Dec 03, 2024 Reinvestment Zone Number One

THERE'S A LETTER TO THE CORINTHIANS THAT IS READY, CHARLIE. YOU READY? SIR? WE'RE

[CALL TO ORDER]

[00:00:06]

[Minutes of the Tax Increment Reinvestment Zone Number One (TIRZ1) Board Meeting of November 5, 2024]

[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Glipwood Properties, LLC for the Cultivate Music Studio Critical Maintenance Project Located at 209 East Lamar Street]

SO WITH THAT, STAFF IS RECOMMENDING APPROVAL OF THIS ITEM THAT CONCLUDES THIS PROJECT, AND I STAND FOR ANY QUESTIONS. ANY QUESTIONS? YES, MR. CHAIRMAN, I HAVE SOME GENERAL COMMENTS I'D LIKE TO MAKE VERY QUICKLY, PLEASE. YES, SIR. I UNDERSTAND THAT DOWNTOWN FIRE SUPPRESSION IS GOING TO BE OUR NUMBER ONE PROJECT AND I GUESS IN JANUARY THAT WHAT YOU'RE GOING TO BE PRESENTING ARE SOMEWHERE AROUND JANUARY, GOING TO HAVE A KIND OF A COMPREHENSIVE PLAN TO ADD RISERS AND FIRE SPRINKLERS, KIND OF GET AN IDEA OF WHAT THE SCOPE OF THE PROJECT IS GOING TO BE, AND MAYBE SOME KIND OF IDEA OF COST. SO I JUST WANTED TO ASK IF YOU PUT THAT INTO A PART OF THE JANUARY DISCUSSION. OH, SO YOU'RE ASKING FOR THE A JANUARY A THEORETICAL JANUARY BOARD MEETING THAT WE DISCUSS FIRE SUPPRESSION? YEAH. I THINK WE NEED SOME KIND OF PLAN. AND I THOUGHT THAT'S WHAT YOU WERE GOING TO COME UP WITH. SORRY, BUT I'LL CHIME IN. I THINK THAT MAY HAVE THROWN CAMERON FOR A BIT OF A LOOP. SO THERE IS A DOWNTOWN FIRE SUPPRESSION INTERNAL TEAM THAT IS LOOKING AT THE SCOPE OF OUR HISTORIC DOWNTOWN AREA. I DON'T KNOW THAT IT WOULD COME DIRECTLY TO THE TOUR'S BOARD. I DO SEEM TO RECALL THAT THAT WAS MORE OF A WORK SESSION DISCUSSION WITH THE CITY COUNCIL, WHERE WE ARE LOOKING AT WHAT ARE THE CURRENT CONDITIONS WITHIN THE DOWNTOWN AND SOME OPTIONS AND POTENTIALLY SOME COSTS ASSOCIATED WITH WHAT MIGHT TAKE TO IMPROVE THAT. I WAS JUST WONDERING, YOU KNOW, APPROXIMATE COST, IF WE CAN EVER COME UP WITH SOMETHING LIKE THAT BECAUSE IT WOULD HAVE TO BE A STUDY TO DO IT. I KNOW THERE ARE SOME THERE ARE FIRMS OUT THERE THAT CAN DO THOSE SORTS OF STUDIES, AND THAT'S ONE OF THE THINGS WE'VE BEEN TALKING ABOUT INTERNALLY VERY CANDIDLY, OUR ASSISTANT CITY MANAGER, BARRY SHELTON, IS THE ONE THAT'S LEADING THAT PARTICULAR PROJECT.

