* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:08] ALL RIGHT. SIX O'CLOCK IT'S TIME TO CALL TO ORDER THE APRIL 22ND TAX INCREMENT FINANCE THREE BOARD MEETING. WELCOME EVERYBODY. FIRST THING ON OUR AGENDA TONIGHT IS THE APPROVAL OF THE MINUTES EVERYBODY'S BEEN GIVING THEM. HAD A CHANCE TO REVIEW. UH, YES. WE HEAR A MOTION. SO GOT A MOTION AND A SECOND. SECOND. SO, ALL IN FAVOR? AYE. APPROVING A? ANYBODY OPPOSED? MOTION CARRIES. ALL RIGHT. SECOND PUBLIC COMMENTS. WE ACTUALLY HAVE PUBLIC HERE TONIGHT. YEAH. SO IF ANYBODY WOULD LIKE TO SPEAK, WE WILL PROVIDE YOUR TIME. YOU SURE? MM-HMM . OKAY. WE, WE GAVE YOU THE OPPORTUNITY. ITEMS FOR INDIVIDUAL CONSIDERATION TONIGHT ARE GOING TO BE STATUS UPDATES ON ACTION ITEMS FROM THE LAST MEETING. I THINK THAT'S ALLISON. IT IS. SO WE'LL JUMP RIGHT INTO IT AND FEEL FREE TO STOP US FOR QUESTIONS OR COMMENTS AS WE GO ALONG. SO FIRST ONE FOR STATUS UPDATE. UM, WE HAVE ESTABLISHED THE TEAM'S CHANNEL. UM, IT WILL BE SENT OUT TO EACH OF YOU, I BELIEVE TOMORROW FROM THE CITY SECRETARY'S OFFICE WITH INSTRUCTIONS. SO, UM, I'M GOING TO REFERENCE A BUNCH OF DOCUMENTS THAT ARE IN THAT TEAM'S CHANNEL. WE'LL DISCUSS ONE OF THEM TONIGHT AND YOU HAVE ONE OF THEM IN FRONT OF YOU TONIGHT ON, ON UNDER ITEM THREE B. BUT THERE'LL BE OTHER, UH, ITEMS IN THAT TEAM'S CHANNEL THAT YOU'VE REQUESTED AT OUR LAST MEETING. AND WHEN YOU'VE HAD THE OPPORTUNITY TO REVIEW THEM, FEEL FREE TO SEND ME ANY OF YOUR QUESTIONS AND WE'LL GET RESPONSES BACK TO THE ENTIRE TIF BOARD OR INCLUDE THEM IN OUR NEXT MEETING UPDATE, DEPENDING ON THE NATURE OF THE QUESTION. SO FIRST WE'LL BE, UM, THE CURRENT TIF THREE PROJECT AND FINANCING PLAN, WHICH IS ONE OF THE ATTACHMENTS OR ONE OF THE ITEMS YOU HAVE PRINTED IN FRONT OF YOU THAT WE'LL DISCUSS FURTHER UNDER THREE B, UM, HAS BEEN ADDED TO THE TEAM'S CHANNEL. UM, SOMEONE REQUESTED A, A COPY OF THE TAX CODE RE RELEVANT TO TIF. SO I HAVE PUT A PDF OF THE TEXAS TAX CODE CHAPTER IN THE TEAMS CHANNEL FOR THAT REVIEW. IT IS, IT IS A LENGTHY DOCUMENT. MM-HMM . SO CONTROL F WILL BE YOUR FRIEND ON, ON DIGESTING THAT. UM, BUT IF YOU HAVE ANY SPECIFIC QUESTIONS RELATED TO THAT DOCUMENT OR YOU'RE NOT ABLE TO FIND, YOU KNOW, MAYBE WHAT YOU'RE LOOKING FOR, JUST, JUST LET US KNOW. WE'RE HAPPY TO, TO ASSIST THERE. UM, A COPY OF THE TRAILS MASTER PLAN WAS REQUESTED. SO WE HAVE ALSO PUT THAT IN THE TEAMS CHANNEL. AND I WANTED TO CALL OUT FOR THIS BOARD, UM, THAT PARKS PROVIDED AN UPDATE TO THE CITY COUNCIL ON THE PARKS MASTER OR TRAILS MASTER PLAN PROGRESS, UM, THIS PAST MONDAY WORK SESSION. SO THAT VIDEO IS AVAILABLE ON THE CITY WEBSITE. UM, AND FOLLOWING THE MEETING, IF YOU'RE NOT SURE WHERE TO GO TO FIND THAT, I'M HAPPY TO, TO SHOW YOU ON YOUR DEVICE OF WHERE TO GO TO SEE THE PRIOR MEETINGS. AND THEN THERE WAS ALSO A REQUEST FOR INFORMATION ON, UH, 6 35, UH, PROJECT UPDATE, CONSTRUCTION UPDATE. AND THAT IS ACTUALLY SCHEDULED AT THE, UH, MAY 4TH COUNCIL WORK SESSION. WE'LL HAVE A TEXT ENGINEER COME PRESENT. UM, SO WE'LL, UH, CAN SHARE A LINK TO THAT INFORMATION. UH, THE AGENDA SHOULD BE POSTED NEXT TUESDAY FOR THAT MAY 4TH MEETING. I'M NOT SURE IF THEY'LL PROVIDE US THEIR PRESENTATION IN ADVANCE, BUT YOU WILL BE ABLE TO WATCH LIVE OR WATCH THE RECORDING FOLLOWING THAT DATE. PERSONAL UPDATE ON THAT ONE. ALL MAIN LANES ARE OPEN. MM-HMM . FROM 75 TO I 30. IT'S GREAT. THE EXPRESS LANES ARE NOT, BUT ALL MAIN LANES ARE OPEN, SO THAT WAS NICE. IT'S VERY NICE. CONTINUING ON, UM, A COPY OF THE HUNTIN PARTNER STUDY. THIS IS RELATED TO, UM, THE PROPOSED SOCCER DEVELOPMENT IN THE NORTH PART OF THE TIFF AT HOLFORD AND BUSH, UM, HAS BEEN ADDED TO THE TEAMS CHANNEL. UM, THE STUDY PROJECTS AN ECONOMIC IMPACT OF A YOUTH SPORTS ANCHOR DEVELOPMENT AT THAT HURFORD ROAD SITE. BUT WE DO HAVE A HIGH LEVEL SUMMARY ON THIS NEXT SLIDE THAT, UM, I'VE ASKED MATT TO WALK YOU THROUGH. SO BASED ON, AGAIN, BASED OFF OF THIS STUDY, IT WAS WHEN WE WERE STILL LOOKING FOR A USL TO ATHLETICO TO THE, THE MINOR LEAGUE, UH, SOCCER TEAM TO BE HOUSED AT THIS SITE. AND SO WE WERE TRYING TO GET SOME DETAILS ON, UH, KIND OF THE PROPOSED PLAN WHEN IT WAS UNDER THAT ARRANGEMENT AND BASED OFF OF HUNTINGDON'S ANALYSIS. UM, THEY WERE PROJECTING ABOUT 240,000 VISITORS COMING TO THAT SITE ANNUALLY. AND, [00:05:01] UH, NET KNEW WHAT THEY CALL ECONOMIC ACTIVITY OF ALMOST, ALMOST $1 BILLION WITH A POTENTIAL DIRECT IMPACT TO THE CITY OF 108. AND THIS IS OVER A 30 YEAR TIMEFRAME. SO YOU TAKE THAT 108, DIVIDE IT BY 30. UM, AGAIN, THIS STUDY IS A LITTLE STALE BECAUSE IT WAS BASED ON ATHLETICO. UH, WE ARE CURRENTLY, I THINK THE LAST TIME I MENTIONED THAT WE HAD AN RFP OUT FOR A, UH, SOCCER OPERATOR. 'CAUSE WE, UH, ARE CONTINUING TO PURSUE USE SOCCER. UH, WE ARE NOW IN NEGOTIATIONS WITH A GROUP TO, TO HELP FACILITATE THAT. AND IT'S A, A GROUP CALLED SPORTS DEVELOPMENT GROUP AND THEY ARE PARTNERING WITH EASTERN SPORTS MANAGEMENT. SO SPORTS DEVELOPMENT GROUP IS KIND OF THE TOURNAMENT AND THE COMPETITIVE ECONOMIC, I'D SAY THE ECONOMIC DEVELOPMENT ARM OF THAT. THEY'RE THE ONES THAT WILL BE BRINGING IN TOURNAMENTS AND ENSURING THAT, UH, THE FACILITY IS ACTIVATED EVERY WEEKEND. EASTERN SPORTS MANAGEMENT IS MORE OF THE OPERATIONS SIDE. THEY WILL HELP MAINTAIN, UH, THE, THE, UH, THE GRASS, THE, UH, TURF. THERE ARE TWO TURF FACILITIES AND ALSO THE CONCESSION STAND. UM, THEY, BOTH GROUPS HAVE TONS OF EXPERIENCE IN OPERATING FACILITIES. THE SPORTS DEVELOPMENT GROUP, YOU KNOW, THEIR GOAL IS TO PROGRAM THAT THING 44 WEEKENDS OF A, UH, OF A YEAR. AND THEY HAVE A REGIONAL PLAYER BASE OF ABOUT 35,000 TO 55,000 PLAYERS. AND ONE THING TO CALL OUT ON THAT AND WHY WE REALLY, REALLY KIND OF GEARED OUR, IN OUR SELECTION TOWARDS THIS GROUP IS THEY ARE, UH, EXTREMELY INTERESTED IN ENSURING THAT THE GARLAND RESIDENTS CONTINUE TO HAVE ACCESS TO THIS. SO THIS ISN'T GOING TO BE JUST ALL TOURNAMENTS, YOU KNOW, FROM OF CALIFORNIA TEAMS COMING IN, OKLAHOMA TEAMS COMING IN. THERE IS GOING TO BE A SIGNIFICANT AMOUNT OF TIME AND, AND, AND INSURANCE THAT, UH, GARLAND RESIDENTS AND GARLAND LEAGUES GET TO UTILIZE THIS FACILITY AS WELL. SO WE WILL, AS FAR AS FUTURE UPDATES, THE GOAL IS TO HAVE THAT CONTRACT BUTTONED UP BY JUNE. AND SO AFTER THAT IS BUTTONED UP, IT, I GUESS I WOULD RECOMMEND IF Y'ALL ARE INTERESTED, THAT WE PROVIDE AN OVERVIEW OF WHAT, WHAT THEIR SERVICES ARE GOING TO BE, UH, WHEN THEY PLAN TO, TO START ACTIVATING. I BELIEVE THE SITE RIGHT NOW, WE'RE PLANNING CONSTRUCTION TO START IN SEPTEMBER WITH THE HOPE OF, UH, THE FIRST LEAGUES PLAYING IN THE SPRING OF 2028. AND WITH THAT WE'LL HAVE UPDATED, UH, NUMBERS BASED OFF OF NOT JUST THIS HUNTING STUDY WITH, THIS IS KIND OF JUST FOR HISTORICAL REFERENCE, BUT WE WILL HAVE