACTIVE, MAKING CITY SERVICE SERVICES MORE ROBUST. YEAH. THOSE THINGS ARE AIMED TOWARD AMENITIES THAT PEOPLE WANT AND DESIRE. AND SO THOSE ARE ALL MARKETABILITY. AND SO THAT'S WHERE OUR FOCUS HAS BEEN. THAT'S WHERE THE VOTERS HAVE VOTED FOR THEIR FOCUS TO BE.

AND I THINK WE SHOULD CONTINUE WITH THAT. SO THERE'S A HISTORICAL RECOGNITION, RIGHT, THAT THERE ARE MARKET CHALLENGES. AND YOU HAVE BEEN BEGINNING TO TO PICK THEM OFF.

RIGHT. YOU WANT TO CONTINUE THAT, RIGHT. SO CORRECTING UP, REALLY FOCUSING ON THOSE ACTIONS THAT HAVE HAVE HAVE A RETURN TO THE CITY. RIGHT. AND CONTINUING YOUR THINKING, IS THERE ANYTHING MORE YOU WANT TO SAY? WELL, IN FOCUSING ON THE MARKETABILITY ALSO BIG QUESTIONS PEOPLE OFTEN ASK, RIGHT. THEY WANT THE BIG RETAILERS. THEY WANT THINGS WE DON'T HAVE COSTCO, TRADER JOE'S, HEB. PEOPLE ARE ALWAYS ASKING FOR THESE THINGS, RIGHT? WELL, IN ORDER TO GET THESE THINGS, WE NEED TO LIKE IT SAYS THERE CORRECT UP AND CORRECTING UP AND INCREASING OUR MARKETABILITY AS A CITY ATTRACTS THE RETAILERS. RIGHT.

SO AND IT'S ALL IT'S ALL SELF-FULFILLING. RIGHT? I MEAN, YOU ATTRACT LARGER RETAILERS, YOU COLLECT MORE SALES TAX DOLLARS AND COLLECT MORE SALES TAX DOLLARS. WHEN YOU PUT MORE MONEY INTO AMENITIES AND ATTRACT EVEN MORE, IT'S JUST IT PUTS US ON A POSITIVE GROWTH INSTEAD OF IN A DEATH SPIRAL. JUST THAT CYCLE THAT YOU SHOWED US EARLIER IN THE PRESENTATION.

EXACTLY RIGHT. WHAT YOU'VE DONE IS YOU'VE DECIDED TO INTERVENE IN ITSELF IN ITS FEEDBACK LOOP AND DO IT IN A WAY THAT GOES IN THE OTHER DIRECTION. CORRECT? RIGHT. SO I THINK THAT'S REALLY, REALLY SOUND THINKING ON YOUR PART. YOU'RE LINKING TO RETAIL, WHICH LINKS TO THE TAX BASE, WHICH LINKS TO THE ABILITY TO MAINTAIN ROADS, PARKS, SIDEWALKS, ALL OF THE OTHER INFRASTRUCTURE IN THE CITY AT A HIGHER LEVEL. IN TURN, THAT'S GOING TO COME RIGHT BACK UP TO CONTINUALLY CORRECTING UP. RIGHT. AND IT WILL ALSO RELATE TO THAT MULTIPLIER EFFECT THAT YOU TALKED ABOUT EARLIER IN THE PREVIOUS SESSION. RIGHT. SO DID I GET THAT RIGHT. YEP. YEP.

YOU'RE UP CHRIS. YOU DID AN 8020 SPLIT 8020. SO YOU ARE 8080 HERE OR 80 MARKET 80 MARKET OKAY. WOW. THAT'S PRETTY CLOSE. YEAH. SO WE THERE'S SOME THAT'S THAT'S PRETTY GREAT.

YEAH OKAY. SO HE WE'RE AT 100 AND HERE WE'RE AT 80 OKAY. SO THE REASONING FOR THAT IS

[02:20:04]

BECAUSE IT'S WHO WE ARE AS PEOPLE. RIGHT. OKAY. YOU KNOW, BUT ALSO FOR THE RECORD, I DID NOT SAY THAT I DID. OKAY. IT'S FINE. EVERYONE KNOWS IT'S ME. SO WHEN YOU'RE DOING THE 8020 RIGHT, IT'S STILL ALLOWS FOR THOSE PEOPLE. IF THEY CAN'T AFFORD THEIR HOUSE THIS MONTH, THEY'RE MOST LIKELY NOT GOING TO BE ABLE TO AFFORD THEIR HOUSE NEXT MONTH. SO AT SOME POINT, THEY'RE GOING TO HAVE TO FIGURE OUT WHAT ARE THEIR NEXT STEPS. AND SO WHETHER THAT'S IS MOVING DOWN WITHIN THE CITY OR MOVING ELSEWHERE, THOSE HOUSES AND ARE THEN GOING TO BECOME ON THE MARKET, THEY'RE GOING TO GET REHABBED, WHICH IS GOING TO INCREASE THEIR MARKET VALUE, WHICH HELPS US. LET'S NOT WASTE A CHANCE TO THROW YOUR NEIGHBORS UNDER THE BUS. OKAY? RIGHT. NEVER WANT TO LET THAT CHANCE GO BY. RIGHT? SO IF YOU'RE SOULLESS, RIGHT, YOU'RE NO. WHAT WE'RE SAYING IS WE WANT TO HAVE A SOUL AND BE INCLUSIVE, RIGHT? WE'VE GOT TO BE RIGHT. BUT WE ALSO HAVE TO TAKE CARE OF BUSINESS. YEAH, RIGHT. SO WHAT'S GREAT ABOUT THIS, RIGHT, IS YOUR CONSULTANT IS. I WAS SORT OF AFRAID YOU WERE GOING TO COME OVER HERE, AND THEN I DIDN'T KNOW WHAT TO DO WITH IT. HALF AN HOUR, WHICH IS. LOOK WHERE YOU ARE. RIGHT.

YOU HAVE ALMOST PERFECT AGREEMENT. REALLY? IT DOESN'T GET ANY BETTER THAN THIS.

YOU'RE NOT ON THE 40 YARD LINE. YOU KNOW YOU'RE IN THE RED ZONE. THIS IS GRT, MARY. I WAS JUST WONDER BECAUSE WE DID NOT MIX UP THE GROUPS, WOULD WE? BEING THE PRIME, THAT WAS THEIR TASK ORIGINALLY TO ADVOCATE FOR THAT POSITION. WOULD IT HAVE BEEN DIFFERENT AND MORE EVEN CLOSER IF THERE WAS SOME, WHICH WAS THE GROUP DESIGN THAT WE HAD, WHICH WAS I KNEW THAT WE'D HAVE A LITTLE FIREWORK, SO I BUT I REQUIRE WORK. YOU'RE RIGHT. SO YEAH. YEAH. CHARLES, DID YOU HAVE ONE MORE COMMENT? THE TERM AFFORDABILITY STILL REST OVER HERE? ABSOLUTELY. GREAT. IT'S IMPORTANT. THERE'S NO QUESTION YOU ARE COMMITTED TO IT. YOU TALK TO PEOPLE. YES.

AFFORDABILITY COMES UP OKAY. SO WITH WITH WITH WITH ALL THAT THE OTHER CONCERNS AS A BACKDROP. BUT NUMBER ONE CONVERSATION TO HAVE WITH A LOT WITH PEOPLE, THE CONSTITUENTS, IT GOES BACK TO AFFORDABILITY THAT THAT I DON'T NECESSARILY AGREE WITH THAT BECAUSE WE GET AT THE SAME TIME LOTS OF CALLS. IF YOU LOOK IN EVERY POST, EVEN I'LL GIVE YOU AN EXAMPLE. I'VE USED THIS BEFORE CHRISTMAS ON THE SQUARE. WE GOT CHRISTMAS SQUARE COMING UP. THE FIRST POST I GOT UNDER THAT WAS, OKAY, WHEN ARE WE GETTING AN HEB? YEP. OKAY. IT WAS NOT LIKE I CAN'T AFFORD MY HOME. IT WAS A TOPIC NOT EVEN RELATED TO CHRISTMAS. OKAY. THAT'S NICE. WHEN ARE WE GETTING AN HPV? YEAH, I GET THAT ALONG WITH AFFORDABILITY QUESTIONS ALL THE TIME. SO. ONE FIRST OKAY. SO TO THE POINT OF, YOU KNOW, WANTING TO MAINTAIN OUR SOUL AND SUCH, I DO I UNDERSTAND THE. YOU KNOW UNDERSTAND THE THOUGHT BEHIND THAT. BUT I GUESS WHAT WHAT LOOKING AT THAT WHEN WE WANT TO INCREASE THAT BY 20%. WHAT I READ THAT AS IS YOUR OPINION, IS THAT THE CITY IS NOT CURRENTLY DOING ENOUGH. RIGHT. AND WE HAVE AND WE HAVE WE HAVE AN ENTIRE DEPARTMENT THAT'S THAT FOCUSES ON THAT. NO, WE HAVE AN ENTIRE DEPARTMENT THAT ALSO FOCUSES ON HOME IMPROVEMENT INCENTIVES. AND IT'S NEVER ENOUGH, RIGHT? LIKE EVERY YEAR WE RUN OUT FASTER AND FASTER AND FASTER. AND SO I GUESS FOR ME, I FEEL THAT THAT'S SOMETHING WE ALREADY ADDRESS. BUT IT WAS YOU HAVE $10 MILLION COUNT ON THIS SCALE.

DO YOU WANT TO SPLIT IT? AND SO IT SHOULDN'T. WE JUST FELT LIKE IT SHOULDN'T BE AN ALL OR NOTHING IT. BUT I WOULDN'T SAY WE SHOULD. I WOULDN'T SAY THAT I WOULDN'T DO IT. BUT WHAT YOU'RE SAYING IS THAT IF WE DON'T INCREASE WHAT WE'RE WHAT WE'RE DOING TO ADDRESS AFFORDABILITY, THAT WE'RE BEING SOULLESS. AND I JUST DON'T THINK THAT THE CITY. SOULLESS.

YEAH, YOU. IT WAS YOUR NEIGHBORS WHO SAID THAT IT WAS YOUR NEIGHBORS WHO SAID THAT. I

[02:25:01]

AFFORDABILITY MATTERS MATTERS. RIGHT. SO WE MUST THINK ABOUT IT OKAY. SO IT IS IT IS IT IS A VALUE RIGHT TO TO TO TO TO HAVE AN INCLUSIVE RIGHT. SO SO COMMUNICATING THAT TO US HELPS FOR STRATEGY. THAT'S WHAT WE HEAR. SO THAT WE YOU'RE NOT SURPRISED WHEN WE GIVE YOU A DRAFT. IS THIS CONTINUES RIGHT. AND UP HERE WE'RE ON THIS SIDE RIGHT. AND WE ARE WE'RE NOT PAYING NO ATTENTION TO THE IMPORTANT AFFORDABILITY ISSUES. RIGHT OKAY. ALL RIGHT. SO NOW WE'RE GOING TO DO THIS. NOW WE GOT THIS TO FOCUS ON RIGHT. WHETHER IT'S HERE AT 100 OR 90 OR 80 OR 70, HOW ARE WE GOING TO FIGURE OUT HOW HOW TO DO IT HOW TO THINK ABOUT IT. SO AMBER IS GOING TO WALK YOU THROUGH THAT. OKAY. DO YOU WANT TO TAKE A BREAK MAYOR FOR FIVE MINUTES.

TEN MINUTES. I'M SORRY. OH, I WAS JUST SAYING, LIKE OF THIS $10 MILLION, WHICH IS COMING FROM OUR 2025 BONDS, RIGHT? I LIKE THAT. I, I, I DON'T WANT TO SEND OUT CHECKS TO RESIDENTS WITH THAT MONEY. YOU WANT SOMETHING TO COME BACK? I WANT I WANT STRICT PARAMETERS, I WANT BOUNDARIES, I WANT THAT MONEY TO REPRESENT SOMETHING, NOT HERE'S SOME MONEY AND DO WITH IT WHAT YOU WILL. WE HOPE YOU'LL DO THE RIGHT THING. BUT I THAT THAT WOULD I WOULD NEVER BE IN FAVOR OF. WE'RE GOING TO WALK YOU THROUGH A DOZEN A DOZEN CASE CASES RIGHT IN THE NEXT HOUR OR SO. YOU KNOW WHERE WE'RE GOING TO SHOW YOU THE RULES, SHOW YOU HOW IT WORKS.

OKAY. OKAY. OKAY. SO DO YOU WANT TO TAKE FIVE? TAKE FIVE. OKAY. YES. GOOD MORNING. IT'S JUST RIGHT. SHE WANTED SOURCES. OH, OKAY. WE HAVE. THANK YOU. COUNCIL MEMBER THOMAS. YES.

YOU'RE A GENTLEMAN. NOW. WE'RE HERE TO HELP. I'M JUST SAYING, LEISURE. I'M ONE OF THE POOR RETIREES. NOW. JUST GOING TO TELL YOU WE'RE TALKING $10 MILLION. I DON'T EVEN USE THE.

I DON'T WANT HIM TO LEAVE HERE. WE HAVE TO HAVE A PUBLIC HEALTH. IT'S JUST A HELP FOR THE FUTURE.

PARTS OF THIS. I WASN'T LOOKING AT BOND MONEY. THAT WAS, I GOT YOU, I GOT YOU. GO TELL MARK I

[02:30:02]

I THINK EVERYBODY'S BEEN WAITING. AROUND. LET ME JUST SAY PREMIUM. PREMIUM GAS. JUST.

I DIDN'T PUT SHIRT ON. YOU PUT IT ON. YEAH. SOME OF THE OTHER PROGRAMS THAT WE LOOKED AT THAT YOU'VE ALL ASKED TO BE RESEARCHED OR THAT ARE IN PLAY IN OTHER PARTS OF THE COUNTRY, AND HOW THOSE MAY OR MAY NOT BE A GOOD FIT FOR WHAT YOU'RE LOOKING AT HERE IN GARLAND. BUT FIRST WE WANTED TO DO SOME LEVEL SETTING. I THINK I'M GOING TO GO THROUGH SLIDES REAL FAST BECAUSE OF OUR TIME CONSTRAINTS, SO THAT WE CAN PIVOT TO ALL OF YOUR QUESTIONS AS FAST AS POSSIBLE. SO FORGIVE ME FOR BLAZING THROUGH SLIDES. WE'LL COME BACK AROUND TO ANYTHING THAT WE NEED TO. RIGHT. AND YOU'VE GOT THE MATERIAL THERE IF YOU WANT TO, YOU KNOW, REALLY READ EVERY WORD. SO FIRST AND FOREMOST, WHY WOULD YOU CONSIDER SINGLE FAMILY INCENTIVES AT ALL? YOU KNOW, I THINK CHARLES HAD THIS POINT IN HIS PRESENTATION. IT WAS IN THE BUDGET PRESENTATION THIS MORNING. YOUR FAMILY OR YOUR CITY IS MADE UP ALMOST THREE QUARTERS OF SINGLE FAMILY HOMES. THAT'S A LOT A LOT OF HOUSING UNITS THAT ARE IN SINGLE FAMILY STOCKS. THAT ARE WHAT WE WOULD SAY MAYBE UNDERPERFORMING RIGHT NOW. RIGHT. UNDERPERFORMING IN TERMS OF THEIR PHYSICAL CONDITION AND UNDERPERFORMING IN TERMS OF THE VALUE THAT THEY BRING BACK TO THE CITY'S TAX BASE. SO THE PURPOSE OF A OF AN INCENTIVE PROGRAM, A PUBLIC INCENTIVE PROGRAM IS REALLY TO GET SOMETHING TO HAPPEN THAT WOULDN'T HAPPEN OTHERWISE. AND IF THERE'S ANYTHING THAT YOU TAKE AWAY FROM THIS SECTION OF THE PRESENTATION, IT'S THAT YOU'RE USING PUBLIC DOLLARS TO GET SOMETHING TO HAPPEN THAT WOULD NOT OTHERWISE OCCUR. AND IN THIS CASE, WE CAN THINK OF THAT AS REINVESTMENT IN YOUR HOUSING STOCK. THE OTHER THING THAT I WANT TO CONNECT TO HERE IS THE VALUE OF YOUR SINGLE FAMILY HOMES. WE'VE TALKED ABOUT THAT CONNECTION TO YOUR TAX BASE, BUT I'D ENCOURAGE YOU TO START THINKING, SHIFT HOW YOU THINK ABOUT YOUR HOUSING, NOT JUST AS PRIVATE PROPERTY, BUT AS PART OF THE BUILT ENVIRONMENT AND THE FABRIC OF THE CITY. SO IT'S NOT TRUE INFRASTRUCTURE IN THE WAY THAT YOUR SIDEWALKS AND PARKS ARE FULLY OWNED BY THE CITY. BUT THESE HOMES, YOU KNOW, THEY'RE STEWARDED BY ONE FAMILY AFTER ANOTHER. THEY STAY IN THE CITY LONG AFTER ONE FAMILY HAS MOVED THROUGH THEM. AND SO THERE IS A LITTLE BIT OF A PUBLIC RESPONSIBILITY AROUND THE MAINTENANCE OF THOSE HOMES FOR GENERATION AFTER GENERATION. ALL RIGHT. SO IF THESE PRIVATELY OWNED HOUSING STOCKS ARE GOING TO BE IMPROVED, IT'S GOING TO HAPPEN IN PRETTY MUCH THREE WAYS. RIGHT. THE OWNER IS GOING TO PAY FOR IT ALL THEMSELVES. THEY'RE GOING TO MAKE THE IMPROVEMENTS WITH THEIR OWN MONEY. THE OWNER WILL MAKE UPGRADES IF THEY'RE GIVEN PUBLIC RESOURCES TO MAKE THOSE UPGRADES, BECAUSE THEY MIGHT NOT BE ABLE TO AFFORD TO OTHERWISE. AND SO THEY NEED PUBLIC DOLLARS TO COVER THE COST OF THOSE REPAIRS OR SOME COMBINATION OF THE TWO. SO WE CAN USE PUBLIC DOLLARS TO SHARE THE COST OF IMPROVEMENTS WITH PRIVATE DOLLARS. AND THAT'S HOW WE GET SOME OF THAT LEVERAGE THAT WE WERE TALKING ABOUT EARLIER THIS MORNING. SO WHEN THERE'S A COMBINATION AND COUNCILWOMAN HAS ALREADY HIT ON THIS, YOU WANT TO AIAIM IT TOWARDS THE CITY GOAL. AND ALSO YOU WANT TO MAKE SURE THAT YOU HAVE SOME SORT OF GIVE AND GET RIGHT. THIS IS NOT JUST WE'RE GIVING YOU MONEY AND YOU GET TO DO WHAT YOU WANT WITH IT. WE'RE GIVING YOU MONEY FOR A SPECIFIC PURPOSE, AND WE'RE GOING TO ENSURE THAT YOU USE IT FOR THAT PURPOSE. AND THERE'S LOTS OF DIFFERENT WAYS THAT YOU CAN PROTECT THESE PUBLIC DOLLARS TO ENSURE THAT THEY GET USED FOR THAT PUBLIC GOAL. OKAY. WE TALKED A LITTLE BIT ABOUT THE DIFFERENT SUBMARKETS THIS MORNING. AND YOU KNOW, THIS ACTUALLY WE PULLED FROM THE NOVEMBER PRESENTATION. WE'VE TAKEN A LOOK AT ALL OF YOUR EXISTING PROGRAMS THAT YOU HAVE CURRENTLY, AND WE REALLY SEE A NEED TO DEVELOP SOME DIFFERENT KINDS OF INCENTIVES AROUND SINGLE FAMILY REHAB, PARTICULARLY FOR THE GROWTH SUBMARKETS IN THE CITY. AND SO WE'VE TAKEN A LOOK AT A LOT OF DIFFERENT OPTIONS. THERE'S MANY WAYS THAT YOU CAN APPROACH THIS. AND SO PART OF TODAY IS HELPING GIVE US SOME GUIDANCE ON WHAT ARE THE NONSTARTERS FOR YOU, WHAT ARE THE NON-NEGOTIABLES AS PART OF THAT GIVE AND GET EXCHANGE. SO THIS KIND OF TELLS YOU WHERE THIS ALL FITS INTO THE WHOLE BIG PROJECT. SO THE TOP FOUR BOXES ARE REALLY OUR HOUSING STUDY PIECE. THESE ARE ALL THE DIFFERENT THINGS THAT WE'VE LOOKED AT. TODAY'S DISCUSSION IS REALLY TALKING ABOUT SINGLE FAMILY INCENTIVE

[02:35:04]

AND THEN ONCE WE'VE STARTED AND HADUCCESS, HOPEFULLY WE CAN BRING THAT SUCCESS TO OTHER PARTS OF OUR COMMUNITY. SO WE LOOKED AT, I THINK IT WAS 12 PROGRAMS ACROSS EIGHT DIFFERENT CITIES, SOME OF THEM IN TEXAS, SOME OF THEM ELSEWHERE, AND SOME THAT CSV HAS ACTUALLY BEEN INVOLVED IN DESIGNING AND IMPLEMENTING. SO I THINK, COUNCILWOMAN, YOU BROUGHT UP THE OSWEGO, NEW YORK BLOCK CHALLENGE PROGRAM. CHARLES WAS INVOLVED IN DESIGNING THAT PROGRAM, AND IT'S EARLY DAYS. AND THEN I COPIED IT IN DES MOINES, IOWA, WHICH IS WHERE I LIVE. AND I'VE SPENT THE EARLY PART OF MY CAREER, SO THEY'VE ADOPTED THAT BLOCK CHALLENGE GRANT THERE. THE PROGRAMS WE LOOKED AT GENERALLY FELL INTO THREE DIFFERENT CATEGORIES. SO WE HAD ONES THAT WERE AIMED AT JUST CURB APPEAL, EXTERIOR IMPROVEMENTS, AND WERE PRETTY SMALL MATCHING GRANTS RIGHT UP TO $2500 OR $1500 OF PUBLIC MONEY TO MATCH THE FUNDS THAT THE PRIVATE OWNER WAS PUTTING IN. THEN YOU HAVE LARGER DOLLAR REHAB PROGRAMS. MOST OF THOSE ARE FOR HOMEOWNERS, BUT SOME ARE FOR DEVELOPERS. THERE'S RENTAL REHAB PROGRAMS OUT THERE AS WELL. AND THEN IN THE THIRD CATEGORY, IT'S MORE OF YOUR INFILL HOUSING PROGRAMS. SO DEMOLITION AND NEW CONSTRUCTION OR A DEVELOPER REHAB WHERE A DEVELOPER MIGHT COME IN, ACQUIRE A HOME, DO A WHOLE FULL GUT REHAB, AND THEN SELL THE HOME TO A NEW BUYER. SO THOSE ARE THE ONES THAT WE LOOKED AT. WE ARE NOT GOING TO HAVE TIME TODAY TO GO THROUGH EACH AND EVERY ONE. BUT IF YOU HAVE QUESTIONS ABOUT, JUST KNOW THAT WE HAVE. I THINK IT'S IT'S PRETTY IMPORTANT TO KNOW. AND, YOU KNOW, HOPEFULLY THIS MORNING'S DISCUSSION HAS GOTTEN YOU THERE TO SOME DEGREE ALREADY. BUT MARKET CONTEXT REALLY MATTERS FOR INCENTIVE PROGRAMS. SO IT'S REALLY IMPORTANT TO TAILOR YOUR INCENTIVES TO THE CONDITIONS OF YOUR CITY AND THEN EVEN DOWN TO YOUR INDIVIDUAL NEIGHBORHOODS. PROGRAMS ARE REALLY ONLY EFFECTIVE IF PEOPLE ARE PARTICIPATING IN THEM AND USING THEM TO GET RESULTS. AND SO YOU REALLY HAVE TO THINK HARD ABOUT WHAT ARE THE CHARACTERISTICS OF THE PLACES WHERE YOU'RE TRYING TO WORK, AND OF THE PEOPLE WHO ARE GOING TO BE USING THE PROGRAMS SO THAT YOU CAN MAKE SURE THAT THEY'RE THEY'RE FRIENDLY TO THOSE USERS. THESE ARE JUST SOME OF THE CITIES THAT WE LOOKED AT, AND IT JUST KIND OF SHOWS YOU, YOU KNOW, GARLAND IS A SOFTER MARKET IN A IN A STRONG REGION. YOU'VE GOT RICHARDSON, PLANO AND CARROLLTON ALL A LITTLE BIT STRONGER MARKETS WITHIN THAT SAME STRONG REGION. OSWEGO IS MORE OF A SOFT MARKET AND A SOFT REGION. AND THEN DES MOINES, OF THE ONES WE LOOKED AT, IS MAYBE THE MOST SIMILAR, ACTUALLY, WHERE WE ARE ALSO A SOFT MARKET AND A STRONGER REGION. OKAY, SO THE FIRST TWO POINTS WE'VE ALREADY GONE OVER. PUBLIC RESOURCES TO PROMPT PRIVATE ACTIONS THAT WOULDN'T HAPPEN OTHERWISE, INCENTIVES THAT ARE SPECIFICALLY TAILORED TO THE CONDITIONS ON THE GROUND.

