[00:00:01]
YOU'RE DONE WITH THE JOKE. OKAY. VERY GOOD. OKAY. IT'S 454. WE'RE CALLED TO ORDER THE CITY
[CALL TO ORDER]
OF MCKINNEY REINVESTMENT ZONE NUMBER ONE MEETING. IT'S TUESDAY, OCTOBER THE 21ST, 2025.FIRST ITEM WILL BE THE OPPORTUNITY FOR ANYONE IN THE AUDIENCE TO ADDRESS CITY COUNCIL. I'M SORRY. THE REINVESTMENT ZONE NUMBER ONE. ANYONE LIKE TO ADDRESS THIS BODY? PLEASE COME TO THE PODIUM. ALL RIGHT. MOVING ON. OUR FIRST AGENDA ITEM IS 253281. THE MINUTES OF OUR TAX INCREMENT REINVESTMENT ZONE NUMBER ONE BOARD MEETING OF SEPTEMBER 2ND, 2025. WE HAVE ONE SPEAKER. OH, I'M SORRY. WE BACK UP. MY MY FAULT. I MISSED THE THE NAME.
[PUBLIC COMMENT ON AGENDA ITEMS (for Non-Public Hearing Items)]
WE HAVE A SPEAKER JIM SCHWARTZ WOULD LIKE TO ADDRESS THE COMMITTEE. MR. SCHWARTZ, IF YOU'LL COME TO THE PODIUM. I JUST WANTED TO ADDRESS THE FIRE SUPPRESSION STUDY THAT'S BEING UNDERTAKEN AND WANT TO REALLY ENCOURAGE EACH OF YOU TO VOTE FOR THAT. I WANT YOU TO ALSO BE ENCOURAGED THAT AS YOU'RE ASKING FOR PARTICIPATION OF THE PROPERTY OWNERS IN THAT, THAT YOU SOMEHOW ALLOW, DEPENDING UPON THE VOLUME OF MONEY THAT YOU'RE ASKING FOR, THE INDIVIDUAL PROPERTY OWNERS, THAT YOU SOMEHOW ALLOW SOME FUNDS TO BE ADVANCED BY TERS RATHER THAN A REIMBURSEMENT, AFTER WHICH SEEMS TO BE THE PROCESS FOR TERS IN THE PAST.BUT I KNOW THAT BLOCKS SOME PEOPLE FROM BEING ABLE TO AVAIL THEMSELVES OF PROJECTS THAT THEY NEED HELP WITH, OR THAT THEY NEED TO DO SO. THOSE ARE THE ONLY TWO THINGS THAT I HAVE TO SAY ABOUT THAT ISSUE. THANK YOU. THANKS, JIM. THANK YOU, MR. SUAREZ. ANYONE ELSE? ALL RIGHT, MOVING ON. AGENDA ITEMS, MINUTES OF OUR LAST MEETING OF SEPTEMBER THE 2ND, 2025. WERE
[Minutes of the Tax Increment Reinvestment Zone Number One Board Meeting of September 2, 2025]
THERE QUESTIONS, COMMENTS? ANYONE? NO. OKAY. WE DO NEED A MOTION TO APPROVE THESE MINUTES.I'LL MAKE THAT MOTION TO APPROVE THE MINUTES OF OUR LAST BOARD MEETING. MOTION BY MR. LEBEAU TO APPROVE OUR LAST BOARD MEETING MINUTES. SECOND. SECOND BY COUNCILMAN FRANKLIN.
IS THERE ANY DISCUSSION? WE DO NEED TO VOTE VIA OUR RAISING OUR HANDS. TO THOSE IN FAVOR, PLEASE RAISE YOUR HAND. ALL THOSE OPPOSED, SAME SIGN. MOTION CARRIES. NEXT ITEM WOULD
[Update on Downtown McKinney Fire Suppression Projects]
BE AN UPDATE ON DOWNTOWN MCKINNEY FIRE SUPPRESSION PROJECTS. MR. SHELTON, THIS IS ITEM 253282. GOOD AFTERNOON, MEMBERS OF THE BOARD. I WAS ASKED TO COME AND GIVE AN UPDATE ON WHERE WE STAND ON THE DOWNTOWN FIRE SUPPRESSION PROJECT. HAVE A BRIEF PRESENTATION. I'LL GO THROUGH, AND THEN I'LL BE HAPPY TO ANSWER QUESTIONS FROM THE BOARD MEMBERS. I'LL START WITH OUR DESIRED OUTCOME. AND THIS CAME FROM OUR PREVIOUS PRESENTATION THAT WE GAVE TO THE BOARD AND THE CITY COUNCIL SEVERAL MONTHS AGO. OUR DESIRED OUTCOME NUMBER ONE IS 100% COVERAGE OF OUR DOWNTOWN HISTORIC CORE WITH FIRE ALARMS AND FIRE SPRINKLERS.NUMBER TWO, WE WANT TO HAVE STAKEHOLDER BUY IN. WE'RE GOING TO NEED THAT AS WE'RE MOVING FORWARD WITH THIS PROJECT. WE WANT TO PRESERVE OUR HISTORIC BUILDINGS. AND FURTHERMORE, WE WANT TO PRESERVE THE ECONOMIC IMPACT AND THE CULTURAL AND TOURISM VALUE OF OUR DOWNTOWN.
SO IT'S REALLY IMPORTANT. WHEN WE PRESENTED TO THE COUNCIL IN THE PAST, WE HAD SOME PRETTY FRIGHTENING PHOTOS OF LARGE FIRES IN HISTORIC DOWNTOWNS. AND WE'RE TRYING TO AVOID THAT BY PROTECTING OUR BUILDINGS. SO THIS IS A MAP THAT WAS CREATED BY OUR INTERNAL TEAM LOOKING AT THE EXISTING FIRE PROTECTION IN DOWNTOWN. YOU CAN SEE KIND OF THE ORANGE OUTLINE IS GOING TO BE OUR STUDY AREA, WHICH IS OUR KEY DOWNTOWN CORE, WHICH IS FOR THE URBAN BLOCKS THAT WE HAVE DOWN THERE. YOU CAN SEE THE RED ARE PROPERTIES THAT ARE NOT PROTECTED BY FIRE SPRINKLER SYSTEMS, AND MANY OF THEM ALSO DO NOT HAVE FIRE ALARM SYSTEMS. THE GREEN ARE PRIMARILY PLACES THAT HAVE BEEN RENOVATED OVER THE PAST COUPLE OF DECADES. WHEN WE'VE ACQUIRED THOSE RENOVATIONS TO INCLUDE FIRE PROTECTION, YOU CAN LOOK AS YOU GO THROUGH THOSE. MANY OF THEM ARE EITHER LARGE OFFICE BUILDINGS THAT HAVE BEEN RENOVATED. BUT I WOULD SAY PRIMARILY IT'S RESTAURANTS. SO RESTAURANTS, AS THEY RENOVATE FROM A NON RESTAURANT USE TO A RESTAURANT, THEY WERE REQUIRED TO IMPLEMENT FIRE PROTECTION. YOU CAN SEE WITH ALL THE RED IN OUR DOWNTOWN WHAT WE'RE UP AGAINST. THERE'S A THERE'S A LARGE EFFORT THAT'S NEEDED TO GET US OVER THE HUMP SO THAT WE CAN PROTECT THE BUILDINGS, BUT WE HAVE A PROGRAM THAT'S UNDERWAY. AND I WANT TO GIVE YOU AN UPDATE ON THAT. SO A NARRATIVE OF THE EXISTING
[00:05:01]
CONDITIONS. WE DO HAVE PRETTY GOOD WATER FLOW IN THE DOWNTOWN 12 INCH LINES WHERE WE'VE RECONSTRUCTED THE STREETS 6 TO 8 INCH. ELSEWHERE WE HAVE GOOD WATER PRESSURE AND ADEQUATE FIRE FLOW. WE HAVE HYDRANTS SPACED APPROPRIATELY THROUGHOUT DOWNTOWN, AND WE HAVE A CLOSE BY FIRE STATION NUMBER ONE. BUT RELATIVELY FEW OF THE BUILDINGS ARE PROTECTED. SO IF WE WERE TO HAVE A FIRE, IT'S GOING TO BE VERY DIFFICULT FOR US TO CONTAIN THAT FIRE AND PUT IT OUT BEFORE SIGNIFICANT DAMAGE IS DONE. SO THE PREVIOUS CITY COUNCIL DIRECTION AND KIND OF WHAT WE'RE WORKING TOWARDS RIGHT NOW IS, NUMBER ONE, THAT THE DESIGN PHASE WOULD CONSIST OF THE CITY OF MCKINNEY UTILIZING TOURS, NUMBER ONE DOLLARS TO CONDUCT A PROFESSIONAL SERVICE CONTRACT FOR PLANNING, DESIGN AND CONSTRUCTION ADMINISTRATION FOR THE DOWNTOWN MCKINNEY FIRE PROTECTION PROJECT. THIS INCLUDES REVIEWING EXISTING HISTORIC BUILDINGS. SO BECAUSE WE HAVE HISTORIC BUILDINGS, MANY OF THEM DON'T HAVE AS BUILT PLANS. SO WE'RE GOING TO HAVE TO GO FORWARD AND BUILD OUT OR CREATE THE AS BUILT PLANS. WE NEED TO KNOW WHERE WE ALREADY HAVE FIRE SYSTEMS AND WHERE WE CAN TAP INTO THOSE, AND WHERE WE NEED TO BUILD FROM SCRATCH. WE WANT TO REVIEW POSSIBLE INTERNAL AND EXTERNAL FIRE RISER LOCATIONS. WE NEED TO BE ABLE TO GET THE WATER FROM UNDER THE STREET, INTO THE BUILDINGS, AND UP INTO THE FIRE PROTECTION SYSTEMS THAT TAKES RISER ROOMS, WHICH TAKES SQUARE FOOTAGE OUT OF SOMEONE'S