[00:00:01]
WILL CALL THESE, THE PLAN WAS TO CALL THESE MEETINGS TO ORDER SIMULTANEOUSLY.UH, WE DO NOT YET HAVE A JURORS BOARD CHAIR, SO IF THERE ARE NO OBJECTIONS, I'M JUST GONNA CALL A MEETING TO ORDER FOR BOTH.
UH, FIRST WE'LL DO THE CITY COUNCIL.
UH, UH, UH, SO I'M TIME IS 6:13 PM IT IS THURSDAY, MARCH THE 23RD.
UH, I'M GONNA CALL THE SPECIAL CITY COUNCIL MEETING TO ORDER WITH THE CITY SECRETARY, PLEASE.
[I. Call Meeting to Order]
GONNA, UH, NOW CALL THE JURORS BOARD MEETING TO ORDER.UH, THE TIME IS 6:14 PM IT IS THURSDAY, MARCH THE 23RD.
UH, CAN WE HAVE A, UH, RO OR, UM, CALL A MEETING TO ORDER? CALL THE ROPE, PLEASE.
UH, WE'LL JUST DO THE CITIZEN COMMENTS PERIOD AT THE SAME TIME.
SO I'M GONNA OPEN THE CITIZEN COMMENTS PERIOD FOR BOTH, UH, UH, GROUPS.
IS THERE ANYONE WHO WISHES TO COME FORWARD? THOSE COMMENTS? UH, PERIOD.
THE, THE TWO ITEMS BEFORE, UH, UNDER APPOINTMENTS FOR CITY COUNCIL, UH, WE CAN DO NEXT, AND THEN WE WILL TURN THE MEETING OVER TO THE CHAIR OF THE, UH, TURNER BOARD.
SO THESE MEETINGS ARE SORT OF RUNNING CONCURRENTLY.
ONE IS APPOINTMENT OF COUNCIL MEMBERS TO SERVE AS THE, UH, CITY OF CAL CHURCH.
NUMBER TWO BOARD OF DIRECTORS.
UH, I WOULD LIKE TO MAKE A MOTION TO APPROVE.
SECOND BY COUNCIL MEMBER FLORES KALE.
IS THERE A DISCUSSION ON THE MOTION? SO THIS IS JUST A COUNCIL VOTE, SO THIS WILL JUST BE THE FIVE OF US.
NEXT UP IS SELECTION OF THAT CHAIR FOR THE CHARGE NUMBER TWO BOARD.
UH, FOR WHATEVER REASON, STATUTORILY, THE COUNCIL'S THE ONE WHO APPOINT THE CHAIR, BUT THAT CHAIR CAN BE ONE OF US OR THE COMMISSIONERS.
AND SO I JUST WANNA TURN THE FLOOR OVER IF ANYBODY HAS THOUGHTS OR WANTS TO VOLUNTEER TO BE THE CHAIR.
UH, IN THE PAST, UH, COMMISSIONER ENGLEBY WAS THE CHAIR AND SHE DID A FINE JOB.
I DON'T KNOW IF SHE WANTS TO CONTINUE DOING THAT.
I'M ALSO WILLING, I'M ALSO HAPPY FOR ANYONE ELSE ON THE COUNCIL WHO THINKS THAT THEY'D LIKE TO SHARE THE MEETING.
I WOULD LIKE TO CONTINUE WITH COMMISSIONER ENGLEBY IF SHE'S COMFORTABLE.
IT IS EXTREMELY HARD TO HEAR Y'ALL.
UM, I JUST STATED THAT I, I WOULD LIKE TO CONTINUE WITH YOU AS A CHAIR IF YOU'RE COMFORTABLE WITH THAT.
I MEAN, I'M CERTAINLY WILLING TO ALLOW ANYONE ELSE THAT MIGHT BE WANTING THAT POSITION.
BUT IF THERE IS ANYONE ELSE THAT WOULD LIKE TO, I'M CERTAINLY WILLING TO LET THEM HAVE AN OPPORTUNITY.
THOUGHTS? DOES HE NEED A MOTION? IT NEEDS A MOTION.
I WOULD LIKE TO MAKE A MOTION TO, UM, NOMINATE COMMISSIONER ENGELS.
BE FOR THE CHAIR OF THE JURORS TWO BOARD.
SECOND MOTION BY CUSTOMER FLORIS KALE.
IS THEIR DISCUSSION ON THE MOTION? ALL IS IN FAVOR, SAY AYE.
UM, I GUESS WE DO HAVE THIS STILL, THIS RESOLUTION HERE ON THE CITY COUNCIL MEETING.
UH, AND THEN THE JURORS, WE WERE GONNA DO THE CITY COUNCIL RESOLUTION AFTER WE DID THE JURORS BOARD MEETING.
UH, COMMISSIONER ENGELS MEETING.
MAYOR, DID YOU TURN THAT OVER TO ME?
[II. Approval of Minutes]
OKAY.SO I GUESS, ARE WE ON ITEM NUMBER TWO? APPROVAL OF THE MINUTES? YES.
SO IF, UH, EVERYONE HAS HAD AN OPPORTUNITY TO REVIEW THE MINUTES, I'LL ENTERTAIN A MOTION TO APPROVE.
RIGHT, SIR, FROM THE LAST MEETING.
[00:05:01]
WE'RE ON THE BOARD.UM, DOES ANYBODY WANT TO MAKE A MOTION TO APPROVE, MAN, AS LONG AS YOU REVIEW THEM? DO WE HAVE, CAN WE, CAN WE BRING THIS ONE BACK? I DON'T, I DON'T KNOW IF ANYBODY'S HAD A CHANCE TO REVIEW THAT.
IF, UH, WHAT IS THE QUESTION BEING ASKED? CAN WE, BECAUSE WE HAVE TO APPROVE THE MINUTES, AND I'M ASKING DO WE HAVE TO DO THAT RIGHT NOW? OR CAN WE DO THAT NEXT TIME? DO WE HAVE TO APPROVE 'EM RIGHT NOW? BUT THIS IS FOR A MEETING THAT WAS ALREADY, THAT ALREADY WAS TAKEN.
HAVE YOU READ THE MINUTES TO CONFIRM THAT THEY'RE CORRECT, PLEASE.
I MEAN, NOT, YOU CAN SAY PLEASE ALL YOU WANT, BUT COME ON.
I WILL SAY THAT I COULD NOT OPEN THE ATTACHMENT TO VIEW THE MINUTES.
UM, SO IF WE WANNA WAIT TILL THE FOLLOWING MEETING TO APPROVE THEM, UM, MAYOR, I ASKED TO SEE IF THAT WOULD BE OKAY.
DO, IS IT BACK, DO YOU HAVE AN OPINION ON WHETHER OR NOT YOU DON'T THINK STATUTORILY THAT WOULD BE ANY PROBLEM? SO DID YOU SAY YES, MA'AM, WE CAN YES.
SO WE'LL, UH, HAVE THAT ON FOR OUR NEXT MEETING.
THE NEXT ITEM, I, I THINK YOU CALLED ALREADY FOR CITIZEN COMMENT, PERIOD, AND WE HAD NONE.
[2. Presentation and history on TIRZ #2.]
SO WE'LL GO ON TO ITEM NUMBER FOUR, PRESENTATION.UH, AND THAT'S THE PRESENTATION AND HISTORY OF THE TORRES NUMBER TWO.
WE DON'T HAVE JERRY HERE OR AMBER, THEY'RE STILL COMING BACK FROM SAN ANTONIO.
JUST WHAT DO Y'ALL WANNA GO? SO DO YOU WANT, I MEAN, DO YOU WANNA DO THE HISTORY AND THEN I'LL DO THE, I CAN IF, IF IT'S, IF THAT'S WHAT WE WANT DO.
I MEAN, I THINK THAT THE IDEA WAS THAT STAFF WAS GONNA KIND OF WALK THROUGH HISTORY AND THEN WE WERE GONNA WALK THROUGH WHERE WE ARE TODAY AND THEN POTENTIAL NEXT STEPS FORWARD.
SO IF THEY'RE NOT AVAILABLE, COULD YOU DO THAT? I CAN.
SO TURS NUMBER TWO WAS, I'M GONNA PULL THIS CLOSER IN CASE.
IS THAT A LITTLE BETTER IF I'M HERE? SO, TURS NUMBER TWO, UH, AND I KNOW THE MAJORITY OF US WERE NOT HERE WHEN IT WAS CREATED, UH, WAS THE FIRST TURS THAT WE ESTABLISHED AFTER TURS NUMBER ONE, WHICH WAS CREATED MANY YEARS AGO.
UH, IT WAS A 100% TURS NUMBER ONE WAS A HUNDRED PERCENT TURS DESIGNED TO FUND 1626.
TURS NUMBER TWO WAS CREATED NOT AS A DEVELOPER INCENTIVE TURS, BUT WHICH IS SOMETHING THAT OUR FOLLOWING TURS, IT'S, IT'S VERY UNIQUE.
THE CASH FLOWS THAT COME INTO TURS NUMBER TWO WERE CREATED IN TWO, IN 2018.
UH, THOSE TUR THOSE FUNDS COME INTO A DEDICATED ACCOUNT AND CAN BE USED FOR, UH, UH, MANY DIFFERENT TYPES OF IMPROVEMENTS.
THE REASON THAT, THAT WE CONTINUE TO HAVE JURORS NUMBER TWO BOARD MEETINGS IS BECAUSE AS THOSE FUNDS COME IN, UH, IT'S, UH, THE BOARD'S JOB TO DETERMINE HOW BEST TO UTILIZE THEM.
UM, THE ORIGINAL SCOPE OF WORK, THE, UH, PERFORM THE STAND, WHAT DO YOU CALL IT? PROJECT AND FINANCING.
PROJECT AND FINANCING PLAN WAS CREATED AT THE TIME THAT TUR NUMBER TWO WAS CREATED BY LION HART, UH, AND REBECCA LEONARD AND LIONHEART.
AND THEY OUTLINED A CERTAIN NUMBER OF PROJECTS THAT WE MIGHT BE, UH, THAT ARE, IT'S SORT OF LIKE THE MENU OF PROJECTS THAT WE COULD PURSUE.
IT'S NOT A GUARANTEE, IT'S JUST A, BASICALLY A LIST OF THOSE PROJECTS.
THE TWO PROJECTS THAT WE PURSUED INITIALLY ARE THE, UH, THE CONSTRUCTION OF HEROES, MEMORIAL PARK, AND LA VERDE PARK.
THE FUNDING FOR THOSE TWO PARKS WAS NOT DERIVED FROM TUR.
NUMBER TWO, THE FUNDING FOR THOSE PARKS WAS, UH, A RESULT OF A TRANSFER AND OR WAS PAID OUT OF THE GENERAL FUND.
SO IT, IT WAS CONTEMPLATED THAT THE TURS WOULD HELP TO REPAY THOSE PARKS.
AND THE MANNER AND FORM OF THAT REPAYMENT IS STILL YET TO BE DETERMINED.
UH, AND THEN, UH, ADDITIONALLY, AS NEW CASH FLOWS COME IN, ONE OF THE THINGS WE CAN DO IS PAY FOR LIKE THE MAINTENANCE OF THOSE PARKS, UM, WHICH IS WHERE THE CONTRACT
[00:10:01]
THAT WE RECENTLY DID FOR MAINTENANCE OF HEROES, MEMORIAL PARK IS PAID OUT OF TOURISM NUMBER TWO.UH, THERE IS A CONTRACT FOR LANDSCAPING AND MAINTENANCE OF THE SHARED PARKING AGREEMENT THAT WE HAVE OVER THE HAYES PERFORMING ARTS CENTER.
UH, THAT MAINTENANCE CONTRACT IS PAID FOR OUT OF TURS NUMBER TWO.
AND THEN I WOULD EXPECT THAT AS THE LABORDE PARK IS OPENED, THAT MAINTENANCE CONTRACT, UH, WILL COME FORWARD AND BE REQUESTED TO BE PAID FOR OUT OF TURS NUMBER TWO.
SO THAT WAS ALWAYS KIND OF THE PLAN, AT LEAST INITIALLY, WAS THAT THE CITY WAS GONNA SEED THE MONEY FOR THOSE TWO PROJECTS, AND THE TURS WOULD HELP TO, UH, PAY FOR THE MAINTENANCE AND OPERATIONS.
UH, THERE ARE ADDITIONAL CASH FLOWS THAT ARE COMING IN.
AND SO IT, I THINK IT WAS IN AUGUST OF LAST YEAR, UH, AFTER A LOT OF WORK, UH, WITH THE DEVELOPERS, WE PASSED FOR WHAT WAS CALLED A RETAIL ROADS AGREEMENT.
UH, IT WAS A VERY COMPLICATED AGREEMENT, BUT THE MAIN THING THAT IT ACCOMPLISHED WAS TRADING, UH, LAND FOR, UH, UH, THE CITY'S PARTICIPATION AND WILLINGNESS TO FUND, UH, TWO DIFFERENT STRETCHES OF ROAD, UH, RIGHT AT THE HEART OF THE BRICK AND MORTAR DISTRICT.
IT'S A VALUE ROUGHLY OF $8 MILLION THAT WE COMMITTED TO FUND.
UH, AND THE, UH, TRADE OFFS THAT THE, THE, UM, DEVELOPERS GAVE BACK TO US WAS ROUGHLY THE SAME.
UH, WITH THAT, THERE'S A, AN, UH, WE WERE CONTEMPLATING TWO DIFFERENT POSSIBLE WAYS OF FUNDING THOSE, THOSE ROADS.
THE FIRST WAY WAS THROUGH A CITY ISSUED CO BOND, AND THEN THE TURS COULD PAY THE DEBT.
THAT IS THE MODEL THAT TURS NUMBER ONE, WHICH IS THE FUNDING OF 1626 USES.
SO THERE WAS NOT A, THE TURS ITSELF THAT TURS NUMBER ONE DIDN'T ISSUE THE DEBT TO PAY FOR 1626.
THE CITY ISSUED THE DEBT, AND THEN AS THE MONEY CAME IN, YOU THINK OF IT AS LIKE A BANK ACCOUNT THAT THE CITY AND THE COUNTY ARE PARTICI ARE CONTRIBUTING TO.
THOSE CASH FLOWS ARE BEING USED TO PAY THE DEBT ON TURS.
THAT'S WHAT WE WERE PROPOSING INITIALLY WITH TURS NUMBER TWO FOR THE RETAIL ROADS.
HOWEVER, IT'S ALWAYS BEEN IN OUR MIND THAT THE BETTER WAY TO DO IT WOULD BE TO ISSUE A TURS REVENUE BOND SO THAT WE TAKE THE CASH FLOWS FROM WITHIN THE TURS ITSELF TO ISSUE THE DEBT.
UH, AND SO THE LIABILITY AND THE REPAYMENT IS COMPLETELY CONSUMED BY THE TURS.
UH, AND THAT WAS A DISCUSSION WE HAD LAST YEAR AND HAVE BEEN PURSUING AS WELL, UH, SIMULTANEOUSLY.
AND THE, BUT THE THING IS, IN ORDER TO DO THAT, WE HAVE TO CHANGE SOME OF THE BYLAWS WITHIN THE TURS, AND THEN WE'RE ALSO GONNA HAVE TO EXTEND THE LIFE OF THE TURS SO THAT THE DEBT THAT THE TURS WOULD ISSUE WOULD BE, UH, PAID BACK BY A TURS THAT WOULD BE LEGALLY IN EXISTENCE FOR THAT, SO THAT THE DEBT COULD BE REPAID.
AND SO WE'VE BEEN IN CONVERSATIONS, UH, WITH THE COUNTY ABOUT THOSE THINGS.
UH, AND THEN, UH, YOU KNOW, THERE ARE ADDITIONAL PROJECTS IN ADDITION TO THE RETAIL ROADS AGREEMENT, UH, THAT I HOPE THAT IN THE COMING MONTHS WE MIGHT BE ABLE TO DISCUSS, UH, HOW WE MIGHT TRY TO FUND THOSE.
UH, BUT THAT'S PRETTY MUCH THE HISTORY, UH, YOU KNOW, UH, OF, OF TURS.
NUMBER TWO, AS BESTS AS I CAN TELL, IT'S A BIG WIDE STRETCH, UH, PIECE OF THE BRICK AND MORTAR DISTRICT, AND THEN ALL OF THE COMMERCIAL AND RESIDENTIAL THAT SORT OF SURROUND THE BRICK AND MORTAR DISTRICT.
SO IT IS, IT IS, IT WAS CREATED BEFORE ANY OF THAT DEVELOPMENT TOOK PLACE, WHICH MEANS THAT THE CASH FLOWS THAT ARE COMING IN NOW IN YEAR FIVE HEADING INTO YEAR SIX ARE PRETTY SUBSTANTIAL.
UH, AND SO I THINK FOR MYSELF, AT LEAST WHAT I WOULD SAY IS THAT I THINK IT'S VERY IMPORTANT THAT WE USE THOSE CASH FLOWS IN A VERY EFFICIENT MANNER TO GET MAXIMUM VALUE OUT OF THEM, UH, IN SUCH A WAY THAT WE TAKE BURDENS OFF OF THE CITY AND OFF OF THE COUNTY, UH, SO THAT THOSE DOLLARS ARE USED IN A, YOU KNOW, IN A COLLABORATIVE WAY.
SO WE DON'T, IN OTHER WORDS, WE DON'T WANNA WASTE IT.
AND PART OF WHAT THIS RESTRUCTURING IS, IS ABOUT MAKING THOSE DOLLARS COUNT FURTHER THAN IF WE JUST, UM, PROCEEDED WITH THE PLAN AS IS.
PERVEZ AND I ARE PROBABLY THE ONLY TWO THAT WERE HERE AT THE CREATION.
SO I'D LOVE FOR, IF PERVEZ HAS THOUGHTS OR ANYTHING HE WANTS TO ADD OR CLARIFY IN WHAT I WAS TELLING HIM.
I WASN'T REALLY PREPARED TO, I DIDN'T COME UP WITH ANY NOTES, SO I'M JUST GIVING IT OFF THE TOP OF MY HEAD HERE.
BUT, SO WHAT I COULD, FOR THE RECORD, I'M PERVEZ MY CITY DIRECTOR OF FINANCE.
CAN, CAN THEY, YOU, I DUNNO IF THEY CAN BRING, SO WHAT I COULD ADD TO WHAT MAYOR HAS GIVEN AS THE BACKGROUND OR HISTORY OF THE TAR NUMBER TWO IS THAT THIS AREA OF THE BOUNDARY WITHIN THAT COVERS WITHIN TUR NUMBER TWO.
[00:15:01]
IT'S, IT'S THE ASSESSED VALUATIONS BOTH CURRENTLY BEFORE IT WAS CREATED AT THE TIME OF CREATION.AND NOW IT IS VERY AGGRESSIVELY GROWING OVER THE LAST TWO, THREE YEARS.
THE TURS WAS CREATED IN 2018, LATTER PART OF 2018.