UPDATED ECONOMIC IMPACTS OF WHAT THEY'RE ANTICIPATING, WHAT THEIR PROFORMAS LOOK LIKE AT THAT TIME. ANY QUESTIONS ON THAT? I DON'T THINK SO. ALRIGHT. OKAY. WE'LL NOTE THAT FOR A FUTURE MEETING WORKED FOR ME. AND LAST JUST TO ROUND OUT, UM, OUR STATUS UPDATES, UM, LOOKING AT OUR PROJECTED MEETINGS. SO OUR NEXT MEETING, UH, HAS ALREADY BEEN SCHEDULED THROUGH CITY SECRETARY'S OFFICE FOR JULY 22ND. UM, LOOKING OUT AT OCTOBER, UM, I KNOW WE TRADITIONALLY, I BELIEVE TRY TO MEET ON THE THIRD WEDNESDAY OF THE MONTH. THERE ARE SEVERAL OTHER BOARDS THAT HAVE ALREADY BOOKED THE ROOMS FOR THAT DATE. SO, UM, AN ITEM FOR THIS GROUP, AND WE DON'T HAVE TO ANSWER TONIGHT. WE CAN, WE CAN PULL VIA EMAIL JUST TO GET EVERYONE'S PULSE ON AND PUT IT ON YOUR RADAR. UM, WE'LL NEED BE SEEKING DIRECTION AT THE NEXT MEETING ON THE DATE FOR OCTOBER. AND ANY DATES FOR DECEMBER ONCE WE CAN MAP THAT OUT. SO, UM, OCTOBER 14TH IS OPEN. THAT'S USUALLY A WEEK EARLIER THAN WE TYPICALLY MEET. UM, BUT WE COULD ALSO LOOK IN NOVEMBER. SO, UM, IF YOU WOULD MIND JUST LOOKING AT YOUR CALENDAR, I WAS GONNA ASK WHAT, WHAT ARE OUR OPTIONS IN SEPTEMBER SO WE COULD YEAH, WE COULD LOOK AT SEPTEMBER TWO. UM, LET COURTNEY AND I LOOK AT THE CALENDARS FOR THE ROOMS AND WE CAN PROVIDE SOME DATES TO THE BOARD AND, AND GET Y'ALL TO WEIGH IN VIA EMAIL, IF THAT'S ALL RIGHT. THAT'LL WORK. OKAY. AND THEN LAST IS THE MEDICAL DISTRICT STREETSCAPE PLAN. SO WE HAVE PUT THE PLAN IN THE TEAMS CHANNEL, AND THIS WAS MENTIONED SPECIFICALLY TO HAVE AN UPDATE AT A FUTURE MEETING. SO I'LL ALSO COORDINATE WITH THE STAFF MEMBER, UM, TO GET A PRESENTATION AT ONE OF OUR FUTURE MEETINGS TO WALK YOU THROUGH THAT. BUT IN THE INTERIM, YOU WILL HAVE THE PLAN MADE AVAILABLE TO YOU THROUGH THE TEAMS CHANNEL. SO MASSIVE DOCUMENT DUMP THROUGH THE TEAMS CHANNEL. THAT ONE WAS MASSIVE ANYWAYS. YES. UM, IF YOU'RE LOOKING FOR ANY INFORMATION AND YOU DON'T SEE IT IN THOSE DOCUMENTS, [00:10:01] FEEL FREE TO E EMAIL, EMAIL ME. SAME WITH QUESTIONS. AND, UM, IF YOU HAVE ANY DIFFICULTIES, ONCE YOU HAVE THE TEAMS CHANNEL ACCESSING ANY OF THE THIS INFORMATION, JUST LET US KNOW. UM, I CAN, I WOULD PROBABLY HAVE TO EMAIL THEM OUT INDIVIDUALLY, UH, JUST BECAUSE THE FILE SIZES ARE SO LARGE. BUT I'M HAPPY TO DO THAT AS WELL. IF YOU WOULD PREFER THAT METHOD OF DISTRIBUTION, JUST LET US KNOW. ANY OTHER I THE TEAMS IS PROBABLY A WHOLE LOT EASIER. IT IS AND YOU CAN DOWNLOAD IT. WELL, BUT JUST LET ME KNOW. EVERYONE HAS DIFFERENT TECHNOLOGY SITUATIONS, SO, SO FOR US, BE THINKING ABOUT THAT OCTOBER 14TH, THE NEXT MEETING, AND THEN WE CAN LOOK AT SEPTEMBER TOO. MM-HMM . I ALREADY LOOKED. I'M GOOD. YEAH, I'M GOOD FOR OCTOBER 14TH, MY DAUGHTER'S BIRTHDAY, BUT SHE'S IN ALASKA, SO I'M NOT GONNA BE DOING ANYTHING FOR HER BIRTHDAY UNLESS I FLY UP FOR HER 21ST BIRTHDAY. I DON'T KNOW YET. I'M THINKING ABOUT THAT, BUT, UH, WHERE IS SHE? SHE'S IN ALASKA. ALASKA. WOW. FORT WAYNE. WRIGHT. SO THEY FINALLY GOT TO 22 DEGREES TODAY, , AND SHE SAID IT'S BEAUTIFUL. OH, SO THEY'RE, THEY'RE IN ONE OF THE HARDEST WINTERS THEY'VE HAD. OH, WOW. UH, THEY'VE HAD SEVERAL NIGHTS WHERE IT WAS 60 AND 70 BELOW ZERO. OH MY. SO SHE'S, SHE'S HAPPY TO SEE 22 ABOVE . UM, THAT'S CRAZY. I DON'T KNOW THAT I'M GONNA DO THAT YET. SO, UM, THAT'S MY THOUGHTS. SO. OKAY. ANYBODY HAVE ANY QUESTIONS ON THREE A ANYWHERE IN THERE? ALL THOSE QUESTIONS LAST TIME, AND Y'ALL HAVE NOTHING TO KNOW. MAYBE UNDER THREE B , RIGHT? OH, SPEAKING OF THREE B, LET'S MOVE ON TO THREE B. TIFF. NUMBER THREE, PROJECT AND FINANCING PLAN OVERVIEW. I GUARANTEE YOU YOU'LL HAVE A QUESTION OR SIX ON THIS ONE. I'M, I'M SURE Y'ALL WILL. SO WE'LL DIVE INTO IT. UM, SO YOU HAVE THE PLAN IN FRONT OF YOU AS WELL. UM, IT, THE SLIDES ARE ABBREVIATION OF EVERYTHING IN THIS DOCUMENT. UM, SO THE, I BELIEVE EVERYONE IN THIS ROOM KNOWS THIS, BUT JUST TO GO OVER IT, THE TIFF WAS ORIGINALLY CREATED IN 20 19 20 18 TO SPARK REDEVELOPMENT IN THAT ORIGINAL BOUNDARY. HIGHLIGHTED HERE, UM, FOCUSED ON THE MEDICAL DISTRICT IN 2024. THE TIF THREE IES BOUNDARIES WERE EXPANDED NORTH AND SOUTH ALONG SHILOH, UM, REALLY KIND OF DE SYNERGIZE REDEVELOPMENT ACROSS THIS WHOLE KIND OF NORTH SOUTH CORRIDOR AND BE ABLE TO, YOU KNOW, TAKE ADVANTAGE OF SOME DEVELOPMENT HAPPENING IN THE NORTH TO HAVE SEED MONEY FOR PROJECTS ALL THROUGHOUT AND VICE VERSA. UM, IN 2025, AN UPDATED PROJECT AND FINANCING PLAN WAS ADOPTED. THIS WAS IN FEBRUARY OF 2025 BY THE BOARD AND THEN SUBSEQUENTLY CITY COUNCIL. UM, AND THAT EXTENDED THE TIFFS TERMINATION DATE FROM 2048 TO 2055. UM, SO THAT EFFECTIVE TERMINATION DATE FOR THE TIFF BOARD WILL, OR THE TIFF ZONE WILL BE DECEMBER 31ST, 2055. THIS IS BASED ON THE CURRENT PLAN. UM, AS THIS BOARD KNOWS WHEN WE PRESENTED LAST MONTH OR LAST MEETING, UM, THERE IS SOME CHANGES THAT HAVE HAPPENED SINCE THAT PLAN WAS ADOPTED. UM, WE'LL TALK THROUGH THOSE. UM, AND THE GOAL FROM A STAFF PERSPECTIVE IS AS WE GO THROUGH THIS BUDGET PROCESS, WHICH IS UNDERWAY RIGHT NOW, WORK ON MAKING UPDATES TO THAT PLAN TO BRING BACK THROUGH THE BOARD FOR FORMALIZATION AND THEN ULTIMATELY TO CITY COUNCIL. SO STARTING OFF, UM, WHEN THIS MOST RECENT PROJECT AND FINANCING PLAN WENT THROUGH THE PROCESS, IT WAS A PRIORITY OF THE BOARD AND CITY COUNCIL TO ENSURE THAT THE ORIGINAL, UH, INCREMENTAL VALUE ASSOCIATED WITH THE MEDICAL DISTRICT STAYED WITHIN THAT AREA OF THE TIF ZONE TO DO THOSE INITIAL IMPROVEMENTS IN THAT INITIAL INITIATIVE THAT REALLY SPARKED THE CREATION OF THIS TIF. AND SO IN ALL OF OUR PROJECT AND FINANCING PLANNING OUR TRACKING, WE ARE TRACKING THAT ORIGINAL ZONE AREA. AND THEN THE NORTH SOUTH EXPANSION IS TWO KIND OF SEPARATE BOOKS, IF YOU WILL. UM, EVEN THOUGH THEY ALL ROLL UP UNDER THE SAME FUND, WE'RE TRACKING THEM SEPARATELY AND ENSURING THAT, UM, THE MEDICAL DISTRICT ISN'T SUBSIDIZING PROJECTS IN OTHER AREAS. UM, SO FOR THE MEDICAL DISTRICT AREA, UH, OF THE TIFF ZONE, UM, WE DO HAVE SOME, UH, NON TIFF PROJECT COSTS THAT HAVE ALREADY OCCURRED, UM, RELATED TO SOME DEVELOPMENT AGREEMENTS, UM, THAT HAVE ALREADY TAKEN PLACE. AND THEN WE, UM, ARE HAVE EARMARKED OVER THE TIFF PLAN OVER THE LIFE OF THIS TIFF. UM, IS SOME PUBLIC IMPROVEMENTS IN CONSTRUCTION, UH, DURING THAT, IN THAT HEALTH PARK. AND THE, UH, PRESENTATION WE BRING BACK TO YOU, [00:15:01] UM, FROM STAFF REGARDING THE STREETSCAPE PLAN AND SOME OF THE IMPROVEMENTS OVER THERE, UM, WILL REALLY TIE INTO KINDA WHAT THE VISION OF THIS LINE ITEM WILL BE. UH, SO YOU'LL HAVE THAT PLAN IN YOUR TEAM CHANNEL AND WE CAN BRING IT BACK AT A FUTURE MEETING. UM, BUT RIGHT NOW THERE'S NOTHING ACTIONABLE OR, UM, REALLY BEING EXPENDED FROM THE TIFF FOR THIS LINE ITEM. RIGHT NOW, THERE IS BEEN SOME DESIGN EFFORTS RELATED TO SOME