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IT'S WORKING BUT READY. GOOD EVENING, LADIES AND GENTLEMEN, WELCOME TO MEETING OF THE
[CALL TO ORDER]
MCKINNEY PUBLIC FACILITY CORPORATION REGULAR MEETING. FIRST ITEM OF BUSINESS WE WILL TAKE UP WILL BE PUBLIC COMMENTS ON THE AGENDA ITEMS. I DO NOT SEE THAT WE HAVE ANY SO WE'LL[Consider/Discuss/Act on the Election of a Vice President for the McKinney Public Facility Corporation]
MOVE ON TO OUR REGULAR AGENDA ITEMS AND PUBLIC HEARINGS AND FIRST ITEM WILL BE ITEM NUMBER.23-1049. CONSIDER DISCUSS ACT ON THE ELECTION OF THE VICE PRESIDENT FOR THE MCKINNEY PUBLIC FACILITIES CORPORATION. I DON'T KNOW THAT WE HAVE A PRESENTER ON THIS MATTER. IT WOULD OPEN THE FLOOR FOR NOMINATIONS FOR VICE PRESIDENT OF THE PUBLIC FINANCE CORPORATION. NOMINATION FOR THAT. NOMINATION FOR DR DRE FELTUS AND SECOND BY MARY FULLER IN THE SECOND BY A COUNCILMAN CLAUDIA ALL IN FAVOR, PLEASE, I ANY OPPOSED THERE BEING NONE? IT'S A UNANIMOUS SELECTION AND CONGRATULATIONS, DR FELTUS ON YOUR CHERISHED NEW TITLE OF VICE
[Minutes of the McKinney Public Facility Corporation Meeting of June 6, 2023]
PRESIDENT. WE'LL MOVE ON ITEM NUMBER 23 DASHES 1050 MINUTES OF THE MCKINNEY PUBLIC FACILITY CORPORATION MEETING OF JUNE 6TH 2023. MORE OR LESS A CONSENT ITEM. IF THERE'S NO OBJECTIONS, I WOULD ENTERTAIN A MOTION TO APPROVE THOSE MINUTES. SECOND. MOTION BY MARRIAGE FOR HIS SECOND BY VICE PRESIDENT FILTERS ALL IN FAVOR. I POST THERE BEING NONE. THE MOTION PASSES. LIKE TO THANK EACH AND ALL OF YOU FOR YOUR ATTENDANCE AT THIS MOST EXCITING MEETINGS. THERE'S A 2ND[Consider/Discuss/Act on a Funding Request Submitted by Habitat for Humanity for the Pride Court Retaining Wall in Charleston Creek]
3RD ITEM. SORRY ITEM NUMBER 23-1051 CONSIDERED DISCUSS ACT ON A FUNDING REQUEST SUBMITTED BY HABITAT FOR HUMANITY FOR THE PRIDE COURT RETAINING WALL IN CHARLESTON CREEK. MS FLAM THE FLOOR IS YOURS. GOOD EVENING, MCKINNEY PUBLIC PUBLIC FACILITIES CORPORATION BOARD MEMBERS HERE TO TAKE TO TALK TO YOU ABOUT A FUNDING REQUEST FOR SOME OF THE PUBLIC FACILITIES CORPORATION DOLLARS AT THE CITY HAS RECEIVED AS SOME BACKGROUND WE CREATED THE PFC IN 2022 TO SUPPORT THE JEFFERSON VERDONK PROJECT. THE PFC ALLOWS JEFFERSON BURNETT PROJECT TO PROVIDE LEVELS OF AFFORDABILITY IN THEIR PROJECT, BUT WE ALSO RECEIVED SOME FUNDING AND ONE TIME FUNDING SOURCE AT THE BEGINNING, AS WELL AS SOME OPERATING REVENUE OVER TIME. AND WE RECEIVED $2 MILLION IN THIS YEAR AND 1.5 MILLION OF THAT WAS ALLOCATED TO PALLADIUM, ANOTHER AFFORDABLE HOUSING PROJECT IN JUNE. $500,000 REMAINS THAT MONEY IS ACTUALLY IN OUR GENERAL FUND RIGHT NOW, PER THE BYLAWS OF THE PFC. IT'S IN OUR COMMUNITY GRANTS FUND, AND WE RECENTLY RECEIVED A REQUEST FROM HABITAT FOR HUMANITY TO ADDRESS AN ISSUE THAT THEY HAVE IN ONE OF THEIR NEIGHBORHOODS HERE IN MCKINNEY TALK A LITTLE BIT ABOUT THAT. THE