AT THAT TIME, THE VALUE IN THE BOOKS BEFORE CREATION WAS ABOUT 121 MILLION.
THIS LAST TAX ASSESSMENT THAT WE RECEIVED FOR THE BUDGET CYCLE WE'RE IN, WE WERE CLOSE TO 600 MILLION.
SO AS COMPARED TO TURS NUMBER ONE, THIS AREA HAD, HAS BEEN VERY, UH, MUCH GENERATING, UH, INCREMENTAL TAX REVENUE FOR THE TURS.
THIS TURS IS ALSO A 50% TUR, MEANING THE TAXES GENERATED WITHIN THIS TURS BAKER FOR COUNTY AND THE CITY, 50% OF THAT INCREMENTAL TAX REVENUE IS RETAINED WITHIN THE TURS.
THE REMAIN REMAINING 50% GOES TO THE CITY AND THE COUNTY.
SO AS COMPARED TO TURS NUMBER ONE, TUR NUMBER ONE IS 100%.
IN THIS TUR I THINK IT WAS VERY SMARTLY DONE AT 50% BECAUSE THE CITY IS STILL BENEFITING, THE GENERAL FUND IS BENEFITING FROM THE REMAINING 50%.
THAT IS NOT TAKEN AWAY FROM THE, UH, THE CORE CITY OF KYLE.
DID YOU SAY NUMBER ONE? NONE OF IT COMES BACK.
IT A HUNDRED PERCENT STAYS WITHIN THE CHURCH.
I KNOW WE, THIS WAS VOTED ON PRIOR TO THE RHODE BOND PASSING.
AND SO MY QUESTION IS, IN THE EVENT WE, THIS, WE DIDN'T CHANGE IT TO THIS, DO WE HAVE THE CAPACITY TO BORROW THE $8 MILLION FOR THE ROADS OPENING THAT AREA? YES, HE STILL DO.
AND, AND YOU'LL SEE OUR, OUR, UH, FINANCIAL ADVISOR, WHEN HE COVERS HIS PRESENTATION, HE'LL WALK YOU THROUGH, UH, THE PROJECTIONS, HOW MUCH MONEY WE'RE BRINGING IN, HOW MUCH MONEY WE ARE COMMITTED RIGHT NOW THAT THE MAYOR TALKED ABOUT THE LANDSCAPING, THE MAINTENANCE OF THE PARKS.
AFTER YOU'VE DEDUCTED ALL OF THAT, WE STILL HAVE ENOUGH MONEY GENERATED AND WE ARE PROJECTING IT ADDITIONAL MONEY TO BE, UH, GENERATED IN THE FUTURE.
THAT'LL BE SUFFICIENT TO COVER THE DEBT SERVICE ON THE 8 MILLION DEBT.
BUT WE'RE NOT GONNA, WE WOULDN'T NEED THAT DEBT NOW, WOULD WE THE $8 MILLION? YES, WE WOULD, WE WOULD HAVE TO ISSUE THE DEBT TO BUILD THE ROADS, THE THREE RETAIL ROADS.
SO WE'RE GONNA KEEP THE 8 MILLION DEBT.
WE'RE GOING TO, WE HAVE NOT ISSUED THE DEBT YET.
BUT WE AS AT THIS POINT, WE PLAN ON MAINTAINING, LIKE DOING THE BONDS, AND THEN WE WOULD EXTEND THE TURS AND THEN JUST USE THAT MONEY WITHIN, YES.
SO IT, THERE WOULD BE NO BURDEN ON THE CITY GENERAL FUND.
THOSE ROADS WILL BE BILLED SOLELY FROM THE PROCEEDS OF THE INCREMENTAL TAX REVENUE GENERATED WITHIN THE TURS.
BUT WHEN WE GO OUT TO BOND, IT'LL BE UNDER THE CITY'S NAME FOR FOR BOND, CORRECT? OR NO, IT'S GONNA BE, IT'LL BE, IT'LL HAVE CITY OF KYLE ON THERE, BUT THE OBLIGATIONS WILL BE SUPPORTED, FULLY SUPPORTED.
I TOTALLY, I TOTALLY, I GET IT BY THE GENERAL FUND WILL PAY FOR NONE OF IT.
I JUST, I WANNA MAKE SURE I UNDERSTAND THAT.
IT'S WHETHER THE CITY NOT PAYING FOR IT, BUT LIKE GOING OUT FOR BOND, LIKE THE LIABILITY OF IT, RIGHT? NOT SO MUCH THE ASSET PART, BUT THE LIABILITY PART WILL STILL BE ON THE CITY.
I'M GONNA, I'M GONNA LET MARKET KNOW STUFF.
IT WOULD BE CONSIDERED AURS IS IS MORE OF A REVENUE BOND, TAX INCREMENT, REINVESTMENT ZONE REVENUE BOND, AND THE REVENUES GENERATED BY THE TAXES.
SO THIS WOULD BE A SPECIAL OBLIGATION PAYABLE NOT FROM GEN CITY'S GENERAL FUND, BUT FROM THIS NEW FUND THAT STRICTLY TURS REVENUE, WHICH IS GENERATED 50% FROM THE CITY AND 50% FROM THE COUNTY.
IF THERE'S NOT ENOUGH INCREMENT GOING IN TO HANDLE ALL THE OBLIGATIONS, WE DON'T HAVE ENOUGH TO MAKE THE BOND PAYMENT.
AND THE CITY IS NOT ON THE HOOK FOR IT.
IT'S SOLELY PAYABLE OUT OF THIS LITTLE POT OF MONEY.
SO THEN WHAT WOULD HAPPEN? WELL, WHAT WOULD HAPPEN WOULD BE A DEFAULT.
WE WOULDN'T, YOU KNOW, AND WHO'S CREDIT WOULD THAT AFFECT? IT WOULD AFFECT IT.
THIS WOULD BE SPECIALLY SOLELY ON THE TURS REVENUE.
IT'S ONLY BEING, WHEN THE RATING AGENCIES REVIEW IT, IT WILL BE ONLY REVIEWING THE TURS.
IT WON'T BE REVIEWING THE GENERAL FUND.
[00:20:01]
WON'T BE REVIEWING THE COUNTY.IT'LL BE REVIEWING ONLY THE REVENUE THAT'S GENERATED INTO THIS TURS.
IT WON'T TOUCH THE UTILITY SYSTEM.
AND SO THAT'S WHEN WE GET TO THESE NUMBERS, THAT'S WHY WE HAVE TO BE SO CONSERVATIVE BECAUSE WE CAN'T BE IN A POSITION, I DON'T WANNA PRETEND IF THERE WAS A DEFAULT BECAUSE IT DOES SAY CITY OF KYLE TAX INCREMENT REINVESTMENT ZONE, THAT THERE WOULDN'T BE SOME FALLOUT FOR THE CITY.
SO WE WANNA MAKE SURE, JUST LIKE A UTILITY SYSTEM REVENUE BOND, IT'S PAYABLE SOLELY BY THE REVENUES GENERATED BY THE UTILITY SYSTEM CAN'T GET TO ANYWHERE ELSE.
WE WANNA MAKE SURE WE'RE NEVER IN A POSITION THAT WE WOULD BE IN A DEFAULT.
THAT THAT'S, YOU KNOW, I THINK EVERYBODY HERE DOESN'T WANT TO BE ANYWHERE INVOLVED IN THAT.
WELL, AND AT, SO AT THE CORE OF THIS DISCUSSION IS, IF YOU REMEMBER AT THE BEGINNING I SAID WE, WHEN WE ORIGINALLY PASSED THE RETAIL ROADS AGREEMENT, IT WAS CONTEMPLATED THAT THE CITY WOULD ISSUE CO BONDS AND THAT THE DETERS WOULD REPAY.
SO THAT IS IN ACCORDANCE WITH 1626 DEBT, WHICH THE CITY WAS LIABLE FOR.
IN OTHER WORDS, IF THE TURS CAN'T MAKE THE PAYMENT, THE CITY IS ON THE HOOK.
SO OUR, OUR, OUR GOOD FAITH AND CREDIT, THE GENERAL FUND, GOOD FAITH AND CREDIT OF THE CITY WOULD BE ON THE HOOK.
AND PERVEZ, YOU KNOW, HAS MADE THE POINT A FEW DIFFERENT TIMES.
THEN HE'S ALWAYS BEEN CORRECTED, GIVEN HIS CHOICE, HE WOULD RATHER DO A TURS REVENUE BOND BECAUSE IT FLIPS THAT AND KEEPS ALL THE LIABILITY WITHIN THE, THE TURS.
UH, ANOTHER GOOD EXAMPLE, AND COMMISSIONER ENGLEBY MIGHT BE ABLE TO SPEAK TO, THIS WAS THE, UH, CONFERENCE CONVENTION CENTER IN SAN MARCOS THAT WAS A, A REVENUE BOND VENUE TAX THAT THEY PASSED.
AND IT'S A, IT'S EXACTLY THE SAME THING.
A DEDICATED REVENUE STREAM OF, I THINK 2% OR WHATEVER ON THE HOTEL TAX COMES IN.
AND THOSE CASH FLOWS THEN BECOME BONDED AGAINST.
BUT THE ACTUAL TAX IS WHAT GETS, UM, BORROWED AGAINST NOT THE GENERAL FUND.
AND SO I BELIEVE THE COUNTY PROBABLY PARTICIPATED IN, IN THAT DEAL AS WELL.
I, I DON'T KNOW THE DETAILS OF THE CONVENTION CENTER.
UM, BUT YEAH, I, I DON'T KNOW THE TOTAL DETAILS EITHER.
MAYOR, SINCE IT WAS A CITY PROJECT, WE DID PARTICIPATE, UH, WITH FUNDING.
UH, WE WERE NOT LIABLE NEITHER.
IT WAS A CITY, IT WAS THE, THE FUND THAT WAS, WE'RE SORT OF FOLLOWING THE SAME PATH THAT SAN MARCOS DID WITH THEIR VENUE TAX, WHICH IS A REVENUE BOND.
IT'S NOT A GENERAL FUND GENERAL OBLIGATION BOND.
IT'S NOT A CERTIFICATE OF OBLIGATION.
IT, IT IS BASICALLY SAYING LIKE ONLY THIS LITTLE SILOED OFF SECTION OF REVENUE IS USED TO REPAY THE DEBT AND IT'S THE SOLE SOURCE, WHICH TO MARK'S COMMENTS MEANS THAT WE HAVE TO MAKE SURE THAT WE DON'T, WE'RE NOT ANYWHERE CLOSE TO LIKE, RUNNING OUT OF MONEY OR ANYTHING LIKE THAT.
AND I DON'T KNOW THAT IN THE STATE OF TEXAS, THERE'S PROBABLY NEVER BEEN A REVENUE BOND FAIL ON ANY LEVEL BECAUSE YOU CAN'T ISSUE BONDS FOR WHEN THERE'S A, A REVENUE STREAM THAT'S NOT COVERED BY THE DEDICATED REVENUES COMING IN.
AND THAT WILL, OKAY, SO THE CITY WILL STILL GET THEIR 50% CORRECT.
THIS REVENUE BOND WILL COME OUT OF THE 50%.
THE COUNTY'S GONNA GET THEIR MONEY FROM THE GROWTH IN THE AREA.
AND THEN WHAT THE MONEY THAT REMAINS THOSE CASH FLOWS ARE ALSO REALLY SECURE, STRONG CASH FLOWS WE'RE GONNA BORROW AGAINST IN THAT POT.
SO WE'RE NOT PLAYING IN THE CITY'S POT.
WE'RE PLAYING IN THE TURS POT.
AND WHEN YOU GEN WHEN YOU ISSUE REVENUE BONDS, THE CALCULATIONS ARE A LITTLE BIT MORE CONSERVATIVE AND HE'LL, HE'LL TALK ABOUT THE DEATH SERVICE COVERAGE.
UH, IT'S MUCH HIGHER WHEN YOU ISSUE REVENUE BONDS AS COMPARED TO GENERAL INTEREST BONDS FOR THE INTEREST NO RESERVE.
MEANING YOU SHOULD HAVE EXTRA MONEY OVER AND ABOVE WHAT YOU NEED TO PAY BACK IN PRINCIPLE AND INTEREST.
DO WE HAVE A GENERAL IDEA OF WHAT THE INTEREST IS GONNA BE? RIGHT.
DOES IT TAKE INTO CONSIDERATION THE CITY AND THE COUNTY TOGETHER, LIKE THAT GOES INTO ONE POT? THAT, THAT'S A, THAT'S A REALLY A GREAT QUESTION.
AND FURTHER THAT THAT'S, THAT'S TURS BOND 1 0 2, NOT 1 0 1.
YOU WANNA GO THROUGH THAT, STEPHANIE, TOUCH ON THAT.
SO GENERALLY WHEN CITIES ISSUED TOURIST REVENUE BONDS, THEY HAVE THE AUTHORITY OR THE ABILITY TO PLEDGE ALL OF THE TOURISTS REVENUES TO THOSE BONDS.
AND SO IT WOULD BE BOTH THE CITY AND THE COUNTY INCREMENT THAT GETS DEPOSITED INTO THE INCREMENT FUND HERE.
HAYES COUNTY HAS SOME PROTECTIONS BUILT IN TO THE ILA WHERE THE COUNTY HAS TO ANNUALLY APPROPRIATE THOSE MONIES TO THE CITY.
AND THEY HAVE HISTORICALLY ANNUALLY APPROPRIATED.
BUT BECAUSE WE HAVE THAT ANNUAL APPROPRIATION PROVISION AND THE ILA
[00:25:01]
THAT PROHIBITS THE CITY FROM PLEDGING THAT MONEY BECAUSE THAT MONEY CAN'T BE USED TO SECURE THE BONDS MM-HMM.AND SO WE'VE HAD DISCUSSIONS WITH THAT, YOU KNOW, WITH THE COUNTY ATTORNEY.
AND WE'RE GONNA HAVE CONTINUED DISCUSSIONS ABOUT THAT, UM, WITH THE COUNTY ATTORNEY TO SEE IF THERE'S A WAY THAT WE CAN STILL PROVIDE SOME OF THE PROTECTIONS.
THE WAY IT'S BEEN EXPLAINED TO US IS THAT THE COUNTY HAS SOME CONCERNS ABOUT ISSUING VOTED DEBT, BUT BECAUSE AS WE'VE JUST BEEN DISCUSSING, THESE ARE REVENUE BONDS UNDER TEXAS STATE LAW, THERE'S NO AUTHORITY TO CALL AN ELECTION TO VOTE FOR THE ISSUANCE OF REVENUE BONDS.
YOU VOTE, YOU HAVE AN ELECTION AND YOU VOTE FOR THE ISSUANCE OF AURUM TAX BONDS AND THE COS THAT THE MAYOR IS, UH, TALKED ABOUT.
AND SOME OTHER TYPES OF OBLIGATIONS ARE VOTED AURUM TAX BONDS.
AND I THINK GENERALLY THAT'S WHERE PEOPLE HAVE CONCERNS ABOUT ISSUING DEBT WITHOUT VOTER APPROVAL, IS IN THAT VOTED A APPAR TAX BOND.
BUT HERE, EVEN THOUGH THE TOURIST REVENUES ARE DERIVED FROM APPAR TAX UNDER STATE LAW, THEY'RE CLASSIFIED AS REVENUES AND THE BONDS THEMSELVES ARE ISSUED WITHOUT AN ELECTION.
SO FOR PURPOSES OF TODAY'S DISCUSSION AND KIND OF THE PLAN OF FINANCE THAT MARK IS GONNA WALK WALKTHROUGH WITH THE ISSUANCE OF TARAS REVENUE BONDS.
WHAT WOULD BE PLEDGED TO THOSE BONDS IS ONLY THE CITY'S TAX INCREMENT, THE COUNTY'S TAX INCREMENT.
UNTIL WE CAN HAVE FURTHER DISCUSSIONS WITH THE COUNTY ABOUT IT.
THE COUNTY'S TAX INCREMENT WOULD NOT BE PLEDGED TO THOSE BONDS, BUT STILL AVAILABLE TO THE CITY TO PAY FOR SOME OTHER TOURIST PROJECTS AND TO CONTINUE WITH SOME OF THE REPAYMENT OBLIGATIONS FOR THE PARKS THAT HAVE ALREADY BEEN CONSTRUCTED.
THAT'S WHY A REALLY GOOD QUESTION.
I HAVE SOME QUESTIONS TOO, BUT IF YOU WANNA START THE PRESENTATION, CAUSE I, I WANTED TO GET INTO THE WEEDS A LITTLE BIT OF SOME, LET, LET'S HAVE YOUR QUESTIONS.
SO IF WE DIDN'T DO IT, AND THIS IS JUST FOR THE TAXPAYERS, UM, WOULDN'T THEY FEEL MORE OF A BURDEN IN PICKING UP THE GENERAL FUND LIKE PROJECTS AND OBLIGATIONS? SO, UH, WOULD THIS BE LIKE A DIVERSION OF WHERE THE MONEY NEEDS TO GO TO HELP OFFSET SOME OF RISING, UM, TAXES AT, AT THE RESIDENCE? SO, UM, CUZ AT THIS IS WHAT I'M JUST TRYING TO UNDERSTAND IT BECAUSE WE'RE DOING A REALLY BIG AREA AND I DID SOME, UH, LISTEN TO SOME, UM, EXPLANATIONS OF, UH, YOU CAN ACTUALLY SELECT SOME AREAS TO BE SHORTER IN PERIODS VERSUS TO HOLD 20 YEARS.
YOU CAN, YOU CAN HAVE DIFFERENT AREAS UNDER DIFFERENT YEARS OF THAT INCREMENT TAX REVENUE.
SO AS SET ASIDE SET ASIDE AS IT RELATES TO, ARE YOU ASKING AS IT RELATES TO THE DISCUSSION ABOUT EXTENDING THE TERM OF THE TERM YEAH.
THE WHOLE THING OR CAN IT JUST BE THIS MIGHT BE THE, LIKE IF THIS IS THE RETAIL AREA AND WE'RE NOT, WE'RE NOT, WE'RE NOT, UM, THE RETAIL AREA IS STILL GOING TO THE CITY, RIGHT? THIS IS ONLY THE PROPERTY APPRAISED INCREMENT VALUE.
WOULDN'T YOU HAVE TO CHANGE THE BOUNDARIES TO DO SOMETHING LIKE THAT OF THE FIRST, THIS IS THE WHOLE BOUNDARIES, RIGHT? BUT I BUT THE LENGTH OF THE TIME CAN BE SHORTER IN CERTAIN AREAS THAT BRING MORE REVENUE IN.
SO THAT'S, SO IF THESE OTHER AREAS ARE GONNA STAY OUT THERE MUCH LONGER TO DEVELOP, DO THOSE NEED TO BE UNDER THE 20 YEAR ATION? SO THAT'S A LONGER TIME THAT THAT MONEY'S IN THE POT THAT'S NOT COMING RIGHT BACK INTO OUR GENERAL FUND.
THAT'LL HELP OFFSET THE RAISE OF THE, THE RATES GOING ON TO TO, TO RESIDENT THAT.