STREETSCAPING IN THE MEDICAL DISTRICT, BUT THAT HAS BEEN TEMPORARILY PAUSED, UM, DUE TO SOME DISCUSSIONS ABOUT, UM, TRYING TO SEEK, YOU KNOW, MAYBE A HOSPITAL PROVIDER OR, YOU KNOW, ATTRACTING A HOSPITAL. UM, AND SO WE ANTICIPATE SHOULD THOSE DISCUSSIONS CONTINUE AND ACCELERATE, THEN THIS WOULD MOVE UP AND BECOME VERY ACTIONABLE FOR THE TIFF BOARD AND FOR THE CITY COUNCIL. BUT AT THIS TIME, WE'RE HOLDING TO FIND THAT PARTNERSHIP FOR, UH, TO CATALYZE THAT AREA AND REALLY EXPAND THE MEDICAL OFFERINGS IN THE DISTRICT. I'LL PAUSE ON THE PROJECT PLAN FOR THE MEDICAL DISTRICT. TIFF, IF THERE'S ANY QUESTIONS. HAVE WE HEARD ANYTHING FROM THE VA ABOUT THE GARDEN AND RELAXATION AREA BEHIND THE HOSPITAL? WE SEE IF WE HAVE NOT, YOU THINK THE CITY OF GARLAND MOVES SLOW, THE FEDERAL GOVERNMENT MOVES EVEN SLOW , SO, BUT WE HAVE NOT HEARD ANYTHING BACK FROM THEM ON THAT. YOU CAN ONLY IMAGINE WHAT THEY'RE GOING THROUGH BECAUSE THEY'VE NEVER DONE WHAT THEY'RE DOING THERE BEFORE THEY BUILD THOSE BRAND NEW. CORRECT. THAT'S THE FIRST ONE THEY'VE EVER RETROFITTED. SO JUST THE SCOPE FROM A CONSTRUCTION AND LOGISTICS STANDPOINT JUST BLOWS MY MIND. AND I'M SURE THEY'RE LEARNING STUFF DAILY THAT THEY DIDN'T KNOW. SO I WAS JUST CURIOUS. I THAT, THAT'S ONE OF THE SPOTS THAT REALLY INTERESTS ME IS THAT AREA ALONG THE CREEK AND WHAT THEY'RE GONNA DO WITH IT. US AS WELL. BUT UNFORTUNATELY WE HAVEN'T HEARD BACK FROM 'EM ON, UM, ANY WORD ON FUNDING OR APPROVALS ON THAT JUST YET? JUST CURIOUS. SPEAKING OF THAT, UH, WORST CASE SCENARIO AS FAR AS THE VA, WHAT, UH, DO WE HAVE CONTINGENCY PLANS TO? WHAT HAPPENS IF THEY JUST WALK AWAY? BASICALLY, WE DON'T HAVE A CONTINGENCY PLAN FOR THAT IF THEY WALK AWAY. I MEAN, THEY OWN THE FACILITY AT THIS POINT AND WE WOULD HAVE TO, OBVIOUSLY WE WOULD BE BACK IN FRONT OF Y'ALL BECAUSE THE TIFF WOULD HAVE TO PROBABLY HELP WITH THAT CONTINGENCY PLAN IN SOME WAY TO FIGURE OUT WHAT WE'RE DOING WITH THAT FACILITY. BUT NO, THERE'S NOT A BACKUP PLAN FOR IF THE VA WERE TO CLOSE UP SHOP. LUCKILY I'VE HEARD THAT THEY'RE HAPPY. I'VE HEARD THAT THEIR USERS ARE HAPPY, THEY'RE JUST WANTING IT TO GO FASTER, BUT MM-HMM . THAT'S MOVE AT THE SPEED OF THE GOVERNMENT. SO ANYBODY ELSE? ALL RIGHT. OKAY. UH, MOVING DOWN TO OUR NORTH SOUTH EXPANSION, UH, CURRENT PROJECT PLAN. UM, THIS FIRST LINE'S HIGHLIGHTED IN YELLOW, I'LL COME BACK TO IT. UM, THE SECOND LINE ON THIS IS, UM, REALLY JUST A PLACEHOLDER. UM, 'CAUSE WE HAVE SUCH A LONG TENURE WITH THIS TIFF OUT TO 2055 OF EARMARKING, YOU KNOW, A LINE ITEM IN OUR PROJECT PLAN FOR AN ECONOMIC DEVELOPMENT INITIATIVE, UM, IN PARTNERSHIP WITH DART AT SOUTH GARLAND. UM, WE HAVE A SUBSEQUENT SLIDE JUST TALKING ABOUT THE ACTIVITY TO DATE THERE. UM, BUT THE, THE GOAL IS TO TAKE SOME OF THE LAND THE CITY OWNS OR HAS ACCUMULATED, UM, PARTNER WITH DART ON SOME OF THE LAND THEY HAVE IN, UH, THAT SPECIFIC AREA AND TRY TO CATALYZE, UH, A LARGER REDEVELOPMENT, UM, WITHIN THAT AREA NEAR GARLAND ROAD AND 6 35. UM, SO YOU'LL SEE IN THE PROJECT PLAN RIGHT NOW, ROUGHLY 29 MILLION, UM, OF TIF FUNDS OVER THE LIFE OF THE TIF, UM, WITH SOME EXTERNAL FUNDING FROM OTHER SOURCES. UH, MOST OF IT'S COMING FROM OUR ECONOMIC DEVELOPMENT BOND PROGRAM IN 2019, UM, FOR THE OUTSIDE OF THE TIF COST FOR A TOTAL INVESTMENT OF ABOUT 54.8 MILLION, UM, FOR THIS REDEVELOPMENT INITIATIVES IN THAT AREA. AND THEN LAST, WE ALSO HAVE SOME LAND ACQUISITION IN THAT AREA OUTSIDE OF THE TIFF AS WELL. UM, ABOUT 32.2 MILLION, UH, FROM OUR, UH, PRIOR BOND ISSUANCES, UH, FOR ECONOMIC DEVELOPMENT. UM, BACK TO THAT TOP LINE, UM, WE HAVE A SLIDE ON THIS. NEXT IS, THIS PLAN WAS ADOPTED AND AMENDED, UM, WHEN WE WERE STILL MOVING FORWARD WITH THE, UH, COMBINATION PROFESSIONAL AND YOUTH SOCCER COMPLEX, UM, WITH THE [00:20:01] TIF TO HELP WITH THE DEBT SERVICE COST ASSOCIATED WITH THAT FACILITY. UM, WE DID TALK AT OUR LAST MEETING ABOUT THE TIF, UM, ASSISTING WITH SOME OF THE DEBT SERVICE COSTS OF THE YOUTH SPORTS COMPLEX. UM, SO WE'LL BE BRINGING THAT BACK, UM, AS PART OF THE FY 27 BUDGET PROPOSAL FOR THE TIF BOARD AT OUR NEXT MEETING. UM, AND THEN WE CAN INCORPORATE THAT FORMALLY THROUGH AN UPDATED, AN UPDATE TO THE PROJECT PLAN. UM, BUT IT WILL CHANGE THE TIFF CONTRIBUTION SPECIFIC TO THAT FACILITY. IT WILL NOT BE THIS MUCH IN TOTAL VALUE. AND, UM, MY RECOMMENDATION TONIGHT WOULD BE, UM, WE FIND ANOTHER MORE GENERIC LINE ITEM TO PARK THE REST OF THOSE FUNDS IN. AND THEN AS WE MOVE FORWARD AS A BOARD, WE CAN IDENTIFY ADDITIONAL PROJECTS OR ADDITIONAL OPPORTUNITIES TO UTILIZE THOSE FUNDS THROUGHOUT THE TIF ZONE, UM, FOR IMPROVEMENTS OR TO JUST ENHANCE THE, THE ZONE. SO WE ARE NOT ASKING FOR THAT DECISION TONIGHT. JUST WANTED TO JUST PUT THAT FOUNDATION OUT THERE. WE'LL BE WORKING THROUGH THAT PROCESS OF ACTUALLY FORMALLY UPDATING THE PLAN WITH YOU ALL. SO JUST FOOD FOR THOUGHT AS WE MOVE FORWARD. SO MOVING INTO THE TIFF NORTH STONE AREA. UM, THIS IS THE SLIDE WE PRESENTED, UH, LAST TIME, JUST TO PUT BACK IN FRONT OF YOU FOR THAT WHOLE FORD YOUTH AND SOCCER FACILITIES PROJECT THAT'S MOVING FORWARD. UM, AS MATT MENTIONED, THIS IS WHERE WE'LL BE LOOKING FOR THAT THIRD PARTY OPERATOR TO COME IN, UM, AND REALLY ENERGIZE THIS, UH, FACILITY, UH, FOR THE CITY OF GARLAND, AS WELL AS, UM, REALLY BRINGING THE FOOT TRAFFIC TO HOPEFULLY SPUR FUTURE COMMERCIAL DEVELOPMENT, UH, RIGHT ALONGSIDE, UH, PRES BUSH TURNPIKE RIGHT THERE. I WILL SAY WE'VE HAD A LOT OF INTEREST IN THAT COMMERCIAL PROPERTY OUT OUT FRONT. SO WE'RE CURRENTLY WORKING ON, UM, AN RFP TO, TO PUT OUT FOR THAT SPECIFIC SITE. BUT THERE IS A LOT OF INTEREST WITH A LOT OF GREAT IDEAS ALREADY FLOWING THROUGH FOR THE, THAT COMMERCIAL SITE THERE WITH THE ANNOUNCEMENT AT FIRE WHEEL OF HEB. THAT'S THE DRAW THERE ALONE YEAH. IS GONNA BE HUGE. SO I MEAN, THAT, THAT OPENS THAT AREA UP FOR PRIME DEVELOPMENT AS WELL, SO MM-HMM . MM-HMM . CORRECT. I, I'M, I'M HAPPY THAT WE'RE LOOKING AT WHAT WE'RE LOOKING AT BECAUSE I THINK ROULETTE AND SAXY HAVE FUMBLED THE BALL IN A COUPLE OF PLACES ALONG ONE 90. YES. MY MY HOPE IS THAT WE DON'T GO ALL COMMERCIAL WAREHOUSES, NO . THEY, THEY'RE, THEY'RE DROPPING THE BALL IN THAT AREA. HUGE. AND I WANNA PICK IT UP AND RUN WITH IT. SO, SO IN TERMS OF THAT IS REALLY ALL FOR THIS SLIDE IS JUST UPDATING YOU. THIS IS THE PROJECT WE WOULD BE LOOKING TO REPURPOSE THAT YELLOW HIGHLIGHTED LINE TO SUPPORT. UM, AND THEN AS WE MOVE FORWARD WITH ANY COMMERCIAL, UH, PROSPECTS OR ENGAGEMENT WITH THIRD PARTIES, YOU KNOW, AS WE'RE ABLE TO SHARE THAT INFORMATION, WE CAN, WE CAN UPDATE THE BOARD AS WE MOVE FORWARD AND UPDATE ON THAT SOUTH GARLAND AREA. UH, THIS IS THE LAND ACQUISITION EFFORTS TO DATE. EVERYTHING IN YELLOW IS OWNED BY THE CITY OF