Jan 17, 2023 City Council Work Session on 2023-01-17 3:00 PM

[CALL TO ORDER]

[00:00:05]

GOOD AFTERNOON. TODAY IS TUESDAY, JANUARY 17TH YEAR 2023 . WE'RE IN COUNCIL CHAMBERS AT 2 22 MORE TENNESSEE STREET TIME IS THREE O'CLOCK IN THE AFTERNOON. THIS MEETING IS BEING BROADCAST LIVE. PUBLIC PUBLIC COMMENTS ON AGENDA ITEMS I DO NOT SHARE THAT ANYONE HAS SIGNED UP. NEXT ORDER

[DISCUSS REGULAR MEETING AGENDA ITEMS for the City Council Regular Meeting to be held on Tuesday, January 17, 2023 at 6:00 p.m. ]

OKAY THANKS AND APOLOGIZE. OKAY NO PROBLEM, MR EGAN. IT'S ON. I DON'T NEVER 22-12 DAYS. 13 REGARDING, UH, AMENDING OUR BUDGETS TO PROVIDE FUNDS FOR THE PURCHASE OF THE VEHICLE IN MUT, D. AND I WAS JUST CURIOUS. IT IS. WHOSE BUDGET ARE WE AMENDING MUTTS OR IS A CITY BEHIND THAT FOR HIM? UTD WELL, SO WE'RE ACTUALLY AMENDING THE CITY BUDGET BECAUSE THERE IS $4000 OF GENERAL FUND MATCH OF THE GRANT IS PAYING QUITE A BIT OF IT. WE'RE PUTTING IN TRANSIT DEVELOPMENT CREDITS IN THE $4000 THAT'S REMAINING. IS COMING FROM GENERAL FUND ALSO THE M UTD, ALTHOUGH IT'S THE GOVERNING BODY FOR COLLIN COUNTY TRANSIT DOES NOT REALLY HAVE ITS OWN BUDGET SYSTEM. UM AND THE CITY OF MCKINNEY ACTUALLY OWNS THE VEHICLES THAT THE M UTD USERS TO PROVIDE SERVICE TO CALL IN COUNTY. SO THE VEHICLE WILL BE TITLED TO THE CITY OF MAKENI. SO THE WAY THAT WE'VE HANDLED THIS IN THE PAST IS WE TAKE IT TO THE M UTD FOR APPROVAL, AND THEN IT'S RATIFIED BY CITY COUNCIL AND THE BUDGET IS ACTUALLY AMENDED ON THE CITY SIDE SINCE IT IS A CITY BUDGET. YES THAT RAISES ANOTHER ISSUE FOR ME BECAUSE I KNOW THE M UTD HAS A LOT OF MONEY FOR NOT HAVING A BUDGET. WELL IT IT'S KEPT BY THE CITY. YEAH AND ACCOUNTED FOR BY THE CITY. THAT WAS MY ONLY QUESTION. THANK YOU FOR BEING HERE TO EXPLAIN THAT. THANK YOU,

[Provide Feedback to Staff and Economic and Planning Systems (EPS) for Finalization of the Neighborhood Preservation Plan]

GENETIC IN DIRECTOR OF HOUSING AND COMMUNITY DEVELOPMENT AND WE HAVE MPS RACHEL XINMIN FROM E P S IS BACK WITH US AGAIN THIS EVENING. WE DID A WORK SESSION. UM LET'S SEE ABOUT A MONTH AGO, AND SHE CAME BACK TO PROVIDE SOME ANSWERS TO SOME QUESTIONS THAT WERE POSED AND TO GET FURTHER GUIDANCE FROM CITY COUNCIL. ON SOME OF THE PROPOSALS. ONE ITEM THAT YOU WILL NOT BE HEARING ABOUT TONIGHT. THAT IS A BIG PART OF THE NEIGHBORHOOD PRESERVATION PLAN IS THE COMMUNITY LAND TRUST . WE'VE KIND OF REMOVED THAT FROM THE RECOMMENDATIONS THIS EVENING. WE'VE REACHED OUT TO GROUNDED SOLUTIONS NETWORK WHO IS THE PREMIER? COMMUNITY LAND TRUST ORGANIZATION IN THE COUNTRY TO GIVE US A PROPOSAL TO COME IN. TALK TO THE NEIGHBORHOODS. TALK TO CITY COUNCIL. SEE IF THIS IS SOMETHING THAT WILL REALLY WORK IN THE CITY OF MCKINNEY, AND WE'LL BE SOMETHING THAT'S BENEFICIAL FOR THE CITY BECAUSE IT'S VERY DETAILED AS WE YOU KNOW, UNDERSTOOD FROM THE CONVERSATION, AND THE QUESTIONS WERE ASKED LAST TIME. AND WE WANT TO MAKE SURE THAT THE GROUNDWORK IS DONE PROPERLY AND THAT WE HAVE REALLY GOOD ANSWERS FOR CITY COUNCIL. SO UM RACHEL WILL BE HERE TO PROVIDE THE PRESENTATION ON SOME OF THE OTHER OPTIONS THERE WERE PUT FORWARD AND KIM FLAME AND MYSELF ARE ALSO HERE TO ANSWER QUESTIONS. GREAT THANK YOU. UM SO AS JOHNNY MENTIONED, UM, THIS IS A FOLLOW UP FROM THE WORK SESSION. WE DID ABOUT A MONTH AGO WHERE WE HAD A REALLY GREAT DISCUSSION AND A LOT OF QUESTIONS, AND SO WE'RE BACK TO HAVE A MORE FOCUSED DISCUSSION ON SOME VERY KEY, DETAILED STRATEGIES AND HOPEFULLY GET SOME GUIDANCE ON THOSE TO MOVE FORWARD AND CRAFTING THE PLAN. UM I KNOW LAST TIME THERE WERE TWO OF US THIS TIME. THERE IS

[00:05:02]

IT'S UM, SUPPORT FOR ACCESSORY DWELLING UNITS. UM, AND THEN THE LAST ONE IS HOW TO CONNECT RESIDENTS WITH EXISTING PROGRAMS FOR THINGS LIKE PROPERTY TAX SUPPORT. ANOTHER ISSUE IS WHERE WE HEARD, UM, THAT THERE IS SUPPORT TO, UH TO EMPHASIZE EXISTING PROGRAMS, BUT MAYBE NOT ESTABLISHED NEW ONES. AND SO AGAIN, THE KEY QUESTION THAT WE'RE LOOKING AT IS DO WE WANT TO PURSUE THESE PROGRAMS AND THE GOAL WITH THESE IS TO CREATE TANGIBLE OUTCOMES, RIGHT? WHAT CAN WE MEASURE? WHAT CAN WE TRACK PROGRESS WITH? HOW CAN WE SEE THE CHANGE THAT WE'RE MAKING IN THE CITY ACHIEVING OUR GOALS AND WE THINK THAT THESE PROGRAMS CAN DO IT WHILE MAKING EFFICIENT USE OF EXISTING RESOURCES AND STRUCTURES AND PROGRAMS WITHIN THE CITY. SO THE FIRST ONE AND AGAIN AS JOHNNY SAID, THIS IS HAPPENING IN PARALLEL. SO JUST AS A REMINDER THAT THIS WAS, UM RECOMMENDATION FROM THIS STUDY, THAT ALSO, UM YOU KNOW, THE CITY STARTED WORKING ON AT THE SAME TIME, WHICH JUST EMPHASIZES THAT IT'S A REALLY ROBUST STRATEGY. UM SO THE COMMUNITY LAND TRUST ADDRESSES TWO ISSUES SO IT CAN MITIGATE THE INCREASING HOUSING COSTS INDUCED MCKINNEY ALSO

[00:10:04]

SO FOR EACH OF THE REST OF THEM WILL BE WALKING THROUGH A SLIDE LIKE THIS, WHICH HAS THESE FOUR KEY CATEGORIES. AND THEN A SECONDARY SLIDE WITH SOME ADDITIONAL INFORMATION AND THE KEY QUESTIONS. SO WE WALK THROUGH THE FIRST SLIDE, AND THEN ON THE SECOND SLIDE, THAT'S REALLY FOR THE DISCUSSION ANY QUESTIONS AND THEN LOOKING FOR A YES OR A NO TO MOVE FORWARD. SO THE FIRST ONE IS AN AFFORDABLE HOUSING SET ASIDE WITHIN TRES ONE, AND SO WHAT THIS IS LOOKING TO DO IS A INCREASE THE SUPPLY OF AFFORDABLE HOUSING WITHIN THIS AREA. CREATE A BENEFIT TO FOR THE AREA FROM NEW DEVELOPMENT COMING IN. AND THEN ALIGN THE OUTCOMES OF THE TOURS WITH THE GOALS OF THE TARS, WHERE AFFORDABLE HOUSING IS A STATED GOAL, BUT WITH NO REQUIREMENT TO INCLUDE AFFORDABLE HOUSING IN NEW RESIDENTIAL DEVELOPMENTS. IT HASN'T BEEN AN OUTCOME THAT'S BEEN SEEN TO DATE. AND SO WITHIN THE TERMS LEGISLATION. THERE'S AN OPPORTUNITY TO REQUIRE NEW RESIDENTIAL DEVELOPMENTS THAT ARE RECEIVING TOURISTS FUNDING.

TO HAVE A CERTAIN LEVEL OF AFFORDABLE HOUSING WITHIN THEM, SO IT'S ONLY FOR DEVELOPMENTS THAT ARE RECEIVING A BENEFIT FROM THE TOURS. UM IN THE LEVEL OF AFFORDABLE HOUSING IS CAN BE DETERMINED AT WHATEVER LEVEL IS DESIRED, AND SO WE'LL SEE A COUPLE EXAMPLES ON THE NEXT SLIDE, BUT THIS CREATES NEW, AFFORDABLE HOUSING IN THE AREA. WHICH HAS THE ADDED BENEFIT OF CREATING HOUSING THAT CAN BE ACCESSIBLE TO EMPLOYEES FOR A VARIETY OF BUSINESSES, ESPECIALLY BUSINESSES THAT PAY LOWER WAGES. UM THERE ARE A LOT OF SORT OF RETAIL AND SERVICE BUSINESSES CREATING EMPLOYEES NEARBY. AND IT THERE'S NO TURNS FUNDING INVOLVED, SO WE RECOGNIZE THAT ESPECIALLY IN TERMS ONE. THERE ARE A LOT OF PROJECTS IN THE PIPELINE FOR THAT FUNDING, AND SO THIS ISN'T UTILIZING ANY OF THOSE FUNDS. IT'S JUST, UM PUTTING A REQUIREMENT ON NEW RESIDENTIAL PROJECTS THAT ARE RECEIVING A BENEFIT FROM THE TERMS. AND SO WE'LL WALK THROUGH THESE AND THEN WE'LL HAVE THE DISCUSSION ON THIS. SO, UM WE REALLY WENT THROUGH THE PIECES ON THE LEFT, AND THEN WE CAN SEE SOME REGIONAL EXAMPLES ON THE RIGHT.

AND THEN JUST ANOTHER NOTE FOR THE DALLAS ONE. THERE'S ACTUALLY A DIFFERENT REQUIREMENT FOR THEIR DOWNTOWN AREA. SO THEY'RE DOWNTOWN SET ASIDE IS ACTUALLY 10% GIVEN THE DEVELOPMENT ECONOMICS OF NEW DEVELOPMENT DOWNTOWN, SO THIS IS BEING DONE REGIONALLY. 20% IS THE LEVEL THAT DALLAS AND FORT WORTH HAVE CHOSEN, UM WE WOULD THINK MAYBE 10% TO START. BUT AGAIN, THAT'S THE DETAIL THAT WOULD BE DETERMINED LATER. RIGHT NOW. IT'S A YES OR NO. IS THIS SOMETHING THAT WE WANT TO PURSUE ? SO THIS WOULD BE NEW DEVELOPMENT, INCREASING THE SUPPLY OF AFFORDABLE HOUSING? FOR NEW RESIDENTIAL PROJECTS THAT ARE RECEIVING A TOURIST BENEFIT, SO THERE'S NO MONEY COMING INTO THE PROJECT FROM THE TOURS. THERE'S NO REQUIREMENT.

SO QUESTIONS THAT'S COMMENTS. I'LL OPEN IT UP. THAT WAS A LOT OF INFORMATION TO JUST THROW AT YOU. UM YOU HAD, UH, WHAT KIND OF GIVE GIVE SOME IDEA OF, UM SCOPE OF TOURIST FUNDING THAT MIGHT UM, MIGHT BE USED AS A INCENTIVE TO A DEVELOPER. FOR 20% SET ASIDES. IN TERMS OF THE LEVEL OF FUNDING. SO AGAIN THAT I MEAN IT'S THE BEST AND WORST ANSWER IS IT'S A POLICY DECISION. YOU CAN. IT CAN BE TIED. YOU KNOW YOU CAN DO AN ECONOMIC ANALYSIS OF WHAT'S A BENEFIT THAT WOULD MAKE IT WORTHWHILE AND DO THAT SORT OF DEVELOPMENT. ECONOMIC ANALYSIS.