WHICH I'M NOT SAYING IT'S NOT A GOOD TOOL.
BUT THIS IS A FINANCING TOOL, NOT AN ECONOMIC DEVELOPMENT TOOL.
IT, YOU, YOU ARE, YOU ARE CORRECT.
SO IF WE ASK THE, BUT IF WE KNOW THAT THIS AREA WOULD DEVELOP, SO WHAT WOULD REALLY BE THE INCREMENTAL INCREASE IN VALUE, SINCE WE KNOW THAT IT WOULD DEVELOP ANYWAY WITHOUT THE TIP, WITHOUT THE TERMS. SO WHAT I'M SAYING IS BEING CON CONSCIENTIOUS OF WHAT PEOPLE ARE PAYING AND THEIR PAIN IN THEIR TAXES, YOU KNOW, THAT THIS IS NOT PUTTING MONEY SET ASIDE FOR A VERY LONG TIME IN A VERY LARGE BOUNDARY AREA.
UM, WHERE WE COULD ACTUALLY GET MORE OF THAT MONEY BACK SOONER TO OFFSET THE GENERAL FUND BURDENS FOR.
[00:30:01]
SAY SOME, SOME OF WHAT YOU'RE ASKING MM-HMM.AND BOUNDARIES OF THE TOURISTS AND DIFFERENT, UM, PROPERTIES WITHIN THE TOURISTS CAN HAVE DIFFERENT TERMINATION DATES.
THEY CAN HAVE DIFFERENT CONTRIBUTION RATES, RIGHT? YES.
YOU CAN HAVE ONE PARCEL OF LAND WHERE YOU CONTRIBUTE 50% OF THE TAX INCREMENT FOR ANOTHER PARCEL, YOU MAY ADD IT IN AND ONLY CONTRIBUTE 30.
BUT WHEN YOU COME INTO A CONTEXT OF BOND FINANCING AND HAVING TO EXPLAIN THAT TO THE BOND INVESTORS, OKAY, IT BECOMES COMPLICATED AND IT IS DISCLOSURE.
AND SO ALL OF THAT WOULD HAVE TO BE VERY CLEARLY AND ARTICULATE ARTICULATELY DISCLOSED TO THE BOND INVESTOR.
AND IF YOU'RE PULLING OUT THOSE SOURCES OF PROPERTY THAT ARE GENERATING THE LARGE INCREMENTAL VALUE, YOU'RE INCREASING THE RISK TO THE BOND HOLDERS.
BECAUSE THAT'S WHERE THE SECURITY FOR THEIR BONDS IS COMING FROM.
AND SO THEORETICALLY YOU CAN DO IT, BUT THERE ARE KIND OF REAL WORLD CONSEQUENCES TO DOING IT.
AND I'LL LET MARK SPEAK TO THOSE.
SO I HEARD THAT WHEN THEY ARE REAL BENEFICIAL IS WHEN THEY INCREASE PROPERTY VALUES IN THE TURS.
RIGHT? UH, SO ARE WE GONNA GET ENOUGH IN THERE TO REALLY INCREASE PROPERTY VALUES? I'M GOING PROPERTY MEANING HOMES GIVE YOU THESE, NOT RE NOT RETAIL.
CAUSE IF THE RETAIL'S ALREADY GONNA GET COLLECTED ANYWAY, PASS IT DOWN.
UM, THAT'S NOT BUT IT'S THE AVALARA, BUT IT'S THE AVALARA TAX FROM THE RETAIL DEVELOPMENT.
YOU'RE NOT LOOKING AT HOMES AND THIS CHURCH.
YOU'RE REALLY LOOKING AT THE AVALARA TAX THAT THAT COMMERCIAL PROPERTY GENERATES WITHIN THE TURS.
SO THE REVENUE IS COMING IN, NOT GOING INTO THE TIP.
THE THIS TIP IS NOT CAPTURING SALES TAX.
AND SO WITHIN A TIP, YOU CAN CAPTURE AVOR TAX, YOU CAN CAPTURE SALES TAX AND YOU CAN CAPTURE HOT MM-HMM.
SO THIS SALE TAX GOES BACK TO THE GENERAL RIGHT.
SALES TAX GOES BACK TO THE GENERAL FUND.
I'M HOPING WE'RE NOT STARVING OUR CITY AND, AND, AND, AND, AND THE PROJECTS THAT WE HAVE IN THE CITY BY MAKING THIS TOO LARGE AND PUTTING THE YEARS OUT TOO LARGE.
WELL, LET ME, BUT BUT YOU MADE A VERY GOOD POINT.
IF IT'S RISKY ON THE BONDS, THEN THEN I CAN UNDERSTAND THAT.
SO I, SO ONE THING, SO KILLING THIS OR, OR LIKE, UM, REDUCING THE VALUE OR THE LENGTH OF THE TURS IS NEGOTIATING AGAINST OUR BEST FINANCIAL INTEREST MM-HMM.
MUELLER DEVELOPMENT IS A 100% DEVELOPER SUBSIDY.
SO THE CASH FLOWS THAT WE'RE NOT BRINGING IN TO THE CITY'S GENERAL FUND AND THE CASH FLOWS THAT ARE NOT GOING INTO THE COUNTY'S GENERAL FUND ARE NOT DISAPPEARING.
ALL OF THAT MONEY GOES INTO THE TURS ACCOUNT.
AND THEN IS THEN BEING DISTRIBUTED TO PAY FOR THINGS, INFRASTRUCTURE PROJECTS, MAINTENANCE AND OPERATION THAT IF THE TURS WAS NOT THERE, I'M GONNA SAY THIS QUIETLY SO THAT THE COMMISSIONERS CAN'T HEAR ME, BUT IF I'M JOKING, BUT IF THE TUR WAS NOT THERE, THE RESPONSIBILITY FOR THE PAYMENT OF A CONSTRUCTION OF HEROES, MEMORIAL PARK AND LA VERDE WOULD BE 100% ON THE CITY.
THE MAINTENANCE WOULD BE 100% ON THE CITY.
AND SO THE CASH FLOWS COMING IN HAVE TO BE PAID FOR AND WE ARE THE ONES ON THE HOOK FOR PAIN MM-HMM.
BUT THIS IS A COLLABORATION BETWEEN THE CITY AND THE COUNTY.
SO AS YOU THINK THOSE CASH FLOWS ARE COMING DOWN, THEY'RE BEING CAPTURED.
THEY'RE PAYING FOR THE MAINTENANCE OF THE PARK, THEY'RE PAYING FOR, THEY'RE PAYING THIS GENERAL FUND BACK.
IT'S THE ONLY PARK, THINK OF IT THIS WAY.
EVERY PARK THAT WE'VE EVER BUILT MM-HMM.
BUT THIS TUR IS BEING SET UP SUCH THAT THE MONEY THAT THE CITY PUT IN, THAT THE TAXPAYERS PAID FOR GETS PAID BACK FROM THAT TUR.
THE MONEY WE PUT IN 17 MILLION ALL FROM THE CITY, THE MONEY THAT GETS PAID BACK IS A COMBINATION OF CITY AND COUNTY MONEY BACK TO US THAT MAKES THE GENERAL FUND WHOLE.
SO THAT IS HOW THIS, THIS, THIS PROJECT CREATES INCREDIBLE VALUE BOTH WITHIN THE TURS AND FOR THE TAXPAYERS WHO EXIST OUTSIDE OF THE TURS.
SO AGAIN, IF THEY GET THE, THE MAINTENANCE, IT'S SO IF THE TURS DISAPPEAR, IT DEPENDS ON HOW YOU SET THEM UP, RIGHT? CORRECT.
THAT'S WHY IT'S SO IMPORTANT THAT WE UNDERSTAND WHAT THIS TURS IS.
RIGHT? I JUST WANNA BE CLEAR, NOT EVERY TURS CAN RAISE PROPERTY VALUES.
IF PROPERTY VALUES ARE FAILING, NOT EVEN A GOOD TUR CAN BRING THOSE VALUES UP.
UM, THAT'S MORE THAT I'VE HEARD.
MAYBE I'M TOO INFORMED AND, AND THAT, BUT I JUST WANT, YOU KNOW, AND ALSO IF THIS BECOMES A PI TURS,
[00:35:01]
I'VE HEARD THAT THERE'S DOUBLE DIPPING SOMETIMES FROM DEVELOPERS.THEY'RE ABLE TO NOW GET REIMBURSED FOR THE SAME THING THAT WAS ALREADY SAID.
NOW IT, I DON'T WANT THAT TO HAPPEN.
THAT'S ABOUT, THAT WILL, THAT WILL NOT AND CANNOT HAPPEN.
AND WILL NOT HAPPEN IN ANY PI TURS.
SO EVERY PID BOND THAT THE CITY ISSUES IS APPROVED BY THE ATTORNEY GENERAL'S OFFICE MM-HMM.
BECAUSE THAT'S WHERE THEY GAVE, SO IT'S A TWICE FOR THE SAME PROJECTS SERVICE AND ASSESSMENT PLAN.
WE HAVE IT BUILT IN TO ALL OF OUR AGREEMENTS.
IT'S BUILT IN TO THE PIT SERVICE AND ASSESSMENT PLAN.
IT'S BUILT, BUILT INTO THE TOURISM PLAN.
WE HAVE A SCOPE OF, WE HAVE A SCOPE OF PROJECTS, WE HAVE A BUDGET FOR PROJECTS BEFORE THEY CAN GET ANY MONIES RELEASED FROM THE TRUSTEE FOR REPAYMENT.
ALL OF THE COSTS ARE VERIFIED.
THERE'S ABSOLUTELY, REMEMBER DOUBLE DIPPING.
WE WANTED TO KNOW WHAT THE DEVELOPER WAS BRINGING TO SEE IF IT WAS REIMBURSABLE.
AND IN THIS CASE, THERE'S NOT EVEN SINGLED UP IN CUZ THE DEVELOPER, THERE'S NO DEVELOPER.
THIS IS ALL CITY COUNTY TURS INITIATING PROJECTS.
LIKE I SAID, I JUST HAD TO ASK THE QUESTIONS.
WE UNDERSTAND, YOU KNOW, HOW TO, HOW, HOW ARE WE GOING TO LOOK LIKE IN THE GENERAL FUND AND MOVING FORWARD? YES.
AND, AND TO THE MAYOR'S, JUST TO PUT NUMBERS TO IT NOW, THE, THE CITY AND COUNTY BOTH ARE CONTRIBUTING 50% IS THIS ONE BRINGING IN A SOCCER COMPLEX REGIONAL SOCCER.
BECAUSE I DON'T WANT RE BUT HANG ON, I WANNA, I WANNA GIVE YOU CAUSE BUT YOU'RE GONNA HAVE TO REALLY LISTEN.
TO WHAT I'M IN THERE, THE, THE 2020 GENERAL OBLIGATION PARKS BOND THAT WE APPROVED, IT'S A, IT'S A COMBINATION OF 10 MILLION FOR THE CITY, 10 MILLION FOR THE COUNTY.
OF WHICH, WHAT'S THE WATER? 14 MILLION IS SET ASIDE FOR THE REGIONAL SPORTS COMPLEX.
THAT'S A GENERAL OBLIGATION TAXPAYER SUPPORTED, UH, BOND.
SO THE MONEY THAT'S PAYING FOR THE SPORTS COMPLEX, IT COMES FROM THAT POT, NOT THE TURFS.
RIGHT? SO IT'S NOT THE TURS THAT'S PAYING FOR THE SPORTS COMPLEX, BUT THE LAND THAT'S BEING ACQUIRED, UH, UNDERNEATH THAT THERE'S 11 ACRES AND A 22 ACRE PARCEL UNDERNEATH THAT IS BEING, IS PART OF THE RETAIL ROADS AGREEMENT.
SO THE RETAIL ROADS AGREEMENT IS BUILDING THESE INTERIOR ROADS FOR THE BRICK AND MORTAR DISTRICT.
THE BRICK AND MORTAR DISTRICT, UH, DEVELOPERS ARE DONATING LAND TO US FOR THE SPORTS COMPLEX.
AND THEN THE GENERAL OBLIGATION BONDS FROM THE CITY AND FROM THE COUNTY ARE GOING ON TOP OF THAT LAND TO BUILD THE REGIONAL SPORTS COMPLEX.
AND THEN ON TOP OF THE REGIONAL SPORTS COMPLEX IS MAINTENANCE AND OPERATIONS, WHICH IS A TURS TWO PROJECT.
SO THERE'S LAYERS UPON LAYERS RIGHT.
THAT HAVE BEEN SET UP TO CREATE THIS SO THAT THE ONLY THING THE TAXPAYERS GENERALLY ARE HAVING TO PAY FOR IS THE DEBT SERVICE.
AND THE KYLE TAXPAYERS ONLY HAVING TO PAY HALF BECAUSE OF THE GENEROSITY OF THE COUNTY TO, TO MATCH 50 50.
SO IT'S, THIS IS, IT'S A, THINK OF IT AS LIKE A FINANCIAL STACKING OF ALL DIFFERENT KINDS OF LEVELS OF, UH, PAYMENT AND MAINTENANCE AND OPERATIONS AND BONDING POWER.
UH, AND SO THE TURS IS INVOLVED IN IT, BUT THE BIG, THE BIG NUT OF PAYMENT TO CREATE THE SPORTS COMPLEX IS A VOTER APPROVED GENERAL OBLIGATION BOND THAT'S MATCHED BY THE COUNTY.
I I JUST WANTED TO UNDERSTAND WHAT'S IN HERE.
YEAH, I WAS NOT ON YOU, YOU WEREN'T ON THE COUNCIL.
SO 10 YEARS, LOOK BACK, THIS IS ALL PROBABLY YEARS AGO.
THERE'S A, I'M GLAD TO GET THE CHANCE TO EXPLAIN IT CUZ IT'S ALL, YOU KNOW, I I IT DID MENTION A WATER ISSUE THOUGH UP HERE, DIDN'T IT? LIKE, OF WHERE THIS BIG WATER DETENTION POND WILL BE, UH, IF, IF A LOT OF THESE PROJECTS ARE BUILT, THERE'S A, SO ARE WE GONNA SEE AN UGLY WATER DAM UP THERE? OR SOMETIMES THEY MAKE EM LOOK NICE.
THEY, THEY'VE ALREADY BUILT IT.
IT'S A REGIONAL DETENTION POND.
SO THAT'S ANOTHER THING THAT WAS NEGOTIATED AN AGREEMENT WITH LENAR.
SO LENAR BUILT THAT HUGE SUBDIVISION UP THERE, WHICH IS SO A DECENT SUBDIVISION
THEY WERE GONNA BUILD A REGIONAL DETENTION AREA THAT WAS GONNA BRING THE, IT WASN'T GONNA LOOK GOOD ON THE WEST SIDE OF 1626, WHILE ADDITIONAL DEVELOPMENT WAS GONNA REQUIRE REGIONAL DETENTION ON THE EAST SIDE OF 1626.
SO WE DID AN AGREEMENT WITH THEM, THAT WAS A LOT.
AND LENAR HAD TO DONATE LAND TO US, GOT ELEVATED OUT OF THE FLOODPLAIN, AND THEN WE BUILT AN, A LARGER, UH, UH, CHANNEL UNDERNEATH 1626 AND THEN A HUGE REGIONAL DETENTION FIELD ON THE FAR EAST SIDE BEHIND WHERE AREA 10 IS MM-HMM.
SO ALL THE WATER IS NOW GOING UNDER 1626.
AND IT'S BEEN OUT ON THE, ON THE FAR EAST SIDE, WHICH TOOK THAT LAND OUT OF THE FLOODPLAIN AND
[00:40:01]
IS NOW PART OF OUR REGIONAL SPORTS COMPLEX.SO THAT'S, THAT WAS, THAT WAS ONE OF THE FIRST AGREEMENTS THAT WE SET UP WAS TO GET ALL THE WATER MOVED OUT SO THAT WE COULD HAVE THIS BIG SPACE TO DO A SPORTS COMPLEX.
NOW ON THE EAST SIDE, A PART OF IT IS THAT THE WAY THEY DESIGNED THE, THE GRADING OF THAT, UH, REGIONAL DETENTION POND TO ALLOW FOR US TO CONSTRUCT, UM, SOCCER FIELDS ON IT, BUT IT WOULD BE SOCCER FIELDS THAT EXISTED WITHIN A DETENTION POND.
AND THEN THE ONES ON THE WEST SIDE WOULD BE THE ARTIFICIAL TURF OUT OF THE STORM WATER, IT WOULD BE THE ALL WEATHER FIELDS.
SO THERE'S LIKE WET WEATHER FIELDS OR, YOU KNOW, AND THEN, ANYWAY, IT'S A WHOLE LONG GOTCHA PROCESS, BUT, WELL, THANKS.
THAT'S ALL I HAVE HAD FOR NOW.
SO I GUESS AT THIS POINT, DO WE WANT TO GO TO MARK AND HAVE HIM KIND OF WALK THROUGH THE, THE FINANCIAL PICTURE AND WHAT MONEY, HOW THE MONIES ARE BEING USED, WHAT MONEY'S AVAILABLE? AND THEN WHEN WE UNDERSTAND SCOPE OF AVAILABLES, WE CAN TALK ABOUT FUTURE PROJECTS.
UNFORTUNATELY, I DON'T HAVE, I HAVE HANDOUTS AND NOT ANYTHING ON THE SCREEN FOR, FOR THE COMMISSIONERS TO SEE, BUT I'LL TRY TO EXPLAIN THROUGH THROUGHOUT IT.
AND, AND WHAT I'M GONNA GO FIRST IS, AND I TRY TO COLOR CODE SOME OF THIS, SO IT'D BE EASIER TO FOLLOW.
LOOK AT THE BLUE RIGHT IN THE MIDDLE.
H I AND J COLUMNS, YOU KNOW, THIS IS TALKING ABOUT WHERE WE'RE GETTING REVENUE OR HOW THIS CAN OFFSET EXPENSES FOR THE CITY.
SO COLUMN H IS 20 MILLION, WHICH IS WHAT THE CITY FRONTED TO PAY FOR A HEROES PARK IN LA VERDE PARK.
AND IN, IN 2023, THIS FIRST YEAR ACROSS, THAT'S WHAT WAS IN THE APPROVED CITY BUDGET.
SO IN 20 23, 200 $50,000 IS BEING REIMBURSED BACK TO THE GENERAL FUND.
YOU HAVE MAINTENANCE OF PARKS AND EVERYTHING ELSE RELATED TO THAT.
BUDGETED 644,000, THAT'S COLUMN I.
AND THEN OTHER EXPENSES, COLUMN J A HUNDRED, ROUGHLY 146,000.
THOSE ARE THREE ITEMS THAT ARE BUDGETED.
THAT WOULD BE COVERED IN YOUR GENERAL FUND, BUT FOR THE TURS.
SO THAT'S COVERED THROUGH THIS TURS.
NOW I'M GONNA GO TO THE REVENUE THAT'S GENERATED, AND THEN I'M GONNA SHOW THE $8 MILLION RETAIL ROAD, UH, BONDS.