AND THEN THE OTHER THING THAT I WE WANTED TO MAKE WAS REALLY IN YOUR WEAKEST NEIGHBORHOOD. SO WHAT WE'VE CALLED YOUR LEGACY AREAS, YOU YOU WANT TO WALK BEFORE YOU RUN. SO THE GOAL IS NOT TO TRY AND INCENTIVIZE HUGE JUMPS IN VALUE THAT DISPLACES PEOPLE. WE'RE NOT AIMING FOR THAT. WHAT WE'RE AIMING FOR IS BUILDING THAT NEW FLOOR OF STANDARDS, SO THAT THE PEOPLE

[02:40:01]

YOUR CDBG FUNDS THAT YOU GET FROM FEDERAL GOVERNMENT. THOSE ARE INTENDED FOR A SPECIFIC POPULATION. THERE ARE RESTRICTIONS ON HOUSEHOLD INCOME THAT CAN APPLY FOR THAT.

AND SOMETIMES IT CAN BE APPLIED TO AN AREA. BUT IN THIS CASE, BECAUSE THEY'RE AIMING FOR THAT CERTAIN INCOME LEVEL, IT'S REALLY TIED TO A HOUSEHOLD AND IS MORE OF A POPULATION BASED INCENTIVE. SO YOU CAN GO THAT DIRECTION. PLACE BASED IS TYPICALLY WHERE WE FIND MARKET GAP WORK HAPPENING, WHERE WE'RE DESIGNATING AN AREA WITH A BOUNDARY AND SAYING WE'RE GOING TO INFUSE A SET OF RESOURCES INTO THIS AREA FOR A PERIOD OF TIME IN ORDER TO LIFT UP THIS PLACE AND GET A PLACE BASED OUTCOME. AND SO THERE ARE SOME DIFFERENT THINGS THAT YOU WANT TO THINK ABOUT WHEN YOU'RE DESIGNING FOR THOSE TWO TYPES OF INCENTIVES. EXCUSE ME, ASK A QUESTION. SURE. CAN YOU GIVE ME AN EXAMPLE OF THOSE YOU'RE TALKING ABOUT, OF THE PLACE BASED? YES. THAT YOU FOUND IN GARLAND? IN GARLAND, YES. POPULATION BASED IMPROVEMENT IN GARLAND WOULD BE LIKE COMMUNITY DEVELOPMENT'S PROGRAM, THE HOME REPAIR PROGRAM, THE EMERGENCY REPAIRS. SO WE GET BOTH FEDERAL DOLLARS AND GFK DOLLARS. RIGHT. YOU HAVE TO INCOME QUALIFY FOR THAT ASSISTANCE. SO THAT WOULD A PLACE BASED WOULD BE MORE LIKE WHAT WE'RE DOING IN FREEMAN HEIGHTS RIGHT NOW WITH WHERE THE HEART IS PROGRAM WITH NEIGHBORHOOD VITALITY MONEY.

AND WE APPLIED FOR A GRANT FROM GFK TO HELP DO MORE. IT'S PLACE BASED. WE WERE ABLE TO GET TO PARTICIPATE BECAUSE THE OVERALL INCOME IN THAT AREA IS ALREADY SUPPRESSED. SO WE'RE NOT HAVING TO LOOK AT INCOMES. WE JUST WE JUST GRANDFATHERED IN THE WHOLE NEIGHBORHOOD. AND SO THEY'RE GOING TO GET, YOU KNOW, PUBLIC INFRASTRUCTURE IMPROVEMENTS. WE'RE GOING TO THEY'RE GOING TO GET IT. THEY HAVE GOTTEN THEY'RE GOING TO WE'RE WE'RE AND WE'RE LAUNCHING ON JANUARY 15TH A HIP HOME IMPROVEMENT INCENTIVE TYPE THING THAT GFK IS FUNDING JUST FOR RESIDENTS OF THAT NEIGHBORHOOD AS PART OF WHERE THE HEART IS. SO THAT'S A PLACE BASED APPROACH THAT WE'RE DOING. OKAY, OKAY. I WOULD SAY ALSO NORTH GARLAND BRANCH LIBRARY, THAT WHOLE SHOPPING CENTER WAS LIKE A PLACE BASED EXAMPLE WHERE NOT ONLY DID THEY TOUCH THE BUILDING, THEY TOUCHED THE FACADE. THEY TOUCHED THE STREET IN FRONT OF IT. RIGHT? THE WHOLE THE WHOLE THAT WHOLE PLACE WAS INCENTIVIZED TO TO MAKE IMPROVEMENTS. OKAY. RIGHT.

[02:45:05]

YOU COVER THE OTHER 40, AND THEN WE CHECK AND MAKE SURE THAT WHAT YOU SAID YOU WERE GOING TO DO ACTUALLY GETS DONE AND COMPLETED TO TO STANDARDS. LOANS CAN BE TRICKY TO ADMINISTER. SO THINKING ABOUT THE ADMINISTRATION SIDE OF THIS AS WELL. HOW'S IT GOING TO BE FUNDED. DOES THE FUNDING COME WITH CONSTRAINTS. WHO'S ADMINISTERING IT AND WHAT ARE THE REQUIREMENTS THERE? A LOT OF NEIGHBORHOOD WORK AND SINGLE FAMILY INCENTIVE WORK IS VERY HIGH TOUCH. AND WHAT I MEAN BY THAT IS IT'S STAFF HEAVY. AND, YOU KNOW, WE'RE IN KIND OF A WORLD TODAY WHERE PEOPLE DON'T REALLY WANT TO PAY FOR STAFF, THEY WANT TO PAY FOR THE RESULTS. BUT IT'S REALLY HARD TO GET THE RESULTS IN NEIGHBORHOOD REVITALIZATION IF YOU DON'T HAVE THE STAFF TO BE ON THE GROUND, BUILDING RELATIONSHIPS AND HELPING PEOPLE WORK THROUGH THE PROGRAM. OTHER THINGS TO THINK ABOUT. AND THIS GETS TO YOUR EARLIER POINT ABOUT WHAT ARE THE RULES, RIGHT? SO DOES SOME OF THAT MONEY COME BACK TO THE CITY? IN SOME CASES, IT MIGHT BE WE'RE GOING TO LOAN YOU THE MONEY AND YOU REPAY IT OVER A PERIOD OF MONTHS. IN OTHER CASES, IT MIGHT BE WE'RE GOING TO GRANT YOU THE MONEY. AND WHEN YOU SELL YOUR HOUSE, YOU'RE GOING TO PAY US A PORTION OF THAT BACK. SO THERE'S LOTS OF DIFFERENT WAYS THAT YOU CAN CONSTRUCT AN INCENTIVE PROGRAM TO PROTECT SOME OF THOSE THINGS AND HAVE THAT IN PLACE. ONE OTHER EXAMPLE IS WE WERE WE WANTED TO MAKE SURE THAT WE WERE RETAINING HOUSEHOLDS IN OUR NEIGHBORHOODS, THAT THEY WEREN'T ACTUALLY MAKING IMPROVEMENTS TO THEIR HOME AND THEN SELLING IT IMMEDIATELY FOR A PROFIT. AND SO WE HAD BASICALLY FILED A MORTGAGE WHERE THAT GRANT AMOUNT WAS FULLY FORGIVEN. AS LONG AS THEY CONTINUE TO LIVE IN THE HOME AS THEIR PRIMARY RESIDENCE FOR FIVE YEARS OR SEVEN YEARS. OKAY.

AND THAT WAS JUST A PROTECTION FOR US. THERE'S SOME DIFFERENT LAWS IN TEXAS THAT MIGHT MAKE THAT MORTGAGE PIECE DIFFICULT, BUT JUST KNOW THAT THERE ARE WAYS TO PUT THOSE PARAMETERS IN PLACE. OKAY. SO KIND OF THE BIG PICTURE QUESTION IS REALLY WHAT PROBLEM ARE YOU TRYING TO SOLVE.

AND CHARLES, THIS MIGHT BE A GOOD PLACE. WELL, NO, WE'RE GOING TO WORK THROUGH A FEW

[02:50:05]

ALSO THINKING ABOUT DO THEY HAVE THE MEANS TO FRONT THE COST IF THEY'RE LOOKING AT REPLACING A ROOF, PUTTING IN NEW WINDOWS, YOU KNOW THAT CAN BE $40,000 REALLY FAST. AND SO HOW DO WE HELP THEM MAKE SURE THAT PROJECT GETS DONE? BECAUSE AT THE END OF THE DAY, THAT PROJECT IS HELPING THAT HOME LAST MUCH LONGER. OKAY. SO THE OUTCOME THERE IS THE IMPROVEMENT TO THE HOME. AND SO HOW DO WE MAKE IT ACCESSIBLE FOR PEOPLE TO GET THAT DONE? YEAH. EVERY QUESTION ABOUT THE LIKE YOU'RE SAYING THE FIVE YEAR STIPULATION. SO WOULD THAT IN OUR CASE LIKE WOULD THAT ACTUALLY BE BENEFICIAL. BECAUSE IF YOU MADE IMPROVEMENTS THEN SOLD THE HOME AT A HIGHER RATE THAN IT WOULD ACTUALLY GO UP FASTER? YEAH. BUT WHAT IF AN LLC COMES IN AND SWOOPS IT UP AND MAKES IT A RENTAL HOME? I MEAN, IT'S STILL IT DOESN'T AFFECT US IF IT'S A RENTAL OR PROPERTY. NO EXEMPT HOMEOWNERS EXEMPTION. OKAY. SO THAT'S THAT'S EVEN BETTER IF THEY MAKE IT A RENTAL. IT'S A GREAT QUESTION. AND IT'S ONE OF THOSE OTHER THINGS THAT NEEDS TO BE BALANCED. RIGHT. YOU DON'T WANT A MASS EXODUS OF RESIDENTS FROM YOUR COMMUNITY BECAUSE YOU'VE SUDDENLY ENABLED THEM TO MAKE A BETTER PROFIT ON SELLING THEIR HOME. YOU WANT TO KEEP PEOPLE HERE. AND AT THE SAME TIME, PEOPLE HAVE ALL KINDS OF REASONS WHY THEY NEED TO MOVE. SO WE HAD OUT CLAUSES FOR THAT TOO, RIGHT? AND THERE WAS A PRORATED SHARE BACK. WHAT WE FOUND WAS THAT BECAUSE OF THE IMPROVEMENTS MADE TO THE HOME, THE VALUE CAME UP AND UP AND THE SALE PRICE CAME UP ENOUGH THAT THEY WERE ABLE TO PAY THAT GRANT BACK. NO PROBLEM. YEP. OKAY. THE OTHER THING ABOUT CAPACITY, YOU KNOW, IT'S NOT JUST MONEY. SOMETIMES IT'S TIME AND ENERGY TOO. IT'S JUST OVERALL BANDWIDTH, YOU KNOW, DO THEY HAVE THE TIME TO FILL OUT COMPLICATED FORMS. RIGHT. DO ARE THEY WORKING FIVE JOBS? ARE THEY A SINGLE MOM. SO UNDERSTANDING THAT PEOPLE ARE COMING FROM A LOT OF DIFFERENT PLACES AND DOING YOUR BEST TO TRY AND MEET THEM WHERE THEY ARE WITH THAT INCENTIVE DESIGN AND HOW YOU ADMINISTER THE PROGRAM. OKAY. OKAY. GOING BACK TO THE SUBMARKET CONVERSATION AND THINKING ABOUT HOW INCENTIVES PERFORM IN DIFFERENT TYPES OF NEIGHBORHOODS. SO. ON THE LEFT SIDE OF THE CHART THERE UP IS YOUR WEALTHIEST NEIGHBORHOODS. DOWN IS YOUR LEAST HEALTHY, YOUR WEAKEST SUBMARKETS, OKAY. AND CAPACITY. SO THIS GETS INTO LEVERAGE RATIOS. IN THE WEALTHIEST NEIGHBORHOODS, HOME IMPROVEMENTS ARE MOST LIKELY GOING TO HAPPEN ANYWAY. SO YOU COULD SPEND A LITTLE BIT OF PUBLIC MONEY TO GET THAT TO HAPPEN. AND HERE WE'VE GOT IT SHOWN AS LIKE YOU SPEND A DOLLAR THEY SPEND FOUR. RIGHT.

SO THERE'S $5 INVESTED TOTAL AS YOU GO DOWN THAT FLIPS. SO AGAIN IT GETS BACK TO THE CAPACITY OF THE PEOPLE WHO ARE LIVING IN THOSE NEIGHBORHOODS IS YOU'RE GOING TO HAVE TO SUBSIDIZE A LOT MORE OF THAT PROJECT COST IN ORDER TO GET THE PROJECT DONE IN A LEGACY AREA THAN YOU WOULD IN A COMPETITIVE AREA. AND AS WE'VE LOOKED AT THIS, YOU KNOW, KNOWING THAT YOU'RE GOING TO HAVE RESOURCE CONSTRAINTS, WE WOULD RECOMMEND THAT YOU LEAVE THE COMPETITIVE AREAS TO THEIR OWN DEVICES, SINCE THEY'RE LIKELY TO SEE, SINCE THEY'RE LIKELY TO BE ABLE TO DO THINGS. AND AS THE REST OF THE CITY IMPROVES, THEY'LL BE MORE WILLING TO MAKE THOSE INVESTMENTS ON THEIR OWN. CAN I JUMP IN, PLEASE? SO WHEN YOU SEE THIS, ONE WAY TO THINK ABOUT THIS IS SINCE FOREVER, RIGHT? THE FEDERAL GOVERNMENT SETTING ASIDE MORTGAGE INTEREST DEDUCTIONS. OKAY. FEDERAL GOVERNMENT LIVES IN THIS SPACE, OKAY? AND THE MARKET LIVES IN THIS SPACE, RIGHT? THIS IS YOUR TAX BASE, RIGHT? THIS IS YOUR

[02:55:07]

SO THE INCENTIVE PROGRAMS REALLY ARE DESIGNED TO LIVE THERE RIGHT WHERE SOME IN ON BOTH SIDES. IT'S TRUE PARTNERSHIP. OKAY. I THINK ONE OTHER THING THAT WE WANTED TO HAVE YOU KEEP IN MIND WHEN YOU'RE COMING AT THIS WORK IS JUST A RULE OF THUMB THAT WE LIKE TO HAVE AROUND. WHEN YOU'RE WORKING IN A PARTICULAR NEIGHBORHOOD, YOU WANT TO THINK ABOUT TOUCHING A MINIMUM OF 20% OF THE PROPERTIES. SO WHEREVER YOU DRAW THOSE BOUNDARY LINES, AND WE'D SUGGEST YOU DRAW THEM SMALLER THAN YOU WANT TO, BUT WHEREVER YOU DRAW THOSE BOUNDARY LINES, YOU'RE WANTING TO. IF ANYBODY'S READ OR HEARD OF A LONG TIME AGO, MALCOLM GLADWELL'S THE TIPPING POINT. IT'S A GOOD WAY TO THINK ABOUT IT, RIGHT, IS YOU'RE TRYING TO GET THAT CRITICAL MASS OF IMPROVEMENTS TO TIP THE SCALES IN A DIFFERENT DIRECTION. AND WE'VE FOUND IN OUR WORK THAT USUALLY 20% IS THE MINIMUM. IN SOME CASES, YOUR LEGACY NEIGHBORHOODS, FOR EXAMPLE, YOU MIGHT NEED TO GET CLOSER TO 30% TO GET THAT CRITICAL MASS. BUT THAT'S REALLY WHERE PRIVATE ACTORS START TAKING OVER AND DOING IT WITHOUT YOU. SO IT IS ONE DEFINITE METRIC TO KEEP IN MIND. THERE'S SOME MORE COMPLICATED THINGS THAT WE'LL DEAL WITH WITH STAFF ABOUT MAKING SURE YOU CHOOSE THE RIGHT 20%. RIGHT. SO VISIBILITY MATTERS. A CORR PROPERTY IS MORE IMPORTANT TO IMPROVE THAN ONE THAT'S IN THE MIDDLE OF THE BLOCK. THAT GETS KIND OF IGNORED AS PEOPLE DRIVE BY. YOU KNOW, IF YOU'VE GOT A BEAUTIFUL HOME THAT'S IN PRISTINE CONDITION, BUT THE ONE NEXT DOOR LOOKS LIKE CRAP, THAT'S MORE IMPORTANT TO TOUCH THAN IF YOU HAVE TWO TERRIBLE PROPERTIES RIGHT NEXT TO EACH OTHER, AND YOU CAN ONLY DO ONE. CAN I SAY SOMETHING TO YOU BACK A SLIDE? YEP. OKAY, SO NOT ONLY IS IT TRUE THAT ONE OF THE THINGS YOU WILL FIND, YOU KNOW, JUST AS A CHALLENGE IS MARKET'S GOING TO DO THIS ANYWAY. THAT'S WHERE THAT'S WHERE THE MARKET LIVES. THIS IS WHERE FEDERAL AND STATE INITIATIVES LIVE YET. YET THIS IS YOUR TAX BASE. AND YOU'RE SORT OF FLYING SOLO RIGHT. YOU'RE UNSUPPORTED OKAY. IT IS ALSO TRUE THAT. GO FORWARD TO SLIDE. SO I DON'T REMEMBER WHAT I WANTED TO SAY. GO FORWARD THAT I'M SORRY BACK. THAT IS A CHARACTERISTIC DOWN HERE OF THESE FEDERAL PROGRAMS AND AND. AND OFTEN ENTITIES ADMINISTERING THOSE PROGRAMS, WHETHER IT'S THE SORT OF THE INSTITUTIONAL CULTURE OR THE ACTUAL THE ACTUAL PROGRAM OFFICER, THE PERSON. RIGHT. NOT ONLY IS IT TEND TO BE FEDERAL AND STATE, IT TENDS TO SAY, IF I HAVE LET'S GO FORWARD SLIDE. IF I HAVE ALL THESE POSSIBLE HOUSES TO WORK ON, THE TENDENCY AND I AND THE TENDENCY WILL BE TO DO THE WORST FIRST. SO YOU HAVE A COMBINATION OF TWO THINGS THAT ARE WORKING AGAINST YOU WHEN YOU HAVE SCARCE RESOURCES. AND THAT IS EVERYBODY DOWN HERE IS THINKING, LET'S DO WORST FIRST, WHICH MEANS NOW GO FORWARD A SLIDE I GOT TO PUT 50 INTO HERE INSTEAD OF FIVE INTO HERE. AND SO I JUST DON'T GET AS MUCH STRETCH OUT OF 50 INTO HERE AS I DO. FIVE 1010 FIVE 510 OKAY. SO REALLY WALKING AWAY AS A CITY FROM THE NOTION THAT SCARCE DOLLARS ARE WISELY SPENT FOLLOWING WORST FIRST WILL BE A CRITICAL SHIFT. YOU'RE GOING T O HAVE TO MAKE EVERYBODY CLEAR ON THAT, RIGHT. GO FORWARD. NO, HOLD IT HERE. LET'S SUPPOSE EACH OF THESE RED HOUSES IS A DEMOLITION CANDIDATE, RIGHT? AND SUPPOSE EACH ONE OF THOSE IS $50,000 ACTIVITY. RIGHT. TO GET YOUR TO GET IT CODE ENFORCED. GET IT TO THE MAGISTRATE, GET GET THE PAPERWORK DONE AND GET IT DEMOLISHED. RIGHT. OKAY. IF YOU DON'T HAVE $40,000 OR $200,000, YOU ONLY HAVE 50. WHICH ONE DO YOU PICK? OKAY, GO BACK A SLIDE LEAVING IT TO THESE GUYS. GO FORWARD A SLIDE. THEY'RE GOING TO TAKE THIS DOWN RIGHT BEFORE TO SLIDE OR BACK. BACK SLIDE BECAUSE YOU'RE IN THIS SPACE.

[03:00:10]

SORRY TO INTERRUPT. I THINK THIS IS PROBABLY THE THE LAST BIT WILL REALLY STAND ON, WHICH IS THAT, YOU KNOW, IN IN AGING HOMES, EXTERIOR CONDITION IS OFTEN THE TIP OF THE ICEBERG.

SO IF, IF DEFERRED MAINTENANCE HAS CREPT TO THE OUTSIDE OFTEN, NOT ALWAYS, BUT OFTEN THE INSIDE IS A WORSE MESS, OR AT THE VERY LEAST, IT'S JUST INCREDIBLY OUTDATED. RIGHT? SO IT COULD BE THAT IT'S A LAYOUT THAT NOBODY WANTS TO LIVE IN ANYMORE, RIGHT? HAS ONE TINY BATHROOM THAT YOU CAN BARELY FIT IN. AND SO IT'S NOT JUST ABOUT EXTERIOR CURB APPEAL.

IT'S ALSO ABOUT MAKING SURE THAT HOMES ARE MORE UP TO DATE. SIZE, IN SOME WAYS DOESN'T ALWAYS MATTER. IT DOES MATTER HERE IN THIS MARKET FOR A LOT OF THE THINGS THAT WE'VE TALKED ABOUT. BUT BUT IF IT'S A REALLY HIGH QUALITY INTERIOR, PEOPLE ARE STILL GOING TO BUY IT. YOU HAD LOOKS LIKE YOU KNOW, THE IT'S THE SEAGATE PIECE, RIGHT? IT'S LIKE IF THE SIGN IS PRETTY CRAPPY, RIGHT? I'M PRETTY. I KNOW WHAT'S GOING TO HAPPEN WHEN I GO IN THERE AND START POKING AROUND. YEAH. AND THEN AGAIN, YOU KNOW, THE KNOB AND TUBE WIRING EXAMPLE, THOSE COSTS CAN ESCALATE REALLY QUICKLY. AND SO THE THE CHECKS YOU'RE GNG TO HAVE TO WRITE ARE GOING TO NEED TO BE BIGGER THAN YOU WANT THEM TO OKAY, TO GET IT, TO GET IT DONE AND GET IT DONE. RIGHT. OKAY. THIS IS JUST COMING BACK TO SOME OF THE PROGRAMS WE RESEARCHED AND SORT OF HOW THEY HOW THEY ALIGN WITH THE DIFFERENT SUBMARKETS IN GARLAND. AND SO THERE'S QUITE A FEW THAT ARE IN THAT MIDDLE SPACE AND COULD BE LOOKED TO AS INSPIRATION FOR SOMETHING HERE IN GARLAND. I WILL SAY THAT IN MY EXPERIENCE, THERE IS NO ONE PROGRAM THAT DOES IT ALL. WE ENDED UP DEVELOPING SEVERAL PROGRAMS THAT WE ADMINISTERED BECAUSE IT JUST YOU HAVE DIFFERENT ACTORS. WHEN YOU'RE WORKING WITH A LANDLORD, IT'S DIFFERENT THAN WHEN YOU'RE WORKING WITH A HOMEOWNER, AND YOU NEED TO HAVE DIFFERENT PROTECTIONS IN PLACE. SAME WITH A DEVELOPER, THINGS LIKE THAT. SO TAILORING. TAILORING, TAILORING. I THINK ACTUALLY.