GARLAND. LET ME MAKE SURE THAT'S A TRUE STATEMENT. YEAH, YEAH. THAT IS A TRUE STATEMENT. AND THEN WHAT YOU SEE HERE IS RED IS OWNED BY, UH, YOUR PRIVATE ENTITY, AND THEN THIS GREEN BOX IS THE DART FACILITY. AND SO IN PART, THE CITY IS IN PARTNERSHIP WITH DART TO DO, UH, A SWAP AND MAYBE RELOCATE THE TRANSIT CENTER, UM, WITHIN THAT KIND OF LOWER YELLOW BOX, UM, TO REALLY HAVE A BETTER LAYOUT FOR NOT ONLY THE DART CONFIGURATION AND DART BUSES COMING IN AND OUT, UM, PICKING UP PASSENGERS, BUT ALSO BECAUSE THEY HAVE, UH, AN UNDERUTILIZED PARKING LOT ASSOCIATED WITH THAT FACILITY. SO TO GET THAT LAND INTO, UH, KIND OF THE MIX FOR REDEVELOPMENT TO BENEFIT, UM, ALL OF US. AND SO ALONG WITH THAT WOULD BE THE RELOCATION AND REALIGNMENT OF MALAY BOULEVARD, UM, TO HELP FACILITATE, UM, THAT COMING IN AND OUT OF THOSE DART TRANSPORTATIONS. AND THEN THAT WE ARE WORKING WITH OUR ECONOMIC DEVELOPMENT TEAM TO DETERMINE, UM, ARE WE PRESENTING, YOU KNOW, SEEKING KIND OF DEVELOPER ENGAGEMENT OR PROPOSALS ON BOTH PARTIES AS BOTH, UH, AREAS OF THE PROPERTIES AS A ONE PACKAGE OR TWO PACKAGES. [00:25:01] UM, BECAUSE THAT UPPER YELLOW BOX, UM, RIGHT NOW IS, UH, BEING UTILIZED TO SUPPORT THE 6 35 CONSTRUCTION. BUT ONCE THAT COMPLETES, THAT WILL, THAT ZONE WILL BE FREE. WE'LL NO LONGER, YOU KNOW, BE LEASING IT TO THAT, UM, CONSTRUCTION GROUP. AND SO IT'LL BE OPEN FOR REDEVELOPMENT. SO RECENT THINGS THAT HAVE GONE ON IS, UH, WITH DART. SO WE HAVE A, IN OUR LOCAL AGREEMENT WITH DART, UH, WHERE YEARS AGO DURING, UH, COVID, THEY, THEY RETURNED SOME SALES TAX TO CITIES AND, AND THE CITIES HAD A CHANCE TO PUT IN FOR PROJECTS. AND OUR PROJECT AT THE TIME WAS TO RELOCATE THEM. AND THEN AT THE TIME IT WAS A SOCCER COMP COMPLEX THAT THIS IS WHERE THE SOCCER STADIUM WAS GONNA BE WITH, YOU KNOW, SOME MULTI-FAMILY AND MULTI-USE GOING IN WITH THAT. UH, WE RECENTLY HAD TO REVAMP THAT INTERLOCAL AGREEMENTS. SO WE'VE GOT THAT DONE. UH, IT'S, UH, UH, I THINK IT'S GOING TO THE DART BOARD VERY SOON, BUT THEY'RE FINALLY IN AGREEMENT WITH MOVING FORWARD. SO THE NEXT BIG THING IS, UH, WITH SIX 30 FIVE'S COMPLETION, IT'S CLEANING UP THE SITES. SO YOU CAN SEE THAT THERE IS STILL SOME FACILITIES ON CITY LAND. UH, ALLISON MENTIONED THE BATCH PLANT THAT'S UP AT THE HYPER BARN SITE. SO OUR NEXT BIG THING IS GOING TO BE UTILIZING THE DART FUNDS. WE HAVE TO BASICALLY MAKE IT PAD SITE READY. SO THAT'S GONNA BE THE NEXT BIG INITIATIVE. NOT NECESSARILY MOVING THEM OR THE ROADWAYS OR ANYTHING YET BECAUSE WE WANNA, WE WANT TO HAVE THE RIGHT PROPOSAL AND MOVE THEM IN THE RIGHT LOCATION. ANY QUESTIONS ON THAT ONE? DONE HERE? SO LOOKING AT, AND THIS IS, UH, MAYBE A LITTLE EASIER TO READ IN THE ACTUAL PROJECT PLAN ITSELF, UM, BUT JUST WANTED TO GO THROUGH OUR PROJECTIONS. THIS IS BASED OFF OUR 2025 TAX SPACE. UM, IT IS STILL EARLY YET FOR, UH, RECEIVING INFORMATION FROM THE APPRAISAL DISTRICT IN TERMS OF OUR 2026 PROJECTIONS. UM, WE WILL START TO RECEIVE THAT INFORMATION FROM THEM, UH, EARLY ESTIMATES IN MAY WITH REALLY BE BEST ESTIMATES BY THE TIME WE REACH IN JULY. 'CAUSE THAT'S WHEN THEY'VE GONE THROUGH, YOU KNOW, SOME OF THE APPRAISAL, PRO REAPPRAISAL PROCESS AND DISPUTE PROCESS AND, UM, THEIR NUMBERS ARE MORE FIRM AND WHAT THAT OUTLOOK WILL BE. SO WHEN WE MEET IN JULY, UM, WE'LL BE PRESENTING THE UPDATES TO THIS BASED ON THE INFORMATION WE HAVE. THEN IN TERMS OF LOOKING AT THE 2026 FORWARD TAX BASE, UM, BASED ON, UH, 2025, YOU CAN SEE THE PROJECTIONS, UM, IN TERMS OF REVENUE ASSOCIATED WITH EACH AREA OF THE TIF OUTLINED HERE FOR YOUR MEDICAL DISTRICT. UM, YOU'RE LOOKING AT A TOTAL OF 63.1 MILLION OVER THE LIFE OF THE TIFF. UM, THE BASE AMOUNT FOR THE NORTH SOUTH BASE OF, UH, 37.7 MILLION. UH, WE DO HAVE SOME, UH, ASSUMPTIONS IN HERE IN TERMS OF DEVELOPMENT, UM, IN AREAS OF THE TIFF THAT WOULD BRING IN, YOU KNOW, FUTURE REVENUE. UM, AS THOSE PROJECTS EVOLVE, THESE ASSUMPTION COLUMNS MAY CHANGE, BUT WE TRY TO BE VERY CONSERVATIVE WHEN WE'RE PROJECTING OUT AND 'CAUSE WE, WE DON'T WANT TO MAKE US AN ASSUMPTION OR OBLIGATE, UM, THE CITY AND THE TIFF BOARD TO A PROJECT TO WHERE WE MAY NOT HAVE THE REVENUE, UH, TO SUPPORT IN THE FUTURE YEARS OF THE PLAN. UM, SO THIS TAKE, YOU KNOW, THOSE ARE, UH, CONSERVATIVE ESTIMATES, BUT AS WE MOVE FORWARD WITH PROJECTS, WE TYPICALLY DO IT BASED ON OUR EXISTING BASE CAPACITY, OUR EXISTING ABILITY TO SUPPORT THAT, AND WE'LL, AND WE'LL TALK THROUGH THAT WITH YOU ALL AS WE GET CLOSER TO, UH, ACTUALLY ENGAGING ON FUNDING A PROJECT. UM, SO SOME ASSUMPTIONS BAKED WITHIN THIS PROJECTION IS THE MEDICAL DISTRICT WILL GROW ABOUT 1.5%. UM, OUR HISTORIC, YOU KNOW, TAX-BASED GROSS, UH, ABOUT 2.4%. SO THIS IS CONSERVATIVE. UM, OUR NORTH SOUTH BASE GROWTH GOING GROWING AT 1.5%. THE HOLFORD PROJECT, UM, A CONSERVATIVE ESTIMATE OF THAT, BRINGING IN ABOUT 75 MILLION IN VALUE, UM, AND THEN GROWING AT 1.5% OUT FROM THERE. UM, WE'LL NEED TO CONTINUE TO EVALUATE THE TIMING OF THIS AS WE GET FURTHER IN OUR DESIGN AND CONSTRUCTION AS WELL AS, UM, BRING IT, YOU KNOW, HAVE MORE CONCRETE COMMERCIAL PARTNERS IN THAT AREA. 'CAUSE IT MAY PUSH OUT THE DATE OF WHEN WE MIGHT SEE THIS KIND OF NEW CONSTRUCTION OR NEW VALUE COME ON. UM, ASSOCIATED WITH THAT SITE. UM, WE HAVE AN ESTIMATE, UH, FOR SOME DATA CENTERS, UH, IN THE TIF ZONE, [00:30:01] UM, SOME PLANNED FUTURE, UM, EXPANSIONS OF THOSE FACILITIES, UM, TO BRING IN SOME ADDITIONAL VALUE TO THE TIF ZONE. UM, WE'VE ONLY INCLUDED ABOUT 35% OF THEIR TOTAL PROJECTED VALUE. AND THEN FINALLY IN SOUTH GARLAND, WE'RE ASSUMING ABOUT A HUNDRED MILLION DOLLARS INCREASE IN OUR TAX BASE BY 2032, WHICH IS ABOUT SEVEN OR 35% OF SOME ESTIMATES WE HAD. OF COURSE, THE BIG ASTERISK ON THAT IS THAT COULD DRASTICALLY CHANGE POSITIVE OR BE REVISED DEPENDING ON WHAT WE ULTIMATELY DETERMINE THE USE OF THOSE TWO, THOSE SITES TO BE. UM, WE'RE HOPING IT WILL ONLY BE BETTER NEWS AS WE MOVE FORWARD WITH, UM, MAKING THOSE SITES PAD READY AND GETTING INTEREST FROM DEVELOPMENT PARTNERS. UM, SO TRY TO REMAIN CONSERVATIVE, BUT KNOW THAT EVENTUALLY AT SOME POINT WE WILL HAVE SOME DEVELOPMENT THERE THAT WILL BRING VALUE TO THE TIFF. UM, AND THEN A CONSERVATIVE AMOUNT OF INTEREST EARNINGS TO BE EARNED OVER THE TIFF. SO LOOKING AT A TOTAL TIFF PROJECTION OF 194.5 MILLION OVER THE LIFE OF THE TIFF. ANY QUESTIONS ON THE REVENUE SIDE? I HAVE A QUESTION ON THE, UH, DATA CENTER, THE, UH, SHOULD BREAK DOWN THE VALUE OF THE $840 MILLION, UH, BASED ON WHAT, SO THIS IS BASED ON THEIR DEVELOPMENT PLANS, UM, AND THEIR, UH, SITE PLANS THAT THEY'VE PROVIDED. UM, UH, THE ECONOMIC DEVELOPMENT DEPARTMENT, UM, SO THIS IS A CONSERVATIVE PROJECTION BASED ON IF THEY BUILD OUT ALL THE PHASES OF THE BUILDINGS THAT THEY'RE PLANNING ON