SPACE. AND SO WE'RE LOOKING AT THOSE. WE ALSO WANT TO REVIEW VIABLE PIPE ROUTE OPTIONS. SO WE'RE LOOKING AT DOING KIND OF THE MAINLINE PIPES THROUGH A BLOCK THAT WOULD ALLOW PEOPLE TO CONNECT INTO THOSE FOR THEIR OWN FIRE PROTECTION SYSTEM. AND THAT INCLUDES NOT ONLY THE PIPE, BUT ALSO THE THE VALVE SYSTEMS THAT ALLOW IT TO BE UTILIZED.AND THEN WE'VE ASKED OUR CONTRACTOR TO PROVIDE 30% FIRE PROTECTION SCOPE DOCUMENTS. AND WHAT THAT IS, IS A 30% CONSTRUCTION PLANS. WE WILL HAVE ENOUGH INFORMATION TO BE ABLE TO GO OUT AND MEET WITH A BLOCK, AND ALL THE OWNERS OF THE BUSINESSES AND THE PROPERTIES ON THE BLOCK, AND GET EVERYONE ON BOARD SO THAT WE CAN GO FORWARD. ONCE WE HAVE EVERYONE READY TO GO FORWARD, THEN WE FINALIZE THE PLANS AND THEN WE GO AND WE FUND THE CONSTRUCTION OF THOSE MAIN LINES, RISER ROOMS AND UNDERGROUND TAPS OF THE WATER LINES. SO WITH THAT, THE CONSTRUCTION PHASE WOULD FOLLOW. ONCE WE HAVE THE CONSTRUCTION OR THE DESIGN AT 30% FOR ALL NINE BLOCKS. AND AFTER THAT WE WOULD ALSO WE'VE BEEN DIRECTED TO UTILIZE TOURIST DOLLARS TO FUND CONSTRUCTION OF CONNECTIONS TO THE UNDERGROUND WATER SUPPLY, FIRE PROTECTION, RISERS, MAIN PIPES AND ASSOCIATED VALVES THAT WOULD SET UP EVERY BLOCK IN DOWNTOWN FOR SUCCESS. AND BEING ABLE TO TAP INTO THAT. NOW WE'RE TALKING ABOUT WHERE WE STAND AND THEN WE'LL TALK ABOUT TIMELINES. SO WE DID HAVE AN RFQ THAT WAS PUT OUT ON THE STREET IN MAY OF THIS YEAR, AND FROM THAT RFQ READ FIRE PROTECTION ENGINEERING WAS SELECTED FROM A STAFF PANEL AND A SCORING SYSTEM. AND THEN WE WE'VE BEEN WORKING WITH REED BECAUSE AS WE'RE TRYING TO GET THEM TO GIVE US A SCOPE OF SERVICES AND A FEE FOR SERVICES, IT'S TAKEN A WHILE BECAUSE THEY HAVE TO DO A LOT OF LEGWORK TO KNOW HOW MUCH WORK THEY ACTUALLY HAVE TO DO IN THIS DESIGN. SO THEY'VE TOLD US THIS WEEK THAT THEY PLAN ON HAVING US A SCOPE AND A PROPOSED FEE FOR SERVICE BY THE END OF THIS MONTH, AND SO THAT'S GREAT. I THINK THIS PRESENTATION TONIGHT REALLY IS KIND OF PRODDING THEM ALONG TO GET THAT DONE. THEY ANTICIPATE THE STUDY PHASE OF THIS, OR THE DESIGN PHASE WOULD BE ABOUT 8 TO 10 MONTHS. ONCE WE HAVE THAT, THAT'LL BE ALL NINE BLOCKS READY TO GO OUT AND MEET WITH OUR PROPERTY AND BUSINESS OWNERS. THE ESTIMATE THEY GAVE US WAS ROUGH AT THIS TIME, BUT WE ANTICIPATE IT BEING ABOUT 250 TO 350,000 FOR THAT DESIGN PHASE. SO AT THAT TIME, ONCE WE HAVE A SCOPE AND WE HAVE A FEE ASSOCIATED WITH THAT SCOPE, WE WILL BRING THAT BACK TO THE BOARD WITH A REQUEST FOR THE FUNDING, AND THEN WE WILL TAKE THE CONTRACT TO THE CITY COUNCIL FOR APPROVAL. SO THAT'S WHERE WE ARE TODAY. MORE THAN ANYTHING, WE ARE GETTING REALLY CLOSE TO HAVING THAT SCOPE. THAT'S WHAT WE'VE BEEN WAITING ON FOR SEVERAL MONTHS NOW, AS WE'RE PULLING TOGETHER ALL OF THE CURRENT PLANS. WE HAVE ALL OF THE FIRE PROTECTION PLANS SO THAT THEY CAN UNDERSTAND HOW MANY SQUARE FEET THEY'RE ACTUALLY LOOKING TO DESIGN, AND HOW MANY AS BUILTS THEY NEED TO CREATE IN ORDER TO START THEIR DESIGN PROCESS. SO WITH THAT, WE HOPE TO HAVE A SCOPE IN FRONT OF THIS BOARD AND THE CITY COUNCIL IN EARLY NOVEMBER. ARE THESE THE NEW FIRE ENGINES THAT WE'RE TALKING? THESE ARE THE YEAH, THIS IS THE FIRE STATION WE'RE LOOKING TO BUILD WITH THE. NOW THIS IS THE PICTURE RIGHT OUT HERE I LOVE THIS, I CALL IT THE BARNEY FIFE PICTURE BECAUSE IT REMINDS ME OF KIND OF THAT ERA. BARRY, THANK YOU FOR THIS. THANK YOU FOR ALL OF YOUR EFFORTS ON THIS.
[00:10:05]
I SAID IN THE LAST MEETING THAT THIS IS NOT MY DISTRICT, BUT I'VE OFFICE DOWNTOWN FOR THE LAST 28 YEARS. AND I SAW THE RYE FIRE, AND I'M AWARE OF SOME OTHER FIRES WE'VE HAD. WE'VE HAD ONE, I BELIEVE, AT OR NEAR FOXY'S AND THAT BUILDING, BUT THAT ONE DOESN'T GET A LOT OF PUBLICITY BECAUSE THAT WAS A NEW BUILD AND IT HAS FIRE SUPPRESSION. AND SO IT WAS NEVER NEWS BECAUSE IT WAS NEVER A BIG THING. WHEN WE LOOK AT THE RISKS AND I'M OPEN TO ANY DEBATE ON THIS FROM ANYBODY ON THIS DAIS OR OFF, I THINK THIS IS THE RISK WE HAVE FOR THE CROWN JEWEL OF MCKINNEY'S FIRE. AND WHEN WE AND WE DIDN'T BUILD THE TOURIST DISTRICT, THAT WAS THE COUNCIL 15 YEARS AGO THAT INITIATED THIS TOURS. BUT TOURS HAVE A LIFESPAN, AND BY THE END OF THAT LIFESPAN, THERE'S AN EXPECTATION THAT COULD COME OFF TOURS AND THEN START BEING PART OF THE GENERAL FUND. I THINK IT MAKES SENSE THAT WE PROTECT THE BIGGEST RISK THAT THIS DISTRICT FACES, WHICH IS THE FIRE SUPPRESSION IN THE BEAUTIFUL OLD BUILDINGS THAT WE HAVE. SO TO ME, IT'S THE BIGGEST PRIORITY OF WHAT WILL ULTIMATELY BE MY TIME ON THIS TOURIST BOARD OR CITY COUNCIL IS TO MOVE THIS FORWARD. AND THAT MEANS THAT WE HAVE TO SUBORDINATE OTHER THINGS THAT MAY HAVE MERIT, BUT THEY BUT THEY DO NEED TO BE SUBORDINATED BECAUSE WE HAVE A BUDGET. SO WITH THAT, THANK YOU, BARRY, AND THANK YOU, MR. MAYOR. I COULDN'T HAVE SAID THAT ANY BETTER. THANK YOU. COUPLE OF CLARIFICATIONS. SO THE CITY'S ACTUALLY TAKING THE BRUNT OF THE COST TO PUT IN THE MAIN LINES IN THE STREETS. YES, SIR.SO THE PLAN IS FOR US TO FUND THE DESIGN PHASE FIRST, AND THEN WHEN WE HAVE A BLOCK READY TO GO. SO ONCE WE GET THE COORDINATION AND COOPERATION OF ALL THE PROPERTY OWNERS AND SHOP OWNERS, THEN WE WILL BE COMING BACK TO THE TOURS FOR, YOU KNOW, BLOCK NUMBER ONE, THE GUINEA PIG, THE GUINEA PIG BLOCK WITH A COST FOR THAT CONSTRUCTION WOULD BE AND THEN WE WOULD KNOW A LITTLE BETTER WHAT THE COST PER BLOCK. BUT I ANTICIPATE PROBABLY SOMEWHERE BETWEEN 250 AND $350,000 PER BLOCK AS WE GO FORWARD. AND WE WILL TRY TO BUILD AS MANY BLOCKS AS WE CAN IN THE EARLY YEARS. BUT I THINK THIS IS PROBABLY GOING TO BE A MULTIPLE YEAR PROJECT. ARE WE ASKING THE RETAILERS TO PICK UP A PORTION OF THAT COST? SO THE DIRECTION WE'RE GIVEN BY CITY COUNCIL IN THE PAST IS WE WOULD BUILD THE CONNECTION, THE TAP TO THE WATER LINE UNDER THE STREET, BRING THE WATER TO THE BUILDING, BRING IT UP INTO THE RISER ROOM, AND THEN BUILD THE MAIN LINE PRS THE ENTIRE BLOCK. AND SO THEN THERE WOULD BE A COST SHARING.