OKAY, LET'S GO THROUGH THIS BIT AS WELL. BRIEFLY. STILL THINKING ABOUT THOSE SUBMARKETS.

EACH OF THEM HAVE KIND OF DIFFERENT HOUSING CHARACTERISTICS, DIFFERENT HOUSEHOLD CHARACTERISTICS. SO YOU KNOW, COMPETITIVE AGAIN IS WHERE WE'D SAY YOU'RE PROBABLY GOOD. THEY'RE GOOD ON THEIR OWN. NO PUBLIC MONEY IS NECESSARILY REQUIRED. THIS IS WHERE THEY'RE GOING TO MAKE HOME IMPROVEMENTS. THEY'RE LIKELY TO DO IT WITH THEIR OWN MONEY. PROCESS. WE'RE GOING TO WHERE WE'RE GOING TO SEE THAT COMBINATION OF PUBLIC AND PRIVATE BE THE MOST BENEFICIAL. AND IT'S NOT NECESSARILY BECAUSE THEY'RE NOT ABLE TO PAY FOR HOME IMPROVEMENTS. IT'S BECAUSE THEY'RE NOT WILLING TO PAY FOR THEM. THEY DON'T HAVE THE CONFIDENCE TO MAKE THAT INVESTMENT. IF I'M A HOMEOWNER AND I WALK OUT MY FRONT DOOR AND I CAN'T SEE THAT ANY OF MY NEIGHBORS HAVE MADE A CHANGE IN THEIR HOME, THEIR WEEDS ARE OVERGROWN. AND, YOU KNOW, THE THE SHUTTERS HANGING OFF. I DON'T FEEL VERY CONFIDENT ABOUT PUTTING MONEY INTO MY HOME BECAUSE I DON'T THINK I'M GOING TO GET IT BACK OUT. ON THE OTHER HAND, IF I WALK OUT MY FRONT DOOR AND FOUR OF MY NEIGHBORS HAVE VISIBLE CONTRACTORS WORKING ON THE EXTERIOR OF THEIR HOME OR VANS IN THE DRIVEWAY, SUDDENLY I START TO FEEL A LITTLE PEER PRESSURE TO KEEP UP WITH ALL OF THEM, AND I START THINKING ABOUT HOME IMPROVEMENTS I MIGHT LIKE TO MAKE. AND THEN LAST BUT CERTAINLY NOT LEAST, THIS IS WHERE OUR AFFORDABLE HOUSING CONVERSATION COMES IN. BUT IN THE LEGACY SUBMARKETS, IT ENDS UP BEING ALMOST ALL PUBLIC MONEY IN THIS EQUATION. VERY LITTLE PRIVATE SHARE THOSE COSTS. ALL RIGHT. I THINK WE'RE GOING TO NOT DO THAT AND JUST SEE WHAT QUESTIONS YOU ALL HAVE THAT WE CAN ANSWER IN OUR LAST COUPLE OF MINUTES HERE RELATED TO SINGLE FAMILY INCENTIVES.

THANK YOU SIR. WITH ALL OF THE INFORMATION YOU'VE SHARED, YOU SAID YOU'VE BEEN IN GARLAND.

IT'S NOT THE FIRST TIME, BUT YOU'VE BEEN HERE FOR YOU'VE BEEN HERE SIX TIMES. SEVEN

[03:05:01]

[03:10:02]

YOU'RE GOING TO HAVE TO BE GEOGRAPHICALLY CONCENTRATED, RIGHT? YOU'RE GOING TO HAVE TO GET INTO THOSE GEOGRAPHIC CONCENTRATIONS WITH SOME SATURATION. SO YOU HIT THE 20% THRESHOLD. IT'S GOING TO COST YOU A FAIR AMOUNT OF MONEY. RIGHT. SO YOU'VE GOT TO BE IN FOR A PENNY IN FOR A POUND. RIGHT. THEY ALL HAVE TO WORK TOGETHER. AND. WHEN WHEN YOU BEGIN TO DO THAT AND WHEN YOU START WHERE A PLACE IS ALREADY BASICALLY STABLE, YOU WILL FIND THAT YOUR STANDARDS BEGIN TO RESET AT AN EVER HIGHER LEVEL. RIGHT? WHAT I WOULD EXPECT IS WHEN WE COME BACK IN FIVE YEARS, WE WILL SEE BRIGHTER, CLEANER, SHARPER CORRIDORS, RIGHT? MORE REASON TO TURN OFF OF SOUTH GARLAND AND INTO A NEIGHBORHOOD, RIGHT? WE WON'T SEE FENCES FALLING ON THEMSELVES. RIGHT? WHEN WE GO INTO THE NEIGHBORHOOD, WE WON'T SEE LAWNS THAT NEEDED TO BE MOWED THREE WEEKS AGO BUT WERE MOWED YESTERDAY. RIGHT? THAT'S WHAT WE'LL SEE. RIGHT. AND SO THOSE WILL TRANSLATE INTO YEAR OVER YEAR GAINS IN PRICES. RIGHT.

WHICH SHOULD MAKE ALLISON HAPPY YEAR OVER YEAR VALUATIONHICH WILL COME FROM YEAR OVER YEAR PRICE INCREASES. AND THE GENERAL FUND OKAY. THAT WILL MOVE FROM 20. WAS IT 29%. YOUR GENERAL FUND YOU KNOW WILL YOU KNOW BE AN EVER LARGER SHARE RIGHT. INSTEAD OF THE BOND SIDE.

RIGHT. SO YOU WILL BORROW TO GROW THE GENERAL FUND BASICALLY. THAT MAKES SENSE. I THINK YOU'RE IN GREAT SHAPE. YOU'RE IN GREAT SHAPE. THE GOOD NEWS IS ALL OF WHAT WE TALKED ABOUT WORKS, RIGHT. WE SET IT UP IN BALTIMORE. WE SET IT UP IN DES MOINES. IT WORKS. RIGHT. THE BAD NEWS IS. YOU CAN'T GET SUCCESS ON THE CHEAP, AND YOU CAN'T GET SUCCESS BY SPREADING WHATEVER YOU HAVE ACROSS TOO LARGE AN AREA. YOU SHOULD BE PRETTY EXCITED ABOUT THIS. THIS ACTUALLY CAN WORK. I THINK WE'RE EXCITED ABOUT THAT. PROBABLY ALSO EXCITED ABOUT LUNCH, I BET YOU YES, I'M EXCITED TO BE DONE WITH US, AS YOU SHOULD BE. LET'S EVERYONE TAKE FIVE MINUTES TO GO GRAB LUNCH, AND THEN WE'LL RECONVENE AND WE'RE GOING TO DO A WORKING LUNCH BACK IN HERE. YES. YEAH. THANK. YOU. I'M SORRY. GO GET SOME LUNCH. THE GOAL FOR THESE THINGS ARE GOING TO HAPPEN IN TWO. PART OF THE GOAL. YEAH. MAKE IT. SOME OF THE OTHER PROGRAMS THAT WE'VE LOOKED AT THAT YOU'VE ALL ASKED TO BE RESEARCHED OR THAT ARE IN PLAY IN OTHER PARTS OF THE COUNTRY, AND HOW THOSE MAY OR MAY NOT BE A GOOD FIT FOR WHAT YOU'RE LOOKING AT HERE IN GARLAND. BUT FIRST WE WANTED TO DO SOME LEVEL SETTING. I THINK I'M GOING TO GO THROUGH SLIDES REAL FAST BECAUSE OF OUR TIME CONSTRAINTS, SO THAT WE CAN PIVOT TO ALL OF YOUR QUESTIONS AS FAST AS POSSIBLE. SO FORGIVE ME FOR BLAZING THROUGH SLIDES.

WE'LL COME BACK AROUND TO ANYTHING THAT WE NEED TO. RIGHT. AND YOU'VE GOT THE MATERIAL THERE IF YOU WANT TO, YOU KNOW, REALLY READ EVERY WORD. SO FIRST AND FOREMOST, WHY WOULD YOU CONSIDER SINGLE FAMILY INCENTIVES AT ALL? YOU KNOW, I THINK CHARLES HAD THIS POINT IN HIS PRESENTATION. IT WAS IN THE BUDGET PRESENTATION THIS MORNING. YOUR FAMILY OR YOUR CITY IS MADE UP ALMOST THREE QUARTERS OF SINGLE FAMILY HOMES. THAT'S A LOT OF HOUSING UNITS THAT ARE IN SINGLE FAMILY STOCKS. THAT ARE WHAT WE WOULD SAY MAYBE UNDERPERFORMING RIGHT NOW. RIGHT. UNDERPERFORMING IN TERMS OF THEIR PHYSICAL CONDITION AND UNDERPERFORMING IN TERMS OF THE VALUE THAT THEY BRING BACK TO THE CITY'S TAX BASE. SO THE PURPOSE OF A OF AN INCENTIVE PROGRAM, A PUBLIC INCENTIVE PROGRAM IS REALLY TO GET SOMETHING TO HAPPEN THAT WOULDN'T HAPPEN OTHERWISE. AND IF THERE'S ANYTHING THAT YOU TAKE AWAY FROM THIS SECTION OF THE PRESENTATION, IT'S THAT YOU'RE USING PUBLIC DOLLARS TO GET SOMETHING TO HAPPEN THAT WOULD NOT OTHERWISE OCCUR. AND IN THIS CASE, WE CAN THINK OF THAT AS REINVESTMENT IN YOUR

[03:15:03]

ALL RIGHT. SO IF THESE PRIVATELY OWNED HOUSING STOCKS ARE GOING TO BE IMPROVED, IT'S GOING TO HAPPEN IN PRETTY MUCH THREE WAYS. RIGHT. THE OWNER IS GOING TO PAY FOR IT ALL THEMSELVES. THEY'RE GOING TO MAKE THE IMPROVEMENTS WITH THEIR OWN MONEY. THE OWNER WILL MAKE UPGRADES IF THEY'RE GIVEN PUBLIC RESOURCES TO MAKE THOSE UPGRADES, BECAUSE THEY MIGHT NOT BE ABLE TO AFFORD TO OTHERWISE. AND SO THEY NEED PUBLIC DOLLARS TO COVER THE COST OF THOSE REPAIRS OR SOME COMBINATION OF THE TWO. SO WE CAN USE PUBLIC DOLLARS TO SHARE THE COST OF IMPROVEMENTS WITH PRIVATE DOLLARS. AND THAT'S HOW WE GET SOME OF THAT LEVERAGE THAT WE WERE TALKING ABOUT EARLIER THIS MORNING. SO WHEN THERE'S A COMBINATION AND COUNCILWOMAN HAS ALREADY HIT ON THIS, YOU WANT TO AIM IT TOWARDS A CITY GOAL. AND ALSO YOU WANT TO MAKE SURE THAT YOU HAVE SOME SORT OF GIVE AND GET RIGHT. THIS IS NOT JUST WE'RE GIVING YOU MONEY AND YOU GET TO DO WHAT YOU WANT WITH IT. WE'RE GIVING YOU MONEY FOR A SPECIFIC PURPOSE, AND WE'RE GOING TO ENSURE THAT YOU USE IT FOR THAT PURPOSE. AND THERE'S LOTS OF DIFFERENT WAYS THAT YOU CAN PROTECT THESE PUBLIC DOLLARS TO ENSURE THAT THEY GET USED FOR THAT PUBLIC GOAL. OKAY. WE TALKED A LITTLE BIT ABOUT THE DIFFERENT SUBMARKETS THIS MORNING. AND YOU KNOW, THIS ACTUALLY WE PULLED FROM THE NOVEMBER PRESENTATION. WE'VE TAKEN A LOOK AT ALL OF YOUR EXISTING PROGRAMS THAT YOU HAVE CURRENTLY, AND WE REALLY SEE A NEED TO DEVELOP SOME DIFFERENT KINDS OF INCENTIVES AROUND SINGLE FAMILY REHAB, PARTICULARLY FOR THE GROWTH SUBMARKETS IN THE CITY. AND SO 'VE TAKEN A LOOK AT A LOT OF DIFFERENT OPTIONS. THERE'S MANY WAYS THAT YOU CAN APPROACH THIS. AND SO PART OF TODAY IS HELPING GIVE US SOME GUIDANCE ON WHAT ARE THE NONSTARTERS FOR YOU, WHAT ARE THE NON-NEGOTIABLES AS PART OF THAT GIVE AND GET EXCHANGE. SO THIS KIND OF TELLS YOU WHERE THIS ALL FITS INTO THE WHOLE BIG PROJECT.. S THE TOP FOUR BOXES ARE REALLY OUR HOUSING STUDY PIECE. THESE ARE ALL THE DIFFERENT THINGS THAT WE'VE LOOKED AT. TODAY'S DISCUSSION IS REALLY TALKING ABOUT SINGLE FAMILY INCENTIVE PROGRAMS AND HOW THEY FIT WITHIN YOUR DIFFERENT TYPOLOGIES OR SUBMARKETS WITHIN THE CITY. AND THEN WE'LL TAKE EVERYTHING THAT WE'VE LRNED TODAY, AND WE START TO PIVOT TOWARDS STRATEGY TO COME BACK TO YOU ALL WITH RECOMMENDATIONS ABOUT WHAT TO DO, WHERE AND HOW AND WHY. OKAY, SO NATIONALLY, AS EVERYBODY'S AWARE, THERE ARE OTHER COMMUNITIES THAT HAVE BEEN DOWN THIS ROAD BEFORE AND THEY'VE PUT TOGETHER THEIR OWN VERSION OF PROGRAMS FOR IMPROVEMENTS THAT WOULDN'GET MADE OTHERWISE, SO THAT PUBLIC RESOURCES TO DO THINGS THAT WOULDN'T HAPPEN OTHERWISE. CHARLES TALKS ABOUT IT SOMETIMES AS THE BUT FOR TEST, RIGHT. BUT FOR PUBLIC RESOURCES THESE IMPROVEMENTS WOULD NOT HAPPEN. SO THAT'S SOMETHING YOU WANT TO BE THINKING ABOUT WITH THESE INCENTIVES. THEY'VE ALSO DETERMINED THAT HOUSING STOCK IMPROVEMENTS REALLY ARE A VALUABLE PUBLIC GOAL THAT'S WORTHY OF PUBLIC MONEY. AND SO THERE IS PRECEDENT FOR THAT ACROSS THE COUNTRY, RIGHT? PUTTING PUBLIC RESOURCES INTO PRIVATE HOME UPGRADES. AND THEN, OF COURSE, NO CITY HAS ENOUGH MONEY TO DO IT ALL. D SO CHOICES HAVE TO BE MADE AND TRADE OFFS, AND WE HAVE TO FIGURE OUT A PLACE TO START. AND THEN ONCE WE'VE STARTED AND HAD SUCCESS, HOPEFULLY WE CAN BRING THAT SUCCESS TO OTHER PARTS OF OUR COMMUNITY. SO WE LOOKED AT, I THINK IT WAS 12 PROGRAMS ACROSS EIGHT DIFFERENT CITIES, SOME OF THEM IN TEXAS, SOME OF THEM ELSEWHERE, AND SOME THAT HAS ACTUALLY BEEN INVOLVED IN DESIGNING AND IMPLEMENTING. SO I THINK, COUNCILWOMAN, YOU BROUGHT UP THE OSWEGO, NEW YORK BLOCK CHALLENGE PROGRAM. CHARLES WAS INVOLVED IN DESIGNING THAT PROGRAM AND IN ITS EARLY DAYS, AND THEN I COPIED IT IN DES MOINES, IOWA, WHICH IS WHERE I LIVE. AND I'VE SPENT THE EARLY PART OF MY CAREER, SO THEY'VE ADOPTED THAT BLOCK CHALLENGE GRANT THERE. THE PROGRAMS WE LOOKED AT GENERALLY FELL INTO THREE DIFFERENT CATEGORIES. SO WE HAD ONES THAT WERE AIMED AT JUST CURB APPEAL, EXTERIOR IMPROVEMENTS, AND WERE PRETTY SMALL MATCHING GRANTS RIGHT UP TO $2500 OR $1500 OFUBLIC

[03:20:04]

PROGRAMS ARE REALLY ONLY EFFECTIVE IF PEOPLE ARE PARTICIPATING IN THEM AND USING THEM TO GET RESULTS. AND SO YOU REALLY HAVE TO THINK HARD ABOUT WHAT ARE THE CHARACTERISTICS OF THE PLACES WHERE YOU'RE TRYING TO WORK, AND OF THE PEOPLE WHO ARE GOING TO BE USING THE PROGRAMS SO THAT YOU CAN MAKE SURE THAT THEY'RE THEY'RE FRIENDLY TO THOSE USERS. THESE ARE JUST SOME OF THE CITIES THAT WE LOOKED AT, AND IT JUST KIND OF SHOWS YOU, YOU KNOW, GARLAND IS A SOFTER MARKET IN A IN A STRONG REGION. YOU'VE GOT RICHARDSON, PLANO AND CARROLLTON ALL A LITTLE BIT STRONGER MARKETS WITHIN THAT SAME STRONG REGION. OSWEGO IS MORE OF A SOFT MARKET AND A SOFT REGION. AND THEN DES MOINES, OF THE ONES WE LOOKED AT, IS MAYBE THE MOST SIMILAR, ACTUALLY, WHERE WE ARE ALSO A SOFT MARKET AND A STRONGER REGION. OKAY, SO THE FIRST TWO POINTS WE'VE ALREADY GONE OVER. PUBLIC RESOURCES TO PROMPT PRIVATE ACTIONS THAT WOULDN'T HAPPEN OTHERWISE, INCENTIVES THAT ARE SPECIFICALLY TAILORED TO THE CONDITIONS ON THE GROUND. AND THEN THE OTHER THING THAT WE WANTED TO MAKE WAS REALLY IN YOUR WEAKEST NEIGHBORHOOD. SO WHAT WE'VE CALLED YOUR LEGACY AREAS, YOU YOU WANT TO WALK BEFORE YOU RUN. SO THE GOAL IS NOT TO TRY AND INCENTIVIZE HUGE JUMPS IN VALUE THAT DISPLACES PEOPLE. WE'RE NOT AIMING FOR THAT. WHAT WE'RE AIMING FOR IS BUILDING THAT NEW FLOOR OF STANDARDS, SO THAT THE PEOPLE WHO ARE THERE NOW CAN BENEFIT FROM THAT. THE HAVE A SAFER, HEALTHIER LIVING ENVIRONMENT TO BE IN. THINGS ARE MORE PREDICTABLE. THEY'RE MORE LIKELY TO GET A RETURN ON THEIR INVESTMENT WHEN THEY GO TO SELL THEIR HOME AND MOVE UP THAT LADDER. SO WE WOULDN'T RECOMMEND THAT YOU JUMP RIGHT TO REVITALIZING THOSE WEAKEST SUBMARKETS IN GARLAND. WE WOULD RATHER RECOMMEND THAT YOU START WITH AIMING FOR STABILITY IN THOSE SUBMARKETS, AND USE THAT AS A STEPPING STONE FOR PERHAPS LATER REVITALIZATION. THE OTHER THING IS, IN YOUR MIDDLE MARKETS, SO WHAT WE'VE TITLED YOUR GROWTH AREAS. THAT'S WHERE WE WOULD RECOMMEND YOU AIM FOR REVITALIZATION EFFORTS. AND THE POINT OF THOSE IS REALLY TO MOVE THE MARKET INCREMENTALLY FORWARD, JUST AS WE'VE DONE IN THE EXERCISES THIS MORNING, BY ENABLING PEOPLE TO MAKE USE OF PUBLIC MONEY TO MAKE UPGRADES SO THAT THEY GET BETTER SALE PRICES AND APPRAISAL VALUES DOWN THE ROAD, AND GET A RETURN ON THAT INVESTMENT. AND THAT WAY IT PERPETUATES THAT CYCLE IN A MORE POSITIVE DIRECTION FOR THE CITY. JUST AS WE'VE DISCUSSED. OKAY, SO WHEN YOU'RE THINKING ABOUT INCENTIVE PROGRAMS, THESE ARE JUST SOME OF THE KEY THINGS THAT YOU WANT TO KEEP IN MIND. IT CAN GET REAL COMPLICATED REAL QUICK.

BUT FIRST AND FOREMOST, YOU KNOW, WHAT ARE YOU TRYING TO ACCOMPLISH WITH THIS INCENTIVE PROGRAM? WHAT'S THE OVERALL GOAL, AND HOW ARE YOU GOING TO KNOW THAT YOU'VE BEEN SUCCESSFUL? SO HOW ARE YOU GOING TO MEASURE THAT SUCCESS? WE TALK A LOT ABOUT OUTCOMES RATHER THAN OUTPUTS. SO AN EXAMPLE OF THAT WOULD BE, YOU KNOW, I CAN TELL YOU HOW MANY HOMES MY FORMER NONPROFIT REHABBED LAST YEAR. THAT'S AN OUTPUT, RIGHT? SO WE REHABBED 20 HOMES IN 2025. JUST I MADE THAT NUMBER UP. THAT'S THE OUTPUT. THE OUTCOME IS WE RAISED THE VALUE OF THOSE PROPERTIES BY X MILLION DOLLARS ALL COLLECTIVELY ALTOGETHER.

OKAY. SO A LOT OF PLACES PAY ATTENTION TO THE WHAT ARE WE DOING PART OF IT. HOW MANY HOMES HAVE WE TOUCHED? HOW MANY HOUSEHOLDS HAVE WE HELPED RATHER THAN THE OUTCOME OF WHAT RESULT HAS THAT TRANSLATED TO? AND WE WOULD REALLY ENCOURAGE SHIFTING THINKING TOWARD WHAT

[03:25:04]

WE'RE GOING TO THEY'RE GOING TO GET IT. THEY HAVE GOTTEN THEY'RE GOING TO WE'RE WE'RE AND WE'RE LAUNCHING ON JANUARY 15TH A HIP THE HOME IMPROVEMENT INCENTIVE TYPE THING THAT GFK IS FUNDING JUST FOR RESIDENTS OF THAT NEIGHBORHOOD AS PART OF WHERE THE HEART IS. SO THAT'S A PLACE BASED APPROACH THAT WE'RE DOING. OKAY, OKAY. I WOULD SAY ALSO NORTH GARLAND BRANCH LIBRARY, THAT WHOLE SHOPPING CENTER WAS LIKE A PLACE BASED EXAMPLE WHERE NOT ONLY DID THEY TOUCH THE BUILDING, THEY TOUCHED THE FACADE. THEY TOUCHED THE STREET IN FRONT OF IT. RIGHT? THE WHOLE THE WHOLE THAT WHOLE PLACE WAS INCENTIVIZED TO TO MAKE IMPROVEMENTS. OKAY. RIGHT. GREAT, GREAT. THANK YOU. THE LAST BIT OF IT IS, YOU KNOW, WHAT ARE THE CHARACTERISTICS OF THE POPULATION YOU'RE TRYING TO WORK WITH. SO EVEN IF YOU'RE IN A DOING SOMETHING PLACE BASED, THERE ARE STILL PEOPLE THERE. YOU STILL HAVE TO WORK WITH THEM. AND SO, YOU KNOW, WHAT IS THEIR FINANCIAL CAPACITY LOOK LIKE? DO THEY HAVE THE ABILITY TO BORROW? ARE THEY WILLING TO TAKE OUT LOANS? ARE THEY ABLE TO TAKE OUT LOANS, KIND OF ALL THOSE THINGS. WHAT ARE THE HOMES LOOK LIKE? HOW OLD ARE THEY. DO WE HAVE A LOT OF EARLY 1900S HOUSING STOCK LIKE LIKE 1910, 1920, 1930. AND WHEN YOU OPEN UP THOSE WALLS, THERE'S A LOT OF KNOB AND TUBE WIRING THAT IS NO LONGER CODE COMPLIANT. AND SO YOU START TO RUN INTO THESE IMPROVEMENTS THAT THAT REALLY SNOWBALL THE COST QUICKLY ON AN OWNER. AND THEY JUST WANTED TO UPGRADE THEIR ELECTRICAL SERVICE. RIGHT. OR ADD SOME OUTLETS. AND THEN ALL OF A SUDDEN THEY'RE FACING THESE ESCALATING COSTS AND THEN THEY'RE NOT MAKING THOSE IMPROVEMENTS. SO IT'S JUST IMPORTANT TO THINK ABOUT SOME OF THOSE THINGS AS WELL. I'M GOING TO JUMP AHEAD ACTUALLY TO INCENTIVE CHARACTERISTICS, BECAUSE THERE'S LOTS OF DIFFERENT WAYS THAT YOU CAN COME AT INCENTIVE PROGRAMS AS WELL. SO LET'S SEE. THIS IS 44.