SO THE REVENUE THAT'S GENERATED IS COLUMN IS BASED OFF OF COLUMN B.
ON THE, ON THE LEFT HAND SIDE YOU HAVE VALUATION 406 MILLION.
THAT'S THE DIFFERENCE BETWEEN THE TAXABLE VALUE AND THE BASE VALUE.
I DON'T DO THE COMMISSIONERS HAVE THIS? THEY DON'T HAVE IT.
SPEED SCANNED AND THEN WE'RE GONNA EMAIL IT TO THE GROUP AND PUT IT ON THE SCREEN.
WE NEED TO WAIT IF WE'RE GOING THROUGH THIS, THIS IS, THIS IS SUPER IMPORTANT FOR THE COMMISSIONERS.
NO, THEN, THEN LET'S WAIT TILL HE GETS UP THERE.
UM, WHILE WE'RE WAITING, I DIDN'T KNOW IF DOC DR.
COHEN OR COMMISSIONER ENGLEBY HAD ANY QUESTIONS OR COMMENTS OR WANTED TO, YOU KNOW, ABOUT THE, THE NATURE OF THE JURORS.
I KNOW COMMISSIONER ENGLEBY WAS HERE, DR.
UH, BUT IF EITHER OF Y'ALL HAD, YOU KNOW, ANY QUESTIONS OR, OR COMMENTS ABOUT THIS SPECIFICALLY? THIS THIS GROUP, THESE, THESE, OUR CONSULTANT TEAM RIGHT HERE.
THERE'S PROBABLY NOT ANY QUESTION YOU CAN HAVE THAT THEY WOULDN'T HAVE THE ANSWERS.
ANY QUESTIONS RIGHT NOW? I AM, I'M LISTENING.
I'M ABSORBING, AND I MAY HAVE SOME QUESTIONS AFTER THE PRESENTATION.
SO WHAT IS, WHAT IS, UH, WHAT IS AN AREA OF THIS THAT IS, UM, THAT YOU WOULD LIKE FOR US TO FOCUS ON? IS IT THE, THE, IS IT MORE OF THE, THE NUMBERS BECAUSE IT'S CLEAR THAT WE CAN GET IN THE LIKE, LIKE, UH, COUNCIL SAID IN THE WEEDS MM-HMM.
BUT IS THERE ANYTHING IN PARTICULAR THAT YOU, YOU WOULD LIKE FOR US TO GO INTO MORE DETAIL ON? UM, NO, NOT, NOT AT THIS TIME.
UM, I'M GONNA LET ALLOW Y'ALL TO GO AHEAD AND DO'S PRESENTATION SINCE THIS IS REALLY THE FIRST TIME I'M, I'M LEARNING ABOUT THIS TOO.
[00:45:01]
SO I'M GOING TO LET Y'ALL CONTINUE WITH Y'ALL'S PRESENTATION SO I CAN GET ALL THE INFORMATION AND THEN BASICALLY MAKE MY ASSESSMENTS AFTER THAT.SO IS THE HAYES COUNTY YOUTH BASEBALL FIELDS IN HERE? IT SEEMS LIKE IT'S CLOSE.
IT'S ON THE OTHER SIDE THOUGH.
AND THEN MAYBE JUST WHILE WE'RE WAITING, JUST TO POINT OUT THAT THE FINANCES THAT MARK'S GONNA WALK THROUGH DOES, UM, TAKE INTO ACCOUNT THAT THE ZONE WOULD BE EXTENDED.
RIGHT? SO THIS DOESN'T GO THROUGH THE CURRENT MAJORITY OF THE ZONE.
IT, IT ASSUMES EXTENSION, UM, OF THE ZONE 3 20, 56, 57, ACTUALLY 57.
UM, WHICH WE BEGAN DISCUSSED WITH THE COUNTY ATTORNEY.
AND HE SAYS THE COUNTY HAS NO OBJECTIONS, UM, WITH EXTENSION 3 20 57 AND MAYBE A LITTLE BIT OF BACKGROUND OR COLOR, BUT THE IDEA WITH THE WORKING GROUP FOR WHY 2057 AND WHY THAT SPECIFIC DATE WAS PICKED WAS GOING BACK TO THIS IDEA OF LEVERAGING TOURIST REVENUES.
WITH THE TOURIST REVENUE BONDS, YOU HAVE A 30 YEAR MATURITY.
AND SO IF WE GO OUT FOR TILL 2057, THAT WOULD ALLOW FOR A 2023 BOND ISSUANCE WITH A 30 YEAR MATURITY.
AND THEN AS GROWTH HAPPENS, IT WOULD ALLOW FOR AN ADDITIONAL TOURIST REVENUE BOND TO BE ISSUED, YOU KNOW, SAY WITHIN TWO YEARS.
AND TO ALLOW THAT SECOND BOND TO HAVE A 30 YEAR MATURITY AS WELL.
I THOUGHT YOU WERE TALKING ABOUT THE TOURIST BOUNDARIES GOING UP AND NO, NO, NO.
THE TERM, THE TERM OF THE VOTE.
THE TERM BOND THAT IN EXISTENCE, YEAH.
SO THE, THE WAY TO THINK OF IT IS THE COUNTY, AND IT'S A VERY GRACIOUS OF THE COUNTY TO MAKE THIS EXTENSION, BUT THEY'RE COMMITTING, THEY'RE WILLING TO PLEDGE THE COUNTY'S PORTION OF THE TAXES ENOUGH FOR TO COVER ALL THE DEBT THAT WOULD BE ISSUED, NOT ONLY FOR THIS, THIS INITIAL $8 MILLION THAT WE'VE ALREADY PASSED THE AGREEMENT ON, BUT WE WOULD HAVE A POTENTIAL FOR A SECOND PROJECT, WHICH THERE HAVE BEEN SEVERAL THAT HAVE BEEN DISCUSSED, BUT, YOU KNOW, OVER THE COURT.
AND WE'LL HAVE TWO OR THREE YEARS TO DETERMINE WHAT THAT IS.
AND THEN WE CAN ISSUE A 30 YEAR TUR REVENUE BOND WITHOUT HAVING TO GO BACK AND ASK FOR ANOTHER EXTENSION.
AND IT COULD BE, YOU COULD THINK OF WHAT WOULD THE TURS WANT TO ISSUE A REVENUE BOND FOR AFTER THIS ONE? IT COULD BE, UH, THE, UH, INTERSECTION IMPROVEMENTS ON KOHLERS.
FOR EXAMPLE, WE HAD A PRESENTATION THAT THE, ALL THOSE INTERSECTIONS MEET WARRANT FOR SIGNALIZATION OR A ROUNDABOUT, UH, AND PEDESTRIAN IMPROVEMENTS, UNDERGROUNDING OF UTILITIES, ALL KINDS OF STUFF.
IT COULD BE THAT, IT COULD BE A PARKING GARAGE, WHICH IS SOMETHING THAT WOULD BE, UM, MORE ALONG THE LINES OF AN INCENTIVE, BUT AT THE SAME TIME, THAT WOULD PRODUCE THE DENSITY THAT WOULD THEN DRIVE THE INCREASED VALUATIONS, WHICH IS WHAT YOU WERE TALKING ABOUT EARLIER.
AND TO DO THAT, YOU HAVE TO STACK UP THE PARKING, UH, SO, WHICH CREATES A HIGHER TAXABLE VALUE PER ACRE, WHICH THEN GENERATES MORE MONEY TO THE CITY'S GENERAL FUND, MORE MONEY TO THE COUNTY'S GENERAL FUND AND MORE MONEY BACK TO THE TURS.
SO THAT COULD BE A PROJECT THAT WE COULD POTENTIALLY FUND.
UM, THERE COULD BE POTENTIALLY A FEW OTHERS.
THAT'S WHERE THE PROJECT FINANCING PLAN THAT'LL BE COMING FORWARD WILL IDENTIFY VARIOUS OTHER THINGS THAT WE COULD USE THOSE REVENUES FOR.
IF, SORRY, I DON'T WANT TO INTERRUPT.
WELL, I WAS GONNA SAY, IF THERE'S, THERE'S TWO DIFFERENT KIND OF SCHOOLS OF THOUGHTS IF WE USE IT FOR INFRASTRUCTURE PROJECTS.
IF YOU THINK ABOUT IT FROM, UH, PARKING LOTS OR ROADS, THOSE ARE PROJECTS THAT THE BURDEN IS NOT ON THE CITY OR THE COUNTY TO PRODUCE BECAUSE THE TERRORS CAN PAY FOR IT.
IT, IT'S A DIRECT RELIEF OFF OF THE GENERAL FUND.
BUT IF YOU USE THEM MORE, THINK OF IT LIKE, UH, SPECULATIVELY, THEN YOU'RE USING TURS REVENUE BONDS TO CREATE SOMETHING THAT WILL GENERATE FUTURE REVENUES.
THAT'S WHAT THE PARKING GARAGE MIGHT BE.
OR YOU COULD ALSO POTENTIALLY DO SOMETHING TO HELP WITH THAT SUBSIDY OF A PRIVATE PUBLIC-PRIVATE PARTNERSHIP.
SO SAY FOR EXAMPLE, SOMEONE WANTED TO BUILD A SEVEN STORY OFFICE TOWER, WHICH WE'VE BEEN IN DISCUSSIONS FOR YEARS ON CLASS A OFFICE.
LET'S SAY SOMEONE WANTED TO DO THAT.
WELL, THEY MAYBE ARE WANTING TO TEST THE MARKET BECAUSE THERE ARE NO SEVEN STORY CLASS A OFFICE BUILDINGS IN KYLE BUTA, UH, AND SAN MARCOS HAS A LITTLE BIT, BUT EVEN SAN MARCOS NOT THAT MUCH.
SO IF WE'RE WANTING TO SAY, HEY, WE WANT TO GET VERTICAL CLASS A OFFICE HERE, WE COULD USE THIS TO HELP CONSTRUCT AND OWN A PORTION OF THAT, OR, YOU KNOW, INSTEAD OF MAYBE THE BOND, WE COULD USE THE REVENUES TO OFFSET THEIR INITIAL RISK PROFILE.
YOU KNOW, THERE'S ALL KINDS OF DIFFERENT WAYS
[00:50:01]
THAT YOU CAN USE THESE CASH FLOWS TO TRY TO, UM, PUT, YOU KNOW, JUICE TO THE MARKET ESSENTIALLY TO CREATE THESE THINGS.THAT'S WHERE THE PARKS WORK, THAT'S WHAT THE PARKS WERE ALL ABOUT, IS ENCOURAGING THE KIND OF DEVELOPMENT PATTERNS THAT WE WANT TO SEE THAT PRODUCE THAT HIGH YIELD PROPERTY VALUE AND SALES TAX.
SO IS THE VISION HERE SOMETHING LIKE, LIKE A DOMAIN SHOPPING AREA WITH PLACES THEY EAT AND HANG OUT AND NOT SO MUCH LIKE A BUNCH OF OUTLET MALLS? BECAUSE SOME, WE KNOW SOMETIMES PEOPLE AREN'T COMING TO SHOPPING ANYMORE.
SO THAT'S, SO HOW FAR ARE WE GOING? WELL, SO THINK OF THE REASON, WHY DO THE OUTLET, WHY DOES THE OUTLET MALL STRUGGLE? BECAUSE IT'S JUST RETAIL, RIGHT? THERE ARE NO JOBS OTHER THAN THE JOBS THEY CREATE MM-HMM.
AND THERE ARE ALSO NO, UH, RESIDENCES.
SO YOU WANT DOMAIN DOMAIN, YOU WANT, YOU WANT RETAIL, YOU WANT RESIDENTIAL AND JO UH, COM COMMERCIAL, YOU KNOW, JOBS AND YOU WANT, UH, RESIDENTIAL ALL IN A SMALL CONFINED SPACE.
THAT'S WHAT THE MUELLER DEVELOPMENT IS.
SO THIS IS ABOUT, THAT'S, IT'S ALSO ABOUT AFFORDABILITY.
SO WE'RE NOT TRYING TO NECESSARILY BUILD, YOU KNOW, YOU KNOW, THE, THE, THE MOST EXPENSIVE THINGS, BUT THAT DENSITY CREATES AFFORDABILITY TOO.
BUT THIS TURNS NUMBER TWO CAN, CAN, WE CAN FOCUS ON MAKING SURE THAT THE AMENITIES AND THE QUALITY OF LIFE PROJECTS THAT WE PUT IN THE WALKABILITY OF THESE PROJECTS THAT COST MONEY, THE INFRASTRUCTURE COSTS MONEY AND THE RETAIL ROADS, THAT $8 MILLION IS A VERY SMALL SECTION OF ROADS, BUT IT IS 20 FOOT WIDE SIDEWALKS.
UM, IT IS, IT IS BEAUTIFUL WHEN YOU SEE THE RENDERINGS IN WHICH BY THE WAY, IT'S, THEY'RE, I THINK AT LIKE 95% DESIGNED, THEY'RE READY TO START BUILDING THESE ROADS, WHICH IS PRETTY EXCITING.
YOU'LL BE ABLE TO WALK FROM HEROES MEMORIAL PARK TO LAVERDE ALL ON BEAUTIFUL, OPEN WIDE PATHWAYS, AND THAT CREATES A PRETTY COOL MM-HMM.
I, I THINK THE MAYOR JUST REALLY HIT ON SOMETHING.
SO WE HAVE AN $8 MILLION COMMITMENT THAT WE NEED TO MOVE FORWARD WITH.
YOU'LL SEE THE THIRD COLUMN FROM THE RIGHT IS 8 MILLION SERIES 2022.
THAT'S THE TURS BOND PAYMENTS.
THIRD COLUMN FROM THE RIGHT, IT'S COLUMN L.
CAN Y'ALL SEE THAT? COMMISSIONER'S, CAN YOU SEE THE NUMBERS NOW? AND THE, OKAY.
SPREADSHEET'S ALSO BEEN EMAILED TO, IT'S THE COLUMN L THAT'S THE ANNUAL DEBT SERVICE FOR 30 YEARS ON AN $8 MILLION PROJECT, STARTS AT 440,000, WORKS UP TO ABOUT 575,000.
THAT'S THE RETAIL ROADS, TURS BONDS THAT ONCE THIS AGREEMENT BETWEEN THE COUNTY AND THE CITY GETS IN PLACE, UH, EXTENDED, WE'RE LOOKING TO SELL THOSE BONDS.
SO HOW DO WE GET THE MONEY TO PAY FOR THE DEBT SERVICE, AS WELL AS COVER THE OTHER EXPENSES, WHICH ARE THE THREE COLUMNS IN THE BLUE, THE, THE REIMBURSEMENT BACK TO THE CITY, THE MAINTENANCE, UH, AND OTHER EXPENSES FOR THE TUR.
SO NOW WE GO TO HOW THE REVENUE'S GENERATED.
SO JUST LOOKING AT 2023 LEFT TO RIGHT, THE FIRST COLUMN IS THE YEAR 2023.
THE NEXT COLUMN IS THE INCREMENTAL VALUE.
SO THE TURS REVENUE IS GENERATED BY THE INCREMENTAL VALUE MULTIPLIED BY THE CITY'S TAX RATE MULTIPLIED BY 50%, BECAUSE 50% OF THE TAXES, AND THAT'S THE SAME FOR THE COUNTY.
SO FOR 2023 ARE TAX RATES 50 CENTS MULTIPLIED BY THAT INCREMENT THAT BRINGS IN, THEN MULTIPLY THAT BY 50%.
THE CITY'S CONTRIBUTION TO THE TURS IS $1,032,000.
THE COUNTY'S RATE IS 29 AND A HALF GOING THROUGH THAT SAME CALCULATION, THEIR CONTRIBUTION IS 599,000.
SO WE HAVE REVENUE OF 1,000,631 IN THE TURS FUND.
AND THOSE ARE REAL NUMBERS BASED ON CERTIFIED VALUES.
THAT IS ACTUALLY, HAS IT BEEN DEPOSITED? LIKE
[00:55:01]
THAT USUALLY HAPPENS.IT WOULD'VE BEEN JANUARY, FEBRUARY, MARCH.
THEY'RE COMING IN EVERY MONTH.
98.9% OF THE TAXES HAVE BEEN COLLECTED.
SOMEBODY DID THE MATH RIGHT BEFORE THE CAME
WELL, WE, WE KEEP OUR FINGERS ON THE PULSE ON TAX REVENUE.
DO, DO YOU KNOW HOW MUCH DID WE GET OFF THAT BASE? WELL, THE, SO IF YOU GO TO THE TOP, IF YOU LOOK ON THE UPPER LEFT ABOVE THE, THE, THE, THE BANNER WITH THE ALPHABET, THE BASE IS 121 MILLION, UH, UPPER LEFT HAND CORNER.
SO THE CITY AND THE COUNTY ARE GETTING 100% OF THE TAXES ON THE BASE.
SO IF YOU'RE, IF YOU KNOW, 121 MILLION TO THE CITY STANDPOINT, 1 21 WAS, IS THIS THE APPRAISED VALUES IN THE BASE? THAT IS THE BASE VALUE.
WHEN YOU CHECK UP WHAT THEY WERE WORTH AT THE, THE YEAR, IT WAS PRETTY STARTED.
THAT'S, THAT'S GONNA BE THE BEGINNING.
AND THEN THE DIFFERENCE IS GONNA BE, AND IN YOUR CASE FOR THAT NUMBER, UH, YOU WOULD'VE GENERATED ON ALL OF A HUNDRED PERCENT OF THE, THE TAXES, $600,000 THAT'S, THAT'S COMING TO THE CITY.
AND THEN THE COUNTY TAX RATE'S ABOUT HALF THAT.
THE COUNTY WOULD GET ABOUT 300,000 OFF OF THE BASE.
THEY'RE GETTING ALSO 1,000,032 INTO THE GENERAL FUND BECAUSE 50% OF THIS, THE TAX THAT GOES TO, THAT GOES OFF OF THE INCREMENT, HALF GOES TO THE CITY, HALF GOES TO THE TURS FOR THE COUNTY, HALF GOES.
SO WHEN YOU SEE 1,000,032, THE GENERAL FUND'S GETTING 1,000,032 ALSO.
AND FOR THE COUNTY, 599,000 IS BEING CONTRIBUTED.
THE COUNTY'S GETTING 599,000 INTO THEIR GENERAL FUND.
SO WHEN YOU GET TO COLUMN G, WE HAVE 1,000,006 31 AVAILABLE FOR EXPENSES.
WAIT, WAIT, BUT THAT 1 6 31, YOU'RE ADDING THE BASE BACK IN? NO, THAT'S JUST THE REVENUE.
THAT'S JUST 1,000,032 PLUS 5 99.
THAT'S THE CITY'S AND THE COUNTY'S CONTRIBUTION.
SO YOU'RE ADDING THE COUNTY TOGETHER.