SO I'M A LITTLE BIT ON THE ON THE OUTSIDE OF THAT. I'VE BEEN FAMILIAR WITH IT, BUT I DON'T HAVE ALL THOSE DETAILS FOR YOU. BUT WE CAN CERTAINLY GET THEM FOR THE BOARD. AND GOING ALONG WITH THAT. FOR INSTANCE, THIS PROJECT THAT YOU WERE JUST DISCUSSING, IF WE WERE TO REIMBURSE FOR ALL REPLACEMENTS OF SHINGLES DECKS, EAVES, GUTTERS, WIRING, PLUMBING

[00:05:03]

AND I HAD ONE MORE THING. A LOT OF PROPERTIES ARE THEY'RE SOLD ON LOCATION AND CONDITION OF COURSE. AND SOMETIMES THE PRICE OF THE OF THE SALE MIGHT BE DISCOUNTED BECAUSE OF THE CONDITION. SO THE REFURB MIGHT ALREADY BE BUILT INTO THE PRICE THAT THEY PAID. I JUST WANT TO MAKE THAT COMMENT. AND ONE MORE. I'M SORRY. THAT'S OKAY. AND I THINK WE NEED TO WATCH THE COST AND MAYBE GET SECOND BIDS OR SOMETHING LIKE THAT. I MEAN, GEORGE IS THE BUILDER AND HE KNOWS LABOR COST AND I CAN LOOK, I USED TO BUILD, BUT IT WAS A LONG TIME AGO. SO I DON'T KNOW CURRENT LABOR COSTS, BUT I DID LOOK UP THE SHINGLES. AND I THINK THERE'S BEEN SOME COMMENT ABOUT THAT. IF THAT'S IF THAT'S JUST THE SHINGLE COST, IT'S LABOR. AND MATERIAL. AND I SAW SOME TEAR OFF $5,000 FOR LABOR TO INSTALL. OKAY. ALL RIGHT. THANK YOU VERY MUCH. CONTRACTOR.