ALL RIGHT. SO YOU'VE SEEN SOME INCENTIVE TYPES THAT ARE TAX BREAKS RIGHT. YOU'RE GOING TO DO IMPROVEMENTS. AND THAT'S GOING TO MAKE THE VALUE OF YOUR HOME GO UP. AND WE'RE GOING TO ABATE ALL OR A PORTION OF THAT VALUE INCREASE ON YOUR TAXES FOR A HANDFUL OF YEARS. SO THAT'S ONE EXAMPLE. WE'RE GOING TO FREEZE YOUR TAXES FOR A PERIOD OF YEARS AT THE RATE WHERE YOU STARTED. AND THEN ONCE YOU MAKE THOSE IMPROVEMENTS, YOU DON'T HAVE TO PAY THAT INCREASED TAX BILL FOR, YOU KNOW, FIVE YEARS, SEVEN YEARS, TEN YEARS, WHATEVER IT IS, THOSE CAN BE DEFERRED. THEY COULD BE REFUNDED. SO RICHARDSON'S PROGRAM ACTUALLY IS A REFUND OF TEN TIMES THE INCREASE IN TAXES. SO IN THAT SITUATION THE PROPERTY OWNER IS UPFRONT THE WHOLE COST OF THE IMPROVEMENT AND THEN WAITING FOR THAT AMOUNT TO COME BACK

[03:30:01]

SO IF YOU DO A $50,000 PROJECT, WE'RE GOING TO GIVE YOU TEN. YOU COVER THE OTHER 40, AND THEN WE CHECK AND MAKE SURE THAT WHAT YOU SAID YOU WERE GOING TO DO ACTUALLY GETS DONE AND COMPLETED TO TO STANDARDS. LOANS CAN BE TRICKY TO ADMINISTER. SO THINKING ABOUT THE ADMINISTRATION SIDE OF THIS AS WELL. HOW'S IT GOING TO BE FUNDED. DOES THE FUNDING COME WITH CONSTRAINTS. WHO'S ADMINISTERING IT AND WHAT ARE THE REQUIREMENTS THERE? A LOT OF NEIGHBORHOOD WORK AND SINGLE FAMILY INCENTIVE WORK IS VERY HIGH TOUCH. AND WHAT I MEAN BY THAT IS IT'S STAFF HEAVY. AND, YOU KNOW, WE'RE IN KIND OF A WORLD TODAY WHERE PEOPLE DON'T REALLY WANT TO PAY FOR STAFF, THEY WANT TO PAY FOR THE RESULTS. BUT IT'S REALLY HARD TO GET THE RESULTS IN NEIGHBORHOOD REVITALIZATION IF YOU DON'T HAVE THE STAFF TO BE ON THE GROUND, BUILDING RELATIONSHIPS AND HELPING PEOPLE WORK THROUGH T THE PROGR.

OTHER THINGS TO THINK ABOUT. AND THIS GETS TO YOUR EARLIER POINT ABOUT WHAT ARE THE RULES, RIGHT? SO DOES SOME OF THAT MONEY COME BACK TO THE CITY? IN SOME CASES, IT MIGHT BE WE'RE GOING TO LOAN YOU THE MONEY AND YOU REPAY IT OVER A PERIOD OF MONTHS. IN OTHER CASES, IT MIGHT BE WE'RE GOING TO GRANT YOU THE MONEY. AND WHEN YOU SELL YOUR HOUSE, YOU'RE GOING TO PAY US A PORTION OF THAT BACK. SO THERE'S LOTS OF DIFFERENT WAYS THAT YOU CAN CONSTRUCT AN INCENTIVE PROGRAM TO PROTECT SOME OF THOSE THINGS AND HAVE THAT IN PLACE. ONE OTHER EXAMPLE IS WE WERE WE WANTED TO MAKE SURE THAT WE WERE RETAINING HOUSEHOLDS IN OUR NEIGHBORHOODS, THAT THEY WEREN'T ACTUALLY MAKING IMPROVEMENTS TO THEIR HOME AND THEN SELLING IT IMMEDIATELY FOR A PROFIT. AND SO WE HAD BASICALLY FILED A MORTGAGE WHERE THAT GRANT AMOUNT WAS FULLY FORGIVEN. AS LONG AS THEY CONTINUE TO LIVE IN THE HOME AS THEIR PRIMARY RESIDENCE FOR FIVE YEARS OR SEVEN YEARS. OKAY. AND THAT WAS JUST A PROTECTION FOR US. THERE'S SOME DIFFERENT LAWS IN TEXAS THATT MIGHT MAKE THAT MORTGAGE PIECE DIFFICULT, BUT JUST KNOW THAT THERE ARE WAYS TO PUT THOSE PARAMETERS IN PLACE. OKAY. SO KIND OF THE BIG PICTURE QUESTION IS REALLY WHAT PROBLEM ARE YOU TRYING TO SOLVE. AND CHARLES, THIS MIGHT BE A GOOD PLACE. WELL NO, WE'RE GOING TO WORK THROUGH A FEW OTHER THINGS, AND THEN WE'RE GOING TO COME BACK AROUND TO THIS QUESTION. AND YOU CAN ASK US WHATEVER QUESTIONS YOU HAVE AS WELL. CAN YOU COVER HOUSEHOLD CAPACITY JUST IN TERMS OF HOW THAT WORKS? I THINK THERE'S A SLIDE WE HAD IN THERE. YEP. OKAY. YEP. SO SOME THINGS TO THINK ABOUT WITH HOUSEHOLD CHARACTERISTICS IS YOU KNOW, WE'VE TALKED ABOUT SENIORS ON A FIXED INCOME. THEY MAY NOT BE ABLE TO GET A LOAN. THERE ARE OTHER FAMILIES IN YOUR COMMUNITY WHO JUST THEY MAY NOT HAVE THAT CAPACITY TO BORROW. THERE'S NOT ENOUGH EQUITY IN THEIR HOME TO BORROW AGAINST. OR THEIR INCOME SITUATION MIGHT BE SUCH THAT THEY'RE NOT ABLE TO GO OUT AND GET A LOAN FROM A BANK. THINKING ABOUT THAT AS PART OF YOUR INCENTIVE DESIGN. ALSO THINKING ABOUT DO THEY HAVE THE MEANS TO FRONTHE COST IF THEY'RE LOOKING AT REPLACING A ROOF, PUTTING IN NEW WINDOWS, YOU KNOW THAT CAN BE $40,000 REALLY FAST. AND SO HOW DO WE HELP THEM MAKE SURE THAT PROJECT GETS DONE? BECAUSE AT E END OF THE DAY, THAT PROJECT IS HELPING THAT HOME LAST MUCH LONGER. OKAY. SO THE OUTCOME THERE IS THE IMPROVEMENT TO THE HOME. AND SO HOW DO WE MAKE IT ACCESSIBLE FOR PEOPLE TO GET THAT DONE? YEAH. EVERY QUESTION ABOUT THE LIKE YOU'RE SAYING THE FIVE YEAR STIPULATION. SO WOULD THAT IN OUR CASE LIKE WOULD THAT ACTUALLY BE BENEFICIAL. BECAUSE IF YOU MADE IMPROVEMENTS THEN SOLD THE HOME AT A HIGHER RATE THAN IT WOULD ACTUALLY GO UP FASTER? YEAH. BUT WHAT IF AN LLC COMES IN AND SWEEPS IT UP AND MAKES IT A RENTAL HOME? I MEAN, IT'S STILL IT DOESN'T AFFECT US IF IT'S A RENTAL OR PROPERTY. NO EXEMPT HOMEOWNERS EXEMPTION. OKAY. SO THAT'S THAT'S EVEN BETTER IF THEY MAKE IT A RENTAL. IT'S A GREAT QUESTION. AND IT'S ONE OF THOSE OTHER THINGS THAT NEEDS TO BE BALANCED. RIGHT. YOU DON'T WANT A MASS EXODUS OF RESIDENTS FROM YOUR COMMUNITY BECAUSE YOU'VE SUDDENLY ENABLED THEM TO MAKE A BETTER PROFIT ON SELLING THEIR

[03:35:03]

SO THERE'S $5 INVESTED TOTAL AS YOU GO DOWN THAT FLIPS. SO AGAIN IT GETS BACK TO THE CAPACITY OF THE PEOPLE WHO ARE LIVING IN THOSE NEIGHBORHOODS IS YOU'RE GOING TO HAVE TO SUBSIDIZE A LOT MORE OF THAT PROJECT COST IN ORDER TO GET THE PROJECT DONE IN A LEGACY AREA THAN YOU WOULD IN A COMPETITIVE AREA. AND AS WE'VE LOOKED AT THIS, YOU KNOW, KNOWING THAT YOU'RE GOING TO HAVE RESOURCE CONSTRAINTS, WE WOULD RECOMMEND THAT YOU LEAVE THE COMPETITIVE AREAS TO THEIR OWN DEVICES, SINCE THEY'RE LIKELY TO SEE, SINCE THEY'RE LIKELY TO BE ABLE TO DO THINGS. AND AS THE REST OF THE CITY IMPROVES, THEY'LL BE MORE WILLING TO MAKE THOSE INVESTMENTS ON THEIR OWN. CAN I JUMP IN, PLEASE? SO WHEN YOU SEE THIS, ONE WAY TO THINK ABOUT THIS IS SINCE FOREVER, RIGHT? THE FEDERAL GOVERNMENT SETTING ASIDE MORTGAGE INTEREST DEDUCTIONS. OKAY. FEDERAL GOVERNMENT LIVES IN THIS SPACE, OKAY? AND THE MARKET LIVES IN THIS SPACE, RIGHT? IF THIS IS YOUR TAX BASE, RIGHT. THIS IS YOUR TAX BASE. THIS IS YOUR TREND, YOUR TAX BASE, YOUR TREND LINE IS NOT NOW BEING DETERMINED UP HERE BECAUSE IT'S NOT BIG ENOUGH. AND IT'S NOT EVEN REALLY BEING DETERMINED DOWN HERE. RIGHT. FOR A VARIETY OF REASONS. IT'S ALL IN HERE. AND YET THE FEDERAL AND STATE STATE PROGRAMS AREN'T AREN'T THERE FOR YOUR PARTNERS, RIGHT. THEY'RE THERE I MEAN, AS YOUR TO BE PARTNERS, THEY'RE ALL SORT OF DESIGNED TO LIVE IN THIS SPACE OR RIGHT HERE. OKAY.

SO THE INCENTIVE PROGRAMS REALLY ARE DESIGNED TO LIVE THERE. RIGHT WHERE SOME IN ON BOTH SIDES. IT'S A TRUE PARTNERSHIP. OKAY. I THINK ONE OTHER THING THAT WE WANTED TO HAVE YOU KEEP IN MIND WHEN YOU'RE COMING AT THIS WORK IS JUST A RULE OF THUMB THAT WE LIKE TO HAVE AROUND. WHEN YOU'RE WORKING IN A PARTICULAR NEIGHBORHOOD, YOU WANT TO THINK ABOUT TOUCHING A MINIMUM OF 20% OF THE PROPERTIES. SO WHEREVER YOU DRAW THOSE BOUNDARY LINES AND WOULD SUGGEST YOU DRAW THEM SMALLER THAN YOU WANT TO, BUT WHEREVER YOU DRAW THOSE BOUNDARY LINES, YOU'RE WANTING TO. IF ANYBODY'S READ OR HEARD OF A LONG TIME AGO, MALCOLM GLADWELL'S THE TIPPING POINT. IT'S A GOOD WAY TO THINK ABOUT IT, RIGHT, IS YOU'RE TRYING TO GET THAT CRITICAL MASS OF IMPROVEMENTS TO TIP THE SCALES IN A DIFFERENT DIRECTION. AND WE FOUND IN OUR WORK THAT USUALLY 20% IS THE MINIMUM. IN SOME CASES, YOUR LEGACY NEIGHBORHOODS, FOR EXAMPLE, YOU MIGHT NEED TO GET CLOSER TO 30% TO GET THAT CRITICAL MASS. BUT THAT'S REALLY WHERE PRIVATE ACTORS START TAKING OVER AND DOING IT WITHOUT YOU. SO IT IS ONE DEFINITE METRIC TO KEEP IN MIND. THERE'S SOME MORE COMPLICATED THINGS THAT WE'LL DEAL WITH WITH STAFF ABOUT MAKING SURE YOU CHOOSE THE RIGHT 20%. RIGHT. SO VISIBILITY MATTERS. A CORNER PROPERTY IS MORE IMPORTANT TO IMPROVE THAN ONE THAT'S IN THE MIDDLE OF THE BLOCK. THAT GETS KIND OF IGNORED AS PEOPLE DRIVE BY. YOU KNOW, IF YOU'VE GOT A BEAUTIFUL HOME THAT'S IN PRISTINE CONDITION, BUT THE ONE NEXT DOOR LOOKS LIKE CRAP, THAT'S MORE IMPORTANT TO TOUCH THAN IF YOU HAVE TWO TERRIBLE PROPERTIES RIGHT NEXT TO EACH OTHER, AND YOU CAN ONLY DO ONE. CAN I SAY SOMETHING TO YOU BACK A SLIDE? YEP. OKAY, SO NOT ONLY

[03:40:03]

RIGHT. SO YOU ARE PIVOTING FROM WORST FIRST TO BUILDING ON STRENGTH. SO AS WE BEGIN TO ASK YOU WHERE TO WORK, YOU'RE GOING TO WANT TO BE THINKING, OKAY, THIS WAY YOU KNOW, WHERE, WHAT, WHERE, HOW TO THINK. AND STAYING IN THAT MIDDLE. THOSE WILL BE TWO CRITICAL, DISTINCTIVE PIVOTS YOU'RE GOING TO NEED TO MAKE. OKAY. GO AHEAD. SORRY TO INTERRUPT. I THINK THIS IS PROBABLY THE THE LAST BIT WILL REALLY STAND ON, WHICH IS THAT, YOU KNOW, IN IN AGING HOMES, EXTERIOR CONDITION IS OFTEN THE TIP OF THE ICEBERG. SO IF, IF DEFERRED MAINTENANCE HAS CREPT TO THE OUTSIDE OFTEN, NOT ALWAYS, BUT OFTEN THE INSIDE IS A WORSE MESS, OR AT THE VERY LEAST, IT'S JUST INCREDIBLY OUTDATED. RIGHT? SO IT COULD BE THAT IT'S A LAYOUT THAT NOBODY WANTS TO LIVE IN ANYMORE, RIGHT? HAS ONE TINY BATHROOM THAT YOU CAN BARELY FIT IN. AND SO IT'S NOT JUST ABOUT EXTERIOR CURB APPEAL. IT'S ALSO ABOUT MAKING SURE THAT HOMES ARE MORE UP TO DATE. SIZE, IN SOME WAYS DOESN'T ALWAYS MATTER. IT DOES MATTER HERE IN THIS MARKET FOR A LOT OF THE THINGS THAT WE'VE TALKED ABOUT. BUT BUT IF IT'S A REALLY HIGH QUALITY INTERIOR, PEOPLE ARE STILL GOING TO BUY IT. YOU HAD LOOKS LIKE YOU KNOW, THE SE IT'S THE SEAGATE PIECE, RIGHT? IT'S LIKE IF THE SIGN IS PRETTY CRAPPY, RIGHT? I'M PRETTY. I KNOW WHAT'S GOING TO HAPPEN WHEN I GO IN THERE AND START POKING AROUND. AND THEN AGAIN, YOU KNOW, THE KNOB AND TUBE WIRING EXAMPLE, THOSE COSTS CAN ESCALATE REALLY QUICKLY. AND SO THE THE CHECKS YOU'RE GOING TO HAVE TO WRITE ARE GOING TO NEED TO BE BIGGER THAN YOU WANT THEM TO, OKAY, TO GET IT, TO GET IT DONE AND GET IT DONE. RIGHT. OKAY. THIS IS

[03:45:01]

SO TLORING. TAILORING, TAILORING. I THINK ACTUALLY. OKAY, LET'S GO THROUGH THIS BIT AS WELL. BRIEFLY. STILL THINKING ABOUT THOSE SUBMARKETS. EACH OF THEM HAVE KIND OF DIFFERENT HOUSINGHOUSEHOLD CHARO YOU KNOW COMPETITIVE. NO PUBLIC MONEY IS NECESSARILY REQUIRED.

THIS IS WHERE THEY'RE GOING TO MAKE HOME IMPROVEMENTS. THEY'RE LIKELY TO DO IT WITH THEIR OWN MONEY. GROWTH IS WE'RE GOING TO WHERE WE'RE GOING TO SEE THAT COMBINATION OF PUBLIC AND PRIVATE BE THE MOST BENEFICIAL. AND IT'S NOT NECESSARILY BECAUSE THEY'RE NOT ABLE TO PAY FOR HOME IMPROVEMENTS. IT'S BECAUSE THEY'RE NOT WILLING TO PAY FOR THEM. THEY DON'T HAVE THE CONFIDENCE TO MAKE THAT INVESTMENT. IF I'M A HOMEOWNER AND I WALK OUT MY FRONT DOOR AND I CAN'T SEE THAT ANY OF MY NEIGHBORS HAVE MADE A CHANGE IN THEIR HOME, THEIR WEEDS ARE OVERGROWN. AND, YOU KNOW, THE THE SHUTTERS HANGING OFF. I DON'T FEEL VERY CONFIDENT ABOUT PUTTING MONEY INTO MY HOME BECAUSE I DON'T THINK I'M GOING TO GET IT BACK OUT. ON THE OTHER HAND, IF I WALK OUT MY FRONT DOOR AND FOUR OF MY NEIGHBORS HAVE VISIBLE CONTRACTORS WORKING ON THE EXTERIOR OF THEIR HOME OR BANDS IN THE DRIVEWAY, SUDDENLY I START TO FEEL A LITTLE PEER PRESSURE TO KEEP UP WITH ALL OF THEM, AND I START THINKING ABOUT THE HOME IMPROVEMENTS I MIGHT LIKE TO MAKE. AND THEN LAST BUT CERTAINLY NOT LEAST, THIS IS WHERE OUR AFFORDABLE HOUSING CONVERSATION COMES IN. BUT IN THE LEGACY SUBMARKETS, IT ENDS UP BEING ALMOST ALL PUBLIC MONEY IN THIS EQUATION. VERY LITTLE PRIVATE SHARE THOSE COSTS. ALL RIGHT. I THINK WE'RE GOING TO NOT DO THAT AND JUST SEE WHAT QUESTIONS YOU ALL HAVE THAT WE CAN ANSWER IN OUR LAST COUPLE OF MINUTES HERE RELATED TO SINGLE FAMILY INCENTIVES.

THANK YOU SIR. WITH ALL OF THE INFORMATION YOU'VE SHARED, YOU SAID YOU'VE BEEN IN GARLAND.

IT'S NOT THE FIRST TIME, BUT YOU'VE BEEN HERE FOR YOU'VE BEEN HERE SIX TIMES. SEVEN TIMES. WHAT HAVE YOU FOUND THAT WOULD WORK BEST FOR CITY OF GARLAND? AND AS IT RELATES TO INCENTIVES, ANY PROGRAMS BASED ON OUR EXISTING HOUSING STOCK, BASED ON OUR STAFFING AND RESOURCES AVAILABLE, AND OF COURSE, BASED ON THE DOLLARS THAT WE'VE GOT AVAILABLE, WHAT HAVE YOU MAY BE GETTING AHEAD OF MYSELF A LITTLE BIT. DO YOU HAVE. NOW? DO YOU HAVE SOME RECOMMENDATIONS THAT YOU, YOU PLAN TO MAKE FOR THE CITY OF GARLAND TO MOVE THIS PROGRAM FORWARD? WELL, WE CERTAINLY HAVE SOME IDEAS. DO YOU WANT TO GIVE A FIRST THOUGHT OR DO YOU WANT ME TO DO THAT OR WHAT WORKS. SO I THINK THAT. GO TO THE NEXT SECTION. I'M JUST SAYING WE'RE GOING TO DO A WORKING LUNCH, SO DON'T WORRY ABOUT RUNNING OUT OF TIME OKAY? THANK YOU MAYOR. I WANT TO GET THROUGH AS MUCH AS POSSIBLE. JUST COUNCIL. WE'RE GOING TO INSTEAD OF BREAKING IN AND COMPLETE SEPARATION FOR LUNCH, WE'RE GOING TO GET OUR MEALS HERE IN A MINUTE AND WE'RE GOING TO WORK THROUGH LUNCH, HAVE A WORKING LUNCH SO WE CAN CONTINUE THIS GOOD DISCUSSION. SO AND BE AS PRODUCTIVE AS POSSIBLE. I THINK THAT YOU'RE IN A REALLY GOOD POSITION AS A CITY, OKAY. TO. DESIGN, TO HAVE DESIGNED AND TO FUND A ROBUST SINGLE FAMILY INCENTIVE PROGRAM. NUMBER ONE. THAT, THAT. THE VALUE OF WHICH THE RETURN TO THE CITY OF WHICH WILL BE LIKELY TO BE MAXIMIZED, THE EXTENT TO WHICH YOU ARE CONCURRENTLY DOING WORK ON YOUR CORRIDORS, AND TO THE EXTENT TO WHICH YOU'RE REALLY CLEANING UP SOME KEY FREEWAYS, RIGHT. AND CONCURRENTLY WORKING INTENSIVELY AT HALF DOZEN OR SO INTERSECTIONS THAT ARE PROMINENT AND IMPORTANT, RIGHT. ON THE MULTIFAMILY AND REDEVELOPMENT SIDE, I THINK WE WANT TO BE DOING IS NO. ONE THING YOU WANT TO BE WORKING

[03:50:05]

YOU'RE GOING TO HAVE TO BE GEOGRAPHICALLY CONCENTRATED, RIGHT? YOU'RE GOING TO HAVE TO GET INTO THOSE GEOGRAPHIC CONCENTRATIONS WITH SOME SATURATION. SO YOU HIT 20% THRESHOLD. IT'S GOING TO COST YOU A FAIR AMOUNT OF MONEY, RIGHT? SO YOU GOT TO BE IN FOR A PENNY, IN FOR A POUND, RIGHT? THEY ALL HAVE TO WORK TOGETHER. AND. WHEN WHEN YOU BEGIN TO DO THAT AND WHEN YOU START WHERE A PLACE IS ALREADY BASICALLY STABLE, YOU WILL FIND THAT YOUR STANDARDS BEGIN TO RESET AT AN EVER HIGHER LEVEL, RIGHT? WHAT I WOULD EXPECT IS WHEN WE COME BACK IN FIVE YEARS, WE WILL SEE BRIGHTER, CLEANER, SHARPER BORDERS, RIGHT? MORE REASON TO TURN OFF OF SOUTH GARLAND AND INTO A NEIGHBORHOOD, RIGHT? WE WON'T SEE FENCES FALLING ON THEMSELVES. RIGHT. WHEN WE GO INTO THE NEIGHBORHOOD, WE WON'T SEE LAWNS THAT NEEDED TO BE MOWED THREE WEEKS AGO BUT WERE MOWED YESTERDAY. RIGHT? THAT'S WHAT WE'LL SEE. RIGHT. AND SO THOSE WILL TRANSLATE INTO YEAR OVER YEAR GAINS IN PRICES. RIGHT. WHICH SHOULD MAKE ALLISON HAPPY YEAR OVER YEAR VALUATION WHICH WILL COME FROM YEAR OVER YEAR PRICE INCREASES.