IT REALLY DEPENDS ON THE PROJECT THIS SIZE AND SCOPE OF THE PROJECT AND WHAT A 20% OR 10% 15% 5% SET ASIDE WOULD LOOK LIKE UM AND WHAT? WHAT IMPACT THE TOURIST FUNDING HAS ON THE PROJECT FEASIBILITY. YOU KNOW THAT'S AN AUDIENCE QUESTION, BUT IT REALLY IT REALLY DOES DEPEND.

I GUESS I'M I'M TRYING TO IMAGINE, IN MY MIND A LEVEL OF FUNDING. THAT WOULD BE WORTHWHILE. FOR A 20% SET ASIDE THE DEVELOPER I MEAN, IT'S SO A LOT OF TIMES THE TOURIST FUNDING CAN BE FOR YOU KNOW, OFTEN INFRASTRUCTURE AND OTHER PIECES AND SO THAT IS SORT OF THE ONE TIME UPFRONT COST VERSUS THE SORT OF ONGOING REVENUE IMPACTS OF THE AFFORDABLE UNITS, UM, DEPENDING ON. WHAT THE AFFORDABLE RENTS ARE WHAT THE OVERALL CAPITAL CONSTRUCTION

[00:15:04]

I DON'T THINK NO, I'M SORRY, MICKEY STEELE. I THINK. OKAY OKAY. OKAY YEAH, YOU'RE RIGHT.

THAT WOULDN'T HAVE BEEN SCENTED THAT AT ALL. AND, UM YOU KNOW, WE'VE WE'VE GOT SOME UNITS GOING UP THERE. THROCKMORTON AND 3 80. AND THE QUESTION HERE WOULD BE THEN DO YOU MIX IN AFFORDABLE UNITS AS SOME KIND OF A PSEUDO MANDATE OR INCENTIVE. IT'S HARD FOR ME TO SEE IT BEING VERY EFFECTIVE. THAT'S THAT ONE'S ALREADY REPORTABLE PROJECT ANYWAY. I MEAN, IN TERMS OF A REQUIREMENT VERSUS AN OPTION THAT WE HAVE, I THINK IT'S DEFINITELY THERE BECAUSE WE HAVE HAD OR IN ADDITION TO THE MCKINNEY MEDAL SITE, THEY'RE REFERRING TO WE'VE HAD OTHER DEVELOPERS ASK FOR CURVES, MONEY FOR RESIDENTIAL AND IT IS CERTAINLY NEGOTIATING OPTION THAT WE COULD HAVE. AND BRINGING THAT ABOUT, BUT WE'VE ALSO, I THINK IN THE LAST SEVEN YEARS DEVELOPED TO AFFORDABLE PROPERTIES IN THAT TURD ZONE. UE POSSIBILITY THAT WILL END UP WITH SOME MORE. AND IT'S SOME POINT IN THE FUTURE, BUT THERE'S PROBABLY ONE LARGE TRACK THAT IS IN THE NEXT 3 TO 5 YEAR CYCLE. THAT WOULD POTENTIALLY BRINGING THEM OUT. SO I LIKE THE IDEA OF IT IN TERMS OF COULD WE ALTER THE BOUNDARIES OF THE TOURS TO BE MORE EFFECTIVE BECAUSE THE TERMS IS KIND OF NARROW? UM AND COMMERCIALLY FOCUSED AND NOT NECESSARILY IN RESIDENTIAL AREAS . YOU COULD POTENTIALLY EXPAND THE BOUNDARIES SOME AND MAKE IT A NEGOTIATING TWO OF FOR US BUT I GUESS I'M NOT. I DON'T THINK THAT A REQUIREMENT IS THE BEST WAY TO GO ABOUT IT BECAUSE I THINK YOU'RE GOING TO HAVE SO MANY. YOU IN ANY ANY NFL OR ANY REDEVELOPMENT SIDE CHICKEN HAVE SO MANY DIFFERENT TYPES OF PROJECTS THAT YOU DIDN'T HAVE TO SET THRESHOLDS FOR HOW MANY UNITS PER MINIMUM. DEVELOPMENT SIZE AND UM, THE OFFSET FOR WHAT YOU'RE TALKING ABOUT. IN TERMS OF WHAT WE'RE GETTING, AND AFFORDABILITY MAY VARY VERSUS WHAT WE'RE ACTUALLY PROVIDING.

AND WHAT WE'RE TRYING TO OVERCOME THE MCKINNEY METAL SITE. YOU KNOW, WE WERE LARGELY TRYING TO ENSURE THAT AN ENVIRONMENTAL BURDEN COULD BE OVERCOME, WHICH MEANS THAT YOU KNOW IF WE WERE GOING TO ASK FOR AFFORDABILITY OVER AND ABOVE THAT IT MAY TAKE SOME FINANCIAL COMMITMENT. SO I GUESS. I LIKE THE IDEA OF IT BEING A POSSIBILITY. I THINK YOU KNOW.

[00:20:06]

UM SO THE PLAN WILL HAVE SOME PRESCRIPTIVE ELEMENTS FOR THINGS THAT THEY'RE REALLY CONCRETE.

YES, LET'S DO THIS PIECES AND THEN ALSO SOME LONGER TERM NEXT STEPS IN TERMS OF LOOK INTO THIS MORE PURSUE THIS AS A POTENTIAL MIDTERM STRATEGY, SO THAT'S GREAT. I WOULD JUST SAY, I THINK THERE'S OTHER TOOLS THAT WE HAVE AVAILABLE TO US THAT ARE PROBABLY BE MORE EFFECTIVE THAN CONCERN USING TOURIST FUNDING AND PRESERVE THE TOURIST FUNDING FOR BUT IT WAS PROBABLY MORE MEANT FOR WHETHER WE'RE TALKING ABOUT ZONING. UM CONCESSIONS, CONCESSIONS, SOMETHING LIKE THAT . INCENTIVIZE DEVELOPERS HAVE A SET ASIDE OF AFFORDABLE UNITS, BUT ALL THAT SAID, I'M NOT OPPOSED TO INVESTIGATING IT DEEPER, BUT I THINK THERE'S PROBABLY BETTER TOOLS IN MY MIND. THEN THEN, THE TOURS. I AGREE LIKE YOU WOULD BE ON A PROJECT BY PROJECT BASIS AND DECISION TO BE MADE BY THE TURKISH. NOT CERTAINLY THINK THAT IF WE HAVE A PROJECT COME ACROSS THE CHURCH BOARD THAT WE COULD IF WE COULD NET MORE AFFORDABLE HOUSING. CERTAINLY EVERYBODY WOULD DO IT AT THAT POINT, BUT I DON'T THINK IT'S JUST FUN, SPENDING MORE MONEY ON CONSULTANTS TO TELL US TO DO THAT. THANK YOU FOR THE SUGGESTION, BUT I THINK THAT'S ALL WE NEED. BUT I DO THINK IT'S WORTH CONSIDERING THAT IF THE TERMS IS A TOOL FOR THAT, THE TERMS WAS NOT DESIGNED FOR THAT. IN THE GEOGRAPHIC SENTENCE. IT HAS THE LANGUAGE IN THERE THAT ALLOWS FOR IT. BUT THE MAP IS VERY COMMERCIAL FOCUS. IT IS NOT RESIDENTIAL FOCUSED, AND SO IF YOU EVEN IF YOU WERE TO SAY IT'S A CASE BY CASE BASIS, BUT WE WANT TO EXPAND. THE FOOTPRINT OF THE TOURS TO HAVE A LITTLE BIT OF RESIDENTIAL MINDSET. THAT'S STILL SOMETHING WE SHOULD DO IMMEDIATELY, SO IT GIVES US THAT TOOL. BECAUSE WHEN YOU LOOK AT IT UM AND I DON'T KNOW THAT WE HAVE AVAILABLE TO PUT UP THERE. BUT THE THROCKMORTON AND 3 80 SIDE IS IN THERE THE KIND OF BALLOONS AROUND 3 80 BALLOONS AROUND DOWNTOWN AND BALLOONS AROUND THE SOUTH GATE AREA, AND THE REST IS VERY NARROW ALONG HIGHWAY FIVE. THAT DOESN'T INCLUDE A COTTON MILL SITE THAT THAT ONCE RESIDENTIAL DOESN'T INCLUDE UM, SOME SIDES THAT ARE FURTHER EAST ALONG AIRPORT AND L'M THAT COULD BE RESIDENTIAL. AND IT IT. UH I GUESS THERE'S JUST OPTIONS THERE THAT IF WE DO USE IT AS A CARROT THAT WE COULD ENSURE THAT WE HAVE THE TOOLS AVAILABLE TO US. WE'RE NOT REACTING TO IT AT THAT POINT, SO THAT WOULD BE MY ONLY THINK ABOUT IMMEDIATE, ACTUALLY.

INTEND TO AGREE. SO WE ARE LANDING. WHERE SOUNDS LIKE. IT'S A I WOULD SAY IT'S A TOOL THAT WE NEED TO UTILIZE AND MAKE SURE THAT IT IS IT IS AVAILABLE TO UTILIZE, BUT IT IS NOT A REQUIREMENT THAT WE SHOULD SET CERTAINLY NOT REQUIRED TOURS THE TERMS WHICH IS A DIFFERENT DISCUSSION THAN OUR DISCUSSION RIGHT NOW. THAT WOULD BE THE NEXT JERSEY TO DISCUSS THAT LEADS ME TO A LEGAL QUESTION OF HOW YOU EXPAND THE TERMS. AND THERE'S A MAXIMUM THRESHOLD FOR THE AMOUNT OF RESIDENTIAL PROPERTY THAT CAN BE INCLUDED. SO WHERE THOSE BOUNDARIES WOULD BE IF IT IS EXPANDED, THAT WOULD HAVE TO BE A CONSIDERATION AS WELL FOR 30. THE PROPERTY. WE

[00:25:01]

RIGHT? ANY OTHER COMMENTS OR QUESTIONS. ON THIS ONE. PERFECT MOVE TO THE NEXT SO THAT ONE WAS FOCUSING ON NEW DEVELOPMENT. THE RENTAL INSPECTION IN REHAB PROGRAM IS REALLY FOCUSING ON WHAT'S ON THE GROUND RIGHT NOW, AND SO WE HAD A REALLY ROBUST DISCUSSION ABOUT THIS LAST TIME.

AND SO WE CRAFTED SOME MORE DETAILS AND FOCUS RECOMMENDATIONS AND SO AGAIN.