WELL, AND IT JUST, IT'S ALSO, I THINK IT'S REALLY IMPORTANT TO, TO UNDERSTAND THE TRAIN ALWAYS GETS ME
WHAT? IT'S LIKE THEY'RE WAITING ON ME
SO THINK, THINK ABOUT, AND I'M NOT TRYING TO STEAL YOUR THUNDER, BUT I WANNA MAKE SURE WE UNDER UNDERSCORE 1.6 MILLION IN COLUMN G IS THE TOTAL AMOUNT THAT THE CITY AND THE COUNTY ARE CON CONTRIBUTING TO TERRAS NUMBER TWO.
AND THEN FROM THAT IS COLUMN H, WHICH IS 250,000 AND GROWING A FULL REPAYMENT OF HEROES, MEMORIAL PARK AND LA VERTE.
OVER THE COURSE OF THE 30 YEARS, THAT'S MONEY THAT'S BEING TAKEN OUT OF THAT FUND AND GIVEN BACK TO THE GENERAL FUND.
SO THE AMOUNT OF ACTUAL MONEY THAT'S COMING TO THE GENERAL FUND IS 1,000,032 FROM THE CITY GOING TO THE CITY'S PROPERTY TAXES PLUS 250,000 MORE THIS YEAR BEING REPAID OUT.
AND THAT IS COMPRISED, IF YOU THINK OF IT AS PART CITY MONEY AND PARK COUNTY MONEY.
SO THAT AT THE END OF THE 30 YEARS, THOSE TWO PARKS WILL HAVE BEEN REPAID IN THEIR ENTIRETY BY THE TURS, WHICH MAKES THE COUNTY, YOU MIGHT THINK OF THEM BY THE END OF THE 30 YEARS, THEY'RE A FULL VESTED PARTNER, UH, IN, IN THOSE TWO PARTICULAR PROJECTS.
SO, SO D AND F ARE GOING BACK TO THE GENERAL FUND.
SO WHERE IS IT? WHERE'S THE PAYMENT TO THE TE FUND? NO, NO, NO.
THAT'S WHAT I, BUT AT THE SAME TIME, BECAUSE IT, IT'S ONLY HALF THE SAME NUMBER IS GOING TO THE GENERAL FUND FOR BOTH THE CITY AND THE COUNTY.
SO THE OTHER 50% IS GOING TO THE GENERAL FUND.
WE COULD HAVE ADDED A COUPLE COLUMNS THAT SHOWED 2 MILLION IN TOTAL REVENUE, A MILLION GOING TO THE JURORS, A MILLION GOING TO THE CITY.
SO THEN WHAT DID I, THE HAYES, THE TAX RATE IS, THEIR TAX RATE IS LOWER THAN THE CITIES.
SO LIKE JUST WHENEVER WE DO, LIKE OUR COSTCO DEAL OR THE BUILDER'S FIRST SOURCE DEAL, WHEN WE DO 3 80, 3 80 ONES MM-HMM.
[01:00:01]
BREAK TO THIS DEVELOPER AND THE COUNTY GIVES A 50% TAX BREAK.THE COUNTY'S AMOUNT IS LESS BECAUSE THEY HAVE A LOWER TAX RATE.
SO THEN LET ME ASK YOU THIS TOO.
WHEN YOU TALK ABOUT THE, THE BOND BEING PAID BACK, ANY PAYBACK TO THE CITY, IS THERE INTEREST ALSO UNPAID BACK TO THE CITY? BECAUSE THE CITY INCURS INTEREST, RIGHT.
BUT EVEN IF IT COMES OUT OF THE CITY, THE 17 KEY MEMBER GENERAL FUND RIGHT, RIGHT.
NO, BUT THEY'RE NOT PAYING INTEREST OR THEY ARE.
SO LET'S BACK UP A LITTLE BIT.
WHEN MARK STARTED DOING THE CALCULATIONS, HE ASKED ME, HOW MUCH HAS THE CITY SPENT AND WILL SPEND WHEN EVERYTHING IS SAID AND DONE FOR HEROES MEMORIAL LA VERDE PARK, AND THE WHITE TRAIL SECTION OF IT.
SO WE GAVE HIM THE NUMBER THAT WE HAD SPENT TO DATE, WHICH WAS AROUND 16, ALMOST 17 BILLION.
SINCE LA VERDE IS NOT DONE YET, WE ADDED SOME MARGIN IN IT.
ANOTHER TO ROUND IT OFF TO 20 MILLION.
SO HE'S WORKING WITH THE CITY IS GONNA GET 20 MILLION BACK.
LET'S SUPPOSE THE FINAL NUMBERS, WHEN EVERYTHING IS SAID AND DONE, COMES OUT TO 18 MILLION, WHICH I THINK THAT'S WHERE WE'RE GONNA END UP.
THERE'S A $22 MILLION INTEREST TO THE GENERAL FUND COMING BACK FROM TURS, WHICH I HAVE BUILT IN NOW.
WELL THEN MY QUESTION IS, WHAT IF IT'S, WHAT IF IT IS 20 MILLION THERE? WOULD THERE BE NO INTEREST THEN INCURRED, DEPENDING ON HOW FAST THIS TURS GROWS IN, IN ASSESSED VALUATIONS, WE COUNCIL AND THE TUR BOARD CAN ADJUST THAT IN THE FUTURE YEARS.
WELL THEY CAN ADJUST CUZ MY, MY GOAL IS EVEN THOUGH WE, WE MAKE THE TUR 30 YEARS OR 40 YEARS THAT THEY CAN PAY BACK SOONER RATHER THAN LATER.
I DON'T, IT'S NOT NECESSARY TO WAIT THE FOUR 40 YEARS.
AND, AND THAT'S, THAT'S A GOOD POINT.
WE'RE, AND IT'S GONNA GET TO BOTH WHAT YOUR, YOUR TWO POINTS ARE.
IF WE GROW FASTER, IF THAT LAND DEVELOPS QUICKER, THEN THERE'S MORE MONEY TO COVER THE EXPENSES, THEN WE CAN PUSH UP.
WE CAN'T GET MORE THAN WHAT'S BEEN PAID, BUT WE CAN PUSH IT UP AND GET IT SOONER.
BUT WE CAN, BUT THERE'S, IT'S REALLY IMPORTANT TO UNDERSTAND THE OPPORTUNITY COST OF EXPEDITING THE REPAYMENTS, PUTTING IT ON THIS SCHEDULE, AND THEN THE MAINTENANCE SCHEDULE.
THEN WE ARE OFFERED A THIRD SCHEDULE OF ADDITIONAL, UH, INFRASTRUCTURE PROJECTS THAT WE CAN PURSUE.
IF WE SAY, WELL, ALL NEW GROWTH HAS TO GO TO REPAY THE PARKS AS FAST AS HUMANLY POSSIBLE, THEN WE NO LONGER ARE ABLE TO MANEUVER AND DO NEW, NEW PROJECTS.
SO THE, THE PARKING GARAGE OR WHATEVER ELSE WE WANT TO DO.
BASICALLY, IF YOU SAY THE, EVERYTHING HAS A TRADE OFF, IF WE WANT TO CHANGE ALL THE CASH FLOWS SO THAT AS, AS GROWTH COMES, WE JUST ADD ALL THAT MONEY INTO REPAYMENT OF THOSE TWO PARKS, WE CAN NO LONGER USE THE CASH FLOWS TO DO NEW THINGS.
SO WHAT I'M PROPOSING AND WHAT THIS IS PROPOSING, UH, IS THAT WE SET IT UP ON A SCHEDULE AND WE FOLLOW THAT SCHEDULE KNOWING THAT THOSE PARKS WILL BE REPAID.
AND THEN AS NEW GROWTH COMES, WE TAKE ADVANTAGE OF NEW OPPORTUNITIES IN PARTICULAR OVER THE NEXT THREE YEARS BECAUSE IN THE NEXT THREE YEARS, WE WILL HAVE UNIQUELY HAVE THE ABILITY TO ISSUE TUR 30 YEAR TUR REVENUE BONDS ON THE FUTURE CASH FLOWS.
SO THAT, YOU KNOW, THAT'S WHAT I THINK THE GOAL SHOULD BE.
IT SHOULD BE TO DEFINED A WAY TO FUND AT LEAST ONE OTHER SIGNIFICANT PROJECT, UH, IN THAT REGION TO ALLOW FOR, UH, FOR US TO ACHIEVE THE VISION THAT WE HAVE OUT THERE.
SO RIGHT NOW WHAT WE'RE TALKING ABOUT IS ONLY TO FUND THE RETAIL ROADS, THE, THE TWO ROADS THAT WE'RE THREE THREE SO FAR, THAT'S ALL THE TERRORS.
THAT 8 MILLION IS WHAT? 40 REPAYMENT OF THE RE UH, THE, THE TWO PARKS, THE OPERATION AND MAINTENANCE OF THOSE PARKS MM-HMM.
SO NOT TO GET AHEAD OF YOURSELVES, UH, MYSELF, BUT THESE NUMBERS ARE FIXED BASED ON THE SHEET.
ONLY THE, THE INCREMENTAL ONLY THING THAT'S FIXED IS 2023.
BECAUSE THAT'S WHAT YOU ALL ARE, ED I'M LOOKING AT THE SHEET HERE.
RIGHT? IF WE, IF WE LEAVE IT ALL ALONE, BY THE TIME WE GET TO 2056, WE WOULD'VE HAD $947 MILLION OUT OF THIS TURS NO INCREMENTAL VALUE.
SO ISN'T THAT ACCUMULATED? IF, IF WE'RE TALKING ABOUT ACCUMULATED REVENUE, YOU'D HAVE TO ADD UP EVERYTHING MINUS 90 MILLION THAT IT TOOK TO GET THERE, RIGHT? UH, UH, THE PROJECTED TURS NUMBER TWO REVENUES, NO.
IF YOU, IF YOU WANNA KNOW WHAT, BASED OFF OF THESE PROJECTIONS.
SO WE DON'T KNOW WHAT FUTURE VALUE'S GOING TO BE AND HOW QUICK SOMETHING'S
[01:05:01]
GOING TO BE BUILT.PERHAPS IT'LL GO 15% FOR THREE OR FOUR YEARS AND THEN TAPER BACK.
SO WE'RE, WE'RE GUESSING MM-HMM.
BUT GOING NOW, IF YOU WANT TO KNOW WHAT, BASED OFF OF THESE PROJECTIONS, WHAT THE TOTAL REVENUES THAT WOULD BE GENERATED, YOU'D HAVE TO ADD UP ALL OF THOSE IN COLUMN G.
IS THAT WHAT IT ADDS UP? I MEAN, IT'S ROUGHLY 90 MILLION.
SO I WAS THINKING, ARE WE SPENDING 90 GETTING 90 BACK SINCE IT'S A, IT'S A 50, YOU GET 50% OF IT.
WELL, SO 90 MILLION IS GOING INTO THE TOURIST FUND FROM 2023 TO 2056.
WE CAN BUT OVER PAY DEVELOPERS.
BUT OVER THE SAME TIME, THE GENERAL FUND IS GETTING 20 MILLION BACK.
SO WE'RE, WE'RE GAINING RIGHT? I JUST WE'RE GAINING.
YEAH, WE'RE GAINING AND, AND, AND IF YOU'RE LOOKING AT THE CITY'S PERSPECTIVE, THE COUNTY'S PAYING A THIRD OF THAT.
AND, AND TURS MONEY IS NOT LOST MONEY.
WE'RE TALKING ABOUT SPENDING IT HOWEVER WE WANT.
IT'S JUST A DIFFERENT ACCOUNT.
AND THIS IS NOT, I THINK MAYBE WHAT YOUR THOUGHT PROCESS IS CURRENTLY, LIKE A DEVELOPER DRIVEN TOURIST THAT YOU'RE DEPENDENT ON A DEVELOPER COMING IN TO BUILD, TO BUILD A PROJECT TO INCREASE VALUE.
THIS IS A CITY INITIATED TOURIST.
AND SO REALLY IT SHOULD BE THE CONCEPT OF THE CITY LOOKING TO SAY, WHAT PROJECTS CAN WE CITI BUILD WITH THESE TOURIST REVENUES THAT WILL IN TURN BUILD PROPERTY VALUE FASTER? SO IT'S LIKE YOU'RE, THIS IS A SMALL BUSINESS.
AND HOW CAN WE TAKE THE EARNINGS OF OUR SMALL BUSINESS TO REINVEST, TO GROW EVEN LARGER? THAT'S VERY GOOD WAY TO PUTS A GOOD TO FRAME MY MIND AROUND IT.
RIGHT? CAUSE I KEPT BRINGING UP DEVELOPERS.
WELL, THINK ABOUT IT THIS WAY.
THERE ARE NO DEVELOPERS AT THIS TABLE.
IT'S JUST, IT'S JUST OUR COLLEAGUES AT THE COUNTY AND, AND US.
EVERYTHING IN THIS SHEET IS, THERE ARE NO DEVELOPER PROJECTS ON HERE AT, AT ALL.
MY, MY RISK IS GONE DOWN
THE, THE TURS HAS $590,000 AVAILABLE FOR DEBT SERVICE.
SO WHEN WE'RE SELLING BONDS, THAT'S THE NUMBER THAT PEOPLE ARE GONNA BE LOOKING AT.
SO NOW LOOK AT THE 8 MILLION DEBT SERVICE.
SO ON THAT STATIC NUMBER OF FIVE 90, EVERY ONE OF THE YEARS OF DEBT SERVICE IS LESS THAN THAT.
THEN EVENTUALLY IT GETS TO AN AVERAGE OF 5 75.
SO BASED OFF OF 2023 AND PAYING BACK THE CITY FOR HEROES PARK, PAYING FOR THE OPERATION AND MAINTENANCE OF, OF THE TUR OF OF THE PARKS, AND, UH, COVERING TURS EXPENSES, YOU GENERATE ENOUGH TO COVER AN 8 MILLION BOND ISSUE.
NOW REMEMBER WHAT WE WERE TALKING ABOUT EARLY? WHAT DOES, WHAT CAN BE PLEDGED TO THAT DEBT SERVICE? WE CAN'T PLEDGE THE COUNTY AT THIS POINT BECAUSE OF THE INTERLOCAL AGREEMENT.
SO NOW WE'RE GONNA LOOK AT DEBT SERVICE COVERAGE RATIO CITY ONLY.
THAT'S THE SECOND COLUMN FROM THE RIGHT.
YOUR CITY REVENUE, JUST THE CITY REVENUE OF BASICALLY 1,000,002 VERSUS THE $440,000 OF DEBT SERVICE.
THE DEBT SERVICE ON THE, ON THE $8 MILLION ROAD BOND GETS US COVERAGE CLOSE TO 2.76.
SO THE CITY'S REVENUE ONLY VERSUS THE DEBT GETS US NEARLY THREE TIMES COVERAGE, WHICH IS WHAT WE HAVE TO USE TO SELL THE BONDS.
NOW, WHEN WE HAVE THE COUNTY MONEY, THAT COUNTY MONEY CAN'T BE USED AS DIRECT PLEDGE FOR THE DEBT, BUT IT CAN COVER ALL THE EXPENSES THAT WE HAVE.
RIGHT? SO IT MONEY'S ALL FUNGIBLE.
SO IT'S, WE HAVE A BIG POT, BUT THE INVESTORS WILL ONLY LOOK AT THE CITY'S MONEY FOR THE BONDS.
NOW THAT MAY, WE MAY BE ABLE TO WORK, WORK OUT DIFFERENT, UH, SCENARIO DOWN THE ROAD.
BUT IN TODAY'S WORLD, $8 MILLION CAN BE PAID FOR ONLY BY THE CITY MONEY.
THE CITY MONEY IS PLENTY TO COVER THAT $8 MILLION,
[01:10:02]
ANY LEFTOVER CITY MONEY, PLUS THE COUNTY MONEY COVERS ALL THE OTHER OB OBLIGATIONS.SO EACH COLUMN DOWN, OR EACH ROW DOWN FROM THAT FIRST COUPLE IS JUST IN, WE'VE INFLATED OPERATIONS BECAUSE WE KNOW EVERYTHING COSTS MORE.
EACH YEAR WE'VE INCREASED THE VALUATION BECAUSE WE BELIEVE GROWTH IS STILL COMING.
WE HAVE TAKEN THE TAX RATE IN TWO STEPS FOR THE CITY FROM 52 50 CENTS TO 57 TO 59 TO ACCOUNT FOR THE FUNDS, THE ROAD BONDS, THE, THE, THE $200 MILLION ROAD BOND PROJECT THAT WE HAVE GOING 294 WHO, WHO WANTS TO ROUND POTATO PITO.
AND SO WE'RE TRYING TO BE VERY CONSERVATIVE.
WE THINK THIS IS A GOOD PLAN TO GET THE $8 MILLION AND STILL PAY BACK OURSELVES, STILL COVER THE EXPENSES AND STILL LEAVE ROOM FOR FUTURE PROJECTS AS GROWTH COMES.
AND A G A GOOD, JUST AS A POINT OF REFERENCE FOR THE CONSERVATIVE NATURE TO PROVE THE CASE THAT IT'S CONSERVATIVE.
THINK OF PROJECT LION KING, WHICH WE'VE DISCUSSED.
UH, THAT'S A POTENTIAL OF A HUNDRED MILLION INVESTMENT INTO THE TURS.
AND YOU'RE PROJECTING THE TURS TO GO FROM 406 MILLION TO 506 MILLION IN SIX YEARS MM-HMM.
AND THEY WANT TO BE OPEN BY 18 MONTHS.
THAT JUST GIVES IT KIND OF AN EXAMPLE OF NOT THAT THAT PRO IT'S, THAT'S STILL A SPECULATIVE THING, BUT TO JUST GIVE YOU AN EXAMPLE OF WHAT, HOW MUCH MORE GROWTH COULD BECOME AVAILABLE QUICKLY BASED ON THE ECONOMIC DEVELOPMENT DEALS.
AND SO IT CAN CREATE THAT KIND OF SYNERGY FOR US TO DO EVEN MORE WITH THE TURS OVER THE NEXT THREE YEARS IN PARTICULAR.
AND IF YOU, IF YOU LOOK AT THE ORIGINAL PROJECT AND FINANCE PLAN, THEY WERE PROJECTING ABOUT 350 MILLION THAT WE'D HAVE AN IN INCREMENT RIGHT NOW.
AND THE TURS IS ACTUALLY OVERPERFORMING.
AND THEN BY 2034 WE'RE PROJECTING 5 67 AND THE ORIGINAL PLAN WAS PROJECTING OVER 1.1 BILLION.
SO THERE'S, WE'VE TAKEN THE ASSUMPTIONS DOWN CONSIDERABLY FROM WHAT WAS IN THAT ORIGINAL PLAN.
AND IF, IF THEY EVEN JUST LOOKED LIKE WHAT WAS IN THE ORIGINAL PLAN, YOU'D HAVE SIGNIFICANTLY MORE MONEY HERE, UM, IN THOSE, IN THOSE LATER YEARS.