DID YOU THANK YOU. GEORGE AND I HAD THE SAME QUESTION. YEAH. ALONG THE LINES OF WHAT MR. OR WHAT DOCTOR LEBEAU WAS TALKING ABOUT. THERE'S ONLY ONE BID IN HERE. SHOULD WE BE ASKING FOR ANOTHER BID? SHOULD THE CITY BE? DOES THE CITY REQUEST THAT WE GET MORE THAN ONE BID? BECAUSE IT JUST SEEMS TO BE NOT VERY PRUDENT TO WORK OFF ONE ESTIMATE ON THIS. NOT CURRENTLY. RIGHT NOW, WE, THE ESTIMATION IS WHAT IS GIVEN BY THE APPLICANT AS PART OF THE PROCESS. THERE'S NO REQUIREMENT IN THE IN THE TERS PROGRAM THAT THEY GIVE US MORE THAN ONE BID. OKAY. THAT'S SOMETHING I CERTAINLY LIKE TO REVISIT. BUT I HAVE AN APPETITE TO TABLE THIS AND NOT APPROVE IT UNTIL THEY DID GET US A SECOND BID, BECAUSE IT JUST DOESN'T SEEM PRUDENT TO PROCEED WITH ONE BID ON THIS. I WOULD NORMALLY AGREE, BUT I TALKED TO THEM. THE CONTRACTOR VERIFIED NUMBER ONE THAT IT WAS LABOR MATERIAL AND THEN LOOKED AT THE TAKE OFF AND WHATNOT AND IT'S A COMPETITIVE BID, THOUGH I THINK. AND YOU MAY BE RIGHT. IT'S JUST THAT AS A PROCESS THAT SHOULDN'T BE. OUR PROCESS IS ONE OF US CALLING TO MAKE SURE OF THAT. BUT YEAH, BUT WE'RE WE'RE POTENTIALLY PENALIZING SOMEONE FOR A PROCESS THAT WE HAVE PUT IN PLACE. WE'VE NOT REQUIRED THAT. I WOULD BE TOTALLY I TOTALLY SUPPORT MAKING THAT A CRITERIA MOVING FORWARD FOR MYSELF. YOU KNOW, WHERE YOU HAVE TO SUPPLY AT LEAST TWO BIDS. BUT THAT'S NOT BEEN OUR PROCESS. AND OF COURSE, WE DON'T KNOW THAT THEY DIDN'T GET TEN BIDS AND THEY'RE GIVING US THE LOW. AND IT SHOULD BE VERY EASY FOR THEM TO GIVE US ANOTHER BID. IF THAT'S THE CASE. MR. MAYOR, I'M NOT SURE THAT EVERYBODY CAN HEAR YOU. WELL, I'M. AND I'M NOT SAYING THAT IT WOULDN'T BE EASY FOR THEM, BUT THE BUT OF COURSE, WE'RE NOW BECAUSE OF OUR SCHEDULE WE'LL DELAY THIS FOR THEM POTENTIALLY 30 DAYS. AND I'M OKAY WITH THAT. RELEVANT FOR THE FOLLOWING CASE TERS FUNDING CAN BE AWARDED FOR WORK THAT'S ALREADY BEEN COMPLETED. SO IN THAT CASE THERE WOULDN'T BE ANY POSSIBILITY OF GETTING A SECOND BID. YEAH. AND WE CAN HIT THAT WHEN WE WHEN WE GET TO THAT ON THE AGENDA. BUT SPEAKING TO THIS ONE ONLY, I'LL JUST MAKE A MOTION ON IT. IN THE INTEREST OF TIME I MOVE WE TABLE THIS ITEM UNTIL WE SEE AT LEAST ONE MORE ESTIMATE. IS THERE A SECOND? SEEING NONE, I'LL ASK, IS THERE ANOTHER MOTION? AND ARE THERE ANY OTHER QUESTIONS OF CAMERON? I DON'T WANT TO DELAY THEM, BUT IT WOULD BE NICE IF THEY DO BECAUSE THE WORK HASN'T BEEN DONE YET. SO IF THEY CAN PRODUCE IT A SECOND BID AND PRESENT IT TO THE STAFF, I WOULD LIKE TO GO AHEAD AND APPROVE WITH THAT, YOU KNOW, MAYBE BEING A CONDITION INSTEAD. BUT ALSO LET'S TALK ABOUT MOVING FORWARD, IMPLEMENTING A POLICY WHERE THEY HAVE MORE THAN ONE BID, I THINK. I JUST THINK IT'S A LITTLE UNFAIR BECAUSE WE HAVEN'T HAD THIS POLICY SET TO DELAY IT ANOTHER 30 DAYS, BUT MAYBE WE CAN SAY IT'S CONTINGENT, THE APPROVAL CONTINGENT ON A SECOND BID THAT PROVES IT'S NOT WELL, IN THIS IN THIS FIRST PROJECT, THEY DO HAVE SOME EXTRA ITEMS THAT, YOU KNOW, NORMALLY WE WOULDN'T BE CONSIDERING FRENCH DRAIN $3,333 STEPS. THAT'S THE NEXT PROJECT. OH, EXCUSE ME. SO I'LL MAKE THAT MOTION THAT WE GO AHEAD AND APPROVE THE ITEM, CONTINGENT ON A SECOND BID BEING PRESENTED TO STAFF. I'LL SECOND THAT. JUST REAL QUICK TO MAKE SURE THAT WE'VE GOT CLARITY WITH

[00:10:01]

[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Melanie Caple & Company LLC for the 114 West Virginia Street Critical Maintenance, Façade Restoration, and Environmental Remediation Project Located at 114 West Virginia Street]

CAMERON, THE FLOOR IS YOURS. THANK YOU SIR. AS YOU MENTIONED, THIS PROJECT ENCOMPASSES TWO OF THE TERS FUNDING CATEGORIES, BOTH FACADE RESTORATION, ENVIRONMENTAL REMEDIATION, AND CRITICAL MAINTENANCE IN THE PAST WE HAD HAD THOSE BE SEPARATE AGREEMENTS. MORE RECENTLY, SUCH AS AT THE LAST BOARD MEETING, WE'VE CONSOLIDATED THEM INTO A SINGLE AGREEMENTS FOR THE BACKGROUND, THIS IS THE BUILDING IN QUESTION. THIS IS THE OLDEST PHOTO WE HAVE OF IT FROM 1985.