THE ISSUES THAT WE'RE LOOKING AT THIS WITH THIS ONE. I REALLY IMPROVING THE QUALITY OF EXISTING RENTAL PROPERTIES FOR RESIDENTS, UM HELPING KEEP RENTS STABLE AND AFFORDABLE AS IMPROVEMENTS ARE MADE. AND THEN COUNTERACTING THE DISINCENTIVE FOR LANDLORDS AND OWNERS TO INVEST IN THE PROPERTIES. WHEN RENTS ARE SO STRONG, SO YOU KNOW IF A PROPERTY OWNER IS GETTING STRONG RENTS, AND THERE'S NO POTENTIAL OF LOSING TENANTS BECAUSE THERE JUST AREN'T THAT MANY PROPERTIES AVAILABLE, THERE'S NO INCENTIVE TO INVEST IN THE QUALITY OF THE PROPERTY BECAUSE THEY HAVE A STEADY CASH FLOW. AND SO HOW DO WE COUNTERACT THAT AND IMPROVE THE QUALITY OF THE PROPERTIES? BUT WITHOUT JUST ENRICHING LANDLORDS WITH NO BENEFIT FOR THE COMMUNITY OR THE RESIDENTS. AND SO WE'RE LOOKING AT THIS CARROT AND STICK APPROACH WITH REHAB FUNDING PROGRAM AND ALSO AN INSPECTION PROGRAM. UM AND SO THE KEY CONSIDERATIONS THAT WE'RE THINKING THROUGH ARE AGAIN BASED ON THE CONVERSATION. WE HAD LAST TIME AND SOME BEST PRACTICES IN TERMS OF STRUCTURING THESE PROGRAMS. HOW CAN IT BE STRUCTURED TO NOT JUST PUT MONEY IN PROPERTY OWNERS POCKETS, UM AND YOU KNOW, ESSENTIALLY GIVE THEM FREE MONEY TO IMPROVE THEIR PROPERTIES AND THEN RAISE RENTS, KICK OUT TENANTS. WHATEVER THEY WANT TO DO, TURN AROUND AND SELL IT BECAUSE NOW IT'S BEEN IMPROVED. UM AND SO POTENTIAL AFFORDABILITY REQUIREMENTS OR OTHER REQUIREMENTS IN EXCHANGE FOR THAT FUNDING, AND THEN THINKING ABOUT THE INSPECTION PROGRAM AS A PAIR TO THE REHAB PROGRAM. UM AND WHETHER THAT'S A TOOL WE WANT TO USE. AND THEN THE NEXT QUESTION AGAIN, THE DETAIL WOULD BE HOW BROADLY OR SPECIFICALLY TO APPLY THAT. UM SO THE RECOMMENDATION COMING OUT OF THIS IS TO WORK WITH STAFF TO DESIGN AND INSPECTION PROGRAM TO PAIR WITH REHAB FUNDING. UM AND SO THERE'S A LOT OF WORDS ON THIS, BUT WE'LL GO THROUGH IT PRETTY GENERALLY SO AH, UM AGAIN WITH THE CARROTS AND STICKS SO THE INSPECTION PROGRAM CREATES THE INCENTIVE TO IMPROVE THE PROPERTY BECAUSE ITS PROPERTIES ARE EXPECTED. IF THERE ARE VIOLATIONS, YOU KNOW THEY HAVE TO BE BROUGHT UP TO CODE. THEY HAVE TO ADDRESS THEM. AND SO THE FUNDING IS MONEY THAT WOULDN'T OTHERWISE BE AVAILABLE TO ESPECIALLY SMALLER SCALE PROPERTY OWNERS, OR THEY WOULDN'T HAVE AN INCENTIVE TO INVEST OTHERWISE. AND THEN AS A CONDITION OF RECEIVING THE FUNDING, THEY HAVE TO EITHER KEEP RENTS AFFORDABLE. EXTEND THE LEASE RENEWAL TO THE TENANTS SO THAT THEY DON'T GET KICKED OUT OF THEIR HOMES. THAT AGAIN IS THE POLICY DETAIL THAT COMES LATER IN TERMS OF HOW MANY RESTRICTIONS WOULD WE WANT TO PUT ON THE FUNDING? UM THIS WOULD REALLY BE A CITYWIDE PROGRAM. UM IT CAN BE FOCUSED ON SPECIFIC AREAS TO PHASE IT IN WHICH SOME COMMUNITIES H BE AVAE CITY WIDE. UM AND THEN IT CAN BE DONE BROADLY. MORE SPECIFICALLY. THE KEY DIFFERENCE THAT WE'VE SEEN. A LOT OF PLACES IS WHAT WE HOSPITAL PROACTIVE OR REACTIVE INSPECTION PROGRAM, SO REACTIVE INSPECTION PROGRAM IS COMPLAINT DRIVEN OR SOMETHING POLLEN AND SAY, I WOULD LIKE MY PROPERTY TO BE INSPECTED TENANTS TYPICALLY OR NEIGHBORS, WHOEVER PROACTIVE PROGRAM WOULD PROACTIVELY INSPECT EVERY PROPERTY USUALLY EVERY COUPLE OF YEARS. UM AND SO PLANO HAS A REHAB PROGRAM. UM AND THEN THERE ARE THERE ARE A NUMBER OF OTHER EXAMPLES ACROSS THE COUNTRY. AND SO THE KEY QUESTION IS. DO WE WANT TO PURSUE THE RENTAL REHAB? PAIRED WITH AN INSPECTION PROGRAM AND

[00:30:05]

WHERE IS THE FUNDING? COME FROM THIS, UM, THE, UM PILOT PROGRAM RIGHT NOW IS I BELIEVE CDBG FUNDED. JOHNNY CAN CONFIRM. YEAH SO IT'S THROUGH FEDERAL CDBG FUNDING. RIGHT BUT THAT'S THAT'S NOT AN UNLIMITED SOURCE, NOT A HUGE SOURCE. CORRECT. I BELIEVEO START. THAT'S CORRECT AND WHAT WE'RE SEEING CITYWIDE IS LESS USAGE OF THE HOMEOWNER REHAB PROGRAM FOR SINGLE FAMILY HOMEOWNERS, AND WE'RE SEEING A GREATER NEED FOR THE RENTAL REHAB PROGRAM BECAUSE OF THE CONDITION OF A LOT OF RENTAL HOMES. AGAIN WHAT RACHEL WAS SAYING. THE LANDLORD'S REALLY DON'T HAVE A REASON TO BRING THE PROPERTIES UP TO CODE OR WE GET A LOT OF COMPLAINTS FROM TENANTS. WE HAVE A LOT OF HEALTH AND SAFETY ISSUES, AND LANDLORDS MAY NOT BE ABLE TO AFFORD TO FIX THE PROPERTY OR THEY MAY BE ABLE TO AFFORD TO AND THEY CHOOSE NOT TO, BECAUSE THEY KNOW THAT THE TENANTS AREN'T GOING TO GO ANYWHERE BECAUSE THERE'S SUCH LTD. RENTAL INVENTORY SO WE WOULD BE ABLE TO SORT OF SHIFT A LOT OF OUR CDBG FUNDING INTO A RENTAL REHAB PROGRAM IF IT WAS PAIRED WITH SOMETHING THAT WAS SORT OF INCENTIVIZED THE LANDLORDS TO PARTICIPATE. YES, AGAIN, I WOULD HAVE A LEGAL QUESTION OF HOW YOU MAKE THAT FORCIBLE COULD SEE THAT WORKING WITH APARTMENT UNITS BECAUSE THEY'RE BY NATURE, REYNOLD PROPERTIES, BUT HOW DO YOU STOP THE TRANSFER. A SINGLE FAMILY PROPERTY ONCE IT'S BEEN ENHANCED USING GOVERNMENT FUNDING. RIGHT THAT'S THAT'S WHAT WE DO WITH OUR SINGLE FAMILY REHAB PROGRAMS AS WE PUT A DATE RESTRICTION ON THERE, AND IT'S A FORGIVABLE LOANS, SO AFTER A PERIOD OF TIME , THE LOAN IS FORGIVEN. THE RENTAL REHAB PROGRAM WOULD PROBABLY BE, UM, STRUCTURED SIMILARLY, WHERE THE FUNDS WOULD BE FORGIVEN OVER A CERTAIN PERIOD OF TIME. AS LONG AS THE LANDLORD KEPT THE PROPERTY AFFORDABLE. OKAY, SO YOU CAN'T RESTRICT THE ALIENATION OF THE PROPERTY. FOR A PERIOD OF TIME, AND, YOU KNOW HAS THAT STOPPED THE LANDLORD FROM A FIX UP MY HOUSE. I'LL GET A BETTER PRICE FOR IT. YOU CAN GET YOUR LOAN BACK OUT OF CLOSING. RIGHT? HMM. YEAH, THAT'S WE HAVE LIKE A REPAYMENT MECHANISM ON OUR SINGLE FAMILY HOME OWNER OCCUPIED REHAB PROGRAM SO THEY SELL IT BEFORE THE AFFORDABILITY PERIOD THAN THEY OWE THAT MONEY BACK. I'M NOT OPPOSED TO IT RIGHT CONCERNED ABOUT THE ENFORCEABILITY OF THE AGREEMENT IN THE ULTIMATE RESULTS. THE COMMENTS. I DON'T LIKE IT. UM I DON'T MIND THE INSPECTION PROGRAM BUT THE REHAB PROGRAM. I SEE THAT WE'RE INCENTIVIZING THESE SINGLE FAMILY HOMES TO BECOME REYNOLDS STATE. REYNOLDS.

BECAUSE IF YOU GOT BEATEN DOWN HOME, SOMEONE MAY SAY I MIGHT BUY IT AND WORK TO FLIP IT. IT'S THEIR MONEY THAT THEY'RE WORKING TO FLIP. IT IS THEIR CAPITAL AT RISK, AS OPPOSED TO I'M GONNA BUY IT. GO GET THE CITY'S COFFERS AND THEN CHARGE RENT ON IT. UM, IT'S A IT COULD BE AGAIN ALL OVER THE CITY. I JUST DON'T THINK THIS IS GOVERNMENT'S ROLE. I DON'T THINK IT'S A GOOD USE OF THE MONEY. I DO COMPLETELY UNDERSTAND THAT WE HAVE PEOPLE LIVING IN POOR CONDITIONS RIGHT NOW THEY COULD EXTEND THAT TO SUPPLY AND DEMAND ISSUE THAT MARKETS TEND TO CORRECT AGAIN. I HAVE NO PROBLEM WITH THE INSPECTION PART, BUT I HAVE A FEELING AND IT'S JUST A FEELING THAT A LOT OF THESE LANDLORDS LIKE YOU SAID. THEY CHARGE WHAT THEY CAN AND THEY DO WHAT THEY MUST WRITE. AND WHEN YOU'VE GOT A TIGHT MARKET WHAT THEY MUST DO ISN'T THAT MUCH, BUT WHEN YOU HAVE A LOOSER MARKET, OR IF YOU HAVE A RENTAL INSPECTION PERSON COMING, IT COULD FAIR AMOUNT AND MAKE THEM MAYBE SELL THE PROPERTY. YOU DO SOME IMPROVEMENTS. SO IF WE WERE TO DO THE REHAB PROGRAM, I'D WANT THAT TO FOLLOW YEARS AFTER WE DID THE RUNWAY INSPECTION PROGRAM AND SEE HOW THAT WORKED OUT, BUT I JUST DON'T LIKE THE REHAB PROGRAM. I CERTAINLY CONCUR ON THE INSPECTION ASPECT. FROM AN INSPECTION STANDPOINT, IF YOU'RE GOING TO APPLY THIS CITYWIDE, I MEAN, YOU'RE TALKING ABOUT AN ENORMOUS UNDERTAKING TO INSPECT YOU ARE EVERY RENTAL PROPERTY. FOR YOU KNOW, EVEN IF YOU DID IT ONCE EVERY THREE YEARS. AND SO I GUESS. I MEAN,

[00:35:06]