THEIR RESPECTIVE SITES. UM, THIS COULD BE THE VALUE, THE REAL ESTATE VALUE, AND THAT IS ON THE GROUND ASSOCIATED WITH THOSE SITES. UM, SOME OF THE DATA CENTERS, THEY'VE ONLY DONE ONE, EITHER PHASE ONE OR THEY'RE JUST NOW BEGINNING PHASE TWO OF THEIR OVERALL SITE DEVELOPMENT, UM, UP NORTH OF PRESIDENT BUSH TURNPIKE. AND SO THIS IS AN ESTIMATE. SO IF THEY FULLY BUILT OUT ON THEIR SITES AS THEY ORIGINALLY SUBMITTED, THIS WOULD BE THE, THE VALUE ASSOCIATED WITH THAT. CAN YOU CONVERT THAT TO EITHER SALES TAX OR PROPERTY TAX? UH, WE GOT BOTH . THIS WOULD BE THE PROPERTY TAX. THIS IS THE PROPERTY TAX. SO SALES TAX DOESN'T FLOW THROUGH THE TIFF, IT JUST GOES DIRECTLY TO THE CITY. AND WE DO, WE DO, UH, A GOOD EXAMPLE OF THIS IS THE STREAM DATA CENTER, WHICH IS, UH, ONE OF THEIR TENANTS IS FACEBOOK. SO EVERY TIME THEY'RE CHANGING OUT SERVERS, UH, THEY SOURCE THOSE IN GARLAND AND, AND, AND GENERAL FUND GETS THE SALES TAX ASSOCIATED WITH THIS. SO THIS IS JUST LOOKING AT REAL PROPERTY VALUES. THIS ISN'T BPP EITHER. THIS ISN'T BUSINESS PERSONAL PROPERTY. SO THIS IS JUST THE VALUE OF THE HOMES. SO YOU CAN SEE THAT HOMES, DATA CENTERS BE A BIG HOME MM-HMM . AND YOU CAN SEE THAT WE'RE ONLY TAKING 35% OF THAT. SO, YOU KNOW, WHEN THEY GIVE US PROJECTIONS THAT YOU'RE, YOU'RE TALKING ABOUT LIKE $2 BILLION WORTH OF REAL PROPERTY VALUES, WE'RE TAKING 35% BECAUSE THEY HAVE THESE PHASED OUT AS THEY GET TENANTS. WE DON'T WANT TO, THEY CAN BE, UH, A LITTLE, LITTLE MORE ADVANTAGEOUS AND, AND, UH, UH, REAL, WE'RE A LITTLE MORE REALISTIC. SO WE'RE REALLY JUST LOOKING AT WHAT DO THEY HAVE ALREADY GONE THROUGH THE BUILDING PERMITS. IF YOU'VE BEEN UP THERE NOW, DIGITECH IS EXPANDING THEIR FACILITY, SO IT'S STREAMED DIGITECH AND NTT OR THE THREE DATA CENTERS. AND IF YOU'RE UP THERE NOW, YOU'LL SEE THAT THERE'S THOUSANDS OF WORKERS GOING IN TO DIGITECH AS THEY COMPLETE THEIR NEXT FACILITY. SO THAT, WHAT I WOULD ENVISION IS WHEN WE LOOK THROUGH THIS, WHEN WE GET OUR NEW TAX BASE THAT THE, THE, UH, DATA CENTER PIECE TO THIS PUZZLE, WE'LL ACTUALLY PROBABLY INCREASE AND WE WILL HAVE TO PUSH OUT THE HOLFORD IN THE NORTH SOUTH PIECE BECAUSE WE, WE, THE DEAL WE WERE LOOKING AT PREVIOUSLY HAS NO LONGER ON THE TABLE. SO WE'RE GONNA NEED TO PROBABLY PUSH THAT OUT TO BE CONSERVATIVE, BECAUSE I'M ASSUMING WE GAVE THAT WAS SOME, UH, TEXT THERE SOMEWHERE, UH, WITH TWO IN THE FACILITIES, NOT WITH STREAM. SO WITH NTT AND WITH DIGITECH. YES. AND THAT'S ALREADY TAKEN INTO ACCOUNT, SO WE'RE NOT DOUBLE DIPPING. WHERE IS THE DATA CENTER IN NORTH CLAND? UH, YEAH, THERE, THERE'S A DATA CENTER CLUSTER. ALL THREE OF THEM ARE UP OFF OF, UH, IF YOU KNOW WHERE LOOKOUT DRIVE IS MM-HMM . UP KIND OF PAST THE STRIKE REEL. IF YOU KEEP LOOKING BACK THERE, YOU'LL SEE SOME CRANES. THERE'S ALSO SEVERAL MULTI-FAMILY UNITS, UH, CIRCLE THAT KIND OF BACK UP TO IT. THEY'RE KIND OF IN BETWEEN, THEY'RE BEHIND THE MULTIFAMILY RIGHT ALONG PRESIDENT GEORGE BUSH. HOW, HOW IS THIS, UM, THOSE DATA CENTERS? I [00:35:01] KNOW THAT, UM, THEY'RE GONNA BE BRINGING IN, YOU KNOW, DOLLARS, BUT HOW IS IT AFFECTING OUR OVERALL COSTS WHEN IT COMES TO WATER, UTILITIES, THINGS LIKE THAT? WE, ON THE WATER SIDE VERY LITTLE. THERE'S BEEN A LOT OF TALK ABOUT, UH, THE USE OF WATER AND DATA CENTERS, BUT THESE FACILITIES ARE HEAVY POWER USERS. UM, AND WE HAD CONCERNS INITIALLY WHEN, ESPECIALLY WITH THEIR EARLY PROJECTIONS, BECAUSE IF YOU LOOK AT HOW MANY MEGAWATTS OF POWER IT WOULD TAKE TO RUN ALL THREE OF THESE FACILITIES AT FULL LOAD, YOU'RE TALKING ABOUT THE SAME AMOUNT OF MEGAWATTS TO RUN THE ENTIRE CITY. UH, HOWEVER, WE HAVE STRUCTURED ALL OF THE DEALS WITH THEM TO MAKE, TAKE ALL THE RISK OFF OF GARLAND. SO THERE WOULD NEVER BE AN INSTANCE WHERE S SAY WE'RE IN WINTER STORM URI AGAIN, AND THERE'S POWER OUTAGES WHERE WE'RE, WE'RE KEEPING THE HAVE TO KEEP THE POWER ON FOR THESE DATA CENTERS AND NOT OUR RESIDENTS. WE HAVE STRUCTURED THE DEAL TO TAKE ALL THE RISK OFF OF GP AND L. OKAY. SO IT'S JUST A PASS THROUGH. WE'RE JUST KIND OF PAYING PASS THROUGH. SO THERE'S, THEY'RE PAYING JUST MARKET RATE TO US, SO THERE'S NOT, WE'RE NOT PROVIDING ANY INCENTIVES TO THEM ON THE ELECTRIC SIDE. THEY'RE PAYING THAT MARKET RATE. BUT WHAT, WHAT THEY DO GET INCENTIVE IS, IS THAT THERE'S A SUBSTATION RIGHT THERE, AND WE'VE MADE UPGRADES IN CONJUNCTION WITH ENCORE TO THAT SUBSTATION TO ENSURE THAT THEY HAVE POWER. I DID SAY IT AT THE LAST MEETING, BUT THAT'S WHY THEY'RE PUTTING THEM THERE BECAUSE IT'S RIGHT ON THE BORDER OF ENCORE AND GPNL. SO IF GPNL CAN'T PROVIDE ENCORE CAN, IF NEITHER CAN PROVIDE, THEY HAVE THEIR OWN GENERATION AS WELL. SO, AND IT'S CALLED THE LOOKOUT SUBSTATION AS WELL, AND WE NEEDED TO HAVE IT UPGRADED ANYWAY. AND THEY THEY'RE ON A CLOSED LOOP WATER SYSTEM. CORRECT. SO THE INITIAL, THEY INITIALLY USED A LOT OF WATER AND THEN THEY JUST KEEP USING THE SAME WATER. I KNOW. WELL, , YOU DON'T BELIEVE THAT. THAT'S THE PAY ACT SUPPOSEDLY. OKAY. , I KNOW THAT THE, UM, LEGISLATURE, UM, THEY WERE HAVING SOME, UM, DISCUSSIONS ABOUT IT, AND THEY'RE STARTING TO LOOK A LOT INTO THE DATA CENTERS, AND I WAS LISTENING TO IT. THE PUC IS TRYING TO WORK ON A LOT OF REQUIREMENTS, AND THEIR GOAL IS TO MAKE SURE THAT THE COST DOES NOT GET PASSED ON TO THE CONSUMER. SO THEY'RE, THEY'RE TRYING TO PUT A LOT OF PROTECTIONS IN, BUT IT'S VERY BENEFICIAL AS FAR AS THE TAXES ARE CONCERNED FOR THE CITY. I THINK OUR BIGGEST CONCERN, IF YOU'RE WONDERING ABOUT CONCERNS, IS JUST THE, THE ADVANCEMENT OF TECHNOLOGY. AND, UM, YOU KNOW, DATA CENTERS HAVE TO BE BIG. THEY HAVE TO USE A LOT OF POWER, THEY HAVE TO HAVE A LOT OF SERVERS. UM, NOW IT'S MOVING INTO WITH AIS INCREASED. THERE, THERE, THOSE, THOSE, UH, MEGAWATTS ARE RAMPING UP EVEN MORE. BUT, UH, UH, YOU, THEY CALL ME, CALL US DOOM AND GLOOM BY THE WAY. BUT AT SOME POINT YOU'D HAVE TO IMAGINE THAT A DATA CENTER WILL, UH, BECOME A THING OF THE PAST, YOU KNOW, THIS KIND OF THE HOT THING NOW. SO THAT'S MORE OF OUR CONCERN IS WE DON'T WANT, UH, TO HAVE A TON OF DATA CENTERS POPPING UP ALL OVER THE CITY KNOWING THAT AND HOW FAST TECHNOLOGY CHANGES IN FIVE TO 10, 20 YEARS, THESE THINGS MAY NOT, MAY BE A THING OF THE PAST. THOSE ARE THE MAIN THREE CONCERNS, UH, USUALLY PEOPLE HAVE IS POWER USAGE, WATER, AND IF WATER'S GOOD POWER USAGE IS, IS RESOLVED IN THIS SITUATION. THE LAST ONE IS ALWAYS THE NOISE. AND THEN I WENT BY THERE YESTERDAY JUST TO SIT AND LISTEN AND GEORGE BUSH IS LOUDER THAN IT, SO MM-HMM . SITTING OUT THERE IN FRONT OF THEIR GATES, SO MM-HMM. CORRECT. NOW THE ONES THAT ARE HOUSING THE AI, THE HIGH CAPABILITY ONES, THEY'RE, THEY'RE NOISY. OKAY, WELL THEN WE DON'T HAVE THOSE AND THEN WE HAVE TO CONSENT. THEY'RE PROBABLY ALREADY, UM, CODES