CHARLESTON CREEK NEIGHBORHOOD OF PHOTO SEEN HERE WAS GENERALLY CONSTRUCTED OF SINGLE FAMILY OWNERSHIP HOMES AROUND 2007 AND 2008. HERE IS AN AREA THAT SHOWS THE LOCATION. IT'S ACTUALLY VERY NEAR WHAT LEE PARK WHICH WE TALKED ABOUT A LITTLE BIT IN WORK SESSION AND THE AREA THAT WE'RE GOING TO TALK ABOUT, SPECIFICALLY IS THAT YELLOW CIRCLE THAT'S IN THE BACKYARD OF ESSENTIALLY 6096 17 PRIDE COURT. IN 2018. THIS IS AN AERIAL FROM JANUARY OF 2018. AND THAT LINE YOU'RE SEEING THERE IS A REALLY BIG RETAINING WALL THAT'S GENERALLY ALONG THE PROPERTY LINE THAT SEPARATES THE LOTS FROM COMMON AREA THAT IS PART OF CHARLESTON CREEK. IN FEBRUARY OF 2018. WE HAD A REALLY BIG STORM THAT WALL FAILED AND CAUSED A LOT OF DAMAGE TO THE BACK YARDS BEHIND THE HOMES. AFTER THAT HEAVY RAINSTORM. WE WORKED WITH HABITAT TO PUT TARPS IN THE AREA AND GENERALLY THE WALL. FAILURE WAS DUE TO A COMBINATION OF DESIGN CONSTRUCTION ISSUES WITH A REALLY, REALLY CRAZY RAINFALL EVENT. SINCE 2018 HABITAT HAS WORKED REALLY HARD TO PURSUE REMEDIES FROM CONTRACTORS, ETCETERA TO GET THE WALL REPAIRED, BUT UNFORTUNATELY, HAS NOT BEEN REPAIRED TO DATE. THE WALL ISSUE IS STARTING TO SORT OF CREEP TO OTHER LOTS, AND IT'S ALSO IMPACTING SOME AFFORDABILITY FOR THIS SUBDIVISION. RIGHT NOW. HABITAT FOR HUMANITY MANAGES THE O. A. THAT IS PART OF CHARLESTON CREEK AND IS PART OF THE CONSTRUCTION WHEN THEY BUILT THIS DEVELOPMENT. THEY INCLUDED RIGHTS OF FIRST REFUSAL ON THE HOME. SO WHEN I HABITAT PURCHASER, BOUGHT A HOME AND THEN DECIDED TO SELL HABITAT FOR HUMANITY HAS THE ABILITY TO BE THE NEXT PURCHASER SO THAT THEY CAN MAINTAIN AFFORDABILITY TO[00:05:05]
THE NEXT BUYER. UNFORTUNATELY THIS WALL AND THE COST ASSOCIATED WITH THIS WALL HAVE LED THE BOARD TO SAY MAYBE THEY DON'T WANT TO EXERCISE THAT RIGHT OF FIRST REFUSAL AND OF 18 LOTS. THREE HAVE BEEN SOLD ON THE MARKET THAT NO LONGER HAD THAT AFFORDABILITY COMPONENT.RIGHT NOW. HABITAT IS REQUESTING $30,000 TO DESIGN THE WALL TO GET IT TO A POINT WHERE IT CAN BE RECONSTRUCTED. WE DO ANTICIPATE THAT THEY WILL FOLLOW UP WITH FUNDING REQUEST THAT WILL COME PARTIALLY TO THE PUBLIC FACILITIES CORPORATION DOLLARS AND PARTIALLY TO CDC IN ORDER TO FIX THE WALL PERMANENTLY. AND THAT REQUEST WILL LIKELY COME IN SPRING OF 2024 WHEN THE DESIGN IS COMPLETE. WHILE WE DON'T HAVE IT AS PART OF THIS AGREEMENT WHEN FUNDING REQUESTS COME IN FOR THE CONSTRUCTION, WE WOULD REQUEST A CONDITION THAT THE CITY BE ADDED BEHIND HABITAT ON THAT RIGHT OF FIRST REFUSAL SO THAT IF HABITAT DID NOT EXECUTE A RIGHT OF FIRST REFUSAL FOR THE HOME THAT WAS SOLD, WE COULD EXECUTE A RIGHT OF FIRST REFUSAL MAY BE USING OUR COMMUNITY LAND TRUST DOLLARS. WITH THE ULTIMATE GOAL TO MAINTAIN THIS NEIGHBORHOOD AS OWNERSHIP AFFORDABLE FOR ENTRY LEVEL HOMEBUYERS IN MCKINNEY. PHASE ONE ENGINEERING IS $30,000 THAT WOULD GO UNTIL SPRING OF 2024 CONSTRUCTION WILL FOLLOW RIGHT