THE, SO THE DEBT SERVICE COVERAGE RATIO 2.6, UH, 76 VERSUS 4.19, WHAT ARE THE BOND, WHAT DO THE BOND, UH, UNDERWRITERS FOR THESE REVENUE BONDS LOOK FOR AS A TOP TIER DEBT SERVICE COVERAGE RATIO THAT GETS THE BEST INTEREST RATE? UM, MCKINNEY TEXAS SOLD TO RETURNS BONDS SIMILAR TO THIS SIX MONTHS AGO.
UM, AND THEY WERE LOOKING AT TWO TIMES COVERAGE.
SO WE'RE LOOKING STRONG ON THAT EVEN WITHOUT THAT HIRE, WITHOUT COUNT BY OURSELVES.
AND, AND THAT'S, IT'S ON PURPOSE BECAUSE REMEMBER THAT COVERAGE IS BEFORE THE OBLIGATIONS THAT PAYING BACK THE CITY FOR THE PARKS THAT WE'VE PAID FOR AND THOSE OTHER OPERATIONS, IT'S A GROSS COVERAGE OFF THE GROSS NUMBER, NOT THE NET NUMBER.
SO THAT'S WHY I POINTED OUT WE HAVE 600,000 NET, BUT OUR GROSS NUMBER'S MUCH HIGHER.
SO THE FIRST OBLIGATION, IF THERE'S EVER A PROBLEM THAT A BOND HOLDER'S GONNA LOOK TO IS THE GROSS REVENUE.
AND IT WOULD COME FIRST BEFORE THESE OTHER OPERATIONAL EXPENSES.
THE BOND HOLDER WOULD'VE TO BE PAID BACK FIRST, ALWAYS MM-HMM.
I THINK LIKE IF YOU WERE AT LIKE THREE TO FOUR TIMES COVERAGE, YOU'D PROBABLY BE GETTING THE BONDS RATED.
I MEAN IT NO, THESE ARE GONNA BE RATED BONDS.
THIS ISN'T LIKE A PI BOND THAT'S A NON-RATED.
IT WOULD BE, UH, IF WE SOLD TODAY, WE'D BE BE, UH, 4%.
SO THAT'S, THAT'S PRETTY INTERESTING, YOU KNOW, BECAUSE, AND THIS IS JUST, I KEEP BRINGING PERVEZ UP AND IT GOES ALL THE WAY BACK TO PERVEZ.
SO ORIGINALLY THE CONVERSATION ABOUT CO BOND VERSUS TURS REVENUE BOND, WAS THAT A CO BOND? BECAUSE IT USES THE FULL FAITH AND CREDIT OF THE CITY IS CHEAPER BECAUSE WE GET THEIR RATED BONDS WHERE WE GET BETTER INTEREST AND AS A RESULT WE'RE, WE'RE ULTIMATELY SAVING THE TAXPAYERS MONEY ON THE CASH FLOWS.
HOWEVER, BECAUSE OF THE STRENGTH OF TERRORS NUMBER TWO, IF YOU'RE TALKING ABOUT 10 BASIS POINTS, WHICH IS 0.1%, UH, IN ORDER TO TAKE THE LIABILITY COMPLETELY OFF OF THE CITY, THAT'S PROBABLY A TRADE THAT OUR FINANCE DIRECTOR WOULD SAY IS WORTH DOING EVERY TIME.
AND, AND I WOULD POINT OUT, THERE'S A COUPLE OTHER THINGS AND, BUT WE AGREE WITH THAT.
[01:15:01]
WE HAVE TO PROBABLY GET A BOND RESERVE FUND THAT'S THE CITY'S MONEY OR THE TOURISM'S MONEY AND IT JUST SITS THERE AND IT BECOMES A LITTLE INEFFICIENT.WHAT IS THE, WHAT DO THEY LOOK FOR THERE? THAT'S JUST ONE, LIKE ONE ONE YEAR'S PAYMENT.
AND SO IT'S, IT'S A LITTLE INEFFICIENT CUZ IT SITS THERE AND A CO WOULDN'T NEED THAT.
BUT TO ME IT'S STILL COST WELL WORTH KEEPING IT OFF THE CITY'S BOOKS.
WE DON'T WANT TO GO OUT THERE AT A 0.8 COVERAGE SAYING, BUT WE THINK WE'RE GONNA GROW RIGHT BY 20%.
AND THAT'S AS LONG AS YOU SAY, RIGHT NOW WE KNOW THAT CERTIFIED.
WELL THAT WAS SET UP INTENTIONALLY FROM THE BEGINNING WHEN WE CREATED TURS NUMBER TWO, WE DID NOTHING WITH IT.
WE DIDN'T ISSUE A CO BOND HOPING THAT THE TURS WOULD GET THERE TO COVER IT.
IN TURS NUMBER TWO, WE COMMITTED FROM THE VERY BEGINNING THAT WE WOULD BE PATIENT SO THAT TURS COULD BUILD THE CASH FLOW SO THAT ANYTHING WE DID WOULD BE PROTECTED FROM THE CASH FLOWS WITHIN THE TURS.
AND WE'RE NOT BURDENING THE GENERAL FUND AT ALL, WHICH WE'RE NOT, WHICH IS GOOD.
AND THAT GOES BACK TO MARK'S POINT.
WE COULD, WE COULD TURN THE GROWTH FACTORS TO ZERO, SAY STILL JUST TURN IT OFF.
WE'RE WE'RE NOT GROWING FOR THE NEXT 30 YEARS AND YOU'D COVER THAT SERVICE ON THE BONDS AND, AND BE ABLE TO PAY BACK THE PARKS AND, AND EVERYTHING ELSE.
AND I'M NOT GONNA GO THROUGH UNLESS YOU WANT IT MORE YEARS.
I THINK YOU GIVE A GENERAL IDEA OF HOW IT PLAYS OUT.
BUT I'M, I'M HAPPY TO GO WITH I HAVE NO OTHER QUESTION.
SO WERE, IF WE INCREASED THE YEARS, WHICH OBVIOUSLY WE'RE DOING, ARE WE, DID WE SAY THE BOUNDARIES ARE MOVING? OKAY, SO THEN THAT, THAT WAS THE, THAT WHY I WAS GONNA ASK THE QUESTION.
WOULD WE NEED TO, IF THE BOUNDARIES WERE MOVED, WOULD, DID THAT NOW INCLUDE NEW BASE VALUES? AND THEN YOU HAVE A, IF THE BOUNDARIES WERE YOU ADD, NOW YOU'RE IN ANOTHER YEAR, SO NOW THAT'S ANOTHER BASE ON IT WOULD INCREASE THE BASE FOR THE LAND THAT YOU'RE ADDING.
IT, IT WOULDN'T INCREASE THE BASE FOR THE LAND THAT'S ALREADY IN THE JURORS.
SO THAT'S WHY THE, THAT'S WHY THESE NUMBERS ARE ALL BASED OFF YES.
THAT, THAT WAS, THAT WAS WHAT I NEEDED.
HAVE A MEETING QUESTIONS WE'RE FOLLOW, WE MOVE ON.
I KNOW YOU'VE DONE A REALLY, REALLY GREAT JOB.
NOW WE'VE BEEN WANTING, WE'VE BEEN LOOKING FORWARD TO THIS MEETING.
I'VE BEEN LOOKING FORWARD TO THIS MEETING TIME AND I KNOW OUR CONSULTANT, WHICH BY THE WAY MANY, IT MAKES ME SO NERVOUS.
THIS IS LIKE EXPLAINING TO US SECOND GRADE IT IS, RIGHT? WELL, THEY'RE VERY GOOD AT IT.
AND SO I'M GONNA SAY THIS FOR EVERYONE.
UH, AND I DON'T MEAN TO EMBARRASS OUR CONSULTANT TEAM HERE, BUT UH, I THINK WE HAVE THE BEST CONSULTANT TEAM AS IT RELATES TO UNDERSTANDING THE DETAILS.
WE ARE NOT FLYING BY THE SEAT OF OUR PANTS.
AND THAT'S CUZ OF THIS GROUP HERE, THESE FOUR IN PARTICULAR, INCLUDING OBVIOUSLY PERVEZ, UM MM-HMM.
AND I HOPE AS THEY'RE PRESENTING THIS, YOU CAN SEE IT AS WELL.
THEY'RE, THEY REALLY ARE DOING THEIR HOMEWORK.
WHEN I LOOK AT AN INCOME DEBT RATIO, I WAS TOLD THAT THE LOWER IT IS, THAT'S BETTER WE HAVE MORE INCOME, LOWER DEBT CASH UP.
UM, THIS ONE SAYS, UM, DEBT SERVICE COVERAGE RATIO.
WHAT, WHAT IS THE DIFFERENCE THERE AND WHY IS IT SAFER TO BE ON THE LARGER SIDE? SO IT'S KIND OF, BUT YOU COMBINE CITY COUNTY, YOU KIND FLIP IT ON THE HEAD AND SAY, IF I HAVE THE DOLLAR OF DEBT, DO I WANT TO HAVE A DOLLAR AVAILABLE TO PAY IT? WHICH WOULD BE A ONE TO-ONE.
OR DO I WANT $10 AVAILABLE TO REPAY MY $1? YOU, WHICH WANT 10 TO ONE.
UH, SO THE HIGHER RIGHT NOW HAVE 2.76, YOU HAVE MORE OF A GUARANTEE TO REPAY THE DEBT.
WHEN WE DID COMBINE OUR AGENCIES, WE COUNTY AND CITY.
SO THAT'S PRETTY AT A FOUR TO 9 4 4 19 CENTS.
WE, WE'VE GOT THAT 4.19 TIMES OH TIMES.
SO MULTIPLIER IT'S NOT, IT'S NOT WELL IT, IT'S, IT'S A, IT, IT'S THAT RATIO.
SO YOU HAVE FOUR TIMES YOUR BOND PAYMENT MM-HMM.
SO, SO IF I HAVE $5 IN DEBT, I WOULD'VE 40, WHICH WE ACTUALLY DO NOT TO COUNTING THE COUNTING DOLLARS.
NO, THAT'D BE EIGHT TIMES COVERAGE.
WELL, YOU SAID FOUR, FOUR TIMES FIVE.
IT'S JUST, IT'S JUST A STRAIGHT RATIO.
[01:20:01]
SAID, YOU KNOW, 10 BASIS POINTS IS BECAUSE THE, THE HIGHER THAT RATIO GETS, THE MORE SECURE THAT BOND INVESTOR IS.I STILL, I STILL COUNT FOUR 20, DIVIDE BY FIVE IS FOUR.
WELL, MAYBE I'M GETTING YOUR NUMBER'S WRONG OR MY NUMBER'S WRONG.
UH, FOR EVERY DOLLAR, IF YOU HAVE $4 TO COVER IT, THAT'S FOUR TIMES COVERAGE.
TWO AND EIGHT AND FOUR IS THE REVENUE.
SO THAT'S FOUR TIMES COVERAGE MINUS THE ONE IN DEBT, YOU HAVE $3.
WELL THAT'S THE LEFTOVER, BUT THAT'S THE WAY THE COVERAGE IS, IS IS YOUR DEBT AND YOUR REVENUE AVAILABLE FOR IT.
SO IF YOU HAD $5 WORTH OF DEBT AND WE HAD 20, THEN WE'D HAVE FOUR TIMES COVERAGE.
IT'S JUST, IT'S JUST A STRENGTH, YOU KNOW, ONE, ONE NUMBER DIVIDED BY THE OTHER.
AND IF WE HAVE THAT, THE CITY ONLY CALL ON THE COUNTY MONEY'S STILL THERE.
IT'S AVAILABLE JUST THE BOND HOLDERS, THEY EFFECTIVELY TAKE THE COUNTY CONTRIBUTION TO ZERO BECAUSE IN THEIR MINDS, IF THEY HAVE TO APPROPRIATE IT ON A YEAR BY YEAR BASIS, THEY DON'T WANT TO COUNT ON THAT.
SO THEY SAY COUNTY MONEY'S WORTH ZERO.
WE'RE ONLY LOOKING AT CITY MONEY.
BUT THE COUNTY MONEY'S STILL COMING IN.
IT'S, IT'S STILL AVAILABLE AS THE COMMISSIONERS WOULD PROBABLY BE THE FIRST TO SAY.
AND THEN MARK MCKINNEY HAS SAID THIS TOO, THAT LIKE THE COUNTY HAS NEVER JUST NOT PAID ON AN ILA IN THE HISTORY OF BEACH COUNTY.
AND I DON'T BELIEVE THIS COUNTY INTENDS TO DO THAT EITHER.
SO THE FOUR NUMBER IS ACTUALLY THE ACCURATE NUMBER.
BUT BECAUSE OF THE APPROPRIATIONS CLAUSE, WHICH I THINK WE'RE GONNA BE, WE'RE REALIZING WE DON'T NECESSARILY HAVE TO HAVE THAT CHANGE, WHICH KEEPS THE COUNTY REAL COMFORTABLE WITH WHAT WE'RE DOING THEN WE ARE JUST IN A GOOD, WE'RE JUST IN A GOOD POSITION.
SO THE BOND RESERVE FUND, WHICH IS YOU SAID LIKE A YEAR OF PAYMENTS, THAT AMOUNT HAS TO BE IN THE CITY ONLY, RIGHT? NO, THAT, I MEAN THAT WOULD BE, IT WOULD COME UP.
WELL I'M SAYING IS SINCE WE'RE ON, SINCE THEY ONLY LOOK AT THE CITY AND THEY, THEY KNOW THE CITY'S ONLY GONNA PAY FOR IT.
THEY WOULDN'T LOOK AT THE FUND THAT HAS BOTH IN THERE WOULD THAT THEY WON'T CARE HOW WE GET IT.
SO IT'S LIKE AN ASSET VERSUS AN INCOME.
AND SO IT JUST SITS IN THAT ACCOUNT.
IT CAN EARN INTEREST, BUT IT WILL JUST SIT IN AN ACCOUNT BY ITSELF.
TO HAVE THAT IN THERE BECAUSE IF THEY DON'T CARE HOW, HOW IT'S FUNDED AND WE HAVE IT IN THERE THAT I WAS JUST AFRAID WE WOULD ONLY HAVE TO HAVE IT ON THE CITY.
STILL BE PART OF, PART OF THE, PART OF THE WHOLE FUND.
WHAT ARE WE DOING WITH THE FUNDS? UH, ALL THE TOTAL OF THE REVENUE FROM THE CHURCH.
NUMBER TWO, DO WE INVEST THAT? YES.
SO THE CITY HAS A LITTLE OVER A HUNDRED MILLION DOLLARS INVESTED.
UM, MOST OF IT IS IN BECAUSE WE HAVE TO KEEP IT.
UM, SO WE HAVE DIFFERENT TYPES OF INVESTMENTS.
YOU REVIEW OUR INVESTMENT POLICY ONCE A YEAR AS COUNCIL AND YOU APPROVE THAT POLICY.
WHEN WE BRING YOU THE BUDGET AS PART OF THE BUDGET PROCESS, WE GO THROUGH THE INVESTMENT POLICY AND YOU ALLOW US WHAT KIND OF INVESTMENTS WE CAN MAKE THAT COMPLIES WITH THE STATE LAW.
SO WE HAVE ANYWHERE FROM, UH, TREASURIES TO MUTUAL FUNDS TO COMMERCIAL PAPERS.
UH, WE DO HAVE TOYOTA BY THE WAY.
TOYOTA IS PRETTY GOOD AT BOTTOM.
SO, UM, THE, THE RETURN FROM THOSE INVESTMENTS, DO WE HAVE TO DO 50 50 WITH THE COUNTY TOO OR DO WE NO, NO.
SO WE ALLOCATE BASED ON THE FUNDS.
SO TURS HAS, LET'S SAY 2 MILLION IN THE KITTY.
SO THE INTEREST AND DIVIDEND INCOME EARN ON THAT 2 MILLION IS PUT BACK INTO THE TUR FUND.
SO THEY GET THEIR, THEIR PROPORTIONATE SHARE OF THE EARNINGS BACK INTO THE TUR.
SO THAT, YEAH, THAT WAS MY QUESTION.
IF IT GOES BACK TO THAT TUR FUNDER, DO WE GET ANY, DO WE PULL IT OUT? GENERAL FUND GETS HIS SHARE, TUR GETS HIS SHARE, EVERYONE GETS THEIR PROPORTIONATE.
AND THEN MY OTHER QUESTION I HOPE IS NOT TOO DUMB.
SO WHEN WE GET THE, THE CD'S SIDE OF THE REVENUE, DOES IT GO DIRECTLY TO THE GENERAL FUND? WE HAVE A SEPARATE POCKET FOR JUSTS REVENUE.
SO, AND YOU'LL SEE THIS IN THE BUDGET WHEN WE GO TO THE BUDGET, ALL OF THE PROPERTY TAX MONEY COMES INTO THE GENERAL FUND.
AND THEN WITHIN THE GENERAL FUND, WE KNOW EXACTLY HOW MUCH OF THAT IS FOR TURS ONE.
AND THEN WE TRANSFER OUT FROM THE GENERAL FUND INTO RESPECTIVE
[01:25:01]
TERRAS.I'M NOT, YOU GUYS DO ALL THAT.
I USED TO HAVE HAIR USED BEER.
ARE THEY ALL PERFORMING WELL RIGHT NOW WHERE WE'RE NOT HAVING OTHER COSTS TO OFFSET EXPENSES? OKAY, SO LET ME GIVE YOU THE VIRTUAL ANSWER.
SO WE HAVE THREE TURS, HERS NUMBER THREE IS THE NEWEST ONE.
SO IT DOESN'T HAVE A WHOLE LOT OF MONEY.
BUT IS IT THE BEST BECAUSE IT GOT CAPTURED IN AT A LOWER BASE VALUE AND NOW NUMBER THREE, IT'S GONNA CAPTURED IN AT A HIGHER BASE VALUE.
NO, THAT'S GONNA GIVE US, WHEN WE, WHEN WE CREATED CHARGE NUMBER TWO, WE ALREADY HAD 121 MILLION OF ASSESSED VALUATION ON THE, THE GROUND.
WHEN WE CREATED TURS NUMBER ONE, IT WAS 281,000.
TURS ONE WAS UPSIDE DOWN FOR THE LONGEST TIME JUST TILL LIKE LAST YEAR.
SO THE GENERAL FUND WAS MAKING UP THE DIFFERENCE FOR A NUMBER OF YEARS.
FOR THE LAST TWO YEARS, IT HAS TURNED THE OTHER WAY WHERE WE HAVE SURPLUS MONIES IN TUR NUMBER ONE.
IS THAT EVENTUALLY GONNA PAY BACK IN GENERAL FUNDS? THAT'S OUR GOAL.
WHEN DOES IT EXPIRE? 2037 I LEAST.
IT JUST TAKES MORE, TOOK MORE TIME.
I MEAN THEY MADE, THEY BUILT A MAJOR ROAD.
IT'S, IT'S ALL ABOUT, YOU CAN'T LOOK AT IT AS ONE IS GOOD, ONE IS BAD.
THEY WERE JUST SET UP FOR DIFFERENT REASONS AND WITH DIFFERENT OBJECTIVES.