TENANTS IN THAT WAY. WILL ALLOW YOU TO DO THAT WITHOUT SOME REQUIRED INSPECTION PROGRAM, BUT MAYBE A MORE ROBUST INSPECTION PROGRAM WITH SOME TENANT PROTECTIONS. IN THERE, BUT I GUESS I'M I'M FINE WITH THE IDEA OF REHAB FUNDING FOR LANDLORDS BECAUSE, YOU KNOW, I WISH THE MARKET CONDITIONS WERE DIFFERENT , BUT WE HAVE A NUMBER OF PEOPLE WHO LIVE. AND RENTAL HOMES ACROSS THE CITY, AND, UM YOU KNOW THAT THAT AREN'T ARE NOT TOO STANDARD, AND WE HAVE LANDLORDS THAT YOU KNOW THEIR OPTIONS ARE TO SELL IT AND THE BUYERS ARE GOING TO COME IN AND REPURPOSE THAT AT A HIGHER PRICE POINT, AND WE LOSE THAT. UM THAT AFFORDABILITY AND SO IF WE CAN WORK TO MAINTAIN SOME OF THAT, I THINK IT'S WORTH IT. WE'RE NOT TALKING ABOUT AN ENORMOUS AMOUNT OF USERS IN THIS PRODUCT. BECAUSE IF SOMEONE CAN TAKE ADVANTAGE OF IT AND SELL IT REAL QUICK, AND I'LL JUST GO TO A BANK AND DO THAT, AND IF SOMEONE WANTS TO YOU KNOW BY THIS AND USE THESE THEN THEY CAN DO THAT WITHOUT YOU KNOW, CREATING THE AFFORDABILITY. AND SO WE'RE TALKING ABOUT MAINTAINING OR ACHIEVING AFFORDABILITY WITH THIS STUFF. AND YOU KNOW, IN TERMS OF WE'VE GOT LIMITED DOLLARS HERE. IT'S NOT LIKE WE'RE TALKING ABOUT I NEVER MUCH HIGHER APPETITE JUST FOR ME, AND THEN I'LL BE QUIET ABOUT THIS, BUT I HAVE A MUCH HIGHER APPETITE TOO. HELP ON THE RENTERS AND TO PERHAPS PAY MORE FOR A NICER PLACE THAT'S BUILT UP TO CODE THAT I AM FOR THE INVESTORS AND TO INCREASE THE BENEFIT OF THEIR BALANCE SHEET AGAIN. I REALLY SEE IT AS SOMETHING WHERE YOU SEE IT BEATING DOWN HOUSE. YOU SAY, MAN , I COULD BUY THIS PROBLEM I MONEY AND HOPE TO FLIP IT OR I CAN BUY IT. PUT IN YOU CITY MONEY TO DO IT AND THEN GET A RENT AND IT JUST DISTORTS THE MARKET AND I SEE IT, CREATING MORE RENTAL PROPERTIES. AND IT DOES SINGLE FAMILY OWNERSHIP. I DO GET REALLY DO GET THAT, UH, THERE'S SOME FOLKS THAT WILL FOLLOW THE CRACKS ON THIS THING. I JUST DON'T THINK IT'S GOVERNMENT'S ROLE TO DO THAT. AND AGAIN, GIVEN THAT THE CITYWIDE I CAN ENVISION SOME REAL PROBLEMS CONVOLUTED THIS DISCUSSION TO WHEN WE TALK ABOUT CITYWIDE AND CERTAINLY UNDERSTAND THAT REASON CITYWIDE, BUT BUT YOU KNOW THIS DISCUSSION UM IS CENTERED AROUND THE NEIGHBORHOOD PRESERVATION FOR WHAT WE'RE DOING AND THE ROLE THAT WE SAY IT'S NOT GOVERNMENT'S ROLE AND I AGREE AT THE SAME TIME, IT'S GOVERNMENT'S ROLE THAT IS THAT IS CREATING THE SITUATION THAT WE HAVE OVER IN THIS AREA AND THAT WE'RE INVESTING HUNDREDS OF MILLIONS OF DOLLARS AT LEAST 100, PLUS MILLION DOLLARS IN A IN A COMPLEX AND INFRASTRUCTURE AND ON AND ON. SO BUT AGAIN FOR ME GETS CONVOLUTED WHEN WE NOW START TALKING ABOUT CITYWIDE VERSUS THE NEIGHBORHOOD PRESERVATION AREA THAT WE'VE IDENTIFIED. MR PERRY, FORGIVE ME . I'LL JUST SAY ONE LAST THING, BUT WHAT I SAID WAS THAT WE COULD SOMEHOW GET MORE MONEY TO THE RENTER, AS OPPOSED TO ON THE LANDLORD SIDE OF THE BALANCE SHEET. RIGHT YOU KNOW, IT FORCED THE LANDLORD TO READ TO REHAB IT TO VIA AN INSPECTION, BUT DON'T INCENT THEM TO DO IT. YOU'RE GIVE PEOPLE SOME KIND OF EXTRA MONEY FOR RENTING AND HELP WITH SOME ASSISTANCE THERE. MORE SO THAN GIVING IT TO THE LANDLORD. THINK YOU'RE YOU'RE WADING INTO THE SAME WATERS OF GOVERNMENT INVOLVED IN THE MARKETPLACE WITHOUT ANY CONTROL OVER WHETHER OR NOT THE HOME IS IMPROVED. IN THAT SITUATION. THE RENTAL INSPECTION WOULD ASSURE THAT YEAH. I MEAN, WE HAVE PROGRAMS LIKE THAT WITH WITH HOUSING CHOICE VOUCHERS WHERE IF A RENTER IS GOING TO GET SUPPLEMENTED RENT, THEY HAVE TO BE INSPECTED. AND WE HAVE LANDLORDS THAT REFUSE THOSE ALL OVER THE CITY, AND WE'RE GOING TO END UP WITH THAT SITUATION. ALL I MEAN, IT'S THE EXACT SAME MODEL. THAT WE END UP WITH OKAY. SOME LANDLORDS DON'T DON'T DO IT. AND THEN THERE'S JUST NO TEETH BEHIND IT. IS THAT IT? LANDLORDS JUST SAY I'VE GOT FOUR RENTERS HERE. WE'VE GOT ONE WITH THE HOUSING CHOICE VOUCHER. I GOT ONE WITH THIS CITY INSPECTION. PROGRAM THAT I DON'T UNDERSTAND. I GOT TO THAT MARKET . THEY'RE GOING TO TAKE THE TWO AND I UNDERSTAND THAT. AND THAT'S YEAH. I UNDERSTAND THAT. YEAH TO ADDRESS COUNCIL. IN CLAUDIA'S COMMENT ABOUT INCENTIVIZING, THE LANDLORD. THE IDEA WOULD BE THAT ONCE A LANDLORD WAS CITED AND WAS GIVEN THE ABILITY TO ACCESS THE RENTAL REHAB FUNDS. THEN THEY WOULD HAVE TO KEEP THE PROPERTY AFFORDABLE SO THEY WOULD NOT BEGINNING EXTRA MONEY IN THEIR POCKET. THEY WOULD BE GETTING AN

[00:40:05]

BEFORE I WOULD. BE IN SPEAKING SOLELY FOR MYSELF BE RECEPTIVE TO DOING THAT. REMEMBER MAN THINKING OBSERVATION. AND YET IT SEEMS THAT THIS OPTION OR ALTERNATIVE IS RAISING MORE QUESTIONS THAN IT'S GIVING US ANSWERS. COULD WE HEAR THE OTHER TWO ALTERNATIVES AND RESERVE THE RIGHT TO COME BACK TO THIS ONE IN THE INTEREST OF TIME? BECAUSE I KNOW WE HAVE A LOT OF PEOPLE HERE FOR OTHER ITEMS THAT WE'RE GOING TO BE DISCUSSING, AND WE BEEN ON THIS FOR BUT SOMETIMES SUGGESTION. I THINK, THOUGH, THAT WE'RE NOT NECESSARILY LOOKING AT YOU KNOW, FOR OPTIONS TO CHOOSE SOME OF THEIR THEIR VERY SPECIFIC UM STRATEGIES THAT ACCOMPLISH DIFFERENT THINGS, I THINK. WE DID EXPECT THIS ONE TO TAKE THE LONGEST. UM AND I AM COGNIZANT OF TIME. HIS LIFE.

JUST THE TIME. CHECK. UM I WILL SAY SO, FOR EXAMPLE, THE PLANO PROGRAM, UM IT IS VERY SPECIFIC IN THE GUIDELINES. IT IS TO BRING PROPERTIES UP TO CODE. THERE ARE SPECIFIC RESTRICTIONS ON IT. IT CAN'T BE USED FOR ANYTHING COSMETIC, ANYTHING LIKE THAT. IT'S SPECIFICALLY TO BRING PROPERTIES UP TO A CERTAIN STANDARD. UM AND AGAIN, THAT'S THAT'S SORT OF THE NEXT STEP. IF WE WANT TO PURSUE THIS AS AN OPTION THEN HOW TO ACTUALLY STRUCTURE. THE PROGRAM COMES LATER. UM WHAT I'M HEARING IS THAT THERE'S IT SEEMS LIKE THERE'S SUPPORT FOR SOME TYPE OF INSPECTION PROGRAM AND AGAIN THE DETAILS OF HIS ACT. EVERY PROPERTY IN THE CITY. IS IT FOCUSED IN CERTAIN PLACES FIRST, IS IT YOU KNOW? EVERY HOWEVER MANY YEARS AND THERE'S WAYS TO DO THAT, AS WELL. WORRYING PROPERTY PASSES ITS INSPECTION. IT GETS AN EXTENSION ON THE NEXT ONE BECAUSE IT'S AT A BASE LEVEL OF UM QUALITY. UM. I THINK THERE'S DEFINITELY MORE QUESTIONS ON THE REHAB COMPONENT . UM, IF WE WANT TO SPEND A COUPLE MORE MINUTES ON IT, OR WE WANT TO MAYBE IN THE REPORT JUST PROVIDE MORE DETAILED CASE STUDIES AND THEN HAVE IT AS A NEXT STEP CONTINUED THE DISCUSSION ABOUT I THINK THAT WOULD BE VERY HELPFUL, THOUGH.

IS THERE CONSENSUS ON THE INSPECTION? ASPECT REMARK. YEAH, I HAD ONE QUESTION. WE'RE TALKING ABOUT DOING THIS CITYWIDE. IS THERE A WAY WE CAN DO IT IN ZONES? WHERE WE. WE DESIGNATE AREAS WHERE OLDER PROPERTIES ARE. WHERE. A CERTAIN PART OF THE CITY BECAUSE IF YOU GO TO THE WEST SIDE IT'S BASICALLY NEW. I MEAN, THERE'S NOT A WHOLE LOT OF PROPERTIES THAT WOULD WOULD BE IN THAT SECTION. AND THEN COUNCIL TRAIT ON THE EAST SIDE AND SOME OF THE THERE'S SOME OTHER LITTLE AREAS THAT ARE OLDER. MIGHT BE. SO IT DOESN'T HAVE TO BE CITYWIDE. ONE OF THE THINGS THAT WE HEARD IN OUR LAST SESSION WAS THERE WAS A DESIRE TO BROADEN THE ACCESSIBILITY OF SOME OF THESE TOOLS TO RESIDENTS FACING SIMILAR ISSUES THROUGHOUT THE CITY. BUT THAT'S NOT TO SAY THAT IT HAS TO BE APPLIED IN THAT WAY. IT CAN BE, UM, SO THAT CAN BE A CONSIDERATION IN STRUCTURING THE PROGRAM. AND I IMAGINE WE MIGHT BE RUNNING INTO EQUAL PROTECTION ISSUES. AND MAYBE THERE'S A THAT THIS WOULD THIS NETWORK CAST COMPLETELY EQUITABLY BUT AGE OF PROPERTY OR SOMETHING LIKE THAT. YEAH. THERE'S WE AVOID SOME OF THE OTHER. THE GOLD CONCERNS. SO WHY DON'T WE DO THAT? YOU'LL BRING BACK SOME MORE INFORMATION AND LET'S GO TO THE NEXT ITEMS. MAYBE WE'LL CIRCLE BACK. MAYBE I THANK YOU. OKAY SO THE NEXT ONE IS LOOKING AT, UM ACCESSORY DWELLING UNITS AS A TOOL. A TWO PRONGED STRATEGY ONE. TO INCREASE THE INVENTORY OF AFFORDABLE HOUSING IN THIS AREA AND TO HELP INCREASE THE FINANCIAL STABILITY OF RESIDENTS AND SO THIS IS A SPECIFIC APPROACH. SO IT'S REALLY CREATING ACCESSIBILITY OF FUNDING TO RESIDENTS WHO WOULD NOT OTHERWISE BE ABLE TO AFFORD.

PUTTING AN ACCESSORY DWELLING UNIT ON THEIR PROPERTY. SO THIS IS WORKING WITHIN THE CONFINES OF THE STRATEGY AND POLICY THAT THE CITY IS ALREADY ADOPTED. SO WE'RE NOT LOOKING AT EXPANDING THE TYPES OF PROPERTIES WHERE AWS CAN BE PUT. UM YOU KNOW ANY EXISTING RESTRICTIONS OR PROPERTY SIZE RESTRICTIONS WOULD STILL EXIST. BUT WHAT WE COULD DO IS CREATE, UM SOME TYPE OF LOAN PROGRAM OR OTHER FINANCIAL PROGRAM FOR INCOME QUALIFIED RESIDENTS TO PUT AN IDEA ON THEIR PROPERTY. IF THEIR PROPERTY QUALIFIES, AND THEN THEY CAN RENT THAT OUT AND

[00:45:01]

[00:50:06]

WHERE THERE IS NO BANK OR PROVIDER THAT WOULD JUMP INTO HER. BURN A DO WITH I MEAN, THEY'RE JUST YOU'RE TALKING ABOUT A COMPLEX STRUCTURE AND A VERY REGULAR FUNDING THROUGH THE C, D, B G OR THE IT MAKES YOU HAVE FC. WHAT AM I MISSING THERE? I'M SAYING THAT IF THE IDEA OF BUYING DOWN RATES FOR SOMEBODY. IN A MARKET PRODUCT LIKE THEY'RE GOING TO GO APPLY IN CITIBANK BANK OF AMERICA CHASE, AND WE'RE JUST GOING TO SPY DOWN A RIGHT. THE BANK'S GONNA SAY WE DON'T HAVE THAT PRODUCT GET OUT OF HERE AND EVERY OTHER PROVIDERS GOING TO SAY THAT, SO THERE'S NO PRODUCT OUT THERE THAT WOULD PARTICIPATE IN THAT WAY. THANK YOU. OTHER.