NOW. I'M PRESENTING THIS IS INFORMATIONAL FOR YOU AND FOR A RECOMMENDATION. THE MONEY IS IN THE GENERAL FUND, WHICH MEANS THE COUNCIL HAS THE ULTIMATE AUTHORITY. BUT I WANTED TO PREVIEW THIS WITH THE PFC TO KIND OF MAKE IT CLEAR WHERE THE MONEY WAS COMING FROM. BUT ON THE REGULAR AGENDA AT SIX PM THE GRANT AGREEMENT, AND THE RESOLUTION ARE THERE TO OFFICIALLY ALLOCATE THE $30,000 TO HABITAT FOR HUMANITY. I STAND READY TO ANSWER ANY QUESTIONS, AND THERE ARE ALSO HABITAT REPRESENTATIVES HERE TO ANSWER ANY QUESTIONS YOU MAY HAVE. KIM FOR, UM, MY BENEFITING THE PUBLIC. UH ONE ABOUT THE LIABILITY OF THE CONTRACTOR THAT BUILT THAT WALL. IS THERE ANY IN HIS THAT BEING ASSIGNED TO THE CITY IF THAT'S POSSIBILITY OF EXPLORING, YOU KNOW, I WILL DEFER TO HABITAT TO GO INTO THE DETAILS BECAUSE THE WALL CONSTRUCTION WAS A CONTRACT, BUT I KNOW THERE WERE SOME ISSUES WITH CONTRACTORS GOING OUT OF BUSINESS, AND I KNOW HABITAT HAS BEEN PURSUING ANY ANY REMEDY THAT COULD POSSIBLY HAVE AT THIS POINT. IT'S WE'RE IN A BIT OF A NO MAN'S LAND. THE CITY WON'T BE CONSTRUCTING THE WALL. THIS IS ESSENTIALLY FUNDING THAT WILL GO TO HABITAT. IT'S NOT ON OUR PROPERTY. WE'RE NOT USING OUR ENGINEERS. WE'RE NOT USING OUR CONTRACTORS, SO THERE'S NO LIABILITY FOR THE CITY. WE'RE JUST PROVIDING THE FUNDING FOR HABITAT TO DO THE WORK FOR THE COMMUNITY. AND I SEEM TO RECALL AN EARLIER DISCUSSIONS THAT THE CONTRACTOR WHO BUILT THE WALL HAD GONE BANKRUPT SINCE AND I DON'T REMEMBER THE DETAILS THAT I DON'T WANT TO MAKE INCORRECT STATEMENTS. SO IF YOU WANT, I CAN HAVE SOMEONE FROM HABITAT COME UP AND CLARIFY THAT YOU DON'T MIND, PLEASE. CELESTE HAD SURGERY LIKE TWO HOURS AGO.
GOODNESS QUALITY BEING HERE ONE O'CLOCK SO, BUT THE ANESTHESIA HIS WORD, SO I'M CELESTE COX, 1301 OAK STREET. MCKINNEY, TEXAS CEO OF HABITAT FOR HUMANITY, SO I WILL CLARIFY ANY QUESTIONS THAT YOU MIGHT HAVE. WE DID HAVE A PRO BONO ATTORNEY, UM BACK IN 2019 THAT THE VOLUNTEERED TO REPRESENT ON BEHALF OF THE HOMEOWNERS. UM WE, UM, SUED THE BUILDER OF THE WALL, THE CONTRACTOR AND ALSO THE ENGINEER. WE WENT TO COURT. WE EXHAUSTED ALL OF THAT THROUGH THAT ATTORNEY. IT WAS DECLARED THAT IT WAS THE DESIGN OF THE ENGINEER THAT THAT FAILED BUT BECAUSE OF THE NOTIFICATION PROCESS THAT WAS DONE, AND IT WE MET THE 10 BEFORE THE 10 YEARS WAS UP, BUT THE WAY THE NOTIFICATION THEIR ATTORNEYS SOMEHOW. I DON'T EXACTLY REMEMBER WHAT THE CLAUSE WAS, BUT WE WERE NOT ABLE TO WIN MONEY, BUT WE DID WIN THE FACT THAT IT WAS A DESIGN PLUS, SO WE WON, BUT WE LOST. UM SO ALL OF THAT BEING SAID THE PERSON THAT BUILT THE WALL PASSED AWAY IN THAT COMPANY IS NO LONGER AROUND. SO WE DID THAT ALL FIVE OF THE HOMEOWNERS FILED IT ON THEIR HOMEOWNER'S INSURANCE AND THE H O A FILED IT ON THEIR INSURANCE. ALL OF THEM ALL THE CLAIMS WERE DENIED. AND SO WE FEEL THAT AS HABITAT REPRESENTING ON BEHALF OF THE HOMEOWNERS AND ON BEHALF OF THE WAY WE HAD EXHAUSTED EVERY SINGLE POSSIBLE WAY WITH A PRO BONO ATTORNEY THAT WE COULD TO TRY TO HELP THESE HOMEOWNERS FIX