THAT WOULD BE WHAT WE'VE TALKED ABOUT IN THE PAST IS WE WOULD PICK UP 100% OF THE THE MAINLINE COSTS, AND THEN IT WOULD BE A 50 OVER 50 SHARE FOR THE INDIVIDUAL PROPERTY OWNERS ON THE SMALLER PORTION. OKAY. SO THE LION'S SHARE WOULD BE PICKED UP BY THE TOURS. OKAY.
WOULD THEY HAVE THE OPTION OF OPTING OUT OR WHEN THEY GOT TO THAT POINT. SO THAT THAT'S WHY I KEEP TALKING ABOUT COOPERATION. WE WANT TO FIND A BLOCK WHERE EVERY PROPERTY OWNER ON A BLOCK WANTS TO PARTICIPATE, BECAUSE IF SOMEONE OPTS OUT AND WE CAN'T PASS THROUGH THEIR PROPERTY TO GET THE MAIN LINE TO THE PROPERTY ON THE THE FAR SIDE, NOW WE CAN'T PROTECT THAT WHOLE BLOCK. SO WE WANT TO FIND A BLOCK WHERE WE CAN GET FULL COOPERATION AND GET ONE BUILT SO THAT WE CAN WE CAN SHOW WHAT THE IMPACT IS. DID WE HAVE TO CLOSE DOWN BUSINESSES TO DO THE CONSTRUCTION OR COULD WE KEEP THEM OPEN? WHAT IS THE COST ASSOCIATED FOR THAT FIRST PHASE FOR THE PROPERTY OWNERS, IF ANY? AND HOPEFULLY WE'RE SUCCESSFUL ON BLOCK ONE AND THEN PEOPLE GO, OKAY, I SEE WHAT YOU'RE DOING NOW, I'M READY TO PARTICIPATE.
BUT GETTING THAT FIRST BLOCK IS GOING TO BE KEY. YEAH. AND LET ME JUST TELL YOU THIS THE BUILDING I OFFICE IS UNDER NEW OWNERSHIP. I DON'T OWN IT. I NEVER HAVE, BUT THE OWNER OF THAT BUILDING LOOKED AT HIS INSURANCE BILL WITHOUT FIRE SUPPRESSION AND IS VERY ANXIOUS TO GET FIRE SUPPRESSION IN THERE. SO I THINK THAT THAT'LL BE A MAIN CATALYST FOR BUILDING OWNERS TO, EVEN IF PRESERVATION ISN'T THEIR GAME, LOWER INSURANCE PREMIUMS WILL PROBABLY GET THEIR ATTENTION. WE HAVE A LOT OF REALLY GOOD PROPERTY OWNERS INCENTIVES THAT WE COULD HAVE THAT WOULD GET PEOPLE TO TO BUY INTO THAT. WE HAVE WE HAVE A LOT OF REALLY GOOD PROPERTY OWNERS. MANY OF THEM ARE VERY ENGAGED. AND, YOU KNOW, WE TALK TO THEM ON A DAILY BASIS AND THOSE ARE READY TO PARTICIPATE. BUT WE ALSO HAVE SOME SOME PEOPLE WHO AREN'T AS ENGAGED AREN'T AS PRESENT. THEY MIGHT BE, YOU KNOW, OUT OF TOWN, THE OWNERSHIP GROUP AND GETTING THEM TO PARTICIPATE MIGHT TAKE A LITTLE BIT MORE EFFORT, BUT HOPEFULLY IF WE CAN SHOW SUCCESS, THEN WE CAN SHOW THEM, HEY, LOOK, THIS WAS THE IMPACT ON THE FIRST BLOCK AND HERE WAS THE BENEFIT. SO WHEN YOU'RE LOOKING AT THE INSURANCE RATES,
[00:15:01]
WHEN YOU'RE LOOKING AT THE PROTECTION OF THEIR ASSET, WE WE HOPE PEOPLE ARE GOING TO PARTICIPATE. IF WE HAVE GROUPS OR OWNERS THAT CHOOSE NOT TO PARTICIPATE, EVEN AFTER THAT, THEN WE'RE GOING TO HAVE TO TALK THROUGH SOME SOME OPTIONS, OKAY, BARRY, YOU HIT ON A QUESTION THAT THAT I HAD AND IT WAS HOW FAR ALONG ARE WE WITH COMMUNICATING WITH THE PROPERTY OWNERS IN THIS AREA? SO WE STARTED BACK IN MAY OR EVEN BEFORE MAY, WHEN WE HAD THIS CONVERSATION WITH THE CITY COUNCIL, AND I BELIEVE EVEN INTO LAST YEAR WHEN WE WERE TALKING ABOUT OPTIONS FOR THIS, AT THAT TIME, WE HAD SOME MEETINGS WITH MAIN STREET.WE'RE GOING TO HAVE TO RAMP THAT BACK UP, BECAUSE IT'S NOW BEEN SEVERAL MONTHS SINCE WE HAD THOSE INITIAL MEETINGS. I DO THINK THIS IS WILL BE THE MOST THE BIGGEST HURDLE TO CROSS IS HOW DO WE GET THIS PAID FOR? EVERYONE CAN AGREE WE NEED FIRE COVERAGE DOWN THERE.
THE QUESTION WILL BE HOW DO WE GET IT PAID FOR? AND I WOULD I WOULD ENCOURAGE THE STAFF IN THE COUNCIL TO GO INTO THAT WITH OPEN EYES AND EARS, BECAUSE THERE MAY BE PROPERTY OWNERS IN A DIFFERENT PLACE IN THEIR BUSINESS MATURITY TO BE ABLE TO STROKE A CHECK AND TO FOR YOU TO TO SAY WE IF WE HAD TO BYPASS ONE MEMBER OF THAT BLOCK WOULD NOT BE COVERED. I DIDN'T THAT WASN'T REALLY JIVING WITH WHAT I VISION AS COVERAGE DOWNTOWN. SO LET'S JUST BE AWARE THAT SOMEONE MAY BE IN A DIFFERENT POSITION. OUR DESIRED OUTCOME IS 100% COVERAGE. PERFECT. WHEN I SAY IF SOMEONE'S NOT PARTICIPATING, MAYBE WE DON'T DO THAT BLOCK.
WE MOVE TO THE NEXT BLOCK WHERE WHERE WE CAN GET 100% PARTICIPATION. AND HOPEFULLY WHEN WE SHOW SUCCESS, THE HOLDOUT SEES THE VALUE BECAUSE WE'RE WE'RE PICKING UP THE LION'S SHARE OF THE COST. SO THE INITIAL MAIN CONSTRUCTION WITH THE TAP AND THE RISER ROOMS, THAT IS 100% FUNDED BY THE CITY OF MCKINNEY. THAT'S GOING TO BE HUGE. AND THEN ONCE WE HAVE THAT, GETTING EACH PERSON TO TIE IN, RIGHT NOW WE'RE TALKING 50 OVER 50 MATCH.