COMMENTS QUESTIONS OBSERVATION ONLY. I'M NOT LOOKING FOR AN ANSWER, BUT IT SEEMS TO ME THAT YOU'D HAVE TO PUT SOME KIND OF MINIMUM SQUARE FOOTAGE ON THAT AND I'M NOT SURE HOW THIS WOULD AFFECT FIRE CODE AND BUILDING CODE. AND THE PROPERTY AVAILABLE IN DIFFERENT ZONE. ING'S IN ORDER. TO THE ELIGIBLE TO PUT A SECOND HOME OUT THERE. THAT'S IN OUR NEW CODE. THAT'S WITHIN THE A D, A POLICY THAT WAS PASSED. I WOULD SAY THIS. I MEAN, LOOKING AT THE DENVER EXAMPLE. UM I DON'T KNOW THAT I WOULD SEPARATE SEPARATE OUT THE TWO THE FOLKS WHO ARE HOMEOWNERS WHO ARE LESS THAN 80% AM I AND THOSE WHO ARE OVER IN TERMS OF WHO THEY WENT TO. I THINK WE'RE LOOKING FOR AFFORDABLE HOUSING. MAKE IT BLANKETLY. TO RENT TO THOSE WHO ARE AT 80% OR LOWER OKAY, THAT'S THE MARKET THAT WE'RE TRYING TO REACH. POSSIBLY. BUT IF YOU'RE JUST JUST TALKING THROUGH THIS IF YOU HAVE A LOW INCOME HOMEOWNER. WHO IS YOUR TRYING TO ENSURE THAT THEY AREN'T DISPLACED FURTHER? AND YOU'VE GIVEN THEM. YOU KNOW, MAYBE SOME TOOLS THAT THEY CAN ACCESS TO BUILD AN 80 YOU AND THEN YOU END UP LIMITING THEIR ABILITY TO GENERATE INCOME OFF OF THAT. UM YOU KNOW YOU'VE QUALIFIED THEM BECAUSE OF THEIR INCOME, BUT THEN YOU'VE LIMITED THEIR INCOME. ON TOP OF THAT. VERSUS AND ABOVE. AM I INDIVIDUAL? THERE IS A NEED TO BE INCENTIVIZED TO DO THIS, AND SO WE'RE PROVIDING INCENTIVES TO ACHIEVE THE AFFORDABILITY SO I GUESS. I THINK. I MEAN, IN TERMS OF THOSE THAT CAN'T GET THIS I WANT THEM TO BENEFIT OFF THEIR PROPERTY AS MUCH AS POSSIBLE FOR THOSE THAT AND GET THIS IN THE MARKETPLACE THEY CAN ALREADY RENT TO SOMEBODY. THAT'S OVER 80% OF MY SO WE'RE ASKING THEM TO RENT TO SOMEBODY. THAT'S LESS THAN ONE OF THE CHALLENGES WE SEE IN AREAS. FACING SIMILAR CHALLENGES AS HE'S MCKINNEY IS, HOW DO WE ENABLE THE EXISTING RESIDENTS TO BENEFIT FROM THE MARKET THAT'S NOW COMING INTO THEIR NEIGHBORHOOD WITHOUT PUSHING THEM OUT AND JUST SORT OF TAKING CASH FOR THEIR HOME AND THEN HAVING NOWHERE TO GO, AND SO THAT'S TO JUSTIN'S POINT . SORRY, CANCELED. EVERYBODY'S 0.0.1 OF THE ONE OF THE TOOLS, BUT I MEAN THERE'S AGAIN THESE ARE THE NEXT STEP POLICY CONSIDERATIONS THAT IF WE WANT TO PURSUE THIS AS A STRATEGY THERE WOULD THEN BE ADDITIONAL CONVERSATION AND DIALOGUE WITH COUNSEL ON HOW TO STRUCTURE IT. I'M A FAN OF THIS STRATEGY MYSELF. I AM, TOO. HE SAID. I'M CAUTIOUSLY OPTIMISTIC. I LIKE THAT. THAT'S THE WORLD. I LIVE IN OPTIMISM. ANY LAST COMMENTS ON THIS PERFECT. OKAY, LAST ONE. SO THIS IS A BROADER STRATEGY.

UM SORT OF AN UMBRELLA STRATEGY. UM THAT'S REALLY FOCUSED ON CONNECTING RESIDENTS WITH

[00:55:07]

[01:00:02]

FUNDED PROGRAMS, WHICH IS NOT US SPENDING TAX DOLLARS. RIGHT? SO FOR ME, IT'S A IT'S AN UNEQUIVOCAL YES. ANY EVERYONE IN HIS OWN GREED. PERFECT. SO THAT'S ALL THAT WE HAVE FOR TODAY. SO THE NEXT STEP SO BASED ON WHAT WE HEARD TODAY, WE'RE CRAFTING, UM THAT THE DETAILED RECOMMENDATIONS OUT OF THIS PLAN , SO UTILIZING EVERYTHING WE HEARD, BUT, UM, INCORPORATING MORE CASE STUDY RESEARCH. MORE DETAILS OF WHAT THE OPTIONS ARE, UM SO SOME OF THEM WILL BE MORE DETAILED WHERE THERE WAS STRONG AGREEMENT, SOME OF THEM WILL HAVE OUTLINES OF POTENTIAL NEXT STEPS WHERE THERE IS A DESIRE FOR MORE INFORMATION. UM AND THEY'LL HAVE SORT OF PHASING IN TIMELINE OPPORTUNITIES, AND THAT WILL BE, UM, SORT OF THE GUIDEBOOK FOR STAFF TO COME BACK WITH AND SOME OF THOSE STRUCTURE RECOMMENDATIONS. DISCUSSIONS ON HOW. TO THEN IMPLEMENT THESE AND WE'LL ALSO CRAFT SOME SOME METRICS AND OTHER WAYS TO LIKE SAID AT THE BEGINNING REALLY UNDERSTAND AND MEASURE THE IMPACT OF THE STRATEGIES. SO THAT'S IT. THANK YOU SO MUCH FOR YOUR TIME. I'M REALLY APPRECIATE THIS AND I'LL JUST SAY WE REALLY ENJOYED WORKING ON THIS PROJECT . WE THINK THERE'S SOME REALLY, REALLY STRONG OUTCOMES THAT CAN COME OUT OF IT. AND I KNOW I'M PERSONALLY REALLY EXCITED TO SEE THEM GET IMPLEMENTED OVER THE NEXT COUPLE YEARS. THANK YOU.

[Consider/Discuss the 2023 Citizen Bond Committee’s Recommendations for a May 2023 Bond Election]

BOND HISTORY AND DEBT CAPACITY. THESE ARE THE LAST FOUR BOND. AUTHORIZATIONS. THE CITY HAS HAD APPROVED OVER THE LAST SEVERAL YEARS. YOU CAN SEE THAT APPROVED BOND AMOUNTS ON THE RIGHT HAND SIDE RANGED FROM 83. 0.6 MILLION UP TO THE LAST BOND ELECTION IN 2019 OF $350 MILLION UM, OUR ECONOMIC HEALTH FROM THE CITY. YOU SEE THIS A LOT WITH THE BUDGET PRESENTATIONS EACH YEAR, BUT OUR ECONOMIC HEALTH IS VERY STRONG. THE CITY IS TRIPLE A RATED BY BOTH MOODY'S AND S AND P AND SOME OF THE THINGS THAT THEY ALWAYS SITE WHEN THEY OFFER THESE RATINGS, WHICH WE RENEW ON A REGULAR BASIS. ONE IS THE ABILITY FOR US TO CASH FROM VARIOUS PROJECTS AND BE ABLE TO HAVE ADEQUATE RESERVES AND THEN WE ALSO HAVE THINGS LIKE DEPRECIATION FUNDS THAT HELP US TO BUDGET FOR REPLACEMENT OF CAPITAL IMPROVEMENTS AND THINGS LIKE THAT, BUT THEN THERE'S ALWAYS THE BENEFIT OF BEING IN THE PART OF THE COUNTRY, THE PART OF THE REGION THAT WE ARE HERE IN COLLIN COUNTY WHERE WE HAVE TREMENDOUS POPULATION EVALUATION GROWTH, SO THAT GIVES US A VERY STRONG FINANCIAL POSITION WITH THE BOND RATING FIRMS. BECAUSE OF THIS, WE HAVE BEEN ABLE TO ISSUE AND YOU CAN SEE ON THE BOTTOM OF THE SCREEN. 2015 WAS THE 103.100 POINT THREE MILLION DOLLAR BOND AUTHORIZATION IN 19 WAS THE AUTHORIZATION FOR THE $350 MILLION. THAT WE SAW IN THE PREVIOUS SLIDE. SO EVEN DURING THE ENVIRONMENT WHERE WE ARE HAVING A VOTERS ARE APPROVING LARGE BOND PACKAGES FOR THE CITY . WE ARE ABLE TO CONTINUE TO REDUCE OUR TAX RATE. AND YOU CAN SEE STARTING IN 2015. WE ARE AT 58.3 CENTS PER $100 VALUATION.

[01:05:09]

SPECIFICALLY WHEN WE'RE TALKING ABOUT BOND AUTHORIZATION AND PAYING DEBT SERVICE, WE'RE LOOKING AT THE TOP PART OF THIS GRAPH GRAPH, WHICH IS THE INTEREST IN SINKING PORTION OF OUR DEBT RATE, AND THAT PORTION EVEN DURING LIKE I SAID, SOME LARGE BOND AUTHORIZATIONS. WE'VE BEEN ABLE TO LOWER THAT RATE JUST OVER TWO CENTS DURING THAT SAME PERIOD OF TIME, SO ONE OF THE THINGS WE LOOKED AT, AS WE'RE GOING FORWARD WITH WHAT IS BEING PROPOSED TONIGHT IS, CAN THE CITY AFFORD TO DO WHAT IS BEING ASKED OF US AND THE ANSWER TO THAT QUESTION THROUGH THIS ANALYSIS IS NOT ONLY CAN WE AFFORD TO DO THIS WITHOUT RAISING THE TAX RATE. WE DO NOT BELIEVE THAT THE ISSUANCE OF WHAT IS BEING REQUESTED TONIGHT FOR THE AIRPORT WOULD HINDER THE CITY'S ABILITY TO CONTINUE TO LOWER THE TAX RATES, SO THAT WILL STILL BE A POSSIBILITY MOVING FORWARD. DEFINITION WHEN WE LOOK AT THAT CAPACITY AND HOW MUCH THE CITY CAN ISSUE WE LOOKED SPECIFICALLY AT THE AMOUNT THAT CAN BE BONDED IN ANY FISCAL YEAR WHILE MAINTAINING A CONSTANT IN S INTEREST IN SINKING RATE AND SUBSEQUENT YEARS, ANY BONDS THAT WE ISSUE AND YOU SEE WHEN THE FINANCE DEPARTMENT COMES FORWARD WITH THAT YEAR'S BOND ISSUANCE. THEY LOOK AT THIS TO MAKE SURE THAT THEY CAN ISSUE THOSE DOLLARS WITHOUT INCREASING THE INS RATE TO DO SO. THAT'S THERE'S SOME VARIABLES. I WON'T GO INTO TOO MUCH, BUT TAX RATE PROPERTY VALUES THE DURATION OF THE BONDS BEING ISSUED AND THEN THE INTEREST RATES AVAILABLE AT THAT TIME. SO WHEN WE LOOK AT THAT THAT DEBT CAPACITY YOU CAN SEE AS PREVIOUSLY ISSUED DEBT. MOST OF OUR DEBT IS 10 OR 20. YEARS AS IT'S FALLING OFF OVER THE LIFE OF THOSE BONDS PACKAGES YOU CAN SEE THAT ARE ORION'S OR DEBT SERVICE FOR EACH YEAR IS DROPPING OFF. AT THE SAME TIME, THAT'S HAPPENING, THE PROPERTY VALUATIONS AND THE NEW CONSTRUCTION IS INCREASING. HERE IN COLLIN COUNTY. WE'RE BUILDING ROUGHLY $1 BILLION WORTH OF NEW PROPERTY IN OUR COMMUNITY EVERY YEAR, SO THE COMBINATION OF THOSE GIVES US QUITE A BIT OF DEBT CAPACITY OVER THE OUT YEARS AND MOVING FORWARD. SO THAT'S WHY WE FEEL CONFIDENT THAT THIS REQUEST OF THE CITY COUNCIL AND THE REQUEST THAT WILL BE MADE TO THE VOTING PUBLIC CAN BE ACCOMPLISHED WITHOUT RAISING THE TAX RATE. OUTSTANDING OR REMAINING BALANCES. SO WHEN THE ELECTION. AS YOU ALL KNOW WHEN THE ELECTION HAPPENS THAT VOTERS ARE APPROVING THE AUTHORIZATION TO ISSUE BONDS TO THOSE LIMITS IN THE REFERENDUMS IN 2015, YOU CAN SEE WE HAD 200.3 VOTER AUTHORIZATION. WE CURRENTLY HAVE $5.3 MILLION THAT HAVE YET TO BE ISSUED. THOSE WILL LIKELY BE ISSUED THIS YEAR, AND THOSE ARE FOR PUBLIC SAFETY. CAPITAL IMPROVEMENTS BUILDING NEW FIRE STATIONS. EXPANSIONS OR MODIFICATIONS TO THE POLICE DEPARTMENT. THOSE TYPES OF THINGS AND THEN THE 2019. WE STILL HAVE $184.5 MILLION YET TO BE ISSUED ON THE 2019 BOND, AND YOU CAN SEE THE CATEGORIES.

THOSE FALL INTO WE DID. WE HAVE ALREADY ISSUED ALL THE MUNICIPAL FACILITY BONDS FOR CITY HALL.