THEY SET UP TURS NUMBER ONE WITH $0 OF LAND ON THE GROUND AND THEN ISSUED $26 MILLION IN DEBT OR SOMETHING LIKE THAT.
THAT 30 MILLION IN DEBT TO BUILD 1626 RIGHT AWAY.
SO THEY DID IT FULLY AWARE THAT, BUT BUT IT WAS A, IT WAS A MECHANISM THAT AS IT GREW, IT WAS GONNA START TO TAKE PRESSURE OFF THE CITY.
SO THE CITY WAS SAYING UP FRONT, WE'RE GONNA ISSUE THIS DEBT, WE'RE GONNA PAY FOR IT, AND THEN AS THIS LAND IN IMPROVES AND VALUE, THE COUNTY ESSENTIALLY IS GONNA HELP PAY US BACK.
SO THE COUNTY DIDN'T HAVE TO ISSUE THE DEBT, BUT THEY DID FULLY PARTICIPATE IN THE REPAYMENT PORTION.
SO IT'S GOOD, RIGHT? LIKE YOU WOULD RATHER HAVE DONE IT THIS WAY THAN NOT HAD TURS NUMBER ONE.
SOMETIMES YOU HAVE TO GO IN THE HOME TO MAKE MONEY.
BUT TURS NUMBER TWO IS FLIP THE OPPOSITE, RIGHT? WE SAID WE'RE NOT GOING TO ISSUE DEBT AND, AND SUBSIDIZE FROM THE GENERAL FUND.
TUR NUMBER TWO IS GONNA BE SET UP TO CREATE CASH FLOWS AND THEN WE'LL DO THINGS WITH THOSE CASH FLOWS.
WHEREAS LIKE, TUR NUMBER ONE HAS HAD A TUR BOARD MEETING.
CUZ THERE'S NEVER EVEN BEEN A REASON.
THREE TIMES BECAUSE THERE'S NO DECISIONS TO MAKE.
IT WAS, IT WAS SORT OF A SET AND FORGET IT PLAN FOR A LONG TIME.
SO YOU ASKED ME A FINANCIAL POSITION QUESTION AND THAT'S HOW I ADDRESSED IT.
BUT WHEN YOU LOOK AT THE BENEFIT OF TERRACE NUMBER ONE, THAT 1626 KYLE WOULDN'T BE WHAT IT IS TODAY.
IT REALLY OPENED UP ECONOMIC DEVELOPMENT IN THIS TOWN.
SO I GUESS IF WE DON'T HAVE ANY MORE FINANCIAL QUESTIONS, WE'LL KIND OF MOVE INTO, YOU KNOW, NEXT STEPS IN FORWARD LOOKING.
SO AS WE KIND OF COMMISSIONERS HAVE ANY QUESTIONS? I, I DON'T, I JUST WANNA SAY THAT, UM, YOU KNOW, THE FUTURE LOOKS BRIGHT AS IT, UH, RELATES TO THE TURS AND THE REVENUE THAT'S GONNA BE GENERATED AS WELL AS FOR THE CITY OF KYLE.
SO JUST KIND OF FORWARD LOOKING, RIGHT.
AS I THINK IT'S BEEN MENTIONED A COUPLE TIMES, UM, DURING TODAY'S MEETING, THE MOST PRESSING NEED AS IT RELATES TO JURORS NUMBER TWO IS THIS 8 MILLION BOND ISSUANCE FOR THE RETAIL ROADS AGREEMENT.
THE, THE CITY'S EXECUTED THIS AGREEMENT.
THERE'S AN OBLIGATION IN PLACE WITH THIS DEVELOPER FOR THOSE FUNDS FOR THE BONDS TO
[01:30:01]
BE ISSUED SOME TYPE OF DEBT OBLIGATION TO BE ISSUED AND FOR THOSE FUNDS TO BE AVAILABLE FOR SO THAT THE CONSTRUCTION OF THE PROJECT CAN COMMENCE IN CONNECTION WITH, UM, IN CONNECTION WITH THE BOND ISSUANCE.WE WANNA TAKE THE ILA BACK TO THE COUNTY TO HAVE THEM AMEND.
THE ILA HAVE THE CITY AND THE COUNTY BOTH AMEND THE ILA AGAIN TO EXTEND THE TERM OF THE JURORS IN CONJUNCTION WITH THE EXTENSION OF THAT TERM THREE 11.
THE TAX CODE REQUIRES THAT WE TAKE SOME OF THE SAME STEPS THAT THE CITY HAS TAKEN WHEN IT CREATED THE JURORS.
AND SO WE HAVE TO HOLD ANOTHER, WE HAVE TO HAVE A RESOLUTION TO, AND THAT'S THE SECOND PART OF TONIGHT'S CITY COUNCIL MEETING.
WE NEED A RESOLUTION TO CALL A PUBLIC HEARING SO THAT WE CAN HAVE A PUBLIC HEARING ON THE QUESTION OF WHETHER OR NOT THE JURORS, UM, CAN BE EXTENDED IN CONJUNCTION WITH THAT PUBLIC HEARING.
WE ALSO HAVE THE ABILITY TO AMEND THE PROJECT AND FINANCE PLAN.
WE HAVE A PROJECT IN FINANCE PLAN FOR THIS CHURCH THAT'S FIVE PLUS YEARS OLD.
WE HAVE SOME ADDITIONAL CAPACITY.
SO WHAT WE WOULD LIKE TO HEAR FROM BOARD MEMBERS, COUNCIL MEMBERS, COMMISSIONERS, RIGHT, AS IT RELATES TO THIS CHURCH, WE HAVE OPPORTUNITY TO AMEND THE PROJECT AND FINANCING PLAN.
WHAT TYPES OF PROJECTS DO YOU ALL THINK WOULD BE BENEFICIAL FOR US TO INCLUDE IN THAT PLAN FOR A PROSPECTIVE BASIS? RIGHT.
NEIL? THINGS ARE VERY GENERALLY DRAFTED.
UM, THERE ARE THE PARK PROJECTS AND SO, YOU KNOW, FROM THAT GENERAL CATEGORY, WE, WE HAVE A GOOD IDEA, BUT IF THERE'S ANYTHING SPECIFIC THERE, A PARKING GARAGE RELATED TO A POTENTIAL DEVELOPMENT THAT MAY COME IN.
UM, IS THERE ANYTHING RELATED TO THE SPORTS COMPLEX ITSELF THAT THE CITY, CITY THINKS WOULD BE BENEFICIAL? A MUSEUM.
LIKE A KID'S MUSEUM, AN INTERACTIVE MUSEUM.
WELL, THIS IS THE, THIS IS THE TIME.
THIS IS A, IT'S SORT OF LIKE THE COMPREHENSIVE PLAN.
IF IT'S NOT IN THE, THE DOCUMENT, IF IT'S NOT IN, YOU CAN'T DO ANYTHING MM-HMM.
RIGHT? BUT BECAUSE IT'S IN THERE, UH, WE HAVE THE CHOICE.
SO THIS IS WHERE IT'S LIKE, THROW EVERYTHING IN THERE AND THEN WE PICK AND CHOOSE DOWN THE ROAD WHAT WE WANT TO DO.
SO BY, BY PUTTING A PROJECT INTO THE PROJECT AND FINANCING PLAN, IN ESSENCE YOU'VE CREATED A UNIVERSE OF ELIGIBLE PROJECTS AND YOU HAVE TO BE WITHIN THAT UNIVERSE OF ELIGIBLE PROJECTS IN ORDER TO BE FUNDED.
JUST BECAUSE SOMETHING IS IN THE PLAN DOESN'T MEAN THAT IT WOULD BE FUNDED.
THE DECISION TO MAKE THAT, TO MAKE THE FUNDING HAPPEN WOULD COME DOWN THE ROAD AT A SUBSEQUENT, UH, BOTH BOND OR BOARD MEETING AND CITY COUNCIL MEETING.
JUST LIKE WE'D HAVE TO COME BACK TO THE BOARD TO REQUEST BOND ISSUANCE FOR NUMBER EIGHT, WE HAVE TO, OR FOR THE 8 MILLION, HAVE TO COME BACK TO CITY COUNCIL TO AUTHORIZE THE ISSUANCE FOR THAT.
JUST BECAUSE SOMETHING'S IN THE PROJECT PLAN DOESN'T MEAN THAT IT WILL BE FUNDED, BUT IT'S ELIGIBLE TO BE FUNDED AND THERE WOULD BE ADDITIONAL APPROVALS THAT WOULD COME SUBSEQUENT TO THAT IN ORDER FOR THAT FUNDING TO OCCUR.
SO WHAT WE WERE HOPING TO HEAR TONIGHT, JOHN AND P THREE HAVE BEEN RETAINED AS THE JURORS ADMINISTRATOR THAT WAS DONE A COUPLE MEETINGS GO AT CITY COUNCIL.
THEY WILL BE PREPARING AN AMENDED UPDATED PROJECT AND FINANCE PLAN IN CONJUNCTION WITH THE PUBLIC HEARING THAT'S GONNA BE HELD.
SO IF YOU ARE HAVING IDEAS FOR POTENTIAL TYPES OF PROJECTS THAT YOU THINK WOULD FIT IN WELL WITH THE DEVELOPMENT FOR THIS AREA OF THE CITY, WE WOULD LIKE TO HEAR ABOUT.
SO WHEN THE PROJECT PLAN COMES BACK TO COUNCIL, THOSE PROJECTS HAVE BEEN INCORPORATED.
STEPHANIE, IF FOR SOME REASON THEY THINK OF SOMETHING A WEEK FROM NOW, CAN IT BE AMENDED OR, OR A YEAR FROM NOW? CAN IT BE AMENDED AGAIN OR IS THIS A, IT'S A ONLY TIME THAT IT CAN BE CHANGED.
NO, IT, IT IS A LIVING AND BREATHING DOCUMENT AND SO IT CAN BE AMENDED.
WE JUST GO THROUGH THE STEPS, JUST LIKE WE HAVE TO GO THROUGH THE STEPS TONIGHT.
IF YOU WANNA AMEND THE PROJECT, EXPAND THE BUDGET, UM, ADD ADDITIONAL PROJECTS WE CALL ANOTHER PUBLIC HEARING, BRING FORTH IN ANOTHER, UM, UH, AMENDED AND RESTATED PROJECT AND FINANCE PLAN THAT WOULD ENCOMPASS THOSE PROJECTS.
AND THEN IT WOULD BE SUBJECT TO, TO A VOTE FOR APPROVAL.
SO IT IT'S INTENDED TO BE A, A LIVING DOCUMENT THAT CAN BE, THAT CAN EVOLVE AS THE TOURISTS EVOLVES AND AS ADDITIONAL FUNDS BECOME AVAILABLE.
I HAVE A QUESTION FOR WILL, UH,
DO WE HAPPEN TO KNOW HOW MUCH LAND DO WE HAVE THAT IS UNDEVELOPED WITHIN THIS TOURIST? NOT A HAND, BUT I CAN MAKE IT NOTE THAT
[01:35:01]
AND TO KNOW WHAT, WHAT'S THE STILL NAME ESTIMATE? UH, WE MIGHT BE ABLE TO WORK WITH MO MARK ACCORDING WITH THAT.THERE ARE A FEW PARCELS LEFT ON THE EAST SIDE OF KOHLERS AROUND THE PUBLIC SAFETY CENTER, BUT NOT VERY MANY.
THE, THE LAND UP AND DOWN 1626 ON THE WEST SIDE IS COMPLETELY DEVELOPED NOW.
AND SO THE AREA 12 C, WHICH IS WHERE WALK-ONS IS GOING, OKAY.
UH, THAT IS ABOUT TO BE DEVELOPED.
BUT, SO AREA SIX AND THEN A FEW PARCELS, TWO OR THREE PARCELS IN AREA 10.
AND THEN THE MAIN AREA IS THE CORE OF THE BRICK AND MORTAR DISTRICT.
AND THAT'S WHERE YOU'VE GOT FOUR AND FIVE STORY BUILDINGS, THAT DENSITY AND A LOT OF VALUE YET TO BE BUILT.
SO IT'S MORE VALUE ON LESS ACRES, BUT THAT'S WHERE THAT, THAT INTERIOR CORE WOULD BE DEVELOPED.
SO I WOULD SAY ON THE PROJECT FINANCE PLANS, JUST A FEW THINGS FROM A BASE LEVEL THAT WE WANT TO COVER OUR BASES.
SO THE RETAIL ROADS AGREEMENT BRINGS, UH, THE VERTICAL CLASS A OFFICE LAND TO US.
IT'S DONATED TO, IT'S CONVEYED TO US.
AND IT'S IN THE, IN THE PROJECT PLAN, IT'S FOR CLASS A OFFICE.
SO WE ARE GONNA BE SORT OF LIKE WITH SOME OF OUR DOWNTOWN ACQUISITIONS, WE'RE GONNA BE TRYING AT SOME POINT TO DO A PROJECT THERE.
SO WE WANNA MAKE SURE THAT THAT'S INCORPORATED INTO THE PROJECT FINANCING PLAN.
THERE'S A HOTEL CONVENTION CENTER PARCEL OF LAND OF COUPLE ACRES, UH, THAT'S BEING DONATED FROM THE RETAIL ROADS AGREEMENT THAT NEEDS TO BE INCORPORATED.
SO HOTEL CONVENTION CENTER AND ANY ASSOCIATED INFRASTRUCTURE NEEDS TO BE ASSOCIATED.
THE 11 ACRES IS BEING A DO DONATED FOR THE REGIONAL SPORTS FLEX.
SO WE SHOULD MAKE, EVEN THOUGH THE REGIONAL SPORTSPLEX HAS 14 MILLION FROM GENERAL OBLIGATION BONDS, WE SHOULD INCLUDE THAT IN THE PROJECT AND FINANCE PLAN.
CAUSE YOU JUST DON'T KNOW EXACTLY HOW IT'S ALL GONNA SHAKE OUT AND MAYBE THE TURS WANTS TO CONTRIBUTE SOME COMPONENT TO IT'S SEPARATE OR WHATEVER.
SO WE WANT TO TRY TO COVER OUR BASES AROUND THAT.
UH, AND THEN, UM, YOU KNOW, ANY PUT, YOU WOULD WANT TO DO THINGS LIKE PEDESTRIAN IMPROVEMENTS ON SIDEWALKS, LIGHTING, UH, TREE CANOPY, TREE TREE, YOU KNOW, LANDSCAPING ART.
UM, AND AGAIN, I HAVEN'T LOOKED AT IT TO SEE HOW MUCH OF THAT IS ALL IN THERE.
A LOT OF THAT'S ALREADY KIND OF IN THE, WE'D KEEP SOME, WE KEEP SOME OF THE CATCHALLS IN TERMS OF PEDESTRIAN AREAS, ROADS OF THE STRUCTURE, SO IT'S, BUT YEAH, ANY OF THESE OTHER, BUT AS FAR AS PARKING IMPROVEMENTS, THERE'D BE STRUCTURED PARKING, BUT THERE'S ALSO A PROPOSAL FOR THE, THE, THERE'S A RETAIL, UH, UNDERDEVELOPMENT RIGHT NEXT TO LAVERDE.
SO IF YOU'RE ON LABORDE, THERE'S A POTENTIAL FOR A NICE RESTAURANT TO GO IN THERE.
BUT BECAUSE OF, UH, THERE'S A SITE THAT WE OWN, WE HAVE A, AN AGREEMENT WITH HAYES COUNTY, UH, TO BUILD, UH, A PARKING LOT, BUT WE HAVEN'T FUNDED THAT.
SO HAYS NOT HAYES COUNTY HAY, C I S D IS WHAT I'M MEANT TO SAY.
SO IT'S A JOINT USE AGREEMENT, UH, WHERE IT'S SORT OF THEIR LAND.
BUT WE, WE CAN BUILD A PARKING LOT THAT WE COULD USE TO EXPAND THE PARKING OF THE PACK, EXPAND THE PARKING OF LAVERDE, AND CREATE ADDITIONAL OVERFLOW PARKING FOR A RESTAURANT THAT WOULD MAYBE GO IN THERE AND THEY HAVE SOME SUITORS.
UH, AND SO THAT MIGHT BE A A WHAT, A ONE TO 3 MILLION SURFACE PARK PROJECT THAT WE COULD ABSOLUTELY FUND PRETTY QUICKLY.
SO WE'D WANNA MAKE SURE THAT THAT PROJECT IS IN THERE.
IT'S NOT A DECISION FOR TODAY, BUT I KNOW THERE THAT THE DEVELOPERS HAVE, YOU KNOW, HAVE MADE THAT REQUEST OF US.
AND I KNOW THE SCHOOL DISTRICT HAS SAID THEY WOULD APPRECIATE IT AND THERE'S A PUBLIC PURPOSE.
CUZ RIGHT NOW LATA IS ABOUT TO BE FINISHED.
THERE'S VERY, VERY LITTLE PARKING.
SO YOU WON'T BE ABLE TO HOLD ANY BIG EVENTS AT LAVERDE CUZ THERE'S JUST NOT ENOUGH PARKING SPOTS YET.
CUZ THAT PIECE JUST HASN'T BEEN PUT INTO THE EQUATION.
SO IS IT, I GUESS I DON'T HAVE A MAP, UM, WHERE LAVERDE IS AND THEN ACROSS THE STREET IS ACROSS THE STREET ALSO INSIDE THAT TURN AS WELL.
EVERYWHERE FOR A WHILE AROUND THE LA HOW ARE, WE'RE GONNA GET PEOPLE FROM, WAS IT NORTH VISTA SOUTH ACROSS THE, YOU MEAN ACROSS KOHLERS? YES.
YOU KNOW, LEMME SEE HERE TO HERE.
WAIT, LET ME SEE WHICH WAY OF IS THAT YEAH, YES.
BECAUSE I KNOW GOING THIS WAY IS NOT GONNA BE COVERED.
BUT IF THAT'S ON THE TURS AND WE HAVE TO GO OVER 1626, I THINK WE SHOULD THINK ABOUT PUTTING SOME KIND OF WALKWAY EITHER OVER.
SO THERE ARE, AND IF YOU TALK, I ACTUALLY HAD THE ORIGINAL DEVELOPERS, DANIELA GOT TO MEET ONE OF THEM, UH, AT AN EVENT NOT TOO LONG AGO.
THEY HAVE PLANS AND UNDERNEATH KOHLER'S AND UNDERNEATH 1626, CURRENTLY AT RIGHT NOW, AS A PART OF THOSE PROJECTS IS PEDESTRIAN, UH, TUNNELS MM-HMM.
BUT THAT'S ONLY A PIECE OF THE EQUATION TO ACTUALLY CREATE THAT.
AND THAT IS A PERFECT TOURIST PROJECT.