IN PLACE FOR THIS, UH, CASE. AND SOMEBODY WAS WANTING TO APPROACH A CITY AND PUT ONE FOR AI DOWN. WE JUST NEED TO BE CAREFUL. YOU DON'T WANT THE ENTIRE CITY COVERED IN DATA CENTERS. SO WE HAVE TWO, DID YOU SAY THREE? THREE? OKAY. THERE'S ONE MORE BEING BUILT OR NO, UH, WELL, THEY'RE IN DIFFERENT PHASES. SO THE ALL THREE ARE CURRENTLY HAVE FACILITIES, BUT THEY'RE IN DIFFERENT PHASES OF BUILDING A NEW FACILITY BECAUSE THEY HAVE TENANTS LINED UP. MM-HMM . AND HOW MANY PHASES ARE WE ALLOTTING TO THEM? UM, I DON'T, I BELIEVE DIGIT TEXT FIVE PHASES. AND WE CAN GET, WE CAN GET YOU THE DETAILS ON THAT AND PUT IT IN THE TEAMS, AND THEN WE CAN EVEN TALK ABOUT IT AT THE NEXT MEETING IF Y'ALL WANNA KNOW. I MEAN, WE COULD EVEN GET THE WATER USAGE AND OH, HONESTLY, I'M NOT WORRIED ABOUT WATER. THE WATER USAGE, THE WATER USAGE IS GONNA BE, UH, I JUST DON'T WANT ANOTHER, YOU KNOW, POWER OUTAGE. AND WE ARE TAKING RESOURCES FROM OUR COMMUNITIES TO, [00:40:01] AND WE'VE ALREADY SET OURSELVES UP. YEAH. AND WITH THAT, I FEEL COMFORTABLE WITH, I WILL SAY RIGHT BY MY HOUSE. THE SUBSTATION DISAPPEARED OVERNIGHT. I HAD A SUBSTATION THAT WAS ANTIQUE , AND I WOKE UP THE NEXT DAY AND I'M LIKE, WHERE DID IT GO? IT, IT JUST WASN'T THERE ANYMORE. I MEAN, LITERALLY THEY'VE, THEY'RE WORKING ON COMBINING SUBSTATIONS AND REALLOCATING POWER MM-HMM . AND I THINK THE NEXT ONE IS THAT WE'RE ACTUALLY DOING IS JUPITER AND SHILOH. YEAH. THAT'S THE NEXT ONE. RIGHT. SO I MEAN THAT, I I, EVERYBODY TALKS ABOUT GPNL BEING EXPENSIVE AND YOU KNOW, THEY HATE IT BECAUSE THEY GET FIVE BILLS IN ONE. OH, I LOVE IT. I LOVE IT. I WAS GONNA SAY, I LOVE IT. I'M, I, I THINK THAT THIS CITY DOES A GREAT JOB OF PROTECTING ITSELF AND I THINK THAT DURING WINTER STORM URI, IF THE REST OF THE GRID HAD NOT BEEN A PROBLEM, WE WOULD'VE BEEN FINE. WE WERE SHEDDING BECAUSE I THINK WE WERE GOING TO SHUT DOWN THE GRID IF WE DID NOT SHED. SO I WISH WE COULD'VE CUT, BUT THAT'S A WHOLE DIFFERENT STORY FOR A DIFFERENT DAY. I LIVE ONE IN, IN ONE OF THE FEW HOUSEHOLDS THAT IS NOT GPNL. WE HAVE LIKE THREE STREETS, I THINK, IN OUR NEIGHBORHOOD THAT I, I'M ACTUALLY ON TXU AND DON'T HAVE THE OPTION TO HAVE GPNL. YEAH. IT'S, UM, I PROBABLY SHOULD KNOW THIS, BUT THERE, I NEVER UNDERSTOOD THE SPRINKLING OF ENCORE ZONES WITHIN GARLAND. YOU WOULD THINK IT WOULD BE ON THE BOUNDARIES, BUT RIGHT. IT'S NOT. WE'RE RIGHT IN THE MIDDLE. BUT OUR, I MEAN, OUR HOUSE WAS BUILT IN 1966, SO I DON'T KNOW IF THAT HAS SOMETHING TO DO WITH IT. I DON'T KNOW. BUT IT'S ONLY THREE STREETS. BUT WE WERE, DURING ONE OF THE WINTER STORMS, WE WERE THE ONLY THREE STREETS IN ALL OF THE AREA THAT WERE WITHOUT POWER FOR FOUR DAYS. AND BECAUSE WE WERE SUCH A SMALL NUMBER OF HOUSEHOLDS, WE WERE NOT A HIGH PRIORITY. STEVEN STANLEY HELPED IN THAT SITUATION TOO. , I THINK HE'S ON THE SAME GRADE HOW THEY LOOK OUT FOR US. YEAH. SO, UH, QUESTION, UH, FOR THE DATA CENTER, UH, YOU SAID THAT WE'LL HAVE THE NUMBERS IN JULY KIND OF SHOWING WHERE THE CURRENT, WHAT THE CURRENT THREE YEAH. FOR THE, WE'LL HAVE WHAT OUR OUTLOOK IS FOR THE 2026 TAX BASE. UM, WE'LL KNOW EXACTLY HOW MUCH OF ANY NEW CONSTRUCTION VALUE ASSOCIATED WITH THE WORK BEING PERFORMED, IT'S GONNA BE REALIZED IN THAT TAX BASE VERSUS IT'S STILL PROJECTED FOR A FUTURE YEAR. UM, AND WE CAN KIND OF, WE CAN DO A DEEPER DIVE WITH YOU ALL ON THE PHASES WE'RE PROJECTING OUT AND THE TIMELINES ASSOCIATED WITH THAT. AND WITH THE FUTURE DATA CENTER COMING IN, UM, ARE WE FACTORING IN ANY, LIKE, REALLOCATION OF EMPLOYEES OR ANY OF THAT LIKE COMING, ARE WE PUTTING THEM IN THIS ON THE NUMBERS OF THE VALUE, UM, FOR THEIR HOMES AND THINGS LIKE THAT? THEY'RE GONNA BE BUYING OR UNFORTUNATELY, THERE'S NOT MUCH STAFF THAT IS HOUSE AND THEY'RE FIELD SERVERS. THEY'RE JUST, THEY'RE BLANK. SO. OKAY. I WAS JUST WANTING TO MAKE SURE I WAS FACTORING IN ALL OF THE, THE DOLLARS. YEAH. THE ONLY DOLLARS WE'RE FACTORING IN HERE IS REAL PROPERTY TAXES. REAL. OKAY. WHAT WE CAN PROVIDE IS GUESSTIMATES ON BUSINESS PERSONAL PROPERTY, WHICH IS ALL THE SERVERS AND COMPUTERS WITHIN THE FACILITY. AND THEN ALSO SOME, UH, INFORMATION GLOBALLY. WE CAN'T, IT'S CONFIDENTIAL INFORMATION ON SALES TAX, BUT WE COULD SHOW GLOBALLY, UH, PROJECTIONS ON SALES TAX. THESE THINGS ARE LIKE ANT HILLS, WHENEVER THEY'RE BEING BUILT, THERE'S HUNDREDS OF WORKERS MM-HMM . AND THEN WHENEVER THEY TURN ON, I THINK ONE OF 'EM THEY SAID WAS 25 OR 30 EMPLOYEES AND THAT WAS ON A BIG DAY. OH WOW. THEY, THEY RUN THEMSELVES. THEY HAVE MAINTENANCE TECHS AND MM-HMM . SERVER TECHS AND THERE'S NOT MANY PEOPLE IN THEM. AND ECONOMIC DEVELOPMENT DEPARTMENT GETS SOME DATA REGARDING EMPLOYMENT COUNTS FROM, UM, BUSINESS ENTITIES. SO I'LL SEE WHAT DATA THEY HAVE REGARDING THE DATA CENTERS ON THEIR EMPLOYEE COUNTS TO BRING BACK WITH ONLY THE REASON I KNOW THAT IS WE ASKED IN PLANNING AND ZONING, WHATEVER MM-HMM . MM-HMM . YEAH. WE WERE WORKING ON ONE OF 'EM, SO I'M EXCITED. I SO DID THEY TELL YOU I'M SORRY. OH, GO AHEAD. DID THEY TELL YOU WHEN THE NEXT PHASE, LIKE THEIR ESTIMATED TIME TO START? BECAUSE WHAT THEY WERE SAYING ON THE, UM, AT THE LEGISLATIVE, UM, COMMITTEE HEARING IS THAT THESE THINGS TEND TO MOVE A LOT FASTER. THEY'RE ABLE TO BUILD THEM A LOT FASTER AND THE, THEY GET ONLINE A LOT FASTER THAN NORMAL PROJECTS. WHEN THEY FIRST, UM, KIND OF CAME ABOUT TO THE CITY, THEY PROVIDED US PROJECTED TIMELINES. UM, OUR ECONOMIC DEVELOPMENT DEPARTMENT, UH, KIND OF KEEPS A TOUCH POINT WITH THEM ON THEIR OUTLOOK IN TERMS OF DEVELOPING. UM, SOME OF THE ONES WE HAVE, UH, DEVELOPMENT AGREEMENTS WITH, UM, HAVE SPECIFIC TIMELINES [00:45:01] I BELIEVE WRITTEN INTO SOME OF THOSE AGREEMENTS. UM, SO WE'LL LET THAT INFORMATION FOR ACCURACY WHEN WE'RE UPDATING THE PROJECTIONS AND BRING THAT BACK TO YOU. OKAY. AND ON THAT POINT, IT WAS MENTIONED EARLIER BY MR. TORRES ABOUT THE, THE TAX ABATEMENTS ON THESE, I, I DON'T, WHEN WAS IT? I CANNOT EVEN, IT HAS TO HAVE BEEN THREE, FOUR OR FIVE YEARS AGO THAT THEY'VE EVEN MET THE REQUIREMENTS TO GET ANY REBATES. 