MORE RECENTLY, A 2015. THIS IS 114 WEST VIRGINIA STREET. IT WAS CONSTRUCTED SOMETIME IN THE EARLY 20TH CENTURY. WE DON'T HAVE A SOLID DATE, BUT THE PRIMARY FACADE WAS LIKELY BUILT IN THE 1930S. OVER TIME, THE ROOF HAS DETERIORATED AND SIGNIFICANT MOLD GROWTH HAS SPREAD THROUGHOUT THE STRUCTURE. ASBESTOS WAS ALSO PRESENT IN MANY PARTS OF THE BUILDING WHEN THE APPLICANT STARTED DOING THE INITIAL WORK, WHERE THEY WERE WORKING ON THE FACADE AND THE ROOF, THEY DISCOVERED THAT NOT ONLY WAS THERE SIGNIFICANT ASBESTOS, BUT MOLD HAD GOTTEN BASICALLY EVERYWHERE INSIDE THE WALLS. ALL THROUGHOUT THE HVAC SYSTEM. ISSUES WITH THE PLUMBIN.

SO WHAT BEGAN AS A SMALLER PROJECT KIND OF BALLOONED INTO A LARGER ENVIRONMENTAL REMEDIATION PROJECT. IT IS LIKE THE PREVIOUS PROJECT IN THE MCKINNEY TOWN CENTER ZONING DISTRICT, AS WELL AS THE TOURS. ONE PROJECT AREA. SO AMONG OTHER THINGS, THE FACADE RESTORATION INCLUDED THE DEMOLITION OF PART OF THE STOREFRONT AND REPAIR OF THE SIDING. THE REMEDIATION WAS ENTIRELY FOCUSED ON REMOVAL OF MOLD AND ASBESTOS, AND THE REPLACEMENT OF TAINTED UTILITIES AND FACILITIES THAT COULD NOT BE REPAIRED FOR THE CRITICAL MAINTENANCE. THIS WAS INCLUDING MOSTLY REPLACEMENT OF ROOF AND ROTTING WOOD SUPPORTS, REPAIR OF SAGGING EAVES, BUT ALSO SIGNIFICANT REPAIR TO ELECTRICAL AND PLUMBING SYSTEMS. THE TOTAL COST OF THE ELIGIBLE WORK CAME OUT TO BE I APOLOGIZE, THAT LOOKS TO BE INCORRECT. IT SHOULD ACTUALLY BE 222,620, AS THE TOTAL COST OF ELIGIBLE WORK. OH MY APOLOGIES. THE TOTAL COST OF ELIGIBLE WORK IS INCLUDING BOTH THE 50,000 FOR THE FACADE RESTORATION AND ENVIRONMENTAL REMEDIATION, AND THE CRITICAL MAINTENANCE PORTION INCLUDES UP. TO $122,000 WORTH OF ELIGIBLE WORK. SO WITH THE 50 OVER 50 MATCH FOR CRITICAL MAINTENANCE, THEY CAN RECEIVE UP TO $61,310. IF APPROVED. GIVEN THAT ALL OF THE WORK DONE DID FALL UNDER ELIGIBLE WORK AND ANY WORK THAT WAS NOT ELIGIBLE WAS EXCLUDED FROM THIS TOTAL, AND THAT IT MEETS THE FUNDING POLICY LIMITS. STAFF IS RECOMMENDING APPROVAL FOR THIS PROJECT, AND WITH THAT, I STAND FOR ANY QUESTIONS I HAVE. I HAVE A QUESTION. CAMERO, IN GOING THROUGH THAT WHOLE SCOPE, LOOKS LIKE ALSO INCLUDED REPLACING TOILETS AND SOME WORK LIKE THAT, WHICH APPEARS TO ME TO BE MORE REMODELING THAN CRITICAL MAINTENANCE. YES, THERE WAS A LOT OF WORK DONE. THIS IS A CONDENSED VERSION, BUT CRITICAL MAINTENANCE CAN INCLUDE ELECTRICAL AND PLUMBING IF DONE IN IN TANDEM WITH OTHER WORK. THERE'S ALSO A LOT OF REMOVAL AND REBUILDING OF WALLS. SO, YOU KNOW, NEW DEMISING WALLS AGAIN THAT WOULD APPEAR TO BE TENANT FINISH OUT TO ME MORE THAN CRITICAL MAINTENANCE FOR THE BACK WALL. THE UNDERSTANDING WAS THAT BECAUSE IT WAS BASICALLY, YOU KNOW, ACTUALLY, MELANIE, THE APPLICANT IS HERE. I THINK SHE