SO I FORGOT TO SAY IN THE REGIONAL, WHEN YOU'RE TALKING ABOUT THE STORMWATER DETENTION, ONE OF THE THINGS THAT WE DID, UH, WITH THE FLOWS IS WE INCREASED UNDERNEATH 1626
[01:40:01]
TO MAKE IT SUCH THAT, UH, AT THE SPORTS COMPLEX SITE, WHICH IS ALL IN THE TURS, UH, THEY WOULD BE ABLE TO GO FROM THE WEST SIDE OF 1626 TO EAST SIDE UNDERNEATH.NOW IT'S NOT DONE YET, BUT THE CAPACITY IS IN THE PLANNING IS BEING PUT IN FOR THE VIBE TRAIL EVEN POTENTIALLY TO GO UNDERNEATH THERE.
BUT AT KOHLERS AND BENNER, RIGHT WHERE YOU TURN TO GO INTO THE, UH, THE, UH, GOLF COURSE RIGHT THERE AT KOHLERS AND BENNER IS A TUNNEL UNDERNEATH THAT THEY'VE CAPPED.
IT'S UNDER THE GROUND, BUT IT'S SORT OF LIKE SLEEVE FOR PEDESTRIAN UNDER.
BUT THE THING IS, IT'S LIKE YOU CAN'T JUST, YOU KNOW, JUMP DOWN IN A HOLE AND WALK ACROSS.
SO YOU HAVE TO UNEARTH IT, THEN YOU HAVE TO CREATE SORT OF RAMPS DOWN TO IT AND YOU HAVE TO PUT LIGHTING AND ALL KINDS OF STUFF.
BUT THE PLAN IS ALREADY THERE.
IT'S IN THE, IT'S IN THE DOCUMENTS UNDER, IT'S ALREADY LISTED, ISN'T IT? MM-HMM.
THAT'S ANOTHER REALLY GREAT PROJECT GETTING BACK TO THE MUSEUM.
DO DO YOU LIKE THAT IDEA FOR KIDS? BECAUSE WE'RE, WE WANT PEOPLE TOURISM DOWN THERE.
WHAT DID THAT COMPLIMENT? WELL, THAT'S WHY I WAS ASKING WILL, HOW MUCH LAND DO WE HAVE DEVELOP AND WHAT THE ZONING IS BECAUSE MIGHT NOT HAVE ROOM, I THINK THE RESIDENTS WE LIKE A REALLY MUSEUM TYPE OF FEATURE IN, IN COTTON.
WELL, SO WE COULD DEFINITELY JUST PUT IT IN THE LIST MM-HMM.
ONE PO POTENTIAL IS IF WE'RE DOING THE HOTEL CONVENTION CENTER, RIGHT.
THERE COULD BE SORT OF AN ART MUSEUM TYPE COMPONENT TO A CONVENTION CENTER.
BUT THAT'S A PERFECT PLACE ONCE WE GET JUST, IT'S ABOUT TO THAT INTERIOR.
IF ONCE WE GET THESE RETAIL ROADS IN THAT DENSE DEVELOPMENT WITH ALL THE GROUND FLOOR RETAIL AND THE WALKABILITY IS, IS READY TO GO AND THAT'S WHEN ONCE THAT STARTS HAPPENING, THAT'S WHEN YOU DO YOUR CONVENTION CENTER DEAL AND YOU CAN GET PRIVATE DOLLARS TO GET INVESTED AS WELL.
SO, AND MAYBE WE SAY LIKE CABELA'S FOR EXAMPLE MM-HMM.
BUT HAVE YOU EVER BEEN INSIDE CABELA'S AND YOU KNOW THAT THERE'S THAT UH, TOWER, THERE'S LIKE A MOUNTAIN ON THE INSIDE MM-HMM.
IT IS OWNED CITY OF BUTTA PROPERTY AND THERE ARE OTHER SPOT AND SO THEY DON'T PAY TAXES ON IT, BUT IT, THERE'S A, A DEAL THAT WAS STRUCK THERE.
WE COULD DO SOMETHING VERY SIMILAR WHERE A PRIVATE COMPANY COMES IN AND BUILDS A CONVENTION CENTER ON OUR LAND THAT WE OWN.
AND SO WE GIVE THEM SOME SUBSIDIES THROUGH THAT AND WE ALSO CARVE OUT A PIECE OF THE CONVENTION CENTER TO PUT A MUSEUM IN, FOR EXAMPLE, OR SOMETHING.
SOMETHING ALONG THOSE KIND OF DEALS ARE ALL ON THE, IN THE FUTURE.
BUT THE RETAIL ROADS AGREEMENT IS WHAT'S HOLDING UP OUR ABILITY TO EVEN START THE REGIONAL SPORTSPLEX OR THE HOTEL COMMISSION CENTER DISCUSSIONS.
WE HAVE TO DO THE RETAIL ROADS AGREEMENT BECAUSE THOSE LANDS DON'T CONVEY TO US UNTIL THEY, UH, THE PROJECTS ARE LEFT FOR CONSTRUCTION UNTIL THE, UNTIL THE CONSTRUCTION COMPANIES GO OUT THERE AND START BUILDING.
THEN THAT LAND CONVEYS THEN WE GET TO GO TO THE SORT OF THE NEXT STEP.
SORRY, I'M A TOTAL GEEK ON THIS.
THIS IS MY JAM
BUT RESIDENTIAL RESIDENTS HAVE NEEDS, RIGHT? SO THEY'RE DRIVING TWO OTHER CITIES TOO FOR OH, I KNOW.
I PROMISE YOU IF I COULD HAVE GOT THE RETAIL ROSE AGREEMENT, I WANT, I WANT THOSE FUN THINGS HERE.
I PROMISE YOU AND I'M TRYING THAT WE HAVE TO BE CREATIVE FINANCIALLY IN ORDER TO DO THAT.
AND IT DOESN'T HAVE TO GO TO VOTERS.
JUST, IT DOESN'T, IT IS THE ABILITY TO TAKE A PERCENTAGE OF OUR CASH FLOWS WITH COUNTY DOLLARS AND THEY'RE LIKE, YOU GOTTA THINK OF IT LIKE PRECIOUS, PRECIOUS RESOURCES BECAUSE WE CAN DO SO MANY MORE THINGS WITH THE TURS REVENUE BOND THAN WE CAN WITH A, A CITY'S GEO BOND OR A CO BOND.
SO WAIT, SO SINCE IT'S GONNA BE A DIFFERENT TYPE OF BOND, DO WE HAVE TO TAKE ANOTHER VOTE ON THAT BOND SINCE WE'RE CHANGING BOND ELECTION? NO, NO, NO.
WE KNOW HOW WE VOTED FOR THE UM, CO BOND.
SO, BUT NOW THAT WE'RE DOING A DIFFERENT BOND, DO WE HAVE TO TAKE A VOTE ON THE TURS REVENUE BOND SINCE IT'S NOT GONNA BE A CO AND I'M JUST TRYING TO BE STATUTORILY CORRECT.
OR LIKE ADMINISTRATIVELY DO WE HAVE TO DO THAT BECAUSE I VOTED NO FOR THE CO BUT I WOULD NOT VOTE NO FOR THE REVENUE.
SO WE DID COME AND KIND OF AS PART OF THE TOUR'S BUDGET PROCESS, RIGHT.
AGREE TO THIS $8 MILLION PROJECT FOR THE RETAIL ROADS AS IT RELATES TO THE BONDS THEMSELVES.
IT'S NOT STATUTORY REQUIRED, BUT WHAT OUR FIRM TYPICALLY DOES IS BECAUSE THE CITY HAS TO ISSUE THE TOURISTS REVENUE BOND, WE HAVE THE TOURIST BOARD REQUEST THAT BOND ISSUANCE.
[01:45:01]
COME TO CITY COUNCIL FOR APPROVAL OF A BOND ORDINANCE TO ACTUALLY ISSUE, WE HAVE TOURISTS BOARD SIGN FORMAL SIGN OFF ON BOTH THE REQUEST TO ISSUE A DEBT AND FOR THAT SPECIFIC PROJECT.AND SO IN CONNECTION WITH THE 8 MILLION TOURIST REVENUE BOND THAT WE'RE TALKING ABOUT, WE WOULD HAVE SUBSEQUENT ACTIONS, WE'LL COME TO TOURISTS BOARD, ASK THEM TO ADOPT A RESOLUTION OR ASK YOU ALL TO ADOPT A RESOLUTION, UH, TO REQUEST THAT THE CITY OF KYLE ISSUED THAT BOND ON BEHALF OF THE TERRA BOARD.
WE DONE? ARE WE GOOD? WE GOTTA TAKE SOME VOTES I THINK.
BUT SO YEAH, THERE WILL BE ADDITIONAL THINGS THAT COME BACK TO US AS A TOURIST BOARD.
SO I DON'T KNOW HOW OFTEN WE WANT TO MEET, BUT WE'RE NOW WITH COMMISSIONER, UH, ENGLEBY AND DR.
COHEN HERE AND FULLY VESTED ON THE BOARD.
UM, I THINK THAT IT WOULD BE IMPORTANT FOR US TO SET REGULAR SCHEDULES AND STAY COMMITTED TO ALL THIS CUZ THERE'S A TON GOING ON HERE OVER THE NEXT 12 TO 18 MONTHS IN PARTICULAR.
UH, NOT, WE DON'T HAVE TO MEET FREQUENTLY AND THE MEETINGS, THIS WOULD PROBABLY BE THE LONGEST MEETING WE'LL EVER HAVE CUZ THERE'S SO MUCH OF IT WAS ORIENTATION, BUT THE, YOU KNOW, SO THE QUESTION WOULD BE KIND OF HOW OFTEN DO YOU, YOU WANT TO MEET AND I WAS GONNA SUGGEST EVERY MONTH OR MAYBE EVERY QUARTER, TWO MONTHS WOULD BE PROBABLY THE FURTHEST OUT I'D WANT TO GO.
I LIKE MONTH AND I DO LIKE IT ON THE SAME WEEK THAT WE, ON A THURSDAY THAT WE HAVE A COUNCIL MEETING, JUST SO NEXT WEEK WE CAN HAVE LIKE A TRUTH GOT ASSESS THE, ASSESS THE COMMISSIONERS, WHAT THEIR THOUGHTS ARE.
CUZ THIS IS A LOT, THEY HAVE A LOT OF CITIES WITH TOURS AND THEY SIT ON A LOT OF BOARDS.
HOW OFTEN WOULD Y'ALL LIKE TO, TO MEET? UH, UM, I'M GOOD WITH DOING, UH, ONCE A MONTH AND ALSO IN THURSDAYS I THINK WORKS WELL FOR MY SCHEDULE AND WE'LL COMMIT TO TRYING TO KEEP THEM EXPEDITIOUS IN TERMS OF HOW QUICKLY WE GO THROUGH THE INFORMATION SO THAT WE'RE NOT WASTING ANY ANYONE'S TIME.
I REALLY APPRECIATE ALL THE YEAH, THANK YOU INFORMATION.
I FEEL A LITTLE BIT SMARTER NOW.
OKAY, SO I HAVE TO DO ONE ITEM AND THEN I DON'T KNOW IF, UH, IF, UM, COMMISSIONER ENGLEBY HAS A COUPLE ITEMS. SO I HAVE TO SET A PUBLIC HEARING ITEM.
UH, AND THEN THE JURORS BOARD NEEDS TO SET A VICE CHAIR.
THAT'LL BE, SO LET, IF IT'S OKAY WITH YOU, UH, COMMISSIONER ENGLEBY, I'LL FINISH OUT THE CITY COUNCIL ITEM AND THEN YOU CAN GO THROUGH THE REMAINDER OF THE TERRY'S ITEMS. OKAY.
SO I'M GONNA BRING UP AGENDA ITEM NUMBER THREE, CONSIDERATION AND APPROVAL OF A RESOLUTION SETTING A PUBLIC HEARING UNDER SECTIONS THREE 11.07 AND THREE 11.0 11 OF THE TEXAS, UH, CODE FOR EXTENDING THE TERM OF AND APPROVING AN AMENDMENT TO THE PROJECT AND FINANCING PLAN FOR, UH, JURORS NUMBER TWO, I LIKE MOTION TO APPROVE.
SECOND BY COUNCIL MEMBER PARSLEY.
IS THERE DISCUSSION ON THE, UH, MOTION? IT'S JUST A COUNCIL VOTE.
MOTION CARRIES FIVE TO ZERO AND I WILL MOTION TO ADJOURN THE CITY COUNCIL MEETING.
AND I'LL TURN THE FLOOR TO CONSTRAINT.
[3. Selection of a Vice Chair for the TIRZ #2 Board.]
SO OUR NEXT ITEM TO DISCUSS IS APPOINTMENTS, UH, IN THE SELECTION OF THE VICE CHAIR FOR THE CHOSE TWO BOARD.THERE REMAIN COMBINATIONS OR I'M WILLING TO DO THAT.
I THINK YOU GUYS WORK WELL TOGETHER.
YEAH, YOU GOTTA THERE A MOTION.
I'D LIKE TO MAKE A MOTION TO NOMINATE MAYOR MITCHELL FOR VICE CHAIR.
AND THE SECOND, UH, ANY OTHER DISCUSSION BEFORE WE TAKE A VOTE? IF NOT ALL IN FAVOR SAY AYE.
I THINK YOU YES, YOU CAN BE OPPOSED.
[4. Discussion regarding extending the term of TIRZ #2 and updated project and financing plan. ~ Mark McLiney, SAMCO Capital, City's Financial Advisor, Stephanie Liebe, Norton Rose Fulbright US LLP, City's Bond Counsel, and Jon Snyder, P3Works LLC, City's TIRZ #2 Administrator]
OKAY.SO NEXT ITEM IS TO CONSIDER IMPOSSIBLE ACTION DISCUSSION REGARDING, UH, EXTENDING THE TERM OF THE TURS NUMBER TWO, UH, AND UPDATE PROJECT AND FINANCING PLAN.
[5. Discussion regarding scheduling the next meeting.]
[01:50:02]
OKAY.DISCUSSION REGARDING SCHEDULING THE NEXT MEETING.
EXHIBIT DATE? A CALENDAR FOR, UM, THE 19TH OR THE FIFTH? I THINK SO WOULD THAT BE APRIL 22ND? IS THAT CORRECT? I'M SORRY, THE 20TH.
I WAS GONNA SAY IT WOULD BE THE 20TH.
SO WELL THAT WOULD THAT WE WOULDN'T HAVE HAD A, NO, IT'D BE APRIL 20TH.
CAN WE, WE CAN JUST MAKE SURE THAT ONE OF THE TWO AREAS WE GOTTA KIND OF COMMIT TO A SCHEDULE THOUGH.
BEFORE LONG QUORUM AS IS HERE.
AND WHAT IS A QUORUM OF THE TURS BOARD? OH YEAH, BECAUSE IF THEY'RE HERE, RIGHT, OKAY.
SO A QUORUM OF THE TURS BOARD SHOULD BE FIVE.
SO AS LONG AS FIVE OF THE NINE OF US ARE HERE IN PERSON.
THEN, THEN WE CAN CONDUCT BUSINESS 2, 3, 4, 5.
IS THAT WHAT I'M HEARING? LET ME JUST CHECK.
WE SET, I JUST WANNA GO TO THE TAX CODE AND SEE IF WE NEED TO HAVE, BECAUSE WE HAVE THE CITY'S THE CITY, THE RESOLUTION THAT COUNSEL JUST ADOPTED FOR THE PUBLIC HEARING TO APPROVE THE, UH, AMENDED OR TO CONSIDER THE AMENDED PROJECT AND FINANCE PLAN IS SET FOR APRIL 18TH, THE TUESDAY BEFORE THAT THURSDAY.
SO I JUST WANNA VERIFY, IS THAT A COUNCIL MEETING TOO? UNLESS YOU WANNA DO IT ON MAY THE FOURTH, WHICH IS THURSDAY.
I JUST NEED TO SEE IF WE NEED TO HAVE THE JURORS BOARD NOW.
WE WANNA HAVE IT ON MAY THE FOURTH.
SO WE NEED THE JURORS BOARD TO MEET BEFORE CITY COUNCIL MEETS.
SO THE 13TH IS WHAT YOU'RE SAYING? MM-HMM.
YOU'RE GONNA MEET APRIL 4TH AND 18TH.
SO YOU WENT APRIL 13TH FOR THE MEETING.
WAIT, HOW ABOUT THE SIXTH? THE SIXTH IS THE SAME WEEK AS COUNCIL MEETING.
YEAH, THAT'S RIGHT AROUND THE CORNER.
NO, WE'RE GONNA NEED TO, WELL WE HAVE TO DO IT THE 13TH.
WHICH IS IT NEXT WEEK? BECAUSE WE HAVE TO MEET BEFORE YOU SAID THE, YEAH, BECAUSE WE'RE GONNA BRING THE PROJECT, THE FINANCING PLAN TO COUNCIL ON APRIL 18TH.
CAN WE DO IT ON THE TOURIST BOARD? I MEAN YOU COULD DO IT ON THE, YOU COULD DO IT ON THE 18TH, RIGHT? I MEAN YOU CAN LIKE BEFORE.
BUT BEFORE, IF WE JUST HAVE THAT PROCEDURALLY THE TOURIST BOARD HAS TO APPROVE THE PROJECT AND FINANCE PLAN BEFORE CITY COUNCIL WILL GET APPROVED.
WE SHOULD DO THAT ON THE AND THAT'S GONNA BE A FAIRLY SHORT ONE, RIGHT? THAT'S GONNA BE AS LONG AS FAIRLY SHORT ONE.
WE'LL GET THAT INFORMATION AHEAD OF TIME.
WE CAN ASK THE QUESTIONS, SCOTT.
STEPHANIE, WHEN WOULD THE, IN THEORY, WHEN WOULD THE JURORS BOARD REQUEST THE CITY TO SELL THE TURS BONDS? BECAUSE WE HAVE THE COMMITMENT, WE HAVE THAT OBLIGATION BY A SET DATE, I BELIEVE SO I GUESS THAT WOULD DEPEND HOW FAST WE THINK WE COULD DO THE TURS BONDS.
OR WE CAN AGAIN DO IT JUST BEFORE THE CITY COUNCIL MEETING THAT WE WOULD ACTUALLY AUTHORIZE THE BOND.
WHICH WE WOULD, WOULD WE AUTHORIZE IT IN A, IN A MAY MEETING? PROBABLY.
I MEAN WE CAN DO IT IF IT'S A REQUEST, I WOULD SUGGEST WE REQUEST IT ON THE 13TH.
AND THEN WE'LL AT THAT DATE WE'LL HAVE A SET DAY FOR THE, WHEN THE COUNCIL WOULD TAKE ACTION FOR THE BOND.
NO, THAT IS A AGENDA WRITING DAY.
[01:55:02]
DOES THAT WORK? MM-HMM.SO DOES THAT WORK FOR THEM TOO? APRIL 13TH? YES, PLEASE.
APRIL IS OUR NEXT JURORS BOARD MEETING.
UH, NEXT ITEM IS EXECUTIVE SESSION.
IS THERE ANY MEANING TO GO INTO EXECUTIVE SESSION, MA'AM? NO.
UM, SO I GUESS NEXT ITEM IS A MOTION TO ADJOURN.