BUT YOU'RE RIGHT, THERE MAY BE SOME OTHER PACKAGE OF INCENTIVES THAT WOULD BE NECESSARY TO GET EVERYONE TO PARTICIPATE. YEAH. VERY GOOD. THANK YOU FOR YOUR WORK VERY MUCH. ANYONE ELSE? VERY GOOD. THANK YOU. NEXT ITEM WILL BE 253283. THIS IS CONSIDERATION
[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with The Parks Church for the Critical Maintenance and Historic Façade Restoration Improvements Project Located at 110 E Davis Street]
OF A RESOLUTION APPROVING A CHAPTER 380 AGREEMENT AND PROJECT PLAN IMPLEMENTATION WITH THE PARKS CHURCH FOR CRITICAL MAINTENANCE AND HISTORIC FACADE RESTORATION.THIS IS AT 110 EAST DAVIS STREET. CASSIE. THANK YOU. SO LET'S GO AHEAD AND JUMP IN. SO IF YOU'RE UNFAMILIAR WITH THE PROPERTY, HERE ARE A COUPLE OF PHOTOS OF IT ONE FROM 1985 AND ONE FROM 2015. THIS IS ON THE CORNER OF DAVIS AND TENNESSEE. IT WAS CONSTRUCTED CIRCA 1902, IN ITALIANATE STYLE. THE PRESERVATION PRIORITY IS CONSIDERED HIGH OUT OF OUR SURVEY FROM 2024. HISTORICALLY, IT WAS THE OFFICE AND RESIDENT RESIDENCE OF DOCTOR E.L. BURTON, AND IT'S LOCATED IN THE MCKINNEY TOWN CENTER. THE HISTORIC OVERLAY. AND AS WELL, OBVIOUSLY, THE NUMBER ONE PROJECT AREA. SO THE APPLICANT INCLUDED IN THEIR APPLICATION TWO REPORTS THAT I JUST WANT TO HIGHLIGHT. ONE WAS THE BUILDING DUE DILIGENCE REPORT FROM NOVEMBER OF 2024. THE OTHER WAS A PROPERTY INSPECTION REPORT FROM MARCH OF 2024. THAT IS WHERE THEY GOT THEIR CRITICAL MAINTENANCE AND FACADE IMPROVEMENT NEEDS FROM. YOU'LL SEE SOME DAMAGE ON THE ROOF, ON THE LEFT, AND THEN ON THE RIGHT. YOU'RE GOING TO SEE SOME OF THAT FACADE IMPROVEMENT, A KIND OF BEFORE AND AFTER. SO THE APPLICANT'S REQUEST, LIKE I SAID, IS FOR CRITICAL MAINTENANCE WORK. THERE'S REROOFING AND DRAINAGE NEEDS.
AND THEN ALSO THE HISTORIC FACADE RESTORATION WORK, WHICH IS BRICK AND STUCCO REPAIRS.
THE APPLICATION HAS BEEN SUBMITTED POST WORK, SO THERE AREN'T THREE BIDS. WE ARE PROPOSING A GRANT AWARD OF 25,400 AS FOLLOWS. IT WOULD BE CRITICAL MAINTENANCE OF 9630, AND HISTORIC FACADE IMPROVEMENTS OF 15,770. IT DOES INCLUDE ELIGIBLE WORK AND DOES MEET OUR FUNDING POLICY LIMITS, SO STAFF IS RECOMMENDING APPROVAL AND I WILL STAND FOR ANY QUESTIONS. THANK YOU. OTHER QUESTIONS ANYONE? I DON'T HAVE QUESTIONS OF KASEY, BUT I HAVE COMMENTS. WOULD BE MUCH BETTER IF WE COULD HAVE PRECONSTRUCTION THREE BIDS ON PROJECTS INSTEAD OF POST CONSTRUCTION, BECAUSE THERE'S NO FINANCIAL VERIFIABLE INFORMATION. IF WE JUST HAVE SOMETHING SUBMITTED TO US, IT GIVES US MORE CONFIDENCE TO COVER SOMETHING. AND THEN I ALSO HAD A QUESTION ABOUT, IS THERE GOING TO BE ANY
[00:20:02]
RESTRICTION OF TIME FOR SOMEONE TO COME BEFORE US AND ASK FOR REIMBURSEMENT? SO THOSE ARE MY COMMENTS. SO CURRENTLY THERE IS NO RESTRICTION. AND I THINK THAT'S SOMETHING THAT THIS BOARD SHOULD LITIGATE BECAUSE, YOU KNOW, YOU OPEN UP HISTORY, THEN YOU OPEN UP HISTORY. SO IT'S SOMETHING THAT I AGREE WE NEED TO LITIGATE. AND I'D LOVE TO HEAR THE APPLICANT INDICATE WHY THEY DIDN'T COME TO US DURING THE TIME. MY GUESS IS THEY WEREN'T AWARE OF THE PROGRAM, BUT I'D MUCH RATHER HAVE THIS IN REAL TIME AS WELL. APPLICANT IS HERE IF YOU WOULD LIKE TO SPEAK WITH THEM. THANK YOU. LET'S DO THAT. OKAY. SO THE QUESTION I BELIEVE WAS WHY? NAME AND ADDRESS, SIR. NAME AND ADDRESS. SORRY, KYLE. RANDALL, 409 RICE STREET, MCKINNEY.THANK YOU. THANKS. SO THE QUESTION. YEAH, YOU NAILED IT. WE HAD NO IDEA ABOUT THE THE PROCESS UNTIL AFTER WORK WAS COMPLETE. AND REGARDING THE YOUR COMMENT ABOUT THE THE THREE BIDS AND THINGS, WE RELY ON THE GENERAL CONTRACTOR. WE'RE NOT WE'RE NOT IN CONSTRUCTION. AND SO WE DON'T WE DON'T KNOW WE DON'T HAVE CONTACTS WITH, YOU KNOW, DIFFERENT SUBCONTRACTORS AND THINGS AND FOLKS DOING THE WORK. SO WE RELY ON THE TYPICALLY THE GENERAL CONTRACTOR WILL WE KNOW THEM VERY WELL AND THEY VET THEIR, THEIR SUBS AND ARE ABLE TO TO GET THE BEST COMPETITIVE BID AND THEN KNOW THAT THE QUALITY OF THE WORK WILL BE THERE AS WELL. AND THAT'S WHAT WE RELY ON. IT IS THE WORK ALL COMPLETED NOW? IT IS. YES, SIR.
OKAY. IN OUR PACKET I DIDN'T SEE AND FORGIVE ME IF I MISSED IT. I DIDN'T SEE RECEIPT SHOWING THAT YOU PAID. I SAW INVOICES SAYING THAT YOU WERE BILLED. HAS IT ALL BEEN PAID YET OR NO? BEEN THE GENERAL CONTRACTORS HERE. OKAY. AND HE CAN CAN. SO THE ANSWER ON THAT IS YES. YES, YES, SIR. AND YOU WOULDN'T MIND SUBMITTING THOSE TO US FOR THIS? OKAY. SURE. WE CAN DO THAT. WHEN I RECEIVED A PACKET LAST WEEK, I SCANNED THE QR CODE AND IT SAID THAT HALF OF THE ROOFING HAS NOT BEEN PAID SINCE LAST YEAR AND IT WAS IN ARREARS. AND IT HAD THAT DATE THAT I LOOKED AS CURRENT. YEAH. WHAT WHAT WAS THE DATE ON THAT? IT WAS 1731 BONNER STREET.