AND THE GENERAL FUND OKAY. THAT WILL MOVE FROM 20. WAS IT 29% YOUR GENERAL FUND. YOU KNOW

[03:55:05]

GO GET SOME OF MEDITATION. YOGA. LET ME GET MY MIC. THERE WE GO. WELCOME BACK

[3. Overview of the 2026 Proposed CIP]

AND SO THIS CIP IS THE FIRST YEAR THAT INCORPORATES THAT ADOPTED BOND PROGRAM AND AND SCHEDULES OUT THOSE PROJECTS AUTHORIZED BY THE VOTERS. WE'RE GOING TO FINISH WHAT WE STARTED.

WE'LL CONTINUE THE IMPLEMENTATION OF OUR 2019 AND 2004 BOND PROGRAMS, WITH MANY OF THOSE MAJOR FACILITY PROJECTS WRAPPING UP OR PROPOSED TO WRAP UP IN 2026.

WE'RE TAKING CARE OF WHAT WE HAVE. WE'RE IMPLEMENTING THE FACILITY CONDITION ASSESSMENT RECOMMENDATIONS. WE'RE UPGRADING OUR UTILITY AND INFRASTRUCTURE SYSTEMS, AND WE'RE ENSURING THE REPLACEMENT OF CRITICAL EQUIPMENT AT OR BEYOND USEFUL LIFE. AND THEN FINALLY, WE'RE PLANNING FOR THE FUTURE. WE'RE ENSURING OUR DEBT CAPACITY IS RESERVED FOR OTHER LONG TERM FUNDING NEEDS IN FUTURE YEARS. THE CRITERIA AND STRUCTURE OF THE CIP I FAIRLY STRAIGHTFORWARD. IT'S A FIVE YEAR CAPITAL PLAN FOR CAPITAL ASSETS. THIS INCLUDES PUBLIC WORKS INFRASTRUCTURE, UTILITY INFRASTRUCTURE, MUNICIPAL FACILITIES, OR LARGE SPECIALIZED EQUIPMENT. TO QUALIFY FOR THE CIP, IT MUST MEET OUR POLICY CRITERIA AND THAT IT'S A CAPITAL ASSET HAS A USEFUL LIFE OF AT LEAST FIVE YEARS AND TYPICALLY IN PRACTICE, EXCEEDS $100,000. TO QUALIFY TO. THE CIP DOCUMENT ITSELF INCLUDES PLANNED PROJECTS FOR FIVE YEARS. THE EXPECTED COST, THE METHOD OF FINANCING, AND ANY UTILITY RATE IMPACTS. THE CAPITAL BUDGET FOR 2026 IS THE FIRST YEAR OF THE CIP, AND IS WHAT WILL BE ASKING COUNCIL TO APPROPRIATE. FORMALLY, THE CIP PROJECTS OFTEN SPAN MULTIPLE YEARS, SO REMEMBERING THAT APPROVING A PROJECT IN YEAR 1ST MAY NECESSITATE NECESSITATE APPROVAL IN YEARS 2 OR 3. SO THE CIP MUST BE REVIEWED FROM A MULTI-YEAR PERSPECTIVE. QUICK OVERVIEW OF THE SECTIONS. IN OUR DOCUMENT. WE HAVE THE CIP MESSAGE, WHICH IS THE CITY MANAGER'S MESSAGE TO THE CITY COUNCIL ABOUT THE DEVELOPMENT OF THIS CIP AND ITS MAJOR COMPONENTS. OVERVIEW. WHICH PROVIDES A BACKGROUND OF THE CIP AND THE NARRATIVE OF THE PROJECTS. WITHIN EACH SECTION, WE HAVE OUR DEBT ALLOCATION, WHICH SUMMARIZES THE USES OF DEBT INSTRUMENTS OR OTHER DEBT RELATED FUNDING SOURCES IN 2026, AS WELL AS FUTURE YEARS. OUR STATUS SECTION, WHICH REALLY COMPARES OUR PERFORMANCE TO WHAT WE OUTLINED IN THE 2025 CIP, AS WELL AS OUTLINES THE PROJECTED COMPLETION OF OUR 2004 19 AND 2025 BOND PROJECTS. THE PROGRAM SECTIONS, WHICH IS THE MEAT OF THE DOCUMENT, GIVES A PAGE BY PAGE DESCRIPTION OF EACH PROJECT WITH THE PROJECT

[04:00:01]

THEY'RE AUTHORIZED BY THE CITY COUNCIL ON AN ANNUAL BASIS, BUT THEY CAN ONLY BE USED FOR DESIGNATED INFRASTRUCTURE REVENUE. BONDS ARE SPECIFICALLY UTILIZED AND PAID FOR BY THE RATES OF OUR ELECTRIC, WATER AND WASTEWATER UTILITIES, AND THEY CAN ONLY BE UTILIZED FOR UTILITY RELATED CAPITAL PROJECTS. AND THEN FINALLY, WE HAVE A SHORT TERM DEBT INSTRUMENT CALLED A TAX NOTE. THIS IS REPAID BY THE DEBT SERVICE TAX RATE. IT'S BEEN USED HISTORICALLY TO PREVENT SIGNIFICANT FLUCTUATIONS IN OUR DEBT SERVICE TAX RATE, AND CAN BE USED ON PROJECTS WITH A SHORT, USEFUL LIFE THAT THE CITY WISHES TO PAY OFF QUICKLY.

I HAVE A QUICK RECAP OF OUR OVERALL OVERALL FIVE YEAR PLAN FOR DEBT SERVICE. SO THIS IS EVERYTHING IN THE 2026 PROPOSED CIP. OUR CAPACITY FOR DRAINAGE IMPROVEMENTS, EMERGENCY RESERVES, REMAINING INFLATION RESERVES. AND THEN REALLY JUST FOR TRANSPARENCY, I BROKE OUT THE 2025 BOND FROM THE 2026 CIP. SINCE THAT IS A MAJOR INITIATIVE BEING INCPORATED INTO THE DOCUMENT THIS YEAR. SO OVER THE FIVE YEAR PLAN, WE HAVE 281 MILLION OF DEBT SERVICE THAT WILL BE ISSUED IN THE NEXT FIVE YEARS. RELATED TO OUR 2026 CIP, WE HAVE THE CAPACITY TO FUND 38, BUT LET ME MAKE SURE I'M LOOKING AT THE RIGHT COLOR. YES, 38 MILLION OF DRAINAGE IMPROVEMENT PROJECTS OVER THE NEXT FIVE YEARS RELATING BACK TO THE DRAINAGE RATE METHODOLOGY WE'VE DISCUSSED IN THE ANNUAL OPERATING BUDGET, WE HAVE 47 MILLION OF EMERGENCY RESERVES IN OUR CIP DEBT SERVICE MODEL FOR UNFORESEEN CAPITAL NEEDS.

AND THEN WE HAVE 13 MILLION REMAINING OF OUR INFLATION RESERVE BUCKET. AS THE 2019 BOND PROJECTS HAVE GONE THROUGH, THE DESIGN AND CONSTRUCTION AWARD PROCESS, WE HAVE UTILIZED THESE INFLATION RESERVES TO OFFSET ANY COST FLUCTUATIONS FOR THOSE PROJECTS. BUT WE ARE STILL HOLDING A SMALL AMOUNT OF INFLATION RESERVES ON SOME PROJECTS IN FUTURE YEARS. AND THEN FINALLY, OVER THE NEXT FIVE YEARS, WE'RE SHOWING THAT WE'LL BE ISSUING 318 MILLION ASSOCIATED WITH OUR 2025 BOND PROGRAM. THE 2026 PROPOSED CIP TOTAL 644.5 MILLION. 47% OF THAT IS RELATED TO OUR TAX SUPPORTED PROJECTS, WITH THE REMAINING 53 IN OUR UTILITY SUPPORTED PROJECTS. THIS CIP IS AN INCREASE OF ALMOST 70 MILLION OVER THE 2025 ADOPTED.

[04:05:08]

FOR OUR UTILITY SUPPORTED CIP. THIS IS ALL OUR REVENUE SUPPORTED DEPARTMENTS. EVERY

[04:10:07]

OF THE TOTAL, 341.7 MILLION OF UTILITY SUPPORTED CIP SPEND. FOR OUR UTILITY PROJECTS, WE HAVE A REVENUE BOND COMMERCIAL PAPER ISSUANCE PROJECTED OF 154.2 MILLION TO SUPPORT THE 2026 CIP AND A CO ISSUANCE FOR SANITATION EQUIPMENT OF 5.4 MILLION. WE'VE COMMITTED SINCE INCORPORATING STORMWATER BACKED, STORMWATER RATE BACKED PROJECTS INTO CIP TO BRING FORWARD A LISTING OF HOW WE'RE UTILIZING THE STORMWATER RATE ON AN ANNUAL BASIS. SO THESE ARE THE PROJECTS LISTED HERE THAT EITHER HAVE FUNDING PROGRAM IN 26 TO BE FUNDED WITH THE STORMWATER UTILITY RATE, OR WE'LL HAVE FUNDING IN A FUTURE YEAR IF NEEDED. AND THEN FINALLY, I'LL JUST QUICKLY RECAP OUR OUR CIP REVIEW CALENDAR. AND WE CAN ALSO GO OVER THIS AT THE END OF THE DAY. MAYOR, IF YOU WOULD LIKE, WE'LL CONTINUE OUR DISCUSSIONS ON THE JANUARY 20TH AND HOLD A PUBLIC HEARING. IF THE COUNCIL REQUESTS, WE'LL HAVE ADDITIONAL DISCUSSIONS ON JANUARY 27TH AND THEN, UNLESS OTHERWISE COMMUNICATED TO STAFF, WILL BE PREPARED TO RECEIVE FINAL DIRECTION FROM YOU ALL ON FEBRUARY 2ND AND SCHEDULE THAT SECOND AND FINAL HEARING ON FEBRUARY 3RD AND THE ADOPTION ON FEBRUARY 3RD. AND WITH THAT, I'LL TAKE ANY QUESTIONS, COUNCIL. ANY QUESTIONS? COUNCILMEMBER THOMAS? WELL, BACK TO SLIDE 29. THE THERE'S A $13 MILLION INFLATION RESERVE. AND I THINK I THINK I UNDERSTAND WHAT THAT'S FOR 47 MILLION FOR EMERGENCY RESERVE. HOW DID YOU ARRIVE AT THAT NUMBER. IS THERE A FORMULA OR WHAT HOW HOW DO WE FIGURE THAT OUT. THERE'S NOT A FORMULA PER SE. SO WHEN WE'RE LOOKING AT BALANCING OUR DEBT SERVICE CAPACITY JUST FROM A BEST PRACTICE AND FUNDING MODEL PERSPECTIVE, I'M ALWAYS KEEPING IN MIND WHAT OUR AVERAGE CIP LOOKS LIKE. AND SO WHEN YOU'RE TALKING ABOUT EXECUTING TAX SUPPORTED PROJECTS, THEY DON'T FOLLOW A SIMPLE BELL CURVE OF DELIVERY. THERE'S DESIGN CHALLENGES. THERE'S EBBS AND FLOWS. THERE'S RIGHT OF WAY ACQUISITION. SO YOU CAN'T START A PROJECT IN YEAR ONE AND KNOW IT'S GOING TO HAVE A VERY SMOOTH SPEND AND BE DONE BY YEAR THREE. SO AND WE HAVE, YOU KNOW, HUNDREDS OF PROJECTS IN THIS DEBT SERVICE MODEL. SO REALLY WHAT WE'RE DOING IS WE'RE WE GET ALL THE INPUTS FROM OUR PROJECT MANAGEMENT OFFICE AND OTHER PROJECT DELIVERY OFFICES ACROSS THE CITY OF WHAT THOSE THAT PROJECT SPEND OR DEBT ISSUANCE ASSOCIATED THOSE PROJECTS IS GOING TO LOOK AT. AND WE'RE BALANCING OUT IN OUR MODEL, AN AVERAGE SPEND, AN AVERAGE CIP TO MAKE SURE WE HAVE THE CAPACITY AS IF, YOU KNOW, WE ALWAYS NEED TO ISSUE, YOU KNOW, 25 MILLION FOR ROUGHLY ALL THE EQUIPMENT AND FACILITIES. WE ALWAYS MAKE SURE WE HAVE THAT ROUGH HISTORIC CAPACITY PROGRAMED IN THAT UNRESERVED NEEDS LINE, KNOWIWING THAT FROM, YOU KNOW, FINANCIAL ADMINISTRATION POINT, WE CAN MOVE THAT CAPACITY UP MAYBE ONE YEAR BACK ONE YEAR. BUT BIG SHIFTS IN THAT MODEL SAY WE DIDN'T HAVE ANY OF THAT CAPACITY IN THE IN THE FIRST FIVE YEARS, BUT WE HAD IT IN YEAR SEVEN. MOVING THAT ALL THE WAY UP INTO THE FIRST FIVE YEARS WOULD HAVE MAJOR IMPACTS ON PROJECTS. MOVING IT OUT ONLY HELPS. SO JUST REALLY TRYING TO ROUND OUT OUR ANNUAL DEBT ISSUANCES AND MAKE SURE WE HAVE THE ABILITY TO ISSUE SOME OF THAT DEBT, YOU KNOW, NEXT YEAR OR THE YEAR AFTER IF SOMETHING UNFORESEEN THAT THAT ISN'T IN THIS CURRENT PLAN COMES UP.

DOES THAT MAKE SENSE? SO IT'S BASED KIND OF BASED ON HISTORY. IT IS YOU. SO YOU'VE GOT SOME EXPERIENCE IN THE PAST AND YOU'RE RELYING ON THAT TO GIVE YOU A NUMBER. YES. WE'RE LOOKING AT OUR HISTORIC CIP, OUR HISTORIC CO ISSUANCE, PARTICULARLY ON OUR MAJOR PROGRAM AREAS THAT DEPEND ON THE CIP FOR THAT ANNUAL FUNDING SOURCE. OKAY. AND ON THE RECENTLY INCLUDED THE STREETS UPDATE. I KNOW THAT I, I DID A LOT OF NEGOTIATION WITH TONY AND CRYSTAL ON ON SOME OF THE STREETS THAT I WANTED, YOU KNOW, THAT THAT HAD BEEN REPAIRED SINCE THE OCI STUDY CAME OUT. WHEN WILL WE SEE THAT THAT THOSE FINALS ALL INCORPORATED INTO THIS DOCUMENT? I'M GOING TO LOOK OVER AT CRYSTAL. FEBRUARY 2ND. FEBRUARY 2ND. IF

[04:15:07]

I KNOW MINE WAS REALLY LATE. I GOT IT FROM THE FINAL FROM TONY ON THE 24TH. MAYBE I MISUNDERSTOOD. SORRY, CRYSTAL. ALL OF YOUR CHANGES INTO THE FINAL DOCUMENT, WE JUST DID NOT HAVE THE FINAL DOCUMENT READY TO INCORPORATE INTO THE FINAL COPY THAT WE HAVE TODAY, SO WE CAN SEND IT OUT TO YOU AT ANY GIVEN TIME. OKAY? OKAY. VERY GOOD. JUST WANT TO JUST WANT TO MAKE SURE THAT, YOU KNOW, WE DID SOME WORK THERE. AND I JUST WANT TO MAKE SURE THAT WASN'T SURE HOW THAT GOT IN OR HOW WHEN IT WOULD GET IN. SO VERY GOOD. THANK YOU. THANK YOU, MAYOR. SIR. COUNCILMEMBER WILLIAMS, THANK YOU, MAYOR ALISON GATEWOOD. DRAINAGE STUDY.

IS IT INCLUDED IN HERE? I IT IS IT IS A PROJECT IN THE DRAINAGE SECTION. OKAY. AND GIVEN THE THE START AND INUNDATE. YOU ARE GOING TO QUIZ ME AND I DON'T I'M DOING A SOFT COPY THIS YEAR, SO I DON'T HAVE IT IN FRONT OF ME. THAT'S A QUESTION. GATEWOOD. GATEWOOD. YES. SO IF YOU RECALL, WHEN I CAME TO YOU OR WHEN THAT PROJECT WAS ORIGINALLY BROUGHT UP LAST YEAR, WE HAD STATED THAT WE WERE GOING TO START IN 2027, BUT WE WERE GOING TO LOOK AT OUR RESOURCES AND DETERMINE IF WE COULD PUSH IT FORWARD. WELL, BASED ON OUR CURRENT RESOURCES AND THE NUMBER OF PEOPLE THAT WE HAVE THAT ARE WORKING ON OUR DRAINAGE PROJECTS, WE DID DECIDE TO LEAVE IT AT THE 2027 START DATE. START DATE RIGHT. START DATE FOR DESIGN. YES, SIR. SO IT'LL BE INCLUDED IN THE 2027 CIP GOING FORWARD, BUT NOT FOR THE 2026. THANK YOU. OKAY. THAT'S VERY HELPFUL. THANK YOU, THANK YOU, THANK YOU ALLISON. THANK YOU CRYSTAL. ALL RIGHT COUNCIL,

[4. Staff Presentations on the 2026 Proposed CIP]

OKAY. I THINK I'VE SETTLED ON. ALL RIGHT. WELL GOOD AFTERNOON. I WAS ALMOST GOING TO SAY GOOD MORNING. GOOD AFTERNOON, MAYOR, COUNCIL AND MR. CITY MANAGER LEE WILLIAMS WITH PARKS AND RECREATION. JOINING ME IS MARK ELLENDER, OUR PARK PLANNING ADMINISTRATOR. AND OF COURSE, THIS MAN NEEDS NO INTRODUCTIONS. SO WE HAVE A FEW PROJECTS TO GO OVER WITH YOU ALL THIS MORNING. THIS AFTERNOON. FIRST ONE IS LOU HUFF PARK. SO THE TOTAL PROJECT COST FOR THIS IS $6.3 MILLION. THERE IS AN INCREASE FROM THE 2025 CIP OF $1.1 MILLION. THIS PROJECT IS SLATED TO DO IMPROVEMENTS AT LOU HUFF PARK. IT WILL INCLUDE DEMOLITION OF THE EXISTING RECREATION CENTER, ADDING A COVERED PAVILION, PERMANENT RESTROOMS. WE WILL HAVE A CULTURAL RING. WE ARE ADDING A PEDESTRIAN BRIDGE, MULTI-PURPOSE COURTS. THE EXISTING BASEBALL FIELD WILL BE DEMOLISHED, AND THAT WILL BE A NICE GREEN SPACE THAT CAN BE UTILIZED FOR DIFFERENT PURPOSES. A WALKING LOOP AROUND THAT, WE'VE GOT PARKING AND THEN THE TENNIS COURT WILL BECOME A FUTSAL COURT. THIS CONTRACT WAS AWARDED IN DECEMBER BY COUNCIL. YOU ALL APPROVED THAT IN DECEMBER. SO WE HOPE TO HAVE OUR PRECONSTRUCTION MEETING IN JANUARY AND THEN MOBILIZE ON THIS PROJECT IN FEBRUARY. THIS NEXT PACKAGE IS A NEW PACKAGE. THIS IS A PARK LIGHTING PACKAGE, AND THIS PROJECT WOULD PROVIDE FUNDING TO INSTALL AND ENHANCE LIGHTING SYSTEMS ACROSS MULTIPLE PARK SITES. THE LIST THAT WE HAVE HERE, THAT WE HAVE PROVIDED FOR OUR RECOMMENDED SITES, THAT IS BASED ON A FEW THINGS. FEEDBACK FROM DISCUSSIONS WITH OUR PARKS AND RECREATION ADVISORY BOARD, OUR OWN MASTER PLAN THAT WE'VE BEEN WORKING THROUGH, AND THEN THE SITES THAT GET A LOT OF CITIZEN REQUESTS OR COMPLAINTS ABOUT NO LIGHTING AT THOSE LOCATIONS. THAT PROJECT TOTAL IS $312,000.

OUR THIRD PACKAGE IS A NEW PACKAGE. IT'S FOR TENNIS COURT ENHANCEMENTS. THE TOTAL PROJECT

[04:20:02]

SO THERE'S SOME DESIGN CONSIDERATIONS THAT WENT INTO THERE. SO IT'S A VERY IT DESPITE IT BEING 60 ACRES IS A VERY TIGHT SITE. AND SO WE WERE HAVING SOME CONCERNS WITH SEVERAL THINGS. SO THE ORIGINAL DRAWING SHOWED EVERYTHING LEFT OF, OF OR SOUTH OF NAAMAN WAS PARKING. THE ORIGINAL PLAN WAS DESIGNED, AS YOU RECALL. MOSTLY THE FOCUS WAS ON THE USL PROGRAM LEVEL, AND SO IT HAD SOME DIFFERENT. THINGS THAT WERE THERE THAT THAT WERE FOCUSED ON ON THEIR FACILITY. THIS GAVE US A LITTLE BIT MORE BREATHING ROOM. WE WERE ALSO HAVING SOME CHALLENGES WITH THE APPROXIMATELY 14 ACRES OF PRIVATE DEVELOPABLE SPACE WAS A DIFFICULT SHAPE AND VERY SQUEEZED. AND SO WE GAVE THE ARCHITECT THE THE DIRECTION TO KIND OF TAKE A LOOK AT PROVIDING US SOME BREATHING ROOM. WE WERE VERY TIGHT IN

[04:25:01]

AND SO THE IDEA THERE IS FOR ANYONE CAN SUBMIT A AN APPLICATION OR A RESPONSE TO THE THE RFQ FOR. IT'S PRIMARILY SOCCER. WE WOULD LIKE TO BE ABLE TO ACCOMMODATE OTHER SPORTS. RUGBY IS A LITTLE BIT OF A CHALLENGE. IT MAY END UP HAVING TO BE AT ANOTHER LOCATION, BUT IT WOULD BE SUCH THAT THE RFQ IS WORDED IN SUCH A WAY THAT THE OPERATOR WOULD NEED TO TAKE INTO ACCOUNT ALTERNATE SPORTS, AND HOW THAT IMPACTS THE OPERATIONS. AGAIN, OUR GOAL IS A NET ZERO IMPACT ON OUR OPERATIONS FROM THE GENERAL FUND. SO THE OPERATORS THAT SUBMIT WILL HAVE AN OPPORTUNITY TO TELL US HOW THEY'RE GOING TO PROGRAM IT. WE WILL INTERVIEW THEM, EVALUATE THEIR PROPOSALS AND SEE HOW THAT SHAKES OUT. OKAY. I'M JUST YOU KNOW, I KNOW WE'VE HAD BEEN APPROACHED BY BY THEM AND TALKING ABOUT BECAUSE THE RUGBY FIELDS THE EXACT SAME SIZE AS A SOCCER FIELD PLUS END ZONES ON EITHER END, RUGBY GOALS ARE THE EXACT SAME SIZE AS A SOCCER GOAL AND COULD DOUBLE FOR THAT. AND SO IT KIND OF DOVETAILS PRETTY NICELY IF WE COULD MAKE THAT WORK. THAT'S JUST ONE MORE ROUND OF TOURNAMENTS THAT WE CAN FIT INTO THIS, THIS FACILITY OR ANOTHER SPOT LIKE WINTERS, BECAUSE THAT'S WHERE THEY WERE INITIALLY LOOKING BEFORE THIS WAS EVEN A THING. YES, SIR. SO JUST JUST WANTED TO MAKE SURE THAT THAT'S KIND OF STILL, YOU KNOW, PART OF OUR ASK IS THAT WE'VE GOT SOME FLEXIBILITY THERE FOR OTHER SPORTS OTHER THAN SOCCER. IF THOSE OPPORTUNITIES ARISE FOR US. YES, SIR. THAT'S CORRECT. IT IS INCLUDED IN THE RFQ THAT WAY. ALL RIGHT. VERY GOOD.