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THIS WALL ISSUES, SO THIS IS KIND OF THE FINAL WAY THAT WE FEEL THAT WE CAN GET THIS FALL FIXED. AND WOULD YOU AND THE HOMEOWNERS HAVE ANY ISSUE WITH THE SIGNING ANY LEGAL RIGHTS THAT MAGS IST TO THE CITY IF WE GRANT YOUR FUNDING REQUEST, SO IF WE FIND A POSSIBILITY OF HOLDING SOMEONE LIABLE THAT WE COULD MOVE FORWARD WITH IT? NO I DON'T THINK SO AT ALL. UM AND USUALLY WHEN A RIGHT OF FIRST REFUSAL COMES TO US, UM, WE DO USUALLY EXERCISE THAT RIGHT OF FIRST REFUSAL, BUT IN JUST RECENTLY TO WRITE A FIRST REFUSALS HAVE COME THAT HAVE BEEN RIGHT ON WHERE THAT WALL WAS, AND OUR BOARD SAID, WE DON'T WANT TO EXERCISE THAT RIGHT OF FIRST REFUSAL, BECAUSE THEN IF WE BOUGHT THAT PROPERTY, THEN WE WOULD HAVE TO FIX THE WALL. THEN IT WOULD BECOME OUR LIABILITY. SO THAT'S WHY WE DID NOT EXERCISE THOSE TWO. SO WE WOULD BE WILLING IF WE DIDN'T THE TIME ANOTHER RIGHT OF FIRST REFUSAL IN THOSE REMAINING LOTS CAME TO US AND WE EITHER DID NOT HAVE THE FUNDS AT THE TIME OR WE JUST DIDN'T WANT TO PURCHASE IT AT THE PRICE THAT THEY WERE SELLING THE TWO WE WOULD DEFINITELY BE WILLING TO SIGN THAT TO THE CITY OR THE HFC OR TO WHOMEVER IS ABLE TO SELL THAT PROPERTY TO A AFFORDABLE, UM, LOW INCOME FAMILY. I THINK WE MAY BE TALKING ABOUT TWO DIFFERENT THINGS YOU'RE TALKING ABOUT. THE FIRST RIDER REFUSED WHEN I'M TALKING ABOUT AN ASSIGNMENT OF ANY LEGAL RIGHTS AGAINST THE CONTRACTOR ENGINEER THAT MAY EXIST, IF ANY BEING ASSIGNED TO THE CITY IN EXCHANGE FOR THE CITY FUNDING THIS PROJECT OR THE PUBLIC FINANCE CORPORATION FUNDING THIS PROJECT. THAT'S WHAT THE CITY WANTS US TO DO WITH. WE'RE MORE THAN WILLING TO DO WHATEVER IT TAKES TO GET THIS WALL FIXED FOR THOSE. I HAVE A METHOD OF GETTING YOU WHERE YOU NEED TO BE WILLING TO DO THAT. ALL RIGHT. THANK YOU. AND THANKS FOR YOUR TIME COMING OUT, RECOVERED QUICKLY. SURE. ANY OTHER QUESTIONS. THANK YOU VERY MUCH. YOU'RE WELCOME. ANY OTHER QUESTIONS OF MISS FRANK? I WOULD LIKE TO MAKE A MOTION THAT WE APPROVED THE FUNDING REQUEST FOR THE ENGINEERING AND DESIGN WORK ON THIS PROJECT. CONDITIONED UPON RECEIVING THE ASSIGNMENT OF ANY LEGAL RIGHTS TO PURSUE THE CONTRACTORS OR ENGINEERS OR THOSE RESPONSIBLE FOR THE FAILURE OF THE WALL. IF ANY. PRIORITY TO, UH, FUNDING THE PROJECT SECOND. THERE'S MOTION MADE BY UM COUNCILMAN PHILLIPS, A SECOND BY COUNCILMAN FRANKLIN. ALL IN FAVOR. AYE. ANY OPPOSED.HAVING BEEN UNANIMOUSLY APPROVED THE ITEM PASSES. CONGRATULATIONS, MISS COPS. I DO NOT BELIEVE THAT THERE ARE ANY OTHER ITEMS TO COME BEFORE THIS BOARD AND WITH THAT I'LL ACCEPT THE MOTION TO ADJOURN. SECOND. MOTION BY MARRIAGE. FULLER SECOND BY COUNCILWOMAN FELT THIS ALL IN FAVOR. THANK YOU ALL.
* This transcript was compiled from uncorrected Closed Captioning.