WE'VE DONE QUITE A BIT OF WORK ON THE PARK'S FRONT PUBLIC WORKS WE'VE DONE ABOUT 50% AND STREETS IS KIND OF A YEARLY DEAL THAT WE PUT TOWARDS MAINTENANCE OF EXISTING STREETS AND, OF COURSE , CONSTRUCTION OF NEW STREETS AND THOROUGHFARES. SO YOU CAN SEE THIS IS WHAT IS REMAINING IN THE AUTHORIZATION. AND THOSE WILL BE BROUGHT TO THE COUNCIL FOR ADVANCE SALES AND IN SUBSEQUENT YEARS SO BEFORE I JUMP INTO THE NEXT SECTION, WHERE THERE ANY QUESTIONS FROM THE COUNCIL ON OUR DECK CAPACITY AND WHERE WE STAND FINANCIALLY. EXPLAIN HOW WHEN 100,000. OUR BOND GETS ISSUED. AND LET'S SAY THE DURATION IS 20 YEARS. UM SO IS INTEREST AND PRINCIPAL GETTING PAID BACK OVER THOSE 20 WORK COMES DOWN TO ZERO OR YES, IN EFFECT, YES. OUR FINANCE DEPARTMENTS ALSO BEEN VERY SUCCESSFUL GIVEN THE INTEREST RATES AT THE INITIAL BOND SALE WHEN THEY'RE FAVORABLE FOR US IN OUT YEARS, THEY REFINED FINANCE THAT DEBT TO LOWER PAYMENTS AND TO PAY OFF SOONER TO AVOID SOME OF THOSE OUT YEAR INTEREST PAYMENTS. FOR INSTANCE, HERE, THE GREEN ON THIS CHART IS THE 2022 GEO BONDS. WE ISSUED ROUGHLY $65 MILLION LAST YEAR

[01:10:03]

SOMEWHERE IN HERE AND HAVE TO TALK TO THE FINANCE DEPARTMENT TO GET A LITTLE MORE SPECIFIC, BUT THERE MAY BE AN ADVANTAGEOUS POINT WHERE THEY WOULD COME BACK FOR A REFUNDING OF THAT BOND TO BE ABLE TO LOWER THOSE PAYMENTS EVEN FURTHER, BECAUSE ANY ANY MUNICIPAL BOND THAT I'VE EVER DEALT WITH ONLY PAYS INTEREST. PRINCIPLES. WE PAY FOR PRINCIPAL OVER THE LIFE OF THE BOND AS WELL. MANY TIMES WE PLAY A LOT OF INTERESTS EARLY IN THE BOND TO PUSH OUT PAYMENTS. THERE'S VARIOUS NUMBER OF MECHANISMS TO STRUCTURE THOSE BOND PAYMENTS. YES, OVER THE LIFE OF THE BOND.

WE DO PAY THE INTEREST AND PRINCIPAL ON THOSE. BOND COMMITTEE COMPOSITION. SO MOST YEARS FOR THE BOND COMMITTEE. WE HAVE AND IN THE 2019. WE HAD FIVE SUBCOMMITTEES AND IN 2019, THEY WERE SUBCOMMITTEES AROUND THE CATEGORIES. THERE WAS A STREET SUBCOMMITTEE OF PARKS AND RECREATION SUBCOMMITTEE, PUBLIC SAFETY FACILITIES. AH, AND THEY'RE KIND OF TOPIC SPECIFIC THIS YEAR BECAUSE IT WAS REALLY A SINGLE TOPIC. AIRPORT IMPROVEMENTS. WE STILL WANTED TO HAVE SUBCOMMITTEES, BUT WE DID IT MORE ON. KIND OF. AREAS OF INTEREST. LET'S CALL IT AREAS OF INTEREST. WE HAD ONE COMMITTEE THAT WAS BASED ON THE COMMUNITY , AND THEY SPOKE PRIMARILY ON IMPACT OF THE COMMUNITY AND BENEFITS TO THE COMMUNITY, WHERE THE FINANCE COMMITTEE FOCUSED MORE ON THE DEBT SERVICE AND THINGS LIKE THAT. DEVELOPMENT AND INFRASTRUCTURE, BUSINESS AND INDUSTRY AND THEN SPECIFIC THIS YEAR THAT WE HAVE NOT DONE IN THE PAST. SO BECAUSE OF THE REGIONAL NATURE OF THIS IMPROVEMENT THAT WE'RE PROPOSING. AND THE IMPACT ON OUR SURROUNDING CITIES AS WELL AS MCKINNEY. WE ACTUALLY HAVE A GOVERNMENT AND REGIONAL SUBCOMMITTEE, WHERE MANY ELECTED OFFICIALS FROM HARSH SURROUNDING COMMUNITIES WERE INVITED TO PARTICIPATE SO THEY WOULD STAY IN THE KNOW AND BE ABLE TO REPORT BACK TO THEIR COUNCILS AND CITIZENS ABOUT OUR PLANTS. AND OF COURSE, AS WE ALWAYS DO, WE HAD EACH OF THE SUBCOMMITTEE'S APPOINT ONE SPOKESPERSON TO THE EXECUTIVE COMMITTEE THAT MET AFTER THE PROCESS TO KIND OF HASH HASH OUT ANY OF THE CONCERNS FROM THEIR SUBCOMMITTEES AND THEN ALSO TALK ABOUT THE ULTIMATE PACKAGE THAT'S COMING FORWARD TONIGHT. FIRST AND FOREMOST, I WANT TO THANK ALL OF THE PEOPLE WHO ARE APPOINTED. THEY CAME AND SPENT MANY HOURS WITH US LEARNING ALL ABOUT AIRPORT FINANCE AND THE PROPOSAL IN FRONT OF US THE PEOPLE ON THESE LISTS, UM, MET HERE AND IN SUBCOMMITTEES, MULTIPLE TIMES THE GOVERNMENT REGIONAL COMMITTEE HERE. THOSE ARE THE FOLKS WHO WERE INVITED TO PARTICIPATE. MANY OF THEM SPENT THEIR TIME EVEN IN A CITY THAT WAS NOT THEIR OWN. AND THEN YOU CAN SEE THOSE THAT ARE IN BOLD. THOSE ARE THE APPOINTED.

EXECUTIVE COMMITTEE SPOKESPEOPLE FROM EACH OF THOSE REALLY WANT TO THANK THEM FOR THEIR TIME AND EFFORT. THERE WAS A LOT THAT WENT INTO THIS IN TERMS OF UNDERSTANDING AIRPORT FINANCE AIRPORT CONSTRUCTION, THE PROJECT ITSELF, SO THEY THEY'VE DONE A GREAT JOB AND WE'RE VERY APPRECIATIVE. OF THEIR WORK. THE TIMELINE WE WENT THROUGH. WE HAD THREE KEY MEETINGS FIRST WAS ON OCTOBER 10TH. PRIMARILY WE WENT THROUGH THE AIRPORT HISTORY. WE DID AIRPORT ONE. OH, ONE, WHICH IS THAT AIRPORT FINANCE AND HERE'S HOW AIRPORTS GENERATE REVENUE DISCUSSION. TO GET EVERYONE UP TO DATE AND THEN WE TALKED ABOUT THE WORK TODAY AND THE PROCESS THAT THE CITY HAS BEEN GOING THROUGH TO UNDERSTAND. THE PROJECT, THE COST OF THE DEMAND. THE ECONOMIC IMPACT OF THE PROJECT. ON OCTOBER 26TH. WE BROUGHT THEM BACK, AND WE TALKED A LOT ABOUT THE DEBT CAPACITY THAN WE HAD OUR BOND. LEGAL COUNSEL COME AND TALK ABOUT THE GUIDELINES WHAT WE CAN AND CANNOT DO THE PROCESS OF INFORMATION VERSUS ADVOCACY AND WHERE WE FALL AS CITY STAFF AND THE CITY ITSELF. THAT'S WHERE WE ALSO PROPOSE ARE PRESENTED THE ECONOMIC IMPACT STUDY. THE CHELSEA SOMEWHERE ON TONIGHT. AND THEN WE HAD OUR SUBCOMMITTEES BREAK OUT AND START THEIR DISCUSSIONS. NOVEMBER 9TH. WE BROUGHT HIM BACK THE THIRD TIME AND THEN WE WANTED EVERYONE TO BE ABLE TO HEAR THE TOPICS THAT WE'RE MOST INTERESTED TO THEM AND ANSWER OR ASK AND RECEIVE QUESTIONS AND ANSWERS. ON TOPIC SPECIFIC BREAKOUT SESSIONS. WE HAD A SESSION ON THE FINANCES. WE HAD A SESSION ON AIRPORT OPERATIONS , AND THEN WE HAD A FINAL SESSION ON THE ENVIRONMENTAL ANALYSIS. THAT'S ONGOING SO PEOPLE COULD ASK THE QUESTIONS THAT WERE MOST IMPORTANT TO THEM. AND THEN THAT NIGHT WE HAD A SPOKESPERSON DISCUSSION, AND THEN WE BROUGHT THE SPOKESPEOPLE BACK FOR FINAL NIGHT ON THE FIRST WEEK OF DECEMBER TO TALK

[01:15:06]

ALRIGHT SO KIM, CARLY IS GOING TO COME UP AND TALK ABOUT THE NEXT SECTION. THANK YOU, BARRY.

SO MCKINNEY NATIONAL AIRPORT HAS A HISTORY OF GROWTH AND EXPANSION TO MEET THE COMMUNITY AND THE REGION'S NEEDS. STARTING IN 1979 RELATIVELY MODEST, UH, FACILITIES WITH THE 4000 FT RUNWAY. UM AND THEN EXPANDING OVER THE COURSE OF THE NEXT SEVERAL DECADES. RUNWAY LENGTH EXPANSIONS IN 1984 AND 1993. THE ADDITION OF AN INSTRUMENT LANDING SYSTEM IN 1993. UM ADDITION OF AN AIR TRAFFIC CONTROL TOWER IN 96 OPEN TO FIRE STATION ON AIRPORT PROPERTY WITH THEIR CRAFT, RESCUE AND FIREFIGHTING FACILITIES AND EQUIPMENT. EXPANDED IN 2002 TO ACCOMMODATE INTERNATIONAL ARRIVALS WITH US CUSTOMS AND BORDER PATROL. AH ADDING EQUIPMENT AND FACILITIES. CONTINUING IN 2009 WITH FUEL FARM EXPANSION, A NEW AIR TRAFFIC CONTROL TOWER IN 2011 COMPLETELY NEW RUNWAY, UM, CONSTRUCTED IN 2012. IN 2013, THE CITY PURCHASED THE FIXED BASE OPERATION MCKINNEY AIR CENTER, WHICH IS ESSENTIALLY THE FUELING ENTERPRISE. ON THE AIRFIELD AND THEN MOST OF THE HANGERS THAT ARE LEAST OUT TODAY AND THAT WAS KIND OF A SIGNIFICANT MILESTONE IN THE DEVELOPMENT OF THE AIRPORT IN THE SENSE THAT I THINK THAT'S THE POINT WHERE THE CITY. KIND OF, UM TOOK A MORE DIRECT ROLE IN THE UM DEVELOPMENT AND OVERSIGHT OF THE AIRPORT AND WHICH IS BEEN LARGELY SUCCESSFUL OVER THE LAST 10 YEARS. AND JUST AS A SIDE NOTE, FOR EXAMPLE, WHEN THE CITY BOUGHT THE FBI, THE FACILITIES WERE ABOUT 60% OCCUPIED TODAY. WE'RE 100% WE'VE HAD A COUPLE APPRAISALS WHERE RENTS HAVE INCREASED. WE'VE ADDED HANGERS THAT PROBABLY NEVER WOULD HAVE BEEN BUILT.

UNDER THE FORMER, UM UM, OPERATING STRUCTURE. SO THAT'S BEEN A VERY POSITIVE DEVELOPMENT FOR THE AIRPORT. IN 2018. IT'S KIND OF THE DAY WE HAVE THE CURRENT MASTER PLAN THAT WE'RE KIND OF WORKING OFF OF IN TERMS OF DEVELOPMENT TODAY. SO YOU CAN SEE SINCE 1979 QUITE A BIT OF BIRTH AND EXPANSION TO THE AIRPORT, BECOMING WHAT IT IS TODAY, WHICH IS ONE OF THE BUSIEST GENERAL AVIATION AIRPORTS IN THE COUNTRY. THE AIRPORT IS SUCCESSFUL BY ALMOST ANY MEASURE TODAY. UM WE ARE SELF SUSTAINING, WHICH IS AN RARITY AMONG GENERAL AVIATION AIRPORTS DO NOT HAVE SOME LEVEL OF SUBSIDY FROM ITS SPONSOR IN TERMS OF THE OPERATING BUDGET.