THANK YOU SIR. THANK YOU MAYOR. AND ONE THING I WANT TO ALSO MENTION IS THAT HAVING LESS PARKING ON THE PLAN LEFT SIDE, IT'S A SAFER PEDESTRIAN EXPERIENCE HAVING TO CROSS NAME.

AND THERE ARE FEWER PEOPLE CROSSING. YES, ABSOLUTELY. THANK YOU FOR POINTING THAT OUT.

THAT WAS ACTUALLY THE VERY FIRST AND MOST IMPORTANT THING THAT CAUSED US TO WANT TO REEVALUATE THAT. AS WE TALKED TO OTHER POTENTIAL USERS THAT HAVE REACHED OUT TO THE MAYOR SINCE THIS CHANGE, THERE HAVE BEEN SOME CONVERSATIONS ABOUT THINGS THAT THEY THAT THEY WOULD HAVE QUESTIONS OR CONCERNS ABOUT. AND THAT WAS ABSOLUTELY. THE NUMBER ONE THING THAT STARTED THIS DISCUSSION IS THAT'S A LOT OF PEOPLE TO ASK TO COME ACROSS A

[04:30:04]

THANK YOU SIR. MAYOR PRO TEM LUCK. OKAY. ALL RIGHT. PLEASE CONTINUE. SO WE'LL GO BACK. SO TO IN SUMMARY, FOR THE PARKS AND RECREATION CIP PROJECTS TOTALS OUT TO $85.7 MILLION THAT WE WILL BE WORKING THROUGH IN 2026. AND THEN THE NEXT TWO SLIDES PROVIDE A COMPARISON OF THE 2025 CIP VERSUS THE 2026, SHOWING YOU ANY CHANGE OR ANYTHING THAT WE'VE ADDED AS NEW PROJECTS. AND WITH THAT, WE'RE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU SIR. WHEN IS BOB DE TENNIS CENTER GOING TO BE COMPLETE? IT SHOULD BE COMPLETED THIS MONTH. WE ARE DOING THE FINAL WALKTHROUGHS FOR COMPLETION AND JUST DOING THE FINAL CHECKS FOR EVERYTHING.

SO WE'RE ON WELL ON TRACK FOR COMPLETION THIS MONTH. FANTASTIC. SO THAT PUTS THE JACK COLEMAN TENNIS COURTS CONVERSION PRETTY SOON. YES. SO WE WHAT WE'VE BEEN DOING IS WE'VE BEEN WORKING THROUGH ON OUR END TO FIGURE OUT THE BEST COURT LAYOUT FOR JACK COLEMAN.

AND WE'VE BEEN WORKING WITH THE NEW TENNIS OPERATOR ON WHAT THEIR NEEDS ARE GOING TO BE FOR PROGRAMING. ALSO OVERFLOW FROM BOB DAY IF THEY HAVE A LARGE TOURNAMENT. WE'VE BEEN WORKING WITH BOB DAY ON THAT, SO JUST TRYING TO FIND A WIN WIN. WE THINK WE HAVE FOUND A PLACEMENT THAT A SITE LAYOUT THAT EVERYBODY'S HAPPY WITH WORKING THROUGH, WITH FACILITIES MANAGEMENT ON THE EXISTING FACILITY THAT'S OUT THERE, WHAT TYPE OF RENOVATIONS CAN OR CAN'T HAPPEN AND SOME OTHER THINGS. SO YES, WE WE HOPE TO BE ABLE TO START THAT. THE OPERATOR AT JACK COLEMAN NEEDS TO MOVE OVER TO BOB DAY. SO YES, HOPE TO START THAT THIS YEAR.

WILL THAT BE A THIRD PARTY OPERATION FOR THE PICKLEBALL COURTS? YES. SO THE TENNIS OPERATOR THAT WE HAVE WILL RUN BOTH LOCATIONS. BUT WHILE JACK COLEMAN IS CLOSE THEY'LL JUST BE OVER AT BOB DAY. CURRENTLY THEY'RE AT JACK COLEMAN RIGHT NOW. OKAY. AND HOW MANY TENNIS COURTS ARE YOU KEEPING? WE ARE KEEPING FIVE, I BELIEVE. BUT I'M GOING TO DOUBLE CHECK THAT FOR YOU REALLY FAST. THE IDEA OF HAVING THE SAME OPERATOR WHEN WE DID THAT SOLICITATION FOR OPERATORS, THAT GIVES THEM BOTH SITES MAXIMUM ABILITY FOR TOURNAMENT SIZE FOR PICKLEBALL AND TENNIS. SO THEY'RE GOING TO MAINTAIN THE SAME HOURS BEFORE AT JACK COLEMAN TO BE DETERMINED. I WOULD IMAGINE THAT WILL START WITH THAT, BECAUSE THAT IS WHAT THE PUBLIC HAS BEEN USED TO. AND THEN THEY WILL EXPAND OR OR ADJUST AS NEEDED. BUT IT'S 20 DEDICATED PICKLEBALL COURTS FOR HYBRID COURURTS. THAT CAN BE THEY'RE GOING TO BE STRIPED. YOU COULD USE IT FOR EITHER OR. AND THEN IT'S FIVE DEDICATED TENNIS COURTS THAT WOULD STILL REMAIN.

THANK YOU. WHAT ARE THEY DOING WITH THE CLUBHOUSE? ARE THEY GOING TO USE THAT? AND IS THAT RENOVATION OF THAT FACILITY PART OF THIS BUDGET? IT HAS TO BE. I GOT A LONG WAY TO STRETCH A MILLION BUCKS. YES. AND IT COMES WITH CHALLENGES. AND SO WE ARE WORKING THROUGH OUR BEST, A FEW DIFFERENT SCENARIOS. DO WE JUST RENOVATE THE EXISTING FACILITY? DO WE LOOK AT ADDING A PREFAB RESTROOM FACILITY SO THAT WE CAN USE IT? BECAUSE AND YOU MAY BE ABLE TO BETTER

[04:35:03]

[04:40:03]

THANK YOU VERY MUCH. THANK YOU. THANK YOU. MOVE ON NOW TO OUR LIBRARY CIP PRESENTATION.

GOOD AFTERNOON, MR. MAYOR. COUNCIL AND MR. BETTS, I'M ERIN ARCHIBALD, DIRECTOR OF GARLAND LIBRARIES. SO OUR FIRST PROJECT IS FOR IMPROVEMENTS TO THE NORTH GARLAND BRANCH LIBRARY. AND FOR THIS PROJECT, WE WENT THROUGH AN EXERCISE TO IDENTIFY IMPROVEMENTS THAT WE WANTED TO MAKE FOR THE INTERIOR, KNOWING THAT THE SCOPE WAS LARGER THAN THE FUNDS THAT WE HAVE AVAILABLE. BASED ON THAT, WE WENT THROUGH A PROCESS TO PRIORITIZE ALL OF THOSE ITEMS THAT MADE THAT LIST. PART OF THE SCOPE ALSO INCLUDED ADDRESSING ANY CRITICAL BUILDING ISSUES THAT WERE IDENTIFIED IN THE FACILITIES CONDITIONS REPORT, WHICH FACILITIES MANAGEMENT DID. THERE WERE A FEW VERY MINOR ITEMS THAT MADE THE LIST, AND THOSE WERE ADDRESSED AND IMPROVED IN THE SUMMER OF 2025.

CURRENTLY, THE PROJECT IS IN THE DESIGN DEVELOPMENT PHASE AND WE ANTICIPATE CONSTRUCTION BEGINNING IN EARLY TO MID SUMMER 2026. WE'RE ALSO MAKING CONTINGENCY PLANS FOR ANY IMPACT THAT WILL MAKEOR OUR ANNUAL SUMMER READING LIBRARY PROGRAM, SO KIDS CAN STILL PARTICIPATE IN THAT, AND WE'RE NOT REQUESTING ANY ADDITIONAL FUNDING AT THIS TIME. BUT THIS PROJECT IS BEING SCOPED TO BUDGET WITH ADDITIONAL PHASES BEING BROUGHT. FUTURE CONSIDERATION. ON THIS SLIDE, YOU CAN SEE THIS IS THE SCOPE PRIORITIZATION LIST THAT WE CAME UP WITH. THE NUMBER ONE AND NUMBER ONE FOR THE OUR NEXT PROJECT AS WELL IS SAFETY AND SECURITY CONCERNS ADDRESSING THOSE. SO IT'S INSTALLING ACCESS CONTROLS THROUGHOUT THE INTERIOROR OF TH BUILDING, AS WELL AS SECURITY CAMERAS ON THE INTERIOR OF THE BUILDING. AND WE WANT THE PUBLIC TO HAVE SIMILAR USE EXPERIENCES AS THEY DO AT CENTRAL AND WEST. SO THE PROJECT ALSO INCLUDES PROVIDING SOME UPDATED FURNISHINGS AND ACCESS TO SOME SIMILAR TECHNOLOGIES, AND PUBLIC MEETING AND STUDY ROOMS. AS CENTRAL AND RUSS HAVE. AND HERE'S JUST A SNAPSHOT OF SOME OF THE THE BIG ISSUES, ESPECIALLY WITH THE FURNITURE FOR NORTH. IT'S BEEN VERY WELL LOVED AND WELL USED. NORTH LAST COMPLETE RENOVATION WAS IN 2007.

WE AVERAGE ABOUT 85,000 VISITORS TO THIS LOCATION EACH YEAR, AND SINCE THAT LAST MAJOR RENOVATION, WE'VE HAD OVER 1.6 MILLION VISITORS TO THIS LOCATION. OUR SECOND AND LAST PROJECT IS FOR THE INTERIOR IMPROVEMENTS FOR OUR SOUTH GARLAND BRARANCH LIBRARY. WE FOLLOWED THE EXACT SAME PROCESS FOR SOUTH AS WE DID FOR NORTH. WE WENT THROUGH AN EXERCISE TO IDENTIFY IMPROVEMENTS THAT WE WANTED TO MAKE TO THE INTERIOR AGAIN, KNOWING THAT THE SCOPE WAS LARGER THAN CURRENT FUNDING ALLOWED CRITICAL BUILDING ISSUES IDENTIFIED BY THE FACILITIES CONDITION ASSESSMENT WERE COMPLETED IN THE FALL OF 2025, AND SOME OF THIS WORK INCLUDED SOME MAJOR ROOF REPAIRS, FINAL FIRE PANEL UPGRADES, AND HVAC REPLACEMENT.

CURRENTLY, THE PROJECT IS IN SCHEMATIC DESIGN, AND WE ANTICIPATE THAT ALL OF THE DESIGN WILL BE COMPLETE BY LATE SUMMER, WITH CONSTRUCTION FOLLOWING SOON AFTER. WE'RE NOT REQUESTING ANY ADDITIONAL FUNDS FOR THIS PROJECT EITHER. AT THIS TIME, THE PROJECT IS BEING SCOPED TO BUDGET, WITH ADDITIONAL PHASES BEING BROUGHT FORTH FOR FUTURE CONSIDERAON.

HERE'S OUR PRIORITY LIST FOR SOUTH, WITH SAFETY AND SECURITY AGAIN BEING NUMBER ONE. AND JUST LIKE AT NORTH, WE WANT OUR PUBLIC TO HAVE SIMILAR EXPERIENCES AND SIMILAR ACCESS TO SERVICES AND PROGRAMING AT THIS LOCATION. AS WITH ALL OF OUR DIFFERENT LIBRARY LOCATIONS, THIS INCLUDES UPDATES TO PUBLIC SPACES TO PROVIDE ACCESS TO TECHNOLOGY. SO THINK MAKERSPACE

[04:45:01]

AND SO I'M VERY, VERY EXCITED TO SEE THAT WE'VE GOT THIS IN THE BUDGET. JUST WE HEAR PEOPLE ALL THE TIME SAY THAT SOUTH IS THE FORGOTTEN, LIKE THEY FEEL LIKE THE REDHEADED STEPCHILD.

AND SO I THINK THAT THIS IS DOING OUR PART AS A CITY TO REALLY JUST SHOW THEM LIKE YOU'RE NOT FORGOTTEN. AND I CAN'T WAIT TO SEE WHAT YOU DO WITH THE OUTSIDE, BECAUSE I THINK THAT'S REALLY GOING TO SET THE TONE FOR THAT AREA. SO THANK YOU FOR THANK YOU FOR GETTING IT IN THE BUDGET AND EXCITED. THANK YOU, THANK YOU, THANK YOU, MA'AM. COUNCILMEMBER WILLIAMS, THANK YOU. GOOD EVENING. REGARDING SOUTH, ARE YOU THE RENOVATIONS. AND THAT'S CAPTURED IN IN DISPOSAL. ARE YOU FOLLOWING. ARE YOU GOING TO DOES THIS ENOUGH TO TAKE CARE OF ALL OF THE RECOMMENDATIONS, INCLUDING THE CARPET AND THE FURNISHING AND AND EXTERIOR TO MAKE THE SOUTH UP AND COMING AND ADVANCED TO DO EVERYTHING ON THE LIST? NO, NO, BUT THAT'S WHY WE WENT THROUGH THE EXERCISE TO PUT EVERYTHING AT, TO PRIORITIZE ALL OF THE THE WORK, THE SCOPE THAT WE WANT TO DO SO THAT WE CAN WORK ON ADDRESSING THE MOST CRITICAL ISSUES WITH THE SCOPE OF THE FUNDING THAT WE CURRENTLY HAVE, AND THEN COME BACK IN FUTURE YEARS TO ASK FOR ADDITIONAL FUNDS TO BE CONSIDERED TO CONTINUE ON WITH THE RENOVATIONS FOR SOUTH, AND BEING TRYING TO BE VERY CAREFUL IN WORKING WITH OUR WITH OUR PROJECT MANAGEMENT OFFICE AND ARCHITECTURAL TEAM TO NOT UNDO ANY WORK THAT WAS DONE IN A PREVIOUS PHASE. SO, SO REALLY TRYING TO BE MINDFUL ABOUT THAT AS WELL. OKAY, I UNDERSTAND THAT ONE OF THE BIG, BIG CHALLENGES DOWN THERE WAS THE THE HVAC SYSTEM. RIGHT. WHERE DOES THAT STAND IN THE SCHEME OF RENOVATIONS? WE JUST HAD THE MAIN UNIT REPLACED, AND I

[04:50:04]

SO WORKING THROUGH TO MAKE SURE THAT WE'RE INSTALLING INTERIOR AND SOME EXTERIOR SECURITY CAMERAS, ACCESS CONTROLS FOR SAFETY INTO THE DIFFERENT ENTRY AND EXIT POINTS OF THE LIBRARY, AND SHORING UP SOME BACK ROOM SPACE INSTEAD OF JUST HAVING SOME HOLES THAT WILL ALLOW ACCESS BY PATRONS INTO THE BACK. AND THEN ONCE WE DO THAT, WE'LL LOOK AT TECHNOLOGY AND LOOK AT THE CONFIGURATION OF THE BUILDING TO SEE ARE THERE OTHER AREAS THAT WE CAN IMPROVE WORKFLOW, SAFETY AND FUNCTIONALITY OF THE SPACE AND SECURITY? THOSE THOSE CHANGES SHOULD BE MADE WHEN BY WHEN CONSTRUCTION FOR THAT SHOULD BEGIN TOWARDS THE END OF THIS CALENDAR YEAR. SO SOON. YOU KNOW, THIS THIS FISCAL YEAR, PROBABLY CALENDAR YEAR. YES, SIR. THEY SHOULD BE DONE WHEN THEY SHOULD BE COMPLETED. MAYBE I SHOULD REPHRASE THAT. IT SHOULD BE COMPLETED WHEN? NOT UNTIL NEXT YEAR. EARLY ISH. NEXT YEAR. LET'S SAY QUARTER TWO 2027. OKAY. ALL RIGHT. THAT'S THAT'S A GOOD ANSWER. THANK YOU MAYOR. THANK YOU SIR.

COUNCIL MEMBER THOMAS. YES. SO ON NORTH LIBRARY, IT WAS ATTENDED A RIBBON CUTTING IN SEPTEMBER OF 24, AND WE SPENT $900,000 ISH. WAS THAT MOSTLY EXTERIOR UPGRADES THAT WE DID AT THAT TIME? NONE OF THAT REALLY WAS FOR INTERIOR. CORRECT. IT WAS ALL EXTERIOR.

AND SO, I MEAN, I SAW THAT PICTURE THAT IT'S PRETTY CLEAR THAT DILLON'S KIDS ARE CHEWING ON THAT FURNITURE PRETTY HARD. SO THESE UPGRADES ARE TALKING ABOUT REALLY FOR INTERIOR, WHICH WE DID NOT ADDRESS A YEAR AND A HALF AGO. IS THAT RIGHT? CORRECT. OKAY. WELL VERY GOOD.

I JUST WANT TO MAKE SURE BECAUSE I KNOW WE YOU KNOW, I MEAN, DRIVING BY IT NOW, IT REALLY LOOKS GREAT. WE'VE DONE A GREAT JOB ON THE OUTSIDE. I COMPLIMENTS TO THE TEAM FOR HOW GOOD IT LOOKS DRIVING BY THAT PLACE. YOU DON'T NOTICE THE OTHER REST OF THE LITTLE SHOPS THERE. YOU JUST SEE THAT GLOWING LIBRARY BACK THERE, AT LEAST IN MY OPINION. SO THIS DOESN'T SEEM LIKE AN UNREASONABLE ASK TO DO THE INSIDE OF THIS AND HELP THAT HELP THAT SIDE OF IT. SO I JUST WANTED TO MAKE SURE THAT I UNDERSTOOD WHERE WE WERE THEN VERSUS WHERE WE'RE GOING NOW. SO OKAY. VERY GOOD. THANK YOU. THANK YOU MAYOR. THANK YOU SIR.

MAYBE PRO TEM WAS TEETHING OVER THE PAST FEW YEARS. SO MAYOR PRO TEM LUCK. DO YOU INTEND TO ADDRESS THE RESTROOMS AT SOUTH GARLAND BRANCH LIBRARY AT ALL? IS THERE? WE'LL ADDRESS SOME COSMETIC ISSUES. YES. OKAY. YES, YES. WONDERFUL. THAT'S GREAT. THANK YOU. ALL RIGHT. VERY GOOD.

ANY OTHER QUESTIONS FOR LIBRARY? THANK YOU. NEXT ITEM ON OUR LIST IS FACILITIES MANAGEMENT CIP.

ALL RIGHT, MR. MAYOR, COUNCIL CITY MANAGER, APPRECIATE THE OPPORTUNITY TO VISIT ABOUT THE FACILITIES MANAGEMENT BUDGET. I'VE GOT BILL WILSON DIRECTOR OF FACILITIES. JUSTIN JOHN ADMINISTRATOR OF THE DEPARTMENT. I'M PHIL ROOT, ASSISTANT CITY MANAGER. AND I WILL TURN IT OVER TO BILL, AND HE WILL TALK ABOUT OUR CIP FOR FACILITIES THIS YEAR. FANTASTIC. UP. FIRST, WE HAVE A NEW PROJECT THAT WE WERE ASKED TO LOOK INTO THE BOXING GYM FOR THE POLICE BOXING GYM, SORRY. AND WE PARTNERED WITH MCKINSTRY TO HAVE THEM DO A DEEPER ASSESSMENT ON THE FACILITY AND PROVIDE US WITH A PROPOSED BUDGET TO HANDLE THE THE FCA, THE DEFICIENCIES, THE COMPLIANCE ITEMS, LARGELY THE THE ROOFING A AND ELECTRICAL SYSTEMS. I WOULD EMPHASIZE THAT THIS 2000 OR $2 MILLION NUMBER

[04:55:01]

[05:00:02]

SO I, YOU KNOW, I'M, I DON'T I DON'T NECESSARILY AGREE THAT WE SHOULD WAIT ON IT, BUT I'LL DEFER TO COUNCIL ON THAT ONE. THANK YOU. THANK YOU MAYOR. THANK YOU MA'AM. COUNCILMEMBER DUTTON. SO I'M GOING TO START THIS THING. I KNOW THAT THE MONEY WE HAVE IS THE MONEY WE HAVE. SO THAT'S NOT MY MY NECESSARILY BIG ARGUMENT, BUT DO WE KNOW WHAT WE'RE PAYING IN ELECTRIC FOR THE BOXING GYM? I DON'T KNOW, OFF THE TOP OF MY HEAD, I WOULD HAVE TO DIG IN. I MEAN, IF YOU WANT ME TO FOLLOW UP ON THAT, I CERTAINLY COULD. OKAY. AND THE REASON WHY I ASK IS BECAUSE OF THE ELECTRICAL. THEY DON'T TURN THE LIGHTS OFF EVER, BECAUSE THEY DON'T KNOW IF THEY'RE GOING TO TURN BACK ON. AND SO I GUESS, LIKE MY BIG QUESTION IS IT'S FOR THEM. IT'S MORE THAN COSMETIC. I MEAN, EVEN IN IN THE PROJECT DESCRIPTION IT SAYS EMERGENCY CODE COMPLIANCE, IMMEDIATE SAFETY HAZARDS LIKE SO THOSE ARE KIND OF ALARMING. AND. IT IT'S IT'S THE GATEWAY TO DOWNTOWN ON TOP OF IT. YOU KNOW WHAT I MEAN. LIKE THERE'S ALL OF THESE DIFFERENT THINGS THAT I THINK THAT EVEN IF WE IF WE'RE NOT GOING TO SOLVE THE WHOLE ISSUE RIGHT NOW, TODAY, BUT IT'S JUST SOMETHING THAT I FEEL LIKE EVERYONE SHOULD KEEP IN THE BACK OF THEIR MIND IS, I MEAN, THEIR PLUMBING DOESN'T WORK LIKE, I MEAN, IT'S IT'S A MESS OVER THERE. DO WE KNOW WHERE THIS FACILITY SITS IN THE LIST OF TOP TO BOTTOM OF OUR FACILITIES? YEAH, IT'S TOWARDS THE TOP. REALLY OF OF BAD. YEAH. OKAY. AND THIS WE JUST TALKED ABOUT EXPANDING OUR DOWNTOWN FOOTPRINT AND THIS IS HEY, WELCOME TO DOWNTOWN GARLAND.