[00:15:06]

CAN YOU REPEAT THAT? I'M SORRY. THEY PUT IN A DROP CEILING INSTEAD OF A WALLBOARD CEILING.

YOU KNOW, WHICH IS WHAT I'M SURE IT WAS IN THERE. IS THAT KIND OF COST EXCLUDED AND REIMBURSEMENT? YES. YES IT IS, BECAUSE I BELIEVE IT HAD TO BE REBUILT. AND I DON'T KNOW. I THINK YOU CAN EXPLAIN MORE OF THE DETAILS, MISS CAPEL. HELLO. HOW ARE YOU ALL? SO THIS IS I THINK WE ENDED UP SPENDING PROBABLY SPEAK IN THE MICROPHONE. HELLO. SORRY. WE ENDED UP DOING PROBABLY HALF $1 MILLION OF WORK. SO THIS IS A CONDENSED EVERYTHING THAT WAS. I GUESS, ABLE TO GET REIMBURSED FOR THIS PROJECT. BUT YES, UNFORTUNATELY, THE LADY THAT I PURCHASED IT FROM, SHE WAS AMAZING. BUT SHE DIDN'T TAKE CARE OF THE BUILDING. SO WE HAD TO TAKE EVERYTHING OUT. IT WAS ALL CONTAMINATED, SO WE ENDED UP TAKING EVERYTHING OUT AND WE ACTUALLY DIDN'T DO A DROP DOWN CEILING. IT'S OPENED UP, SO THAT COST REALLY IS NOT THERE AS FAR AS BUILDING BACK A DROP DOWN CEILING, IF THAT'S WHAT YOU'RE ASKING. YES. YEAH. I JUST KNEW YOU WERE GOING IN WITH A CEILING THAT WAS MORE EXPENSIVE THAN WHAT WAS IN THERE BEFORE. YEAH, THERE'S INSULATION, BUT THERE'S NOT AN ACTUAL PROPER CEILING, IF THAT MAKES SENSE. DROP IN CEILING. OH, NO. I'M SORRY, I THOUGHT I READ DROP IN. NO, NO. SO THERE'S JUST INSULATION ON TOP OF THE ROOF. WHAT WOULD YOU CALL THAT? NOT PLYWOOD, BUT ROOF. WHATEVER COMES IN BETWEEN. AND THEN INSULATION ON TOP. AND THEN IT HAS EXPOSED EVERYTHING ELSE. THANK YOU. ANY FURTHER QUESTIONS? ANYONE ELSE LIKE TO SPEAK ON THIS ITEM? IT'S NOT A PUBLIC HEARING. SORRY ABOUT THAT. I'LL ENTERTAIN A MOTION IF THERE'S NO COMMENTS BY COUNCIL, I THINK YOU'RE GOOD. THANK YOU. BOARD. I'LL MAKE A MOTION THAT WE APPROVE THIS ITEM. I'LL SECOND MOTION BY MAYOR PRO TEM FELTZ'S. SECOND BY COUNCIL MEMBER FRANKLIN. ALL IN FAVOR? AYE. ANY OPPOSE THERE BEING NONE. THE MOTION PASSES BY

[Election of TIRZ1 Vice Chair for Calendar Year 2025]