THE REVENUES FROM AH FEEL SALES HANGER LEASES OFFICE LEASES IN THE SALE OF AERONAUTICAL SERVICES ARE ESSENTIALLY PAYING FOR THE MAINTENANCE AND OPERATION OF THE AIRFIELD AND ALL THE ASSOCIATED FACILITIES. THERE IS AN ECONOMIC IMPACT. OBVIOUSLY TO THE AIRPORT. UM WELL, PROBABLY AT THIS POINT. WELL NORTH OF THAT NUMBER. THIS IS BASED ON A 2017 DATA, AND WE'VE HAD QUITE A BIT OF GROWTH IN THE LAST FIVE OR SIX YEARS. BUT THERE'S OBVIOUSLY A SIGNIFICANT ECONOMIC IMPACT. YOU'LL HEAR A LITTLE MORE LATER ON ABOUT THE ECONOMIC IMPACT POTENTIAL OF THIS PROJECT THAT'S IN FRONT OF US. ADDITIONALLY THE AIRPORT DOES CONTRIBUTE OUT OF ALARM TAX REVENUE. FROM BUSINESS AIRCRAFT THAT ARE BASED THERE AND FACILITIES THAT ARE CONSTRUCTED ON GROUND LEASES. QUICK QUESTION. FORGIVE ME, UM, IN THE 12 MILLION. YOU TALKED ABOUT WHAT REVENUES MAKE THAT UP THE FUEL SALES LEASES AND EVERYTHING. JUST THE AD FOR LAUREN TAX GO INTO THAT 12 MILLION OR IS THAT OVER AND ABOVE THE 12 MILLION THAT TAKES TO OPERATE THE AIRPORT AND ABOVE. THANK YOU. THE HISTORY OF THE PROJECT. THE CONCEPT OF COMMERCIAL PASSENGER SERVICE FACILITIES HAS BEEN IN OUR MASTER PLAN FOR THE LAST 11 YEARS IN 2012 AND AGAIN IN 2018 , WITH THE MOST RECENT UPDATE IS ALSO ON THE AIRPORT LAYOUT PLANS SHOWING PHYSICAL FACILITIES ON THE EAST SIDE OF THE AIRPORT ARE FORMAL PLANNING DOCUMENTS HAVE CONTEMPLATED THIS TYPE OF DEVELOPMENT FOR 10, PLUS YEARS. DUE DILIGENCE ON THIS PROJECT REALLY BEGAN IN 2019. WITH A LOT OF UNSOLICITED INTEREST FROM BOTH AIRLINES AND DEVELOPERS IN THE VIABILITY AND PICKED CONCEPT OF COMMERCIAL SERVICE OUT OF MCKINNEY, AND THAT REALLY CAUSED US TO START TO STUDY IT VALIDATE THE MARKET CONDITIONS, THE DEMAND UM, UNDERSTANDING THE

[01:20:07]

THE CITY COUNCIL HAS HAD MAXIMIZING THE DEVELOPMENT POTENTIAL OF THE AIRPORT AS ONE OF ITS GOALS FOR SEVERAL YEARS NOW, UM UNDER THAT STRATEGIC GOAL, THERE'S A DEVELOPMENT OBJECTIVE, WHICH WERE WORKING AND WORKING ON RIGHT NOW TO COMPLETE THE ENVIRONMENTAL ASSESSMENTS AND THE PRELIMINARY DESIGN FOR THE COMMERCIAL SERVICE TERMINAL AND ASSOCIATED FACILITIES. SO THE PROJECT ITSELF IS VERY MUCH IN LINE WITH THE COUNCIL'S GOALS AND STRATEGIC, UM INITIATIVES FOR THE AIRPORT. AND YOU MIGHT RECALL TWO AND DECEMBER 2020. WE DEVELOPED THESE GUIDING PRINCIPLES THAT ALSO WOULD HELP US KIND OF GUIDE BE A NORTH STAR ROADMAP FOR HOW WE APPROACH PROJECTS, AND I THINK THE COUPLE OF THINGS HIGHLIGHTED HERE AGAIN. KIND OF SPEAK TO THIS, ESPECIALLY WHEN WE TALK ABOUT ALIGNING THE NEAR AND LONG TERM ECONOMIC AND COMMERCIAL DEVELOPMENT. OF THE AIRPORT INFRASTRUCTURE WITH THE CITY'S ECONOMIC GROWTH. UM AND REALLY PROMOTING THE HIGHEST AND BEST USE OF AIRPORT FACILITIES AND PROPERTY AND ASSETS. THIS IS A JUST AN OVERVIEW OF THE MASTER PLAN. THE CURRENT MASTER PLAN'S PREFERRED ALTERNATIVE JUST AGAIN . SHOW THAT ON THE EAST SIDE OF THE AIRPORT, UM WITH THE LAST TWO REITERATIONS OF THE MASTER PLAN. THIS HAS BEEN SOMETHING THAT'S BEEN IN OUR FORMAL PLANNING DOCUMENTS. WE HAVE FACILITIES AND INFRASTRUCTURE CALLED OUT AND IN THE PREFERRED ALTERNATIVE FOR THESE TYPES OF FACILITIES. UM AND AGAIN, THIS IS JUST KIND OF A ROADMAP FOR HOW THE AIRPORT IS LIKELY TO, UM , POTENTIALLY DEVELOP OVER TIME. TRADING OFF THE ABILITY TO BE FLEXIBLE WITH THE ABILITY TO HAVE MEANINGFUL DOCUMENTS TO HELP US PLAN. WITH THAT I'LL ANSWER ANY OTHER QUESTIONS. I SHOULD. OTHERWISE I'LL ASK MR LOCKE MILLER TO COME UP AND DISCUSS THE BOND COMMITTEE'S RECOMMENDATIONS. HI. MAKE SURE YOU KNOW HOW TO DRIVE THIS THING. BEFORE I START. I DID WANT TO TAKE A MINUTE. I KNOW THAT. VERY MENTIONED OUR COMMITTEE AND YOU SAW THE NAMES. UPON THE SCREEN OF THOSE THAT PARTICIPATE. WE HAVE SEVERAL COMMITTEE MEMBERS HERE TODAY. STATISTICS HERE TOOK BRANCH. DAVID CLARK, BILL COX AND PLANNING COUNCIL MEMBER RICK GRADY. SO I JUST WANT TO RECOGNIZE HIM AND THANK YOU ALL.

FOR BEING HERE AS WELL. STEPHANIE SOUTH, OKAY, THANK YOU. YEAH, SORRY. YEAH AND YOU KNOW, I THINK YOU KNOW, WE THINK IT'S IMPORTANT TO POINT OUT THAT YOU KNOW, WHEN THE COMMITTEES MET, IT WASN'T A THE PURPOSE OF THE MEETING WAS DOING EVALUATION AND TO MAKE A RECOMMENDATION AND NOT NECESSARILY JUST COME IN AND SAY THIS IS GREAT. THIS IS WHAT YOU WANTED TO GO DO IT. SO THERE

[01:25:01]

THERE WERE A NUMBER OF THINGS THAT WERE DONE. AND OF COURSE, YOU GUYS HAVE CONTINUED THAT.

WELL LET'S SAME TIME MAKING SURE THAT YOU HAVE EFFECTIVELY COMMIT THE LEGISLATIVE REQUIREMENTS HAS RELEASED TWO TAX RATES AND CONTINUING TO LOWER THE TAX RATES SO THAT HISTORY IS ALREADY IN FRONT OF YOU AND CONTINUES, AND I THINK THAT'S SOMETHING THAT, UH THE PUBLIC CAN CAN LOOK TO AS THE MANNER IN WHICH YOU WOULD MANAGE. THE DEBT SERVICE ON A PROJECT LIKE THIS. SO MOVING FORWARD. TO WHERE I'M SUPPOSED TO BE, I GUESS. AH! YOU KNOW, ULTIMATELY AS AS ALREADY BEEN STATED. THIS PROJECT HAS REALLY BEEN PART OF THE AIRPORT MASTER PLAN. GOING BACK TO 2012 . IT'S ALWAYS BEEN ONE OF STRATEGIC ALS OF THE CITY TO MAXIMIZE THE BENEFITS OF THE AIRPORT FROM AN ECONOMIC DEVELOPMENT STANDPOINT, AND FROM A TAX CREATION STANDPOINT. AND AS WE WERE GOING THROUGH WITH THE BOND COMMITTEE, OBVIOUSLY, THE TIMING AND THE ABILITY TO DO THIS PROJECT WAS VERY IMPORTANT. AS FAR AS THE ABILITY TO MEET THE, UH, THE REQUIREMENTS OF HAVING A BOND ELECTION OF THIS SIZE. ALSO I THINK IT'S IMPORTANT POINT OUT THAT THIS THIS HAS BEEN I STUDIED FOR A NUMBER OF YEARS, NOT JUST HOW DO WE GET TO THIS POINT TODAY BUT ALSO ALL THE THINGS THAT YOU HAVE TO LOOK TO FOR WHETHER OR NOT A THIRD OR TERTIARY AIRPORT WOULD BE SUSTAINABLE IN THE DFW MARKETPLACE. AND THOSE TYPES OF THINGS INCLUDE THE ANALYSIS OF POPULATION GROWTH. UH YOU KNOW THE CATCHMENT AREA FOR AN AIRPORT LIKE OURS VERSUS LOVE FIELD DFW. ALL OF THOSE THINGS WERE TAKEN INTO CONSIDERATION. AND LOOKING AT THIS. AND, OF COURSE, THE REGIONAL NATURE OF IT AS WELL AND THE BENEFIT TO THE OTHER COMMUNITIES. SO TALKING ABOUT THE CATCHMENT AREAS, SO THIS MAP HERE PRETTY MUCH SHOWS YOU ESSENTIALLY THE AREAS PRIMARY AREAS OF OPPORTUNITY FOR THE AIRPORT AS RELATES TO COMMERCIAL SERVICE.

AND AGAIN. THIS IS PRIMARILY BASED ON A PROXIMITY OF DRIVE TIME OF AROUND 10 MINUTES TO AN AIRPORT. WHEN YOU LOOK AT THEORY , THAT'S THAT'S SHOWS FROM MCKINNEY. UM AND I THINK ALSO PART OF THE DISCUSSION ALSO HAS TO DO WITH THE FACT THAT WE KNOW WHAT THE GROWTH OF COLLIN COUNTY IS GOING TO BE LIKE. GOING INTO THE FUTURE WITH THE ESTIMATION OF COMING OUT OF NORTH TEXAS COUNCIL OF GOVERNMENTS THAT YOU'RE GOING TO HAVE POPULATION BASE AT SOME POINT NORTH OF THREE MILLION PEOPLE IN COLLIN COUNTY, AND YOU KNOW, QUITE FRANKLY BIGGER THAN DALLAS COUNTY. BUT THIS REALLY GIVES YOU AN IDEA OF THE PASSENGER MAKEUP, POTENTIALLY. FOR MCKINNEY VERSUS VERSUS DALLAS LOVE FIELD. THIS IS JUST TO DO EMPHASIZE REALLY. TO THE PUBLIC AND TO THE COUNCIL THAT YOU KNOW IT'S NOT A UNIQUE SITUATION FOR A METROPOLITAN AREA TO HAVE MULTIPLE AIRPORTS, UM, ESPECIALLY UP IN THE EAST COAST, WHERE YOU'LL HAVE AREAS THAT HAVE MORE THAN THREE AIRPORTS SERVICING A CONCENTRATED AREA OE CALIFORNIA AND WE HAVE OUR TWO AIRPORTS RIGHT NOW IN THE DFW AREA, AND THEN, OF COURSE, FLORIDA. ALSO SHOWN ON THE MAP, CHICAGO AND THE MAKEUP IS IMPORTANT WHEN YOU START TALKING ABOUT LARGE HUBS, MEDIUM HUBS, SMALL HUBS AND NON HOUSE BECAUSE I THINK ONE OF THE QUESTIONS THAT YOU WILL GET IN THAT WE CONSTANTLY HAVE TALKED ABOUT THIS. WELL WHAT ARE WE REALLY GOING TO ATTRACT IF WE DO HAVE SOME TYPE OF COMMERCIAL SERVICE? IN MCKINNEY, TEXAS, AND THE IMPORTANT THING HERE IS THAT AS

[01:30:01]