'CAUSE THEY'RE HAVE MOVED SLOWER THAN PROJECTED. MM-HMM . UM, BUT, AND THEN BACK TO THE POINT ON THEM BUILDING ON FAST, UH, THEY, THEY TEND TO GO AWAY FOR A WHILE BECAUSE IT'S ALL ABOUT GETTING A TENANT. THEY START GET, THEY GET A TENANT ON THE HOOK, THEY HAVE TO DECIDE WHICH DATA CENTER THEY'RE GONNA PUT 'EM IN. THEY'RE GONNA PUT'EM IN RICHARDSON, YOU'RE GONNA PUT 'EM IN MANSFIELD AND ARE YOU GONNA PUT 'EM IN GARLAND? WELL, IF IT'S GONNA BE IN GARLAND, THEY'RE GONNA WANNA MOVE FAST TO GET THAT FACILITY UP BECAUSE IT'S ALL ABOUT CASH FLOW AT THAT POINT. SURE. MM-HMM . SO WE PROBABLY WON'T SEE MUCH ACTIVITY UNTIL THEY ACTUALLY HAVE A TENANT. CORRECT, MM-HMM . WHICH IS WHY WE'RE VERY CONSERVATIVE AND OUR PROJECTIONS ON WHEN THOSE PHASES MIGHT OCCUR AND HOW MUCH VALUE WE'LL GET FROM THOSE PHASES. I ALSO MENTIONED THAT THESE ARE THE PROJECTIONS BASED OFF OF, YOU KNOW, KIND OF OUR BEST GUESS ON A LOT OF THIS. BUT, UH, I WOULD RECOMMEND AS A TIF BOARD AS WE MOVE FORWARD, NOT TO PROGRAM MM-HMM . ANY DOLLARS. SO WE MENTIONED THE, THE, UH, THE, UH, HOLFORD ROAD PROJECT, THE $25 MILLION SOCCER COMPLEX AND POSSIBLY, UH, TAKING ON THAT DEBT SERVICE. UH, USUALLY A BEST PRACTICE TO ME IS NOT TO SPECULATE ON GROWTH, BUT TO PROGRAM DOLLARS FOR SUPPORT WHEN IT'S ACTUALLY ON THE GROUND. SO I JUST WANTED TO REITERATE THAT THAT'S TYPICALLY BEEN OUR PROCESS WITH ALL THREE OF THE TIF BOARDS, UM, UH, OUTSIDE OF TIF TWO WHEN IT WAS ORIGINALLY CREATED FOR BASS PRO. THAT WAY YOU'RE NOT BANKING ON DEVELOPMENT THAT MAY OR MAY NOT OCCUR, ESPECIALLY WHEN THEIR DATA CENTER INVOLVED. AND THE RECOMMENDATION FOR THAT, UH, PRO, UH, HOLFORD SITE, THE SUPPORT, THE DEBT SERVICE IS WITHIN THE EXISTING CAPACITY OF THE TIFF TO DATE. SO IT'S NOT, WE'RE RELIANT ON FUTURE PROJECTIONS, BUT ANY FUTURE ACTIONS BY THE TIFF, UM, AS WE PROGRAM 'EM OUT AND WE TALK ABOUT 'EM AND THEY MATERIALIZE, UM, WE'LL BRING BACK THAT INFORMATION OF HOW MUCH WE CAN FUND AND WHAT THAT SEQUENCING WOULD LOOK LIKE. I'M GONNA ASK A WEIRD QUESTION ABOUT THE SLIDES YOU HAVE UP RIGHT NOW. MM-HMM . FISCAL YEAR 44, YOU WERE SHOWING A PERCENT OF CHANGE OF NEGATIVE 1.7%. IS THAT ? IS THERE A REASON WE, IS THAT ON PURPOSE THAT YEAR TO GO DOWN? I'LL HAVE TO LOOK. IT'S THE REASON THEY, I'M, I'LL HAVE, LET ME DIG INTO IT AND I'LL GET TO, I, I WAS JUST WONDERING IF IT HAD ANYTHING TO DO WITH THE DEBT SERVICE FROM THE NORTH SOUTH ENDING AT THAT TIME. I, IT, IT'S JUST ODD THAT EVERYTHING THERE IS, YOU KNOW, 1.5, 1.8, 1.5, THEN YOU HAVE THAT NEGATIVE THERE. IT'S LIKE, HUH? NOT THAT IT'S, IS IT THE INTEREST? IT'S THE INTEREST EARNINGS. YES. YES. SO THAT WOULD, THAT WOULD BRING US TO WHAT WAS THE PROJECTED EXPENDITURES WITHIN OUR 10. OKAY. THAT IT'S YOUR INTEREST EARNINGS ARE GENERATED BASED OFF, THERE'S ALWAYS A, YOUR AVAILABLE FUND BALANCE. OKAY. AND SO THAT IS WHEN WE WERE, THANK YOU FOR MAKING ME KIND OF RUN SEQUENCE THROUGH MY MIND. UM, THAT IS, AND THIS IS BASED OFF THE PREVIOUS PROJECT PROPOSED AT THE HOLFORD SITE. SO WE WILL BE REVISING THIS. YEAH. OKAY. UM, IT MAKES SENSE NOW SEEING THIS, BUT IT'S CONTEXT FOR YOU ALL OF WHAT'S IN OUR CURRENTLY ADOPTED PLAN MM-HMM . UM, AND THEN WHAT WE'LL BE WORKING ON REVISING AND BRINGING BACK AND WORKING THROUGH RECOMMENDATIONS OF HOW WE SHOW THESE DOLLARS IN THE FUTURE TO SUPPORT PROGRAMS AND PROJECTS IN THE TIF. UM, SO YOU'LL SEE, UM, WE DID HAVE A MAJOR INVESTMENT ASSOCIATED WITH THAT FACILITY THE YEAR BEFORE, WHICH DROPPED OUR FUND BALANCE AND WOULD YIELD LESS INTEREST EARNINGS. SO WHAT WE WERE GONNA DO WHEN WE WERE BUILDING THE STADIUM IS ISSUE A 30 YEAR DEBT AND WITH THE INTENT OF A CALL OPTION IN 2043 WHEN THE TIFF COLLECTED ENOUGH MONEY JUST TO PAY IT OFF. SO THAT'S WHY IT DROPPED, WHICH THAT CAUSED THE NEGATIVE NUMBER. I, I FIGURED THAT'S WHAT IT WAS, BUT I JUST WANTED TO MAKE SURE I WAS READING IT RIGHT. SO YOU WERE, THANK YOU FOR THE QUESTION. SO DO YOU GET, UM, THE, THE VALUE REPORT FROM THE APPRAISAL REVIEW BOARD PRIOR TO THEIR CERTIFICATION? 'CAUSE THEY'RE NOT GONNA CERTIFY THIS YEAR UNTIL JULY 24TH? WE DO. WE RECEIVE ESTIMATES. ESTIMATES. OKAY. SO WE'LL RECEIVE OUR FIRST ESTIMATE VALUE REPORT ON MAY 11TH. THE NEXT ONE WILL BE THE FIRST, I BELIEVE THE FIRST WEEK OF JUNE. I CAN'T REMEMBER THE EXACT DATE FOR [00:50:01] THAT ONE. UM, AND THEN WE'LL ABLE TO RUN THROUGH THEIR SYSTEM DAILY ESTIMATES. WE, I START DOING THAT IN JULY AND JUST WATCH THE VALUES MOVE, UM, BASED ON HOW MUCH THEY'VE CHANGED HISTORICALLY FROM THAT POINT IN TIME TO CERTIFICATION TO COME UP WITH OUR BEST ESTIMATE. SO WHEN WE MEET AS A TIF BOARD ON JULY 22ND, IT'LL BE RIGHT BEFORE WE HAVE CERTIFIED VALUES, BUT WE WILL HAVE WHAT WE'RE ESSENTIALLY PREPARING AS A, A BUDGET PROPOSAL AT THAT TIME FOR YOU. AND THEN WE CAN ALWAYS COME BACK OR UPDATE YOU IF THERE ARE ANY DRASTIC CHANGES TO THAT THROUGH CERTIFICATION. I THINK PRETTY, THE CHANGE IS PRETTY LOW BASED ON WHAT I'VE SEEN. IT JUST DEPENDS. DEPENDS WHEN THERE'S SOME OUTLIER EARS BIG AGENTS GO THROUGH. THERE CAN BE SOME, YEAH. IF IT'S A, IF A BIG AGENT GOES THROUGH REALLY LATE, THEN THEY MIGHT NOT HAVE THAT. YEAH. YOU HAVE SOME IN THIS TIFF, THERE'S SOME HIGH DOLLAR VALUES THAT ARE GOING TO BE PROTESTING THEIR TAXES. YEAH. YES. YEAH. AND ALSO FOR WHATEVER REASON, D DCA WITH TIFFS MM-HMM . TYPICALLY WE, YOU GOTTA KIND OF LET IT WORK OUT IN THE TIFFS FOR WHATEVER REASON. I WOULD, I'M NOT REAL SURE WHY THEY, IT KIND OF LAGS BEHIND ON THE REST OF THE CERTIFIED VALUES. MM-HMM . BUT WE'LL, WE'LL UPDATE YOU AS, AS WE, YOU KNOW, OF COURSE, MEET AT THEIR NEXT MEETING IN JULY, WHAT THE OUTLOOK LOOKS LIKE ONCE WE HAVE CERTIFIED VALUES AND, AND LET YOU KNOW OF ANY, ANY MAJOR CHANGES THERE. YES, SIR. QUESTION ON THE, UH, APPRAISED VALUE OF THE PROPERTIES, UH, DEC A JUST ISSUED THEIR APPRAISALS HERE, UH, LAST WEEK, TWO WEEKS AGO. THEY WILL VOTE ON THE, UH, FINAL PACKAGE, UH, JULY, AUGUST. THE REAL PROPERTY TAXABLE VALUE HERE, IS THAT BASED ON THE FIRST, WELL, ON THE APPRAISALS MADE BY THE DEC A OR IS THAT THE FIGURE COMES OUT IN JULY, AUGUST. IT'S THE JULY 25TH CERTIFIED NUMBERS CERTIFIED. OKAY. YEP. AND THOSE, EVEN THEY'RE CERTIFIED BY THEM, BUT KNOW THAT, UH, AS MORE AND MORE, UH, DISPUTES COME ON BOARD, THEY'RE STILL, THEY'RE NOT COMPLETELY ACCURATE. YOU'RE THE LEVY WILL CHANGE, CHANGE THE ADJUSTMENT THROUGH, UH, JANUARY. UH, THE REASON I ASK, OF COURSE YOU GOT THE TEXT PROTEST THAT HAPPENED BETWEEN NOW AND, AND, UM, JUNE, JULY, AND THEN THERE'S SOME SUBSEQUENT TO THAT ALSO. OKAY. ALRIGHT. THAT'S WHY WHEN SHE WAS TALKING ABOUT, SORRY, THE GO AHEAD. DAILY. DAILY AFTER THE SECOND, UH, EVR IS WHAT IT'S CALLED, THE ESTIMATED VALUE REPORT. THERE'S DAILY, SHE'S CHECKING BECAUSE THOSE IS WHEN THE DISPUTES ARE COMING THROUGH JUST TO SEE IF THERE'S DRASTIC EXCHANGES. I LOOK AT, ESPECIALLY AT THE END OF THE WEEK, THAT SEEMS TO BE WHEN THEY, THEY'VE UPLOADED THAT WEEK'S ACTIVITY INTO THE SYSTEM. THEY'RE NICER ON FRIDAYS. YEAH. THEY USUALLY, UM, HAVE THEIR HEARING BOARD HEARING FOR THE FULL BOARD ON THE FRIDAY AND THEN MM-HMM . EVERYTHING UPLOADS. YEAH. YES. IF I MAY FOLLOW UP ON THAT. MM-HMM . THE STATE'S DRIVE ON CUTTING BACK ON PROPERTY TAXES. IS THAT ALREADY FACTORED IN HERE IN TERMS OF ALL THE, WELL, I SHOULDN'T SAY POLITICAL, BUT, UM MM-HMM . THE ANTICIPATED REDUCTIONS THAT WERE, WERE, WERE INCOMING ALREADY. SO, OKAY. THIS MODEL, IF YOU REMEMBER, A TIF IS BASED