YOU KNOW THESE ARE OUR KIDS THAT, YOU KNOW, OTHERWISE WOULD BE GANG BANGING ON THE STREETS AND SHOOTING UP OUR NEIGHBORHOODS. AND AT SOME POINT, WE NEED TO REALLY FOCUS ON GIVING THEM A FACILITY THAT IS WORTH IT. IN YOUR OPINION, IS THIS FACILITY EVEN WORTH MESSING WITH, OR WOULD IT BE BETTER FOR US TO TEAR IT DOWN AND FIGURE SOMETHING OUT? SO WE TALKED. WE HAD SOME DISCUSSIONS WITH MCKINSTRY AROUND THAT. SO ODDLY ENOUGH, THERE'S AN IDENTICAL BECAUSE IT'S A IT'S AN OLD SAFEWAY. THEY WORKED ON ANOTHER OLD SAFEWAY ELSEWHERE THAT THEY WERE IT WAS BEING RENOVATED FOR ANOTHER PURPOSE. AND THEY SAID STRUCTURALLY, LIKE THE BUILDING, THE WALLS, THE FLOOR ALL LOOKS SOLID TO THEM. RIGHT? IT'S NOT GOING ANYWHERE. SO IT'S, YOU KNOW, IT'D PROBABLY BE WORTH RENOVATING. BUT, YOU KNOW, WE KIND OF BATTED BACK AND FORTH AGAIN ON LIKE HOW HOW FAR DO YOU WANT TO SPEND AND NOT REALLY GET ANYTHING TO SHOW FOR IT. YOU KNOW. SO, YOU KNOW, WE ALL AGREED THAT THESE ARE DEFINITELY ISSUES WE, WE WANT TO TAKE CARE OF. AND NORMALLY UNDER NORMAL CIRCUMSTANCES, IF WE DIDN'T HAVE TO DO SO MUCH DEMOLITION TO GET AT STUFF LIKE THE LIGHTING AND ALL THAT, AND THEN THE, THE KIND OF THE UNKNOWN OF THE ASBESTOS AND HOW MUCH THAT MIGHT, MAY OR MAY NOT TAKE IT MAY NOT 100%. IT'S THERE. WE HAVE WE HAVEN'T GONE IN AND DONE THE TESTING YET, BUT I HAVE THE FEELING DUE TO AGE AND SOME OF THE THINGS THAT THE THE WAY THAT IT'S BUILT, THAT IT'S MORE THAN LIKELY GOT IT. AND THAT'S WHAT WAS THEIR EXPERIENCE ON THAT OTHER BUILDING THAT WAS AN OLD SAFEWAY SIMILAR ERA. SAID IT WAS. THEY SAID IT WAS. I THINK IT WAS BETWEEN 200 AND 50.5 A MILLION TO DO THE ABATEMENT SIDE OF THAT. SO THAT DOESN'T LEAVE A TON OF ROOM, HEAD ROOM ON OUT OF THE 2 MILLION TO ACTUALLY GO IN AND EVEN ADDRESS THE THE COMPLIANCE ISSUES AND ALL OF THAT STUFF. SO IT'S A, YOU KNOW, IT'S SOMETHING TO THINK ABOUT. WE'RE HAPPY TO GO EITHER WAY. YOU KNOW, I MEAN, WE CAN GO IN THERE AND FIX WHAT'S NEEDED AND, AND HOPE WE CAN COME UP WITH SOME ADDITIONAL MONEY IN THE FUTURE TO GO IN AND ADDRESS THE THE OTHER ISSUES THROUGH FUNDRAISING OR SOME OF THOSE

[05:05:04]

AND SO HOWEVER THAT LOOKS, I THINK THERE'S PROBABLY MORE INFORMATION ABOUT THE WHOLE THING THAT I WOULD LIKE US TO KIND OF COMPILE, BECAUSE IT'S DEFINITELY NOT AS EASY AS IT'S NOT A CUT AND DRY SITUATION. SO. RIGHT. I D'T WANT TO SAY LIKE I'M COOL WITH WAITING UNTIL NEXT YEAR, BUT I THINK THAT MAYBE BEFORE OUR NEXT MEETING, THERE'S SOME OTHER INFORMATION THAT WE MIGHT LOOK AT AND HAVE A BETTER IDEA OF WHAT WHAT WE REALLY SHOULD DO. SURE. THANK YOU. WE DON'T WANT TO FIRE, YOU KNOW, LIKE IF THE ELECTRICAL IS OUTBOUND, LIKE, LET'S NOT LET'S NOT BURN IT DOWN WITH OUR KIDS IN THERE, NOT WITH THE KIDS IN THERE. OTHERWISE EMPTY. YEAH.

THANK YOU, THANK YOU. ANY OTHER QUESTIONS, COUNCILMEMBER BASS? THANK YOU. APPRECIATE YOUR HONESTY ON THIS. ON YOUR ON HOW YOU FEEL ABOUT IT. BUT THERE'S THERE'S THERE'S THREE THINGS.

ONE IS WHAT'S THE LONG TERM OBJECTIVE FOR BOXING OKAY. AND THEN THE THREE THINGS RELATED TO THAT ARE ONE. WHAT'S THE LONG TERM VISION FOR THIS PHYSICAL BUILDING? TWO IS IT WORTHWHILE TO LEAVE THE BOXING GYM IN THIS BUILDING OR THREE IS IT BETTER TO LOOK FOR A FACILITY ELSEWHERE THAT WHETHER THAT BE EXISTING OR FUTURE? AND I THINK THAT I WOULD REALLY I'D LIKE TO SEE SOME ANSWERS TO EACH OF THOSE. PRESENTED BEFORE WE MAKE A DECISION ON THIS. SO I UNDERSTAND. YEAH, IT'S AN OLD GROCERY STORE PHYSICALLY. THE, THE, THE BONES OF THE BUILDING ARE GOOD, BUT WE KNOW THAT NO MATTER WHAT'S DONE WITH THIS BUILDING, $2 MILLION AIN'T GONNA CUT IT. AND, YOU KNOW, AND I THINK NO MATTER WHAT YOU PUT INTO THIS, IT'S STILL, STILL NO MATTER HOW MUCH MONEY YOU PUT INTO THIS, IT IS NOT GOING TO BE THE IDEAL LOCATION FOR THE BOXING GYM. BUT THEN IF WE RELOCATE THE BOXING GYM, WHAT DOES THAT VISION LOOK LIKE? WHAT'S THE TIMELINE ON THAT? WHAT'S THE COST ON THAT? YOU KNOW, IDEALLY I WOULD HAVE YEAH, I WOULD HAVE LOVED TO HAVE SEEN THIS INCLUDED IN, YOU KNOW, THE NEW BOXING GYM INCLUDED IN THE 2025 BOND BUT THAT, YOU KNOW, THAT DIDN'T HAPPEN. SO I'D LIKE TO SEE, YOU KNOW, THE DREAM WOULD BE FOR THEM TO HAVE ANOTHER FACILITY, YOU KNOW, WHICH COULD BE TIED IN WITH OTHER USES AS WELL. BUT YEAH, I'D LIKE TO SEE WHAT THAT LOOKS LIKE. WHAT DOES IT LOOK LIKE LEAVING THEM IN HERE? AND THEN WHAT IS THE LONG TERM FUTURE OF THIS BUILDING ITSELF LOOK LIKE? OKAY. THANK YOU. LONG TERM, THE BUILDING'S WORTH KEEPING. OKAY. DEFINITELY WOULD AGREE. I MEAN, IF YOU WERE GOING TO DO A FULL RENOVATION, IT WOULD MAKE MORE SENSE TO HAVE OTHER PROGRAMS THAT OPERATED OUT OF THERE. WHETHER WHETHER IT'S, YOU KNOW, YOU BRING TRAINERS IN, THEY RENT SPACE AND RUN CLASSES OUT OF THERE. BUT, YOU KNOW, IT COULD BE A DIFFERENT KIND OF REC CENTER TYPE THING RATHER THAN JUST AN OPEN GYM LIKE A LOT OF THE REC CENTERS WE HAVE.

WELL, AND REALLY FOR THE FOR THE BOXING GYM, WE COULD HAVE A FACILITY THAT HANDLE ALL KINDS OF TERTIARY SPORTS. YOU KNOW, YOU COULD HAVE SEATING AND THEN YOU COULD HAVE I MEAN, THERE'S YOU JUST NAME, NAME A SPORT, YOU KNOW, WHATEVER. FENCING, DARTS, ANYTHING, ANYTHING YOU NAME, THOUSANDS OF PEOPLE ARE GOING TO TRAVEL TO GET HERE IF WE HAVE THE FACILITY FOR IT. SO, YOU KNOW, AND OF COURSE I KNOW RYAN, RYAN CHRISTIE'S LISTENING, YOU KNOW, INDOOR CYCLING AS

[05:10:03]

AND SO YOU KNOW HE EVERYBODY KNOWS HE'D LOVE TO SEE A FACILITY WITH THEIR VELODROME TRACK. AND YOU KNOW LONG TERM THAT'D BE GREAT. BUT I KNOW THAT WOULD BE REALLY LONG TERM.

SO I WANT TO SEE, YOU KNOW, WHAT IT LOOKS LIKE. AND IS THIS THE BEST PLACE FOR THE BOXING GYM? WE HAVE ANOTHER FACILITY THAT WOULD HAVE LESS MONEY PUT INTO IT THAT COULD BE A BETTER FIT FOR IT, BECAUSE IF WE'RE TALKING $8 MILLION, THEN YOU GOT TO LOOK AT RELOCATING AND PUTTING THAT $8 MILLION INTO SOMETHING ELSE THAT MIGHT BE A BETTER FIT. MY PREVIOUS JOB IN DENTON, THEY HAD A SAFEWAY OLD SAFEWAY TOO, AND THEY ACTUALLY CONVERTED IT INTO CAPITAL PROJECTS AND STREETS. AND SO IT WAS ACTUALLY A, AN ADMINISTRATIVE OFFICE WITH WITH CONFERENCE ROOMS UP FRONT AND MOVABLE WALLS THAT YOU COULD RECONFIGURE AND GOT REALLY WELL USED OUT OF THERE. SO AND IT TURNED OUT TO BE A GREAT, YOU KNOW, GREAT AREA. I MEAN, IT WAS ONE OF THOSE OPEN SPACE, OPEN CONCEPT ONES WHERE THERE WAS LIKE THREE DIFFERENT TEAMS THAT WORKED OUT OF THERE PERMITS WAS IN THERE. AND WOULD THIS BE WOULD THIS BUILDING BEING DOWNTOWN? I MEAN, THE SKY'S THE LIMIT ON WHAT WE COULD DO WITH THIS BUILDING. I MEAN, YOU COULD BE IT COULD BE A MAKER SPACE. IT COULD BE IT COULD BE ALL KINDS OF THINGS THAT, YOU KNOW, THAT THAT COULD BE, YOU KNOW, PARTIALLY CITY SPONSORED TO MAKE IT AFFORDABLE, YOU KNOW, SO THERE'S A LOT LONG TERM FUTURE THAT COULD BE DONE WITH THIS, THAT HONESTLY WOULD BE A BETTER FIT THAN THE BOXING GYM. YOU KNOW, I MEAN, IT'S KIND OF PIECEMEAL TOGETHER TO BE FUNCTIONAL AND, YOU KNOW, GOT TO GIVE ALL THE CREDIT TO DAVE SWABEY FOR THAT. BUT YEAH, THIS THING I MEAN, WE KNOW THIS THING'S HELD TOGETHER WITH GUM AND DUCT TAPE INTENTIONS. BEST INTENTIONS. YEAH. OKAY. WELL, I APPRECIATE IT, BUT YEAH, I THINK THAT, YOU KNOW, I'D LIKE TO SEE SOME JUST SOME OTHER NUMBERS D OPTIONS AND SOMETHING MIGHT BE, MIGHT BE A BETTER FIT THAN JUST ANOTHER PATCH JOB. OKAY. THANK YOU. THANK YOU SIR. AND JUST YOU SAID MENTIONED IN THE BOND PROGRAM. WE DID LOOK AT THIS IN THE 2019 BOND STUDY COMMITTEE.

THE ESTIMATE AT THAT TIME WAS $8 MILLION FOR A NEW BOXING GYM. THAT WAS $2,018. PUT IT IN PERSPECTIVE AND PERSPECTIVE. COUNCIL MEMBER BEARD. OKAY. YES, I WOULD LOVE TO HAVE FOR THEM TO HAVE A FABULOUS, NEW, WONDERFUL FACILITY. I KNOW THEY'VE KIND OF OUTGROWN THIS ONE, BUT WE DON'T HAVE ANYTHING IMMEDIATELY AVAILABLE FOR THEM TO MOVE TO, SO THEY'VE STILL GOT TO LIVE HERE. OKAY, I STILL HAVE TO LIVE IN MY HOUSE. AND YOU KNOW, I INSTEAD OF REPAINTING A NEW CABINETS, I UPGRADED MY WIRING AND MY PLUMBING. SO I DON'T AGREE WITH IF THEY'VE GOT TO STAY HERE, THEN ITT NEEDS THAT. AT LEAST WE NEED TO INVEST THAT $2 MILLION AND FIX SOMETHING TO JUST LET IT SIT AND CONTINUE TO DETERIORATE. DOES NOT SIT WITH ME VERY WELL AT ALL. NOW, IF WE'RE SAYING, OH, WE'VE GOT THIS OTHER BUILDING THAT WE CAN CONVERT AND THEY CAN MOVE INTO IT IN THE NEXT YEAR OR TWO YEARS, THEN GREAT, DON'T SPEND THAT $2 MILLION. BUT THERE'S NOT THAT OTHER BUILDING SITTING OVER THERE WAITING. SO YEAH, SOMETIMES YOU JUST HAVE TO UPGRADE PLUMBING AND ELECTRIC AND HAVE TO WAIT ON THE ESTHETIC LOOKING STUFF FOR IT. I DON'T LIKE THE IDEA OF THAT, OF OF IT SITTING THERE WITH THE ISSUES THAT WE KNOW IT HAS WITH PLUMBING AND ELECTRIC NOT BEING ADDRESSED. AND WE DO HAVE $2 MILLION BUDGETED TO GO TOWARDS THAT. MAKE IT LAST AS LONG AS YOU CAN AND DO AS MUCH AS YOU CAN. BUT IF THAT JUST MEANS TEARING INTO ONE WALL AND REWIRING THAT WALL AND REWIRING THE HVAC, AND THEY GET A PARTIAL NEW CEILING AND ONE NEW WALL, THEY GOT A PARTIAL NEW CEILING AND ONE NEW WALL AND LIGHTS THAT NOW WORK IN AC. THAT'S DEPENDABLE. SO THAT'S MY OPINION ON IT. YOU KNOW, THIS IS A GREAT PROGRAM. IT'S A NEEDED PROGRAM. WE DON'T HAVE ANY. YES THE BUILDING COULD BE USED FOR OTHER THINGS, BUT WE DON'T HAVE ANY PLACE TO PUT THEM IF WE USE THE BUILDING FOR OTHER THINGS. SO IF WE'RE GOING TO MAKE IF THEY'VE GOT TO STAY THERE, LET'S AT LEAST GIVE THEM SOME UPGRADE TO MAKE IT SAFE FOR THEM TO BE. THERE IS MY OPINION. THANK YOU VERY MUCH. THANK YOU, MR. MAYOR. PLEASE, IF I MAY, WE JUST HAD THE THE LIBRARY TALK TO US ABOUT THE UPGRADES THAT THEY'VE DONE WITHIN THE, THE NORTH AND SOUTH LIBRARIES, AND WE COULD UTILIZE THE SAME PHILOSOPHY BASED ON WHAT COUNCIL MEMBER BEARD IS SAYING, WHERE WE INITIALLY GO IN AND WE ADDRESS SYSTEM ISSUES AND THEN COME BACK FOR MAYBE FOR A FUTURE CIP, FOR POTENTIAL ESTHETIC TYPE TYPE UPGRADES. AND THAT MAY BE AN OPTION HERE

[05:15:05]

BUT COUNCIL MEMBER BEARD'S POINT, WE WOULD BE ABLE TO ADDRESS A LOT OF THE SYSTEM ISSUES FIRST. COUNCIL MEMBER WILLIAMS, THANK YOU. YOU ALLUDED TO YOU DIDN'T MENTION IT, BUT YOU ALLUDED TO IT. THE AGENCY BUILDING, IT'S AN OLD BUILDING PROBABLY DOES HAVE A SPECIALIST IN IT. I WOULDN'T I WOULDN'T BET ON IT, BUT I WOULDN'T BET AGAINST IT. OKAY.

WITH THE RESTORATION. RESTORATION THAT, THAT THAT THE KIDS EXERCISE IN THERE. IT'S GOT TO BE. SO I'D LIKE TO SEE YOU COME BACK WITH ONE. IF WE COULD INCLUDE AS AN ASBESTOS INSPECTION. SO, YOU KNOW, WE DON'T. WE'RE NOT. YOU'RE SPECULATING, BUT YOU'RE NOT SURE. THIS BUILDING. I BET YOU I KNOW FOR SURE THAT THIS BUILDING HAS ITS BEST HOLES IN IT. OKAY, SO WE NEED TO KNOW THAT FOR A FACT, RIGHT? COUNCILMEMBER, IF I MAY, JUST BRIEFLY, WE ARE YOU KNOW, WE CAN'T SAY FOR SURE, BUT WE WE ARE PRETTY CONFIDENT THE BUILDING DOES HAVE ASBESTOS DUE TO ITS AGE. BUT I THINK IT'S IMPORTANT TO NOTE THAT THAT ASBESTOS IS WHAT'S THE WORD I'M LOOKING FOR. IT'S IT'S ENCAPSULATED ENCAPSULATED WITHIN THE BUILDING. SO IT'S NOT IT'S NOT IN THE AIR. IT'S NOT IT'S NOT EXPOSED TO THE AIR.

BUT IT MAY BE PRESENT WITHIN THE BUILDING AS THERE ARE OTHER. BUT WE'RE WE'RE REASONABLY SURE THAT IT'S IN THE BUILDING. RIGHT, RIGHT. SO I'D LIKE TO SEE US COME BACK WITH LEAVE THAT THAT FIGURE IN THE BUDGET, BUT COME BACK WITH SOME SOLUTIONS, YOU KNOW, ADDRESSING EVERYTHING OVER THERE IN THAT BUILDING BEFORE WE DECIDE. WELL, WE'RE JUST GOING TO PUSH IT OFF.

WAIT UNTIL FOURTH QUARTER OF NEXT YEAR. CAN WE DO THAT? AND I APOLOGIZE, COUNCILMEMBER. YOU SAID ADDRESSING EVERYTHING. IS THAT EVERYTHING SYSTEM WISE OR EVERYTHING AS IN ESPECIALLY IN ADDITION TO WHAT YOU'VE MENTIONED, WE WANT TO HAVE THE BESTOS ISSUE. YEAH, THAT'S HAVE AN INSPECTION DONE AND COME BACK TO THIS COUNCIL AND INCLUDE THE INFORMATION FROM THAT INSPECTION IN THE REPORT. CAN YOU DO THAT? BECAUSE I THINK THAT WITH THE BUILDING THAT AGE, IT'S BEEN AT THAT LONG THAT THAT ACTIVE MEMBER SURE. THAT, YOU KNOW, IT MAY BE IN THE WALLS COVERED UP. OKAY. BUT BUT IF THAT IF THAT'S PRESENT, THEN IT'S SOMETHING THAT HAS TO BE DEALT WITH. SO I'D LIKE TO KNOW THAT FOR SURE BEFORE WE MAKE A DECISION ON WITHHOLDING THE MONEY OR DOING IT IN LAST QUARTER OF THE YEAR OR ETCETERA, CORRECT? YES, SIR.

THANK YOU, THANK YOU, MAYOR. THANK YOU SIR. COUNCILMEMBER THOMAS BILL, SO AS FACILITIES ENGINEER, DO THE FIRE STATIONS FALL UNDER YOUR CARE BUILDINGS? YEAH, THE ACTUAL BUILDINGS, THE BUILDINGS THEMSELVES. AND SO WE SAY WE DON'T HAVE ANOTHER BUILDING. I'VE GOT A BUILDING.

OLD FIRE STATION SIX IS IS EMPTY. NO PLANS FOR IT. AND IT WAS A PERFECTLY GOOD BUILDING.

IT JUST WOULDN'T FIT THE NEW MODERN FIRE TRUCKS. ANY THOUGHTS OF USING THAT BUILDING FOR SOMETHING ELSE, IF NOT THIS BOXING GYM? AND WE WOULD HAVE TO CHECK AND SEE SPACE WISE IF IT IF IT WOULD WORK. I KNOW YOU COULD FIT AT LEAST ONE BOXING RING IN THE IN THE BAY AREA.

NOT 1% SURE YOU COU FIT TWO, BUT MAYBE HOW MANY? HOW MANY RINGS ARE IN THE CURRENT BUILDING? THERE'S TWO. YEAH, BUT THAT IT WOULDN'T. THERE'S ALSO EQUIPMENT THAT WOULD ACTUALLY GIVE THEM A FOURTH OF THE SIZE OF THE BUILDING. THE BUILDING WAS OPENED OKAY FOR THE LOCATION BECAUSE ALL OF THEIR KIDS. BUSINESSES ARE LOCATED SPOT AND MOST OF THEM DON'T HAVE RELIABLE TRANSPORTATION. AND SO THIS IS THIS BEING CENTRALLY LOCATED IS ALSO VERY IMPORTANT. OKAY. COUNCILMEMBER THOMAS, IF I, IF I MAY, AS IT RELATES TO TO THE

[05:20:04]

SO WE MAY RUN INTO THE SAME THING IN THAT THAT FILITY AS WELL, DEPENDING ON THE TYPE OF USE FOR IT. YEAH, AND I DON'T REMEMBER THE EXACT, BUT I DO REMEMBER THAT THERE WERE SOME ISSUES THERE. I THINK THERE WAS SOME BUILDING GOING ON AND SOME OTHER ISSUES. IT'S ONE OF THE VERY FIRST ONES WE DID IN 2024. AND I HAVEN'T GONE BACK AND LOOKED AT THAT BECAUSE IT'S NOT TOP OF MIND. IT'S EMPTY BUILDING RIGHT NOW. SO BUT YEAH, I, WE WOULD HAVE TO DEFINITELY SPEND SOME MONEY THERE TO BRING THAT ONE BACK UP AS WELL. SO OKAY, MAYBE MAYBE COUNCILWOMAN BEARD CAN PUT THE BOY SCOUTS THERE WHEN SHE EVICTS THEM FROM THEIR CURRENT SPOT. SORRY, CHRIS. THANK YOU. MAYOR. COUNCIL MEMBER BEARD, YOUR TURN TO RETORT. OKAY, FIRST OF ALL, THE BOY SCOUTS DO HAVE ANOTHER SPACE AND THEY WILL BE OUT BY JANUARY 31ST. THANK YOU VERY MUCH. OKAY, ON THE ASBESTOS ISSUE, IF YOU GO IN TO DO THE ELECTRICAL AND THE PLUMBING, YOU'RE GONNA HAVE TO DO THE ASBESTOS INSPECTION ANYWAY. SO THAT'S ALL INCLUDED WITH ALL OF THAT, CORRECT? YES. I MEAN, I HAD TO DO IT AT MY HOUSE TOO. SO I MEAN, I FIGURED I'VE GOT A 1961 HOUSE. THEY HAD TO CHECK FOR ASBESTOS BEFORE THEY COULD REWIRE MY HOUSE. OKAY. SO THE ASBESTOS INSPECTION WOULDN'T BE INCLUDED IN ELECTRICAL AND PLUMBING UPDATES. ALL RIGHT.