WE CHANGED SYSTEMS. IT'S ALL PAID UP. I'M THE CONTRACTOR FOR HOLLIS HOUSE. SO YEAH, I FIGURED THE QR CODE WAS WRONG, BUT THAT'S WHAT IT SAID. YES, SIR. WE CHANGED FROM USING SQUARE TO QUICKBOOKS, SO. BUT IT'S ALL PAID UP. THANK YOU. ANY OTHER QUESTIONS OF THE APPLICANT OR THE CONTRACTOR? NO, NO. I WANT TO MAKE A REMARK THAT I'M GRATEFUL FOR YOU GUYS WORKING BECAUSE THIS IS A HIGH PRIORITY BUILDING DOWNTOWN. SO I'M GLAD YOU'VE DONE THIS. AND DANIEL, YOU LOOK WAY DIFFERENT THAN THE LAST TIME I SAW YOU, SO THANK YOU. IF I KNOW I'VE KNOWN EACH OTHER FOR 20 YEARS OR SO, SO THANK YOU. THANK YOU, THANK YOU. OKAY. WE NEED A MOTION. YEAH, I'LL MAKE A MOTION. WE APPROVE THIS MOTION. MOTION BY COUNCILMAN BELLER TO APPROVE THE APPLICANT REQUEST. AND A SECOND BY MAYOR PRO TEM FELTZ. IS THERE ANY DISCUSSION? MR. CLAUDIA, DID YOU HAVE ANYTHING ELSE TO ADD? NO, SIR. BUT THANK YOU, MR. MAYOR. THANK YOU. PLEASE NOTE THAT HE TURNED DOWN MY TIME. OKAY, OKAY, OKAY. WE HAVE A MOTION TO APPROVE THE APPLICANT REQUEST. AND A SECOND. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? SAME SIGN THAT MOTION CARRIES. SEE, THAT WASN'T AS PAINFUL AS YOU THOUGHT, WAS IT? NEXT ITEM 253285. CONSIDERATION OF A RESOLUTION APPROVING A CHAPTER 380 AGREEMENT WITH THE CITY OF MCKINNEY FOR A CATALYST PROJECT, SUNSET AMPHITHEATER. THIS IS AT 2000 GATEWAY BOULEVARD. MR. ARNOLD, YOU'RE GOING OUT OF ORDER WITH THAT MIGHT BE. YOU WAIT. TWO. FIVE. 328. FOUR. CONSIDER A 380
[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Hugs Café Inc. for the Fire Suppression Project at 221 Andrews Street]
AGREEMENT. SORRY, MY PAGE HAS GOTTEN MIXED UP IN PROJECT PLAN WITH HUGS CAFE FOR FIRE SUPPRESSION AT 221 ANDREW STREET. MR. MAYOR, BEFORE YOU GET STARTED, I HAVE TO RECUSE MYSELF FROM THIS DISCUSSION. I'LL DO THAT. THANK YOU. THANK YOU. I PROMISE I'LL BE BRIEF SO WE CAN GET TO JENNIFER ARNOLD. SO THIS PRESENTATION IS FOR THE HUGS HEADQUARTERS TOURS REQUEST[00:25:01]
THERE AT 221 ANDREW STREET. IF YOU KNOW THE HISTORY OF THE PROPERTY, IT HAS BEEN VACANT SINCE ABOUT THE 90S. HOWEVER, IT IS LOCATED IN THE HISTORICALLY SIGNIFICANT AREA AND THE TOURS PROJECT AREA. IT WILL BE THE FUTURE SITE OF THE HUGS HEADQUARTERS AND CAFE. THE APPLICANT IS REQUESTING FUNDING FOR FIRE SUPPRESSION. THE BID IS LOCATED IN YOUR PACKET. IT TALKS ABOUT FIRE LINE AND FTC UTILITIES, SPECIALTY KITCHEN HOODS AND FIRE SUPPRESSION SYSTEM. THEY ARE REQUESTING AS PART OF THEIR. AS PART OF THEIR REQUEST, THEY'RE ASKING TO NOT PROVIDE A MATCH. SO THEY ARE REQUESTING $147,781.85. STAFF'S RECOMMENDATION IS OF DENIAL OF THE APPLICANT REQUEST, NOT BECAUSE IT DOES INCLUDE ELIGIBLE WORK. HOWEVER, IT DOES NOT MEET OUR FUNDING POLICY REQUIREMENTS. STAFF'S RECOMMENDATION INSTEAD WOULD BE TO MEET THE FUNDING REQUIREMENTS OF THE 50 OVER 50 MATCH, WHICH WOULD BE SEVEN $73,890.93. THAT WOULD BE UNDER FUNDING LIMITS AGAIN AND WOULD MEET THE MATCH REQUIREMENT. THE APPLICANT IS HERE TO ANSWER ANY QUESTIONS AS WELL, AND I'LL STAND FOR QUESTIONS. ANYONE? QUESTIONS? CASEY. THANK YOU SIR. YOU SAID OUR APPLICANT IS HERE. SHE IS. LAUREN, DO YOU HAVE QUESTIONS OF THE APPLICANT? ANYONE? YES, PLEASE. OKAY. HI. HELLO. OKAY. LAUREN SMITH, RESIDENT OF 510 A SOUTH KENTUCKY STREET. ALSO EXECUTIVE DIRECTOR AT HUGS CAFE, INC.THANK YOU. HAPPY TO ANSWER QUESTIONS. THANK YOU. I LOVE THE ORGANIZATION. I THINK ALL OF US LOVE THE ORGANIZATION UP HERE. WE TRY TO DO EVERYTHING THAT WE CAN TO SUPPORT HUGS AND YOUR MISSION. I APPRECIATE THAT YOU GIVE MEANINGFUL EMPLOYMENT TO ADULTS WITH INTELLECTUAL DISABILITIES, WHERE OTHERWISE THEY WOULD NOT BE CONTRIBUTING MEMBERS OF OUR COMMUNITY THE WAY THEY ARE. AND, YOU KNOW, OBVIOUSLY GIVING BACK IN A LOT OF WAYS. CAN YOU TELL ME WHAT THE TOTAL PROJECT COST IS? YES. THE ENTIRE PROJECT IS A $10 MILLION BUILD, INCLUDING OUR F.F.A, WHICH INCLUDES SOME OF THE KITCHEN EQUIPMENT NEEDED FOR THE PROJECT, WITH IT BEING A RESTAURANT AND TRAINING KITCHEN. AND YOU'RE A NONPROFIT ORGANIZATION, CORRECT? YES. WE WILL HAVE SALES TAX REVENUE OF ABOUT $750,000 A YEAR ANNUALLY FROM OUR CAFE, AND WE ARE CONTINUING TO BUILD OUT OUR CLASSROOMS AND OUR TRAINING AND LICENSING, WHICH WILL ADD TO OUR PROGRAM REVENUE. YOU STOLE MY NEXT QUESTION. THANK YOU. THANK YOU FOR ANSWERING THAT.
HOW MUCH OF THE $10 MILLION HAVE YOU RAISED FROM PHILANTHROPIC CONTRIBUTIONS SO FAR? WE'VE RAISED 7 MILLION FROM PHILANTHROPY. WE ARE SEEKING A NEW MARKETS TAX CREDIT OF $2 MILLION, WHICH LEAVES US ABOUT $1 MILLION LEFT IN FUNDING FOR THE ENTIRE PROJECT. OKAY. ALL RIGHT. THAT'S THAT WAS WHAT YOU DID GET SOME FUNDING AS WELL FROM THE CDC, CORRECT? YES. WE DID RECEIVE $970,000 FROM THE MCKINNEY COMMUNITY DEVELOPMENT CORPORATION. THAT ROUGHLY REPRESENTED ABOUT 80% OF OUR HORIZONTAL INFRASTRUCTURE. WE HAVE HAD TO MAKE SOME ADJUSTMENTS BECAUSE WE ARE ADJACENT TO THE MCKINNEY TOWN CENTER TO UPDATE OUR ESTHETICS TO MEET DESIGN. AND SO THOSE ARE SOME INCREASED COSTS THAT WE'RE ASKING TO BE CONSIDERED IN THE TOTALITY OF THE PROJECT WITH OUR REQUEST TODAY, WE ALSO THINK HUGS IS THE JEWEL OF DOWNTOWN. SO YES, I AGREE I AGREE. THANK YOU. ALL RIGHT. SO JUST FOR CLARIFICATION, THE CDC IS ONLY THE HORIZONTAL HAS NOTHING TO DO WITH THE FIRE SUPPRESSION SYSTEM THAT YOU'RE REQUESTING FUNDING FOR TODAY, CORRECT? CORRECT. OKAY. THANK YOU. I JUST WANTED TO PROVIDE HOW MUCH OF THE AND THIS MAY BE A QUESTION FOR CITY. WERE YOU HAVING TO GO OUT INTO THE STREET TO IMPROVE THE WATER LINES OR ANYTHING IN FRONT OF THE BUILDING? HOW MUCH OFFSITE COST DID YOU HAVE? I'D BE HAPPY TO REFER TO THE BUDGET TO CONFIRM THAT, BUT WE DID HAVE SUBSTANTIAL WORK THAT WE HAD TO DO IN BOTH WATER AND SEWAGE FOR THE BUILDING. I'M HAPPY TO GO BACK INTO MY MY PHONE AND GET THAT NUMBER FOR YOU. YEAH, I'D LIKE TO KNOW. OKAY. STAND BY. WE'RE TALKING ABOUT HELPING OTHER PEOPLE AND PICKING UP THAT WHOLE COST ON THESE FIRE SUPPRESSION SYSTEMS. OKAY? I HAVE TO KEEP BENDING DOWN. OKAY.