ON YOUR INCREMENTAL GROWTH. MM-HMM . OF YOUR BASE VALUE. SO THIS IS ALL THE INCREMENTAL GROWTH PROJECTED OF EVERYTHING WITHIN THE TIF. UM, IT'S SET UP UNDER OUR EXISTING CONDITIONS UNDER, UH, SENATE BILL TWO TO WHERE YOUR TAX RATE IS DRIVEN DOWN. ESSENTIALLY, THE MORE YOUR PROPERTY VALUES GROW, IN ORDER TO ENSURE THAT ON THE, UH, WHAT IS YOUR OPERATIONS AND MAINTENANCE SIDE OF THE TAX RATE FOR YOUR GENERAL FUND IS CAPPED AT THREE POINT A HALF PERCENT. SO WHILE THE TIFF ISN'T SUBJECT TO THAT CAP, THE TAX RATE STILL CHANGES, WHICH MEANS YOUR OVERALL LEVY CHANGES FOR YOUR TIFF. AND SO THAT TA TAX RATE REDUCTION OVER TIME FROM THE O AND M SIDE IS FACTORED INTO THE MODEL. UM, IN TERMS OF THE PROPOSALS TO EXPAND EXEMPTIONS OR ELIMINATE PROPERTY TAX ALTOGETHER, THAT HAS NOT BEEN MODELED YET. BUT WE CAN, WE CAN WORK UP THOSE SCENARIOS OVER TIME. LET ME ASK, MOST OF THOSE PROPOSALS ARE FOR SCHOOL DISTRICT CORRECT. TAXES. SO THAT WOULDN'T ASK A QUESTION HERE. UH, WELL WE'RE, WELL KIND OF ON THE SUBJECT. WE'RE PUSHING 50%, UH, RENTAL PROPERTIES IN, IN GARLAND, UH, 33 40% FIGURE. ANOTHER FIVE YEARS, IT'LL BE 50%. ONCE THOSE PROPERTIES ARE RENTED OUT, ALL THE EXEMPTIONS ALL ARE GONE. SO IS THAT OFFSETTING ANY OF THE, YOUR PROGRAMMED [00:55:01] REDUCTIONS? UH, ON TIFFS? THIS TIFF IS ACTUALLY THE ONLY TIFF THAT HAS RESIDENTIAL PROPERTY IN IT. YOU TYPICALLY DON'T WANT RESIDENTIAL PROPERTY IN A TIFF. YOU WANT TO, YOU WANT TO KEEP IT DEDICATED TOWARDS EITHER BLIGHTED AREAS OR COMMERCIAL AREAS WHERE YOU'RE GONNA HAVE COMMERCIAL GROWTH. AND, UM, THERE'S ACTUALLY RESTRICTIONS ON HOW MUCH RESIDENTIAL. BUT IN THIS TIFF, UH, WHEN WE FIRST CREATED THE TIFF TO CATALYZE THE MEDICAL DISTRICT AREA, WE INCORPORATED THAT RIVER SET COMMUNITY. SO THAT RIVER SET COMMUNITY IS ALL NEW HOMES RIGHT NOW. SO I WOULD ANTICIPATE IT TO LAG DRASTICALLY BEHIND ON RENTAL PROPERTIES, UH, THAN THE REST. BUT YES, ALL, ALL THE HOMESTEADS, WE, I HAVEN'T FACTORED IN ANY, ANY PROPOSED BILLS THAT'LL BE IN THE NEXT LEGISLATIVE SESSION YET BECAUSE WE DON'T KNOW WHAT THOSE WILL BE. UH, I KNOW WE WERE TALKING IN THE BACK ROOM, THERE'S THE DOUBLE NICKEL BILL OF DROPPING THE AGE OF SENIOR DOWN TO 55. ALL THESE THINGS ARE JUST KIND OF SPECULATIVE RIGHT NOW. WE DON'T KNOW HOW FAR THEY GET INTO THE LEGISLATIVE PROCESS. WE WILL KNOW A LOT MORE, UH, YOU KNOW, IN 2027 TO SAY ABOUT THIS TIME ON WHICH ONE OF THESE KIND OF GETS LEGS AND IT MAY MOVE THROUGH AND WE WILL MAKE THOSE ADJUSTMENTS. BUT THERE, WE DON'T HAVE ANY OF THE ADJUSTMENTS ON THAT IN HERE. AND THEN, AND TYPICALLY IN THE TIFF THAT THEY'RE NOT REAL CONCERNING. 'CAUSE YOU CAN'T HAVE BPP. SO THERE'S NEW EXEMPTIONS FOR BPP THAT ARE INVOLVED, BUT YOU DON'T HAVE BPP IN THERE. IT'S ALL REAL PROPERTY, MOSTLY ALL COMMERCIAL. SO UNLESS THEY DO SOMETHING DRASTIC WITH THAT, THEN WE, THEN WE'LL HAVE PROBLEMS. AND THAT'S AGAIN, WHY WE DON'T LIKE TO SCHEDULE PROJECTS WITHOUT HAVING, YOU KNOW, MAKING SURE THAT WE'RE ONLY PUTTING WHAT'S ON THE GROUND. NOW, CERTIFIED VALUES AND THE ELIMINATION OF PROPERTY TAXES, THEY'RE USING THAT AS THE HEADLINE. BUT, UM, I ACTUALLY HEARD GOVERNOR ABBOTT SPEAK AND HE'S SPEAKING ONLY ON HOMESTEADED PROPERTIES AND ONLY FOR THE SCHOOL DISTRICT. THAT'S WHAT HE REALLY IS GOING TO BE TARGETING IF IT, IF IT GETS LEGS. SO WHAT THAT WOULD IMPACT IS BACK TO YOUR REVENUE ON REVENUE. I'M ON, YES. I'M ON THE REVENUE. ON REVENUE. WHERE THAT WOULD IMPACT, IF THAT WERE TO OCCUR IS IN THAT MEDICAL DISTRICT COLUMN ONLY. 'CAUSE THAT'S THE ONLY PIECE THAT HAS, UH, UH, HOMESTEADED PROPERTIES IN IT. AND HE'S ONLY TALKING ABOUT ELIMINATING SCHOOL DISTRICT TAX. SO GOOD LUCK THAT. YEAH. . SORRY, . THAT WOULD MEAN THE SCHOOLS WOULD BE COMPLETELY STATE FUNDED. MM-HMM . ANYTHING ELSE? SO THIS SLIDE JUST KIND OF RECAPS. UM, SO THE LAST UPDATE WAS IN FEBRUARY OF 2025. AS MENTIONED, THE BUDGET PROCESS IS UNDERWAY. SO WE'VE BE WORKING ON THAT PROPOSED BUDGET AND REVENUE PROJECTIONS FOR THE ZONE AND PRESENT THOSE AT THE NEXT MEETING, INCLUDING THE DEBT SERVICE ASSOCIATED WITH THAT SOCCER FACILITY. UM, ANY REMAINING FUNDS NOT ALLOCATED. UM, WE'LL BRING SOME RECOMMENDATIONS ON SOME BROAD, UM, KIND OF BUCKETS FOR THOSE, UM, FOR CONSIDERATION IN, IN OUR, UH, UH, NEXT UPDATE TO THE PROJECT AND FINANCING PLANS THAT THEY'RE AVAILABLE, UM, TO BE ENERGIZED ON ANY FUTURE PROJECT OPPORTUNITIES. UM, AND THEN, YOU KNOW, STAFF WILL, YOU KNOW, GET FEEDBACK FROM YOU AT THE JULY MEETING. AND THEN, UM, TARGET, UM, HAVING THAT UPDATED PROJECT AND FINANCING PLAN, UM, THROUGH THE BOARD'S CONSIDERATION. AND THEN ULTIMATELY CITY COUNCIL, UM, THE, I'M BEING REAL, REALLY REALISTIC IN SAYING 2027. I WOULD LIKE TO HAVE IT TO YOU SOONER, BUT, UM, THERE ARE SOME BIG INITIATIVES ON THE CITY'S PLATE, SPECIFICALLY IN THE BUDGET AND FINANCE DEPARTMENT. SO I JUST WANNA BE REALLY REALISTIC WITH THE BOARD. BUT WE WILL TRY TO GET IT DONE EARLIER THAN THAT. I JUST WANTED TO BE REALISTIC WITH YOU ALL . SO, BUT WE WILL BE TALKING ABOUT IT THROUGH OUR NEXT MEETINGS. WE WILL NOT LET IT STALE OUT AND WE CAN SHOW THE PROGRESS AND IT WILL GIVE YOU OPPORTUNITY SEVERAL MEETINGS TO GIVE INPUT IN EXACTLY WHAT THAT DOCUMENT WILL LOOK LIKE. AND THAT IS THE END OF, UH, THREE B. IF THERE'S ANY OTHER DISCUSSION OR QUESTIONS. I SEE NOTHING. I LIKE IT. YEAH. HANDLE IT ALL IN. ALL RIGHT. GOOD FREAKING CONCISE. AGENDA ITEM NUMBER FOUR, FUTURE AGENDA ITEMS. YEAH. . YES. DISCUSSION FOR Y'ALL. I, I MEAN, I THINK WE'VE TALKED ABOUT EVERYTHING WE WANTED. WE'RE GONNA GET IT ON THE TEAMS. YEAH. I THINK WE'VE ALREADY SAID WHAT WE MM-HMM . WANTED TO, WE'VE ALREADY SAID THAT WE'RE GONNA WORK ON THINGS THROUGH Y'ALL FOR THE FUTURE. AGENDA ITEMS. MM-HMM . SO ANYBODY HAVE ANYTHING ELSE THAT [01:00:03] IT'S, WAIT, YOU HAVE ONE QUESTION. , YOU WERE THAT CLOSE. TEAMS, UM, WILL BE SET UP TOMORROW FOR US. YES. THE CHANNEL IS ESTABLISHED. WE WILL WORK WITH INFORMATION TECHNOLOGY AND CITY SECRETARY'S OFFICE TO GET IT SENT OUT. OKAY, PERFECT. BECAUSE I'LL, I HAVE QUESTIONS, BUT I JUST, I NEED MORE INFORMATION IN ORDER TO HAVE A SOUND QUESTION. THANKS. THAT'S IT. FOR THOSE OF US THAT HAVE NEVER USED TEAMS BEFORE, THERE'LL BE LIKE INSTRUCTIONS OR SOMETHING LIKE THAT. YES. WE CAN PROVIDE INSTRUCTIONS AND THEN WE CAN ALWAYS DO A, A, A CALL. OKAY. AS WELL TO HELP YOU WALK THROUGH IT. THAT'S MY AFTER MEETING QUESTION. BUT , NO WORRIES. A CALL WITH HER, NOT ME. YOU DON'T, . HE NEVER S VERY EASY TO, IT'S VERY USER FRIENDLY. IT'S VERY USER FRIENDLY. OKAY. UM, OKAY. LEMME SEE WHAT KIND OF PHONE YOU HAVE. I HAVE AN IPHONE. ANYTHING ELSE. I JUST WANNA BE ABLE TO SAY IT'S SEVEN O'CLOCK. WE ARE ADJOURNED. THERE WE GO. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.