AND YEAH, SO WE'VE GOT A PERFECTLY SOUND BUILDING THAT JUST THE INSIDE IS TOTALLY WHACK. AND FIRE STATIONHAT THE BUILDING IS WHACK, BUT IT'S A GREAT EMPTY BUILDING. SO LET'S DIG OVER HERE AND LET'S PUT OUR $2 MILLION, LIKE I SAID, LET'S LET'S SPEND $ $2 MILLIO WHILE WE HAVE IT ON WHAT WE CAN SPEND IT ON AND GET THE, THE, THE FUNCTIONAL STUFF THAT WE NEED ELECTRICAL, HVAC, PLUMBING, HOWEVER FAR THAT 2 MILLION WILL GO, INCLUDING THAT ASBESTOS INSPECTION. AND HOPEFULLY THAT CAN BE DONE WITHOUT HAVING TO DO TOO MUCH REMEDIATION. CROSS OUR FINGERS AND JUST MOVE FORWARD. FROM THERE. WE CAN DO FUNDRAISING FOR EQUIPMENT, WE CAN DO FUNDRAISING, WE CAN GET VOLUNTEERS IN THERE TO PAINT. WE CAN DO, YOU KNOW, WE CAN. WE CAN FIND SOME MONEY TO DO SOME OTHER THINGS FOR THERE. AND THEN NEXT YEAR, LET IT COME BACK TO CIP FOR SOME ADDITIONAL MONEY FOR TO CONTINUE AND JUST BUILD ON IT YEAR AFTER YEAR AFTER YEAR. ALL RIGHT. THANK YOU SO MUCH. I HOPE I ADDRESSED THOSE ISSUES. THANK YOU MA'AM.

COUNCILMEMBER MOORE, SECOND. WHAT I SECOND IS I DO BELIEVE JUST LISTENING TO EVERYONE AT THIS POINT AND FOR THE SAKE OF TRYING TO FURTHER THIS CONVERSATION AND KIND OF FINALIZE IT, IT DOES APPEAR THAT WE NEED TO UTILIZE THE MONEYS THAT WE HAVE AVAILABLE TO AT LEAST ADDRESS THE PROBLEMS THAT WE HAVE. AS FAR AS THAT MONEY WILL GO. I'M VERY MINDFUL, TOO, OF WHAT WE HEARD WHEN WE HAD OUR DISCUSSIONS OVER THE PAST FEW DAYS WITH OUR CITY MANAGER, AS IT RELATES TO OUR BEING SOMEWHAT CONSERVATIVE IN THE MANNER BY WHICH WE ARE SPENDING OUR MONIES, WE ARE AT THIS POINT. IN NEED. WE'RE IN NEED OF FINANCES, AND WE WANT TO ASSURE THAT WE DON'T EXTEND OURSELVES TO THE EXTENT THAT IT'S GOING TO CAUSE US FINANCIAL PROBLEMS. SO THAT WAS THE FIRST THING. BUT THE SECOND THING IS, I THINK THAT WE HAVE A FACILITIES MANAGER, WE HAVE A ASSISTANT MANAGER, WE HAVE ALL THESE PEOPLE WHO ARE AVAILABLE TO US TO SHARE WITH US THEIR FOCUS AS IT RELATES TO WHAT THEY FEEL NEEDS TO BE DONE IN ORDER FOR US TO GO FORWARD. AND I TRUST THAT AT THE SAME TIME, IF WE HAVE 2 MILLION THAT IS ALLOCATED, WHY DON'T WE GO AHEAD AND USE THAT MONEY AND THEN DO WHAT EVERYONE HAS SUGGESTED? YOU COME BACK TO US AND TELL US, DO WE NEED ANOTHER FACILITY? DO WE NEED TO RENOVATE THIS ONE? AND IF SO, WHAT DO WE NEED TO DO WITH THAT? SO THAT'S WHY I SAY I SECOND THAT MOTION. THERE'S A MOTION OF EVERYBODY KIND OF PULLED TOGETHER. THANK YOU, MR. MAYOR.

THANK YOU SIR. ANY OTHER QUESTIONS ON THIS ITEM? CITY MANAGER? WE I INCLUDED THIS IN THE CIP BECAUSE OF THE CODE COMPLIANCE AND SAFETY ISSUES THAT WERE IDENTIFIED. AND I

[05:25:06]

SO OUR OUR PROPOSED BUDGET FOR CIP FOR NEXT YEAR, THE LARGEST PORTION OR THE MAJORITY OF THAT IS TO CONTINUE WITH THE EXISTING FACILITIES IMPROVEMENT PROGRAM, WHICH AS YOU RECALL, IS I GUESS, THE PHASE TWO THAT CAME AFTER THE FACILITIES CONDITION ASSESSMENT. SO THIS IS THE PART WHERE WE GO IN AND ADDRESS THE ISSUES THAT WERE FOUND IN THE ASSESSMENT. WE IN 2025, WE WE TOOK ON THREE HIGH PRIORITY BUILDINGS. PART OF WHAT WENT INTO THE DECISION FOR DOING THE BUILDINGS WE DID WAS THE STAFF DENSITY OF THE BUILDING, THE OVERALL IMPACT ON OPERATIONS. IF SOMETHING WERE TO GO DOWN INSIDE THE BUILDING AND THEN ALSO, YOU KNOW WHAT? WHAT'S THE CONDITION OF THE STUFF THAT WE'RE TRYING TO REPLACE? SO WE CHOSE THOSE THE BUILDINGS THAT WE CHOSE BASED ON ON THAT KIND OF CRITERIA. AND I'LL DISCUSS THOSE BUILDINGS ON THE NEXT SLIDE. ALSO, TWO OTHER ITEMS WORTH MENTIONING THAT ARE IN THE 7.9 MILLION ASK IS RENOVATION AT THE PARKS ADMINISTRATION BUILDING ON APOLLO, AND A PROJECT TO REPLACE TWO DIFFERENT UPS UNITS FOR IT BACKUP AT WHAT IS IT AT THE IT BUILDING FOR IT AND THE EOC. AND THE OTHER ONE IS DUCKWORTH. YEAH. SORRY. DRAWING A BLANK.

SO THE THREE BUILDINGS WE WENT AFTER IN 2025 WERE THE JUSTICE COMPLEX. YOU SHOULD ALL HAVE A ONE PAGE SUMMARY OF ALL ALL OF THESE PROJECTS, ALONG WITH THE LIBRARY PROJECTS THAT GOT INCLUDED IN THE PACKET. AND THAT GOES INTO MORE DETAIL THAN I WAS GOING TO DIVE INTO.

UNLESS YOU HAVE SPECIFIC QUESTIONS. BUT WE TOOK ON THE JUSTICE COMPLEX. WE WE DID SOME MAJOR HVAC REPLACEMENTS. WE DID AN LED UPGRADE THERE, AND WE UPGRADED THE BUILDING AUTOMATION, WHICH WAS AGED OUT. YOU COULDN'T REPLACE ANY OF T OR YOU COULDN'T REPAIR ANY OF THE ITEMS BECAUSE THEY WERE BEYOND USEFUL LIFE. WE WENT INTO RONALD JONES REALLY THE

[05:30:01]

ONE OF THE ISSUES WE ADDRESSED THERE IS WE ADDED A SECOND CHILLER. WE HAD AN ISSUE A COUPLE OF SUMMERS AGO WHERE THE CHILLER THAT WAS THERE WENT DOWN, AND WE HAD TO SEND EVERYBODY HOME BECAUSE THERE WAS NO REDUNDANCY THERE. NOW THIS THIS WILL SOLVE THAT ISSUE ALONG WITH SOME, SOME OF THE PUMPS. THE PUMPS WERE SET. THEY THEY WERE SIZED FOR THE BARE MINIMUM OF FLOW AND FREQUENTLY THEY WOULD THEY WOULD RUN DRY AND SHUT THE WHOHOLE CHIER UNIT DOWN. AND IT WAS CAUSING A LOT OF EXCESSIVE WEAR AND TEAR. SO WE SOLVED THAT PROBLEM IN THIS ALONG WITH THAT SECOND CHILLER TO HAVE SOME REDUNDANCY. SO WE'LL WE'LL HAVE A LEAD LAG OR IT'LL, IT'LL SWITCH EVERY FEW WEEKS TO EQUAL OUT THE, THE USE BETWEEN THE TWO. BUT SHOULD ANYONE GO DOWN WE SHOULD BE ABLE TO HOLD THE BUILDING ON ONE CHILLER. SO. AND THEN ON ALL THREE OF THESE WE'LL BE DOING A COMMISSIONING WHICH WHEN THEY GO THROUGH IN COMMISSION, BASICALLY THEY'RE, THEY ARE PHYSICALLY CHECKING ALL OF THE, THE ACTUATORS AND THE SYSTEM. THEY'RE CHECKING THE CALIBRATION OF ALL THE TEMPERATURE SENSORS TO ENSURE THAT WHAT WE'RE SEEING ON THE AUTOMATION IS ACCURATE. AT THIS POINT, I DON'T LIKE CERTAINLY AT THE JONES BUILDING, I HAVE NO CONFIDENCE IN THAT. SO THIS WILL SOLVE THAT PROBLEM LARGELY AS WELL AND MAKE IT A LOT MORE COMFORTABLE. SO SO WE'LL STEP INTO THE THE 2026 ITEMS. I WANTED TO INTRODUCE AT LEAST THE FIRST PROJECT. EXCUSE ME, THE BRADFIELD RECREATION CENTER.

IF COUNCIL WILL RECALL, THIS WAS THE ONLY RECREATION CENTER THAT WAS NOT INCLUDED IN THE 2019 BOND PROCESS. AND SO THIS IS OUR FIRST TAKE INTO GOING INTO UPGRADE SYSTEMS. AND BILL CAN TALK A LITTLE BIT ABOUT ABOUT THAT PROJECT FOR BRADFIELD. WE'LL BE LOOKING AT LIGHTING, HVAC, THE ROOF, IT IT NEEDS A SAFETY LADDER TO PROTECT PEOPLE FROM GETTING ON THE ROAD THAT ARE GETTING ON THE ROOF TO WORK ON EQUIPMENT, AND IT WILL ALSO GET SOME BUILDING AUTOMATION UPGRADES THERE AS WELL. AND THEN THE SECOND PROJECT IS CITY HALL TO HOPEFULLY ADDRESS THE ISSUES BETWEEN THESE THREE ROOMS ON THE FIRST FLOOR SO THAT WE CAN WE CAN CONTROL THE TEMPERATURES BETTER BETWEEN THE ROOMS. RIGHT NOW IT'S IT'S A SINGLE SYSTEM.

AND SO WHEN YOU HAVE A LOT OF PEOPLE IN THIS ROOM OR A LOT OF PEOPLE IN THAT ROOM, IT'S IT GETS REALLY DIFFICULT TO MANAGE THAT. SO WE'RE GOING TO DO OUR BEST TO TRY AND ADDRESS THAT SO THAT IT'S NOT A CONTINUING ISSUE OF, YOU KNOW, TURNING IT UP IN THERE BECAUSE YOU GUYS ARE ALL IN THERE AND NOW, YOU KNOW, TURNING IT DOWN IN HERE BECAUSE IT'S FREEZING IN HERE, BECAUSE IT'S BEEN PUMPING COLD AIR TO KEEP THAT COLD. SO ANYWAY, THAT'S ON THE SLATE FOR NEXT YEAR. I'M GOING TO LET JUSTIN TAKE OVER. SO HERE'S OUR ESTIMATED SPENDING FOR ALL OF THE CIP PROJECTS IN 26. SO WE START OFF WITH THE PARKING LOT UPGRADES, WHICH IS ABOUT 684,000 ALL THE WAY TO WHAT BILL MENTIONED EARLIER FOR THE EXISTING FACILITIES IMPROVEMENT, THAT TOTALS TO $11,061,000. AND THEN THE NEXT SLIDE CAPTURES THE TOTAL PROJECT COST FOR ALL OF THESE PROJECTS. FOR PARKING LOT UPGRADES, THE TOTAL COST IS 3.3. THERE IS NO CHANGE IN TOTAL PROJECT COST FROM PRIOR YEAR, AND IT IS AN ONGOING PROJECT. THE PHYSICAL SECURITY UPGRADE. THE TOTAL IS 1.1 MILLION 65,000 AND IT'S A STANDALONE PROJECT. AND SO THERE'S NO CHANGE FROM PRIOR YEAR AS WELL. AND BOXING GYM THAT WE JUST TALKED ABOUT. AND THEN LASTLY, THE EXISTING FACILITIES IMPROVEMENT, THE TOTAL PROJECT COST IS 40,873,000. AND AS YOU CAN SEE THE CHANGE IS 6,000,001 59. AND THAT'S THE QUESTION. QUESTION.

COUNCIL MEMBER DUTTON I WAS TRYING TO FIND THE WHAT THE CITY HALL AMOUNT WE HAVE

[05:35:08]

AND OF THAT, THE 600,000 IS FOR LIKE 640,000 IS FOR BRADFIELD. AND THE BALANCE WOULD PROBABLY GO INTO THE CITY HALL HVAC UPGRADES. SO IT CAME IN. INITIAL ESTIMATES WERE RIGHT AROUND 6 TO 800,000 TO TRY AND ADDRESS THE ISSUES HERE. I MEAN, I CAN'T SPEAK FOR EVERYONE ELSE, BUT I'D RATHER PUT ON SOME EXTRA CLOTHES WHILE I'M HERE AND ALLOCATE OUR PORTION OF THE MONEY. TO SOMEONE ELSE THAT NEEDS THAT MORE THAN US. I FEEL LIKE KIND OF FIRST WORLD PROBLEMS FOR US, SO. BUT I APPRECIATE IT. THANK YOU. SURE. COUNCIL MEMBER THOMAS, SO YOU REPLACED THE FEDERAL PACIFIC PANELS THAT JONES BUILDING. YES. YES, I, I STILL SHUDDER WHEN I HEAR THAT TERM. I BOUGHT MY HOUSE 13 YEARS AGO. THAT WAS THE FIRST THING I DID IN THAT HOUSE. WAS BUILT IN 1980. WAS GOT RID OF THOSE PANELS. DO WE KNOW IF THOSE EXIST IN OTHER FACILITIES? I BELIEVE THIS ADDRESS, THE LAST OF THEM WE HAD WE HAD A FEW IN A COUPLE OF DIFFERENT BUILDINGS, AND I'M FAIRLY SURE THAT WE'VE ADDRESSED ALL OF THEM. YEAH, I JUST HEARD SOME HORROR STORIES IN THE NEIGHBORHOOD WHEN I FIRST MOVED IN THERE AND I SAID, OKAY, THAT'S GOT TO BE THE FIRST UPGRADE THAT WE DO. IT DOESN'T, YOU KNOW, YOU CAN'T SEE IT, BUT CERTAINLY GAVE ME PEACE OF MIND TO DO THAT. SO THAT'S WHAT I WANTED TO SEE IF WE'RE IF THAT'S, YOU KNOW, IF THAT'S ANYWHERE ELSE, THEN THAT SHOULD COME UP HIGHER TO OUR PRIORITY LIST AS WELL. SURE, SURE. OKAY. PART OF WHAT WENT INTO THE DECISION ON THESE REALLY WAS THE DENSITY AND HOW IT AFFECTED OPERATIONS. BUT I WILL TO BE CERTAIN I'LL GO BACK AND DOUBLE CHECK. YEAH. OKAY. VERY GOOD. THANK YOU. THANK YOU MAYOR. THANK YOU SIR. MAYOR PRO TEM LUCK I, I HAVE A QUESTION ABOUT THE ALLOCATION FOR THE FACILITIES, EXISTING FACILITIES, IMPROVEMENTS. ALSO, THE TOTAL PROJECT COST IS 7.96. BUT YOU SAID 1.36 IS THAT 1.36 IS ALLOCATED SPECIFICALLY FOR HVAC OR. I DON'T UNDERSTAND WHAT THE 1.3 THAT BILL WAS REFERRING TO.

THAT'S FOR THE FCA FOR THE WELL THE EFI PROGRAM. YEAH. YEAH. OKAY. I IT JUST SAYS 7.96 ON THE TOP OF THE PROJECT AND ON THE DETAILED PROJECT PAGE ALSO. OH SO THE FOR THIS YEAR. YEAH I CAN I CAN TAKE THAT. COUNCILMEMBER LUCK. THERE'S ALSO ACCOUNTS WITHIN THE EXISTING FACILITY IMPROVEMENTS FOR FOR HVAC WORK FOR ROOF WORK FOR FACILITIES REFRESH AND FIRE SAFETY PANEL IMPROVEMENTS. AND SO THOSE WERE IN THE PAST, SEPARATE LINE ITEMS WITHIN THE FACILITIES BUDGET. AND WE'VE CONDENSE THOSE INTO THIS FACILITY. EXISTING FACILITIES IMPROVEMENT ACCOUNT ALONG WITH THE FCA. AND SO WE ARE WORKING PROACTIVELY ON THE FCA WORK.

BUT WE DO HAVE ROOF LEAKS. WE HAVE HVAC FAILURES THAT ARE HAPPENING IN THE MEANTIME. SO THAT TOTAL AMOUNT IS BASED ON THOSE BUCKETS BEING PUT TOGETHER. ALONG WITH THE THE FCA WORK. WELL, I HATE TO DO THIS, BUT WOULD YOU GIVE US SEPARATE LINE ITEMS ON THOSE? I'D LIKE THE I'D LIKE THE TOTAL AMOUNTS BROKEN DOWN SO WE CAN SEE WHERE THEY ARE AND WHERE THOSE ITEMS FALL ON. ON OUR MASTER PLAN PRIORITY LIST, I GUESS. THAT'S ALL I HAVE. THANK YOU. COUNCILMEMBER WILLIAMS. I JUST WANT TO BE CLEAR ON BOXING GYM, THE FCA YOU'RE GOING TO OR PER OUR PREVIOUS DISCUSSION, YOU'RE GOING TO LOOK AT THAT AGAIN, THAT NUMBER AND BRING IT BACK TO US WITH WITH THE PARTICULARS. YES. YOUR OKAY. I WANT TO BE SURE THAT WE WE SHOULD NOT AND CANNOT PASS THAT RIGHT NOW WITHOUT THAT INFORMATION. OKAY. SO I JUST WANT TO MAKE SURE THAT EVERYBODY UNDERSTANDS WHERE WE ARE ON THAT THAT LINE ITEM.

OKAY. THANK YOU MAYOR. THANK YOU SIR. ANYBODY ELSE ON FACILITIES? ALL RIGHT I SEE NONE. COUNCIL. LET'S GO AHEAD AND TAKE A TEN MINUTE RECESS. WE'LL BE BAC ALL RIGHT.

[05:40:01]

THEY'RE HAVING COLLABORATIVE DISCUSSIONS ABOUT WHAT REALLY WORKS TO COMPACT THE TRASH THE BEST. SO WE'RE REALLY PROUD OF THAT. AND I JUST WANT TO TAKE A MOMENT TO SHARE THAT WITH YOU.

AND I'LL GO ON TO MY FIRST AND LAST SLIDE. SO WE JUST HAVE ONE PROJECT TO SHARE WITH YOU AT THIS TIME, WHICH IS THE LANDFILL ADMINISTRATION AND SHOP REMODELING PROJECT. THIS PROJECT STARTED FOR US IN 2021, AND IT'S GONE THROUGH SOME STAGES. WE'VE HAD A LITTLE BIT OF A DELAY, BUT TO BEGIN WITH, THE REASON FOR THIS PROJECT IS TO UPGRADE THE MECHANICAL SYSTEMS AND RENOVATIONS AND IMPROVEMENTS FOR THAT. WE ALSO ARE LOOKING AT THE RESTROOMS. I THINK YOU'VE ALL SEEN THE RESTROOM SITUATION DOWN THERE, SO I WON'T BELABOR THAT POINT.

BUT RESTROOMS, LOCKER ROOMS, BREAK ROOM TYPE OF IMPROVEMENTS, ALSO A SHOWER FACILITY, NOT ONLY A SAFETY SHOWER, BUT JUST A SHOWER. SO AT THE END OF THE DAY, THESE GUYS CAN CLEAN UP AND CHANGE THEIR CLOTHES BEFORE THEY GET IN THEIR CARS TO GO HOME. ANOTHER MAJOR REASON FOR THIS IMPROVEMENT IS THAT THE SHOP FACILITY IS A LITTLE OUTDATED, AND IF YOU LOOK IN THE PHOTO, YOU CAN SEE WE HAVE ONE OFUR COMPACTORS IN THAT PICTURE, AND IT'S IN THE BUILDING AND IT'S KIND OF ASKEW. AND THAT'S BECAUSE THERE'S ONLY ABOUT AN INCH OF ROOM ON EITHER SIDE OF THAT MACHINE TO GET IT THROUGH THE DOOR. SO THE POINT IS, THE EQUIPMENT IS GETTING SO BIG THAT THE BUILDING IS OUTDATED IN THAT WAY. SO THE ADDITION IS THE LEAST OF WHICH IS TO PUT BIGGER DOORS ON THE PLACE SO THAT WE CAN OPERATE IN THERE MORE EFFICIENTLY AND SAFELY. AS I SAID, THE PROJECT STARTED FOR US IN 2019. THERE'S BEEN A LITTLE BIT OF A DELAY THAT'S BEEN RELATED TO CAPACITY IN THE ORGANIZATION, BUT ALSO THE FACILITY ASSESSMENT INFORMED US THAT OUR MECHANICAL SYSTEMS REALLY NEED TO BE LOOKED AT. SO WE'VE GONE BACK TO SORT OF SQUARE ONE AND LOOKING AT THE PROJECT MORE COMPREHENSIVELY NOW, AND THAT'S

[05:45:02]

I WAS I WAS JUST CURIOUS. NO, SORRY. NO. SORRY. OKAY. AWESOME. THANK YOU. YES, COUNCILMEMBER WILLIAMS, I HAVE THE SAME QUESTION. OH. THE THE THE OFFICES AND BUILDING. IT'S THE OFFICE BUILDING AND THE SHOP AT THE LANDFILL. AND WHICH OF THOSE FIGURES IS ACTUAL FIGURE? FIGURE? IT'S THE NUMBERS. IT SHOULD SAY 2 MILLION. 369. ALISON, CAN YOU RESCUE ME? OKAY, OKAY. I MEAN, I'M SORRY ALISON'S CALLING YOU, RIGHT? OKAY. I'M. I'M WE'RE I'M TRYING TO FIGURE OUT WHAT HAPPENED WITH OUR VERSIONS BACK THERE. SO THE TOTAL PROJECT COST FOR THIS IS ALMOST 4.6 MILLION. THE 2026 SPEND IS ALMOST 3.4. IT'S THE 2,369,000 YOU SEE ON ONE OF THE VERSIONS OF THE SLIDES. AND THE INCREASE IN THIS PROJECT, OR WHAT WE'RE ASKING FOR WAS AN ALMOST $2 MILLION INCREASE. AND THAT'S DUE TO EVERYTHING THEY JUST PRESENTED. IS THAT CLEAR UP SOME OF THE THE CONFUSION WITH THE PROJECT COST? YES, MA'AM. HE DID. THANK YOU. OKAY, GOOD. OKAY. THANK YOU. ALISON. ANY OTHER QUESTIONS FOR LANDFILL? I HAD ONE QUESTION ON THE PLEASANT VALLEY ROAD ALIGNMENT STUDY. IT SAYS A PARTNERSHIP BETWEEN US AND DALLAS COUNTY AND SEXY. YOU GO A LITTLE MORE DETAIL ON THAT PROJECT I WISH I COULD I MY ANSWER IS I DON'T KNOW OF ANY PROGRESS THERE. AND IT'S ALSO NOT A PROJECT I'M MANAGING. SO WE'RE GOING TO HAVE CRYSTAL RESCUE ME THIS TIME.

* This transcript was compiled from uncorrected Closed Captioning.