SO IN THE PROPOSAL HERE FOR THE 147 THAT WE ARE ASKING FOR, 34,000 OF THAT REPRESENTS SITE UTILITY COSTS, BRINGING IT INTO THE BUILDING AND ONTO THE PROPERTY ITSELF. SO THAT'S WHAT PART OF THIS REQUEST WOULD REPRESENT. I WOULD ALSO SITE THE FLOUR MILL AS A SITE WHERE
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ADDITIONAL CONSIDERATION WAS MADE TO GO AGAINST PRECEDENT HERE. OKAY. THANK YOU. WE ALSO WENT AGAINST PRECEDENT FOR HARVEST 2.0 OVER THERE, WHEN THERE WAS SOME INFRASTRUCTURE THAT WAS PROVIDED FOR THAT BLOCK THAT DID BENEFIT THE ENTIRE BLOCK. SO, I MEAN, I ASK ALL OF THESE QUESTIONS BECAUSE I UNDERSTAND THAT YOU'RE ASKING SOMETHING THAT WE NORMALLY WOULD NOT DO. BUT I ALSO UNDERSTAND THAT YOUR CIRCUMSTANCES ARE UNIQUE COMPARATIVELY. SO I'M ACTUALLY IN FAVOR OF SUPPORTING THE FULL ASK OF THE 147. SO JUST WANTED TO MAKE THAT CLEAR. I WILL SAY, WITH ALL DUE RESPECT, I AM. IT IS SO HARD TO BE DISCIPLINED SOMETIMES AND MY DISCIPLINE IS IS TO GET FIRE SUPPRESSION IN THE BUILDINGS THAT WERE BUILT BEFORE IT WAS MANDATORY. AND THAT IS NOT THIS BUILDING. THIS IS A NEW BUILDING. AND AS MUCH AS IT PAINS ME TO DO IT PERSONALLY AS A FIDUCIARY, THIS BOARD, I HAVE TO SAY NO TO THIS REQUEST. BUT MAN, I LOVE YOU GUYS. AND IT'S HARD. IT'S IF I CAN SAY NO TO YOU, I'M WARNING THE GENERAL POPULATION, I CAN SAY NO TO ANYBODY. I'M IN FAVOR OF THE ENTIRE AMOUNT. OKAY.QUESTION. YOU MENTIONED $10 MILLION. WAS THE NUMBER ALL IN? IS THAT DAY ONE OR IS THAT PHASED IN OVER A NUMBER OF YEARS? THAT'S DAY ONE. THERE'S NO OPERATIONAL COSTS OR ANYTHING CONSIDERED IN THAT $10 MILLION FIGURE. YEP. OKAY. THANK YOU. YES, SIR. I HAVE A IT'S NOT REALLY A QUESTION OF HER. I JUST HAVE A COMMENT. I'M HAVING A HARD TIME WANTING TO FUND FIRE SUPPRESSION BEFORE OUR STUDY COMES IN. IS THERE ANYBODY CAN SAY ANYTHING ABOUT THAT? I FEEL MORE COMFORTABLE. THE DOWNTOWN SQUARE AREA THAT WE WERE FOCUSING ON, I DIDN'T KNOW HOW BIG THE STUDY IS GOING TO GO. WELL, IT WAS ON THE MAP, AND I DON'T THINK YOU'LL SEE THIS ON THE MAP. AND IT'S GOING TO BE OUR MTC FIRST, THE DOWNTOWN AREA, THAT IS THE PRIORITY THAT WAS IN THE ORANGE. THIS CERTAINLY FALLS OUTSIDE THE ORANGE, BUT WE HAVE A HISTORY OF FUNDING FIRE SUPPRESSION. AND I THINK BARRY SAID IT, AND I'M GOING TO USE THIS EXAMPLE WHERE I'M VERY WELL AWARE OF IT, WHERE THERE WAS NOT A RESTAURANT AND NOW YOU'RE PUTTING ONE IN SO THAT USE MANDATES IT. AND HARVEST IS A GREAT EXAMPLE OF THAT. THANK YOU, THANK YOU. ANYONE ELSE. SO YOU'D MENTIONED 10 MILLION. I'M LOOKING BACK THROUGH THE THE PRESENTATION THAT'S ATTACHED. AND I SEE JUST FOR THE FIRST IMPRESSION IT'S $74,000. SO WHAT'S THE THAT WAS THE HALF OF THE FIRE SUPPRESSION. OH THE HALF OF THE FIRE SUPPRESSION.
CORRECT. WHAT WHAT THE 10 MILLION NUMBER IS THAT THE SUM OF EVERYTHING THAT THE CITY HAS TOTAL BILLED FOR THE FOR THE PROJECT, THE TOTAL BILL, INCLUDING F AND E, OKAY. YEAH.
I'M IN FAVOR OF SUPPORTING FOR THE FIRE SUPPRESSION JUST BECAUSE IT'S THE SAME THING THAT WE'VE BEEN SUPPORTING ON EVERYONE ELSE. IT WOULD BE TREATED EQUALLY AND THERE MAY BE OTHER CONTRIBUTIONS THE CITY HAS MADE SEPARATELY THROUGH THE, YOU KNOW, CDC. BUT THAT'S A SEPARATE BOARD, SEPARATE PURPOSE. KATHY, CAN I ASK YOU A QUESTION ABOUT LIKE THE IN TERMS OF THE TRS POLICY REGARDING THINGS LIKE THIS, LIKE IN MY MIND, WE'RE TRYING TO ENCOURAGE INVESTMENT IN DOWNTOWN AND TRS TRIES TO OVERCOME SOME OF THOSE BARRIERS TO INVESTMENT IN DOWNTOWN. SO FOR LIKE HISTORIC FACADE AND CRITICAL MAINTENANCE, WE WANT THE DOWNTOWN TO CONTINUE TO LOOK LIKE IT DOES. AND SO WE WE KIND OF HELP WITH THAT. AND IN THE FIRE SUPPRESSION, WE WANT TO OVERCOME THE COST OF RETROFITTING THAT, PUTTING IT INTO NEW PROPERTIES, THOUGH, THAT DON'T HAVE OBSTACLES IN FRONT OF THEM, OUTSIDE OF JUST IT'S A COST. LIKE THERE'S NOTHING ABOUT THIS PROPERTY THAT MAKES IT UNIQUE OR UNIQUELY DIFFICULT TO INVEST IN. AND IN TERMS OF THE CITY'S EFFORTS, WE'VE IMPROVED GREEN AND ANDREWS IN THIS AREA THAT THAT LARGELY IMPROVES ALREADY THE WATER LINES AND THE SEWER LINES THAT WOULD EXIST, THAT IF THEY WERE DOING THIS TWO YEARS AGO, THEY'D CARRY THAT COST AS WELL, I GUESS. HOW DOES THIS FIT INTO OUR PROGRAM? YOU SAID THE PROGRAM WOULD WOULD RECOMMEND IT IF IT MET THE 5050 MATCH. BUT IN TERMS OF LIKE, WHAT BARRIER ARE WE OVERCOMING? IF THIS WAS A FOR PROFIT THAT IS LOOKING TO DEVELOP THE SAME PROPERTY NEXT DOOR? YEAH. SO IT WOULD FIT BECAUSE IT'S FOR THE REINVESTMENT OF THIS AREA. SO ANYONE WHO FALLS WITHIN THE PROJECT BOUNDARY CAN REQUEST MONEY TO COME BACK INTO THEIR PROPERTY OR THEIR PROJECT. SO WILDFIRE SUPPRESSION, I CAN UNDERSTAND DOWNTOWN CAN BE A PRIORITY. ANY PROPERTY COULD REQUEST FOR FIRE SUPPRESSION, EVEN IF THERE'S NOT A BARRIER TO THAT DELIVERY OF OF. I GUESS,
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SERVICE, SO TO SPEAK. THERE'S THERE'S NOTHING ABOUT THIS PROPERTY THAT MAKES IT UNIQUE THAT WE HAVE TO RETROFIT OR, YOU KNOW, IT'S HARD TO GET TO BECAUSE THERE'S A, YOU KNOW, SOMETHING ELSE UNIQUE ABOUT THE THE OLDNESS OF THE PROPERTY. YEAH. SO THEY CAN STILL APPLY FOR IT, BUT THEN IT'S UP TO THE BOARD TO DECIDE WHETHER THEY WANT TO ACTUALLY AWARD THE FUNDING. SO WHAT WOULD STOP SOMEBODY LIKE VENUE COMING IN AND ASKING FOR US TO FUND THEIR 50% OF THEIR FIRE SUPPRESSION IN THE NEW DEVELOPMENT, OR SHERATON OR SOMEBODY LIKE THAT? I MEAN, WHEN THEY WHEN THEY WERE BUILT CURRENTLY, AS FAR AS I'M AWARE, THERE ISN'T ANYTHING THAT WOULD INHERENTLY STOP THEM FROM ASKING FOR THAT. OKAY. I MEAN, I, I TEND TO AGREE WITH PATRICK. I LOVE YOU GUYS. I THINK YOU'RE FANTASTIC. I, I, I SEE THE TOURS AS HAVING A PURPOSE OF OVERCOMING BARRIERS. AND I DON'T KNOW HOW THIS DOES THAT. YOU KNOW, I WOULD ALMOST PREFER TO GO BACK TO THE CDC AND ASK FOR THEIR FIRE SUPPRESSION ASSISTANCE THAN IT COME OUT OF THE TOURISTS, BECAUSE THIS IS PROPERTY TAX MONEY THAT WE DO HAVE EARMARKED FOR, YOU KNOW, THE DELIVERY OF CITY SERVICE. AND SO IF I GUESS IF WE'RE NOT OVERCOMING SOME OBSTACLE HERE AND IT'S JUST A BENEVOLENT, YOU KNOW, BECAUSE WE WE WANT Y'ALL HERE, THEN I HAVE A HARD TIME WITH THIS COMING OUT OF THIS FUNDING. SO. LAUREN, DO