SOMEWHAT SUGGESTED ALIGNMENT THAT MAY OCCUR WITH US FOR 3 99. THAT WILL SHOW THE ULTIMATE DEVELOPMENT OF THAT SPUR THAT WILL ALLOW CONNECTIVITY TO THE EASTERN PORTION OF THE OF THE AIRPORT AND, QUITE FRANKLY, ALLOW FOR SOME CIRCULAR, UM ACCESS AROUND THE AIRPORT FOR PEOPLE THAT ARE TRAVELING IN TO TAKE, YOU KNOW, FOR COMMERCIAL SERVICE OR ON THE CORPORATE SIDE. AND AGAIN. THIS IS A PRELIMINARY SITE PLAN. UH AT THE INITIAL PLAN, PHASE ONE. I GUESS WE WOULD CALL IT IS 444,000 SQUARE FEET. TERMINAL. SET WITH FOUR GATES. 15 ACRE AIRCRAFT, APRIL AND 2000 PARKING SPACES AND TAXIWAY. IT WILL HAVE THE ABILITY TO EXPAND BEYOND THE FOUR GATES. BUT THAT IS THE INITIAL PLAN FOR DEVELOPMENT. WE HAVE SOME RENDERINGS HERE BECAUSE EVERYBODY ALWAYS BRINGS RENDERINGS. BUT YOU KNOW THIS JUST TO GIVE YOU AN IDEA OF WHAT WE'RE TALKING ABOUT. IN TERMS OF LOOK AND FEEL OF AN AIRPORT IN THE CITY OF OUR SIZE. IT ALMOST LOOKS LIKE GEORGE WAITING FOR A PLAN. TO GO TO THE SEA. YEAH. CYCLE THROUGH THESE. SO THIS IS THE BUDGET AND TIMELINE WELL DESIGN FOR THE FOR THE PROJECT. AND AS YOU CAN SEE, IT'S A SIGNIFICANT PROJECT IS SIGNIFICANT TICKET ITEM. AND WE'LL GET TO ANOTHER SIDE IN A MINUTE ABOUT WHAT OUR RECOMMENDATION IS, BUT ALSO, I THINK, KEEP IN MIND THAT YOU KNOW THERE ARE OTHER SOURCES OF FUNDS AVAILABLE FOR AIRPORT DEVELOPMENT, INCLUDING REIMBURSEMENT FROM THE FAA ON SUPPORTED PROJECTS. AND MCKINNEY AGAIN IF YOU FROM A HISTORICAL STANDPOINT, IF THE QUESTION IS WELL, HOW DO WE KNOW WE'RE ACTUALLY GOING TO GET FAA FUNDS OR REIMBURSEMENT FOR PROJECTS WELL HISTORICALLY, WE'VE DONE VERY WELL. WITH FAA IN WITH TEXTILE AVIATION OUT OF OUT OF DOWN IN AUSTIN, AS RELATES TO OUR AIRPORT. UH GOING BACK TO WHEN, UH, WHEN? WHEN I WAS IN OFFICE AND WE WERE WORKING ON THE NEW RUNWAY PROJECT. WE RECEIVED SIGNIFICANT FUNDING FROM THE FAA FOR THAT NEW RUNWAY PROJECT. IN A REIMBURSEMENT FORM. BUT THIS IS THE COST OF THE PROJECT. ALONG WITH THE ANTICIPATED YEAR THAT, UH THE FUNDS WOULD BE UTILIZED. AND THEN ULTIMATELY. THIS AGAIN AS I WAS JUST SAYING, IF YOU LOOK AT

[01:35:06]

HAPPENED AND WE WENT THROUGH THIS. ACTUALLY YOU KNOW, SEVERAL YEARS AGO WHEN WE WERE NOT AT A PLACE FROM A POPULATION STANDPOINT AND FINANCIAL STANDPOINT TO BE ABLE TO DO IT.

AND SO IT IS NOT THAT MUCH DIFFERENT FROM OTHER TYPES OF DEVELOPMENT, WHERE YOU'RE DOING MAJOR OFFICE BUILDINGS OR WHATEVER WHERE THEY WANT TO KNOW. CAN YOU GET SOMETHING ON THE GROUND WITHIN A 2 TO 3 YEAR PERIOD. WHERE IT CAN BE OPERATIONAL, AND SO THERE. THERE IS SOME NEED FOR A PARALLEL PATH FROM THE STANDPOINT OF WHAT YOU HAVE TO DO FROM AN ECONOMIC FROM A ENVIRONMENTAL ASSESSMENT STANDPOINT, TOO. YOU KNOW, DID THIS BOND ELECTION PAST SO THAT WE KNOW THAT THE FUNDS ARE GOING TO BE AVAILABLE FOR CONSTRUCTION? ALL OF THOSE THINGS PLAY INTO HOW YOU'RE DISCUSSING THE PROJECT WITH THE FAA FOR REIMBURSEMENT, AS WELL AS DISCUSSING WITH AIRLINES, THE ULTIMATE CONTRACTS AND THE THINGS THAT YOU HAVE TO DO TO GET AN AIRLINE LOCATED HERE. UH THESE ARE THE STEPS THAT WERE LAID OUT FOR US, UM FOR THIS PRESENTATION. UH, SO. APPARENTLY, FEBRUARY. 7TH IS WHEN YOU ALL WILL. DISCUSSING WHETHER NOT TO CALL ELECTION IN MAY. UH AND THEN, FROM THAT POINT ON I THINK THE JOB WILL BG INFORMATION TO THE PUBLIC. AS TO WHY WE BELIEVE THE PROJECTS IMPORTANT FOR THE CITY OF MCKINNEY. AND THEN MAY 6TH FOR AN ELECTION DAY. AND I THINK, YOU KNOW, ULTIMATELY. YOU KNOW? QUESTIONS WILL COME UP. YOU KNOW WHY NOW? YOU KNOW, WITH. A LOT OF THINGS GOING ON WITH THE ECONOMY, INTEREST RATES ALL OF THAT. YOU KNOW, I YOU KNOW, MCKINNEY. YEAH YOU KNOW, WE ARE IN A VERY GOOD POSITION FROM A DEVELOPMENT STANDPOINT AS WE CONTINUE TO GROW FAST GROWTH GROWTH AREA. BUT WE ALSO HAVE BEEN VERY DELIBERATE AND VERY SMART AND HOW WE MANAGE THAT

[01:40:01]

AND THERE'S GOING TO BE INTEREST IN A THIRD AIRPORT IN THE DFW AREA BASED ON JUST THE NUMBERS.

AND IF OUR AIRPORT IS TRULY. GOLF FOR OUR AIRPORT IS TO BE AN ECONOMIC ENGINE FOR THIS COMMUNITY IN THIS REGION, THEN WE'RE YOU KNOW, IN THE POSITION TO DO THAT AND POISED TO DO THAT. AS OPPOSED TO ANY OF THE OTHER AREAS. AREA AIRPORTS THAT ARE OUT THERE. AND SO I THINK THAT'S ULTIMATELY WHERE WE'RE AT FROM COMMITTEE STANDPOINT. OUR RECOMMENDATION. DID I MISS THAT SLIDE? I DID, DIDN'T I? AND WHERE IT WENT. THE RECOMMENDATION FOR THE BOND COMMITTEE IS THAT WE ACTUALLY AT THE BOND ELECTION BE FOR $200 MILLION NOT TOO FULL. COST OF THE PROJECT. BASED ON WHAT INFORMATION WE RECEIVED FROM THE FINANCE DEPARTMENT. WE FELT COMFORTABLE THAT THAT NUMBER IS A NUMBER THAT IS SUSTAINABLE FROM THE STANDPOINT OF THAT SERVICE CAPACITY, THE POTENTIAL FOR FUTURE BOND ELECTIONS THAT MAY BE NECESSARY FOR ADDITIONAL GROWTH IN OTHER AREAS OF THE CITY. THE RETYPE THE ABILITY TO RETIRE DEBT. GOING FORWARD AS AS MAYOR PRO TEM DISCUSSED. AND ALSO FROM THE STANDPOINT OF AVAILABLE SOURCES OF OTHER FUNDING, WHETHER IT BE FROM REIMBURSEMENT OR OTHER THINGS THAT COULD HELP WITH THE RETIREMENT OF DEBT SERVICE OR TO HELP WITH THE PROJECT. SO THAT WAS BASICALLY THE RECOMMENDATION THAT WE LANDED ON AT THE CONCLUSION OF OUR MEETINGS. AND SO THAT IS THE RECOMMENDATION OF BOND COMMITTEE AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS. HAVE A QUESTION? YES, SIR. FROM THE TIME THAT WE BOUGHT THE AIRPORT IN 2013. IT WAS ABOUT SEVEN YEARS BEFORE WHAT WE WHAT WE STARTED THEIR KIND OF SUSTAINS ITSELF. I MEAN, THE CITY OF MCKINNEY CHIPPED IN A LITTLE BIT ALL THE WAY THROUGH AND UNTIL WE DIDN'T HAVE TO CHIP ANYMORE, AND NOW IT'S A SAINT ITSELF. SO THOSE WHO THINK THAT THOSE WHO WOULD SAY OKAY, THIS IS GOING TO COST MCKINNEY YOU KNOW, MILLIONS OF DOLLARS AND STUFF LIKE THAT. NOT EVEN JUST LOOKING AT THE ECONOMIC IMPACT, SO LET'S JUST LOOK AT ULTIMATELY WHAT IT COSTS. MCKINNEY. HAS THERE BEEN A STUDY TO FIGURE OUT WHEN IT CAN SUSTAIN ITSELF? YOU KNOW, I DON'T KNOW THE ANSWER THAT I KNOW THAT WE WERE GIVEN INFORMATION FROM AN ECONOMIC IMPACT. STUDY THE ECONOMIC IMPACT STUDY THAT WE HAD WAS PRIMARILY RELATED SPECIFICALLY TO THE AIRPORT ITSELF, AERONAUTICAL USES AND THIS PROJECT. IT DID NOT INCLUDE, FOR EXAMPLE, UM, ANCILLARY IMPACT FROM OTHER TYPES OF BUSINESSES THAT WOULD DEVELOP AROUND THE AIRPORT. UM YOU KNOW, I'M TALKING ABOUT INCOME THAT RIGHT WE GET FROM EVERY EVERYBODY WHO LANDS IS PAYING A FEE. EVERYBODY WHO TAKES OFF PAYS A FEE AND I AM SURE THERE IS A STUDY. THERE'S BEEN STUDIES THERE IS AN ECONOMIC YEAH, AND APPARENTLY MY RIGHT ARM HERE NAMED VARIOUS SHOT AND IT'S GOING TO GIVE YOU THE INFORMATION. WE WERE GIVEN AN EXTRA INFORMATION FROM AN ECONOMIC IMPACT STUDY DURING OUR MEETINGS. YES. YOUR QUESTION OR CONSULTANT TEAM THAT'S BEEN WORKING WITH THIS SINCE 2019. THEY'VE DEVELOPED A MODEL THAT TELLS US THAT GIVEN THE ANTICIPATED OPERATIONS AND THE ANTICIPATED OPERATING EXPENSES, AS WELL AS THE DEBT SERVICE THAT IS CARRIED BY THE AIRPLANE THAT IT WILL PROBABLY BE SOMEWHERE OUT IN THE 7 TO 12 YEAR TIME FRAME BEFORE IT IS FULLY FUNDING ITSELF, BUT THAT IS ALL DEPENDENT ON ALL OF THE ASSUMPTIONS THAT TURNED INTO THEM EVERY MORNING AND A GOOD COLLECTION OF AIRLINES. IT COULD BE AS POSITIVE AS COST NEUTRAL IN YEAR 12 OR THREE IF WE STRUGGLED TO LAND ERROR, AIRLINES OR FLIGHTS, AND WE DON'T HAVE THE NUMBER OF PASSENGERS, THEN IT COULD TAKE LONGER, SO AND THE COUNCIL HEARD THIS, BUT I'LL SAY IT FOR EVERYONE WHO'S LISTENING IN TONIGHT THAT THEIR WHOLE PROCESS THAT WE'VE GONE THROUGH WITH THIS WITH THIS PROPOSAL IS THIS IDEA OF OFF RAMPS AND WE HAVE THE ABILITY TO AT ANY TIME GIVEN THE INFORMATION PRESENTED AT THAT TIME, WHETHER THE ECONOMY CHANGES OR THE AIRLINE INDUSTRY CHANGES, FOR BETTER FOR WORSE. IF IT CHANGES THOSE NUMBERS IN THAT MODEL, WE STILL HAVE THE OPPORTUNITY TO CHOOSE NOT TO MOVE FORWARD EVEN AFTER THE BOND ELECTION. IS HAD AND LET'S ASSUME THAT THE VOTE IS POSITIVE, AND WE HAVE AUTHORIZATION FOR $200 MILLION.

THERE MAY BE SOMETHING WHETHER IT'S THE AIRLINE INDUSTRY OR THE FEDERAL GRANTS ARE NOT AVAILABLE AS WE ANTICIPATED THEM TO BE WHERE WE BRING THE INFORMATION BACK TO THE COUNCIL, AND THE

[01:45:01]

[EXECUTIVE SESSION]

OKAY SO WE'RE MOVING EXECUTIVE SESSION IN COURTS WITH TEXAS GOVERNMENT CODE SECTION 551071 CONSULTATIONS WITH ATTORNEY AND ANY WORK SESSIONS. SPECIAL SESSION REGULAR SESSION AGENDA ITEM. CONFIDENTIAL ATTORNEY CLIENT ADVICE AND NECESSITATED BY THE DELIBERATION, DISCUSSION , SAID ITEMS SECTION 55171 PENDING OR CONTEMPLATED LITIGATION. TX OPERATIONS.

[01:50:03]