YOU KNOW IF BY CHANCE YOU APPLIED AT CDC? CDC. YES, SIR. WE DID APPLY AND RECEIVED $970,000, WHICH WAS 80% OF OUR HORIZONTAL INFRASTRUCTURE. THAT DOES NOT INCLUDE THE FIRE SUPPRESSION AND THE FIRE HOOD SYSTEMS. THEY BASICALLY BUILD TO THE DIRT. AND THAT'S IT. ONCE WE START TO GO VERTICAL, THAT'S NOT IN THEIR TYPICAL FUNDING STRUCTURE, WHICH IS WHY THOSE THESE FUNDS FOR THE TOURIST BOARD WERE ALLOCATED HERE. AND WE WERE NOT ABLE TO GO TO CDC FOR THOSE PARTICULAR FUNDS. OKAY. THANK YOU. I WOULD TEND TO AGREE THAT, YOU KNOW, IT'S YOU KNOW, YOU TALKED ABOUT, YOU KNOW, WHAT WOULD KEEP VENUE OR ANYONE FROM COMING IN AND ASKING FOR FIRE SUPPRESSION OR ADDITIONAL DOLLARS FOR BASICALLY WHAT AMOUNTS TO NEW BUILD PROJECTS.BUT, YOU KNOW, THERE'S BEEN OTHER PROJECTS THAT HAVE BEEN DONE THAT ARE COMPARABLE, WHERE TAKE FACADES, FOR INSTANCE, EXISTING BUSINESSES. THE BUSINESS DOESN'T IS ONGOING, AND WE'RE SUPPORTING THEIR FACADE. IT'S NOT SOMETHING THAT HAS TO BE DONE, BUT WE'RE SUPPORTING THAT AS WELL. SO THERE'S OTHER INSTANCES WHERE IT MAKES US LOOK A LITTLE SCHIZOPHRENIC, WHERE WE WOULD APPROVE SOMETHING ON ONE AND NOT ON ANOTHER, YOU KNOW, FOR THAT MATTER, IF WE APPROVE THIS, THEN WE SHOULD LOOK AT APPROVING SOMETHING FOR VENUE AS WELL, OR ANYONE ELSE THAT'S DOING A NEW BUILD TYPE APPLICATION. THAT'S IF IF THAT'S AN ISSUE, I THINK THE, THE PROJECT DEFINITION AND WHAT CONSTITUTES A VALID APPLICATION NEEDS TO BE RELOOKED AND NARROWED DOWN SOME. SO WE DON'T RUN INTO THESE SITUATIONS. AND THAT WAY WE'RE NOT SCHIZOPHRENIC. THAT WAY WE'RE ACTUALLY FOLLOWING A VERY FINELY DELINEATED SET OF RULES THAT WE'RE ESTABLISHING FOR OURSELVES. MAY I MAKE A COMMENT TO THAT? SO ONE OF THE REASONS WHY WE WERE SEEKING THIS PARTICULAR FUNDING IS BECAUSE SEVERAL TIMES, THE CITY OF MCKINNEY HAD US DEFINE THE EXTERIOR OF OUR BUILDING TO MEET MCKINNEY TOWN CENTER ESTHETIC, WHICH IS NOT SOMETHING THAT SOME OF THESE OTHER PEOPLE THAT YOU'RE ASKING ARE EVER GOING TO BE ASKED TO DO. WE ARE HALF A BLOCK AWAY FROM THE TOWN CENTER BECAUSE TUFTS WAS ADOPTED INTO THAT TOWN CENTER, AND WE WERE NOT LARGELY SO WE WOULD HAVE TO BUILD OUT OUR BUILDING TO BE PARKED CORRECTLY TO SQUARE FOOTAGE. SO WE HAVE SOMEWHAT BEEN TREATED SUBJECTIVELY AS TO WHETHER OR NOT WE MEET TOWN CENTER EXPECTATIONS. AND WHEN THE CITY HAS CHOSEN TO, WE HAVE ACQUIESCED EVEN TO OUR OWN EXPENSE. SO WE ARE ASKING FOR THAT GREATNESS TO BE HONORED HERE WITH AN APPROVAL IN AN AREA WHERE CDC HAS DONE SOMETHING, AND WE'RE ASKING OTHERS TO DO THE SAME BECAUSE THE CITY HAS ASKED US TO MEET TOWN CENTER REGULATIONS ON MULTIPLE OCCASIONS. AND I WOULD TEND TO AGREE WITH YOU THAT, YOU KNOW, UNLESS THERE'S SOMETHING MAGICAL ABOUT HISTORICAL REGULATIONS OR YOU KNOW, WHAT THE TOWN CENTER REGULATIONS ARE, I THOUGHT THAT WHENEVER YOU DO NEW BUILDS NOW WITH UNDER CURRENT STATE LAW, THAT YOU CAN'T REALLY DEFINE, ENFORCE UPON A NEW BUILD THE MATERIALS, IF THEY'RE SUBJECT ALREADY TO NATIONAL STANDARDS AND APPROVALS. JENNIFER, CAN YOU SPEAK TO THAT, PLEASE? DEVELOPER AGREEMENT. THANK YOU.
JENNIFER ARNOLD ASSISTANT CITY MANAGER YOU ARE CORRECT, LARGELY WITH THE STATE LAW.
HOWEVER, THERE IS A CARVE OUT FOR HISTORIC DISTRICTS, AND THIS PROPERTY IS WITHIN OUR
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HISTORICALLY SIGNIFICANT AREA. SO WOULD BE SUBJECT TO THAT AS PART OF THE REZONING PROCESS FOR THE HUGS DEVELOPMENT, THE INTEGRATION OF COMPATIBLE VERTICAL AND ARCHITECTURAL FEATURES WERE INCLUDED BECAUSE IT IS DIRECTLY OUTSIDE OF THE ZONING. AND IF I COULD, SINCE I'VE GOT THE MIC, I DID WANT TO RESPOND A LITTLE BIT TO SOME OF THE COMMENTS FROM COUNCILMAN BELLER, AS RELATES TO THE TYPES OF PROJECTS THAT WOULD BE ELIGIBLE FOR FIRE SUPPRESSION.YOU ARE ABSOLUTELY CORRECT THAT ONE OF THE KEY TENETS OF THE TOURS IS TO HELP REMOVE BARRIERS, BUT IT IS ALSO TO SUPPORT REINVESTMENT AND REVITALIZATION OF THE ENTIRE TOURS. IT IS ENTIRELY WITHIN THE BOARD'S DISCRETION TO DECIDE WHICH PROJECTS THEY WANT TO ALLOCATE FUNDING TO. SO MY RECOMMENDATION IS TO CONTINUE TO ALLOW THE CATEGORIES TO BE SOMEWHAT BROAD. BUT THESE TYPES OF DISCUSSIONS AND THE MERITS OF A PROJECT WILL HELP US TO FOCUS IN IF THERE ARE CHANGES THAT NEED TO BE MADE FOR NEW CONSTRUCTION PROJECTS VERSUS REHABILITATION PROJECTS. BUT AS A PROPERTY WITHIN THE TOURS AND THE FOCUS OF THAT TOURS BEING REVITALIZATION REINVESTMENT, THE PROJECT PLAN CASTS A PRETTY WIDE NET. THANK YOU. WE'RE ALSO TALKING ABOUT A5013C VENUE IS NOT A5013C SHERATON'S NOT A5013C. SO YOU COULD DELINEATE THAT BY JUST THAT. SHE'S A5013C. YEAH, AGAIN, I'M SUPPORTIVE OF IT. I WAS JUST BRINGING UP SOME DIFFERENT POINTS. I'M SUPPORTIVE OF IT. CAN I MAKE A MOTION THAT WE APPROVE THIS ITEM I'LL MOVE FOR APPROVAL OKAY. THANK YOU. THANKS, LAUREN. SO I JUST I WANTED TO MAKE THE MOTION THAT WE APPROVE THIS ITEM. I THINK, DARYL, FOR THE FULL. OH, I'M SORRY. I MOVED FOR APPROVAL FIRST. SO YOU CAN SECOND, FOR THE FULL AMOUNT, WE HAVE A MOTION BY COMMISSIONER HALE TO APPROVE THE ITEM PER APPLICANT REQUEST. LET'S MAKE THAT CLEAR. SO WE HAVE TWO NUMBERS. THE APPLICANT IS ASKING FOR 147,000 AND THE STAFF IS RECOMMENDING 70. I WOULD DO THE MATCH AS WE'VE DONE WITH OTHERS. SO IT WOULD BE CONSISTENT WITH WHAT WE'VE DONE IN THE PAST. OKAY. SO YOUR MOTION IS TO APPROVE THE 73,000, CORRECT. FOR STAFF RECOMMENDATION. YES, SIR. WE'LL WITHDRAW THAT SECOND. YES. BECAUSE I WANT TO FUND THE FULL AMOUNT, THE 147. OKAY. SO WE HAVE A MOTION ON THE FLOOR BY COMMISSIONER HALE TO APPROVE THE APPLICATION FOR STAFF RECOMMENDATION. DO WE HAVE A SECOND? ALL RIGHT. THAT MOTION DIES FOR LACK OF A SECOND. DO WE HAVE ANOTHER MOTION? YES. I WOULD LIKE TO MAKE A MOTION THAT WE APPROVE THE ENTIRE ASK AMOUNT OF 147,000, BLAH, BLAH, BLAH. I'LL SECOND THE MOTION, BLAH, BLAH BLAH. IS THAT A TECHNICAL TERM? YES IT IS. WE HAVE A MOTION BY MAYOR PRO TEM FELTUS TO APPROVE THE ITEM FOR APPLICANT REQUEST OF THE 147,781.85 AND A SECOND BY COUNCILMAN FRANKLIN. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR, RAISE YOUR HAND. ALL THOSE OPPOSED? SAME SIGN. AYE. OPPOSED. SAME SIGN YOU WANT AND WHAT YOU NEED. ON THOSE? NO.
THAT'S INTERESTING. HAPPY TO MAKE A MOTION AGAIN. MOVE, MOVE FOR APPROVAL AGAIN WITH THE STAFF. RECOMMENDED AMOUNT FOR FOUR. WELL, THAT DOESN'T WORK, DOES IT? NO. OKAY, COMMISSIONER, MOVE FOR APPROVAL. AT THE STAFF RECOMMENDATION LEVEL, WE HAVE A MOTION BY COMMISSIONER HALE TO APPROVE THE ITEM AS PER STAFF RECOMMENDATION AT 73,000. I'M GOING TO MAKE A SECOND ON THAT ONE, AND I'M GOING TO CALL A SMALL AUDIBLE. LAUREN, YOU SOLD ME ON WHAT THE CITY IS REQUIRING FROM YOU. AND I THINK THAT IS A HARDSHIP. SO I'M AMIABLE TO THIS ONE. SO I'LL SECOND THAT MOTION. ALL RIGHT. SO THE MOTION BY COMMISSIONER HALE IS TO APPROVE THE ITEM. AS FOR STAFF RECOMMENDATION AT 73, WE HAVE A SECOND BY COUNCILMAN. A FOR THAT MOTION. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR, RAISE YOUR HAND. ALL THOSE OPPOSED, SAME SIGN. I SPLIT IT AGAIN. NO. OKAY. NAYS. HANDS HIGH. NAYS. ARE YOU MISSING? NO. OKAY. THAT MOTION PASSES BY A
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VOTE OF FIVE IN FAVOR, THREE AGAINST AND ONE ABSTAIN. ANY CLOSING COMMENTS BEFORE WE MOVE ON? THANK YOU FOR EVERYTHING. YOU DO APPRECIATE YOU ALL. OKAY. NEXT ITEM 253285. CONSIDER A[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Implementation Agreement with the City of McKinney for a Catalyst Project (Sunset Amphitheatre) Located at 2000 Gateway Boulevard]
RESOLUTION APPROVING A 380 AGREEMENT AND PROJECT IMPLEMENTATION FOR THE CITY OF MCKINNEY FOR A CATALYST PROJECT. THIS IS THE SUNSET AMPHITHEATER, 2000 GATEWAY BOULEVARD. THANK YOU, MR. MAYOR. TOURIST BOARD JENNIFER ARNOLD AGAIN, ASSISTANT CITY MANAGER. AND THIS IS A PROJECT REQUEST ON BEHALF OF THE CITY AS PART OF THE OVERALL PUBLIC PRIVATE PARTNERSHIP THAT WE HAVE WITH A SUNSET AMPHITHEATER. ONE DISTINCTION I WANT TO MAKE BEFORE I LAUNCH INTO THE PRESENTATION IS THE PROJECT CATEGORY THAT WE ARE TALKING ABOUT WITH THIS APPLICATION IS DIFFERENT THAN ONES YOU ARE USED TO SEEING. SO EVEN THE PRIOR ONE WITH HUGS AND THE ONE FOLLOWING THAT IS FALLING UNDER THE VACANT AND UNDERUTILIZED PROJECT CATEGORY OF THE TOURIST PROJECT PLAN, WHEREAS THIS IS FALLING UNDER THE CATALYST PROJECT CATEGORY OF THE TOURIST PROJECT PLAN, AND THEY HAVE SIMILARITIES ACROSS THEM. BUT THERE ARE ALSO A SOMEWHAT DIFFERENT. UNDER THAT CATALYST PROJECT CATEGORY, WE ARE ABLE TO LOOK AT ECONOMIC DEVELOPMENT PROJECTS THAT DON'T HAVE THE FUNDING CAPS THAT WE WERE JUST TALKING ABOUT WITH THAT PREVIOUS APPLICATION, SO I WANTED TO MAKE THAT KNOWN FOR THE RECORD BEFORE WE LAUNCHED INTO THIS. SO WITH THAT, MANY OF YOU ALREADY KNOW WHAT THAT VENUE, SUNSET AMPHITHEATER PROJECT IS. IT IS A MASTER PUBLIC PRIVATE AGREEMENT WITH THE CITY, OUR ECONOMIC DEVELOPMENT CORPORATION AND OUR COMMUNITY DEVELOPMENT CORPORATION. OVERALL, THE PROJECT IS EXPECTED TO BRING A 20,000 SEAT AMPHITHEATER TO THE CITY WITHIN THE TOURIST BOUNDARY, 5000 PARKING SPACES, YEAR ROUND PERFORMANCES AND A NUMBER OF TRIGGERS AND THRESHOLDS THAT ARE BUILT INTO AN EXISTING 380 AGREEMENT BETWEEN THESE THREE ENTITIES AND THE PRIVATE DEVELOPER AND OPERATOR. SO AS PART OF THAT MASTER VENUE AGREEMENT, THERE ARE CERTAIN FINANCIAL OBLIGATIONS THAT THE CITY IS PART OF IN THAT AGREEMENT. AS PART OF THOSE FINANCIAL OBLIGATIONS. WHEN THE ORIGINAL AGREEMENT WAS DISCUSSED, IT WAS ALWAYS CONTEMPLATED THAT THE TOURS WOULD PROVIDE SOME FORM OF FUNDING TO SUPPORT THE CITY'S RESPONSIBILITY IN THAT AGREEMENT, NOT ALL OF THE CITY'S RESPONSIBILITY, BUT SOME OF THE CITY'S RESPONSIBILITY. AND SO BEFORE YOU TONIGHT, THE TOURS REQUEST IS A TOTAL AMOUNT TO ALLOW FOR THE COVERAGE OF CITY IMPACT FEE DOLLARS IN THE AMOUNT OF $3 MILLION, $6.5 MILLION OF OFF SITE QUALIFIED ROADWAY AND TRAFFIC INFRASTRUCTURE AND UP TO 30 $30.6 MILLION OF WHAT WE WOULD CONSIDER PASS THROUGH TOURIST FUNDS ON THE PROPERTY. AND WHAT THAT MEANS IS OVER THE COURSE OF 16 YEARS, IS THAT RIGHT? 16 YEARS ON THIS PIECE OF PROPERTY, ANY REVENUES THAT ARE GENERATED ON THAT PIECE OF PROPERTY, A PORTION OF THEM, INSTEAD OF GOING INTO THE TOURIST FUND, WOULD GO BACK TO PAY VENUE. AND WHAT THIS DOES IS IT HELPS TO DRAW DOWN ON SOME OF THE OBLIGATIONS THAT THE CITY WOULD OTHERWISE HAVE TO FOOT THE BILL FOR. SO IT'S ALLOWING THE TAXES GENERATED ON THIS PROPERTY AT A CERTAIN PERCENTAGE TO BE USED TO PAY BACK THE CITY'S OBLIGATION. AND SO, AS PART OF THE REQUEST, OF COURSE, THE MASTER AGREEMENT HAS ALREADY LOOKED AT THE ANTICIPATED ECONOMIC IMPACTS OF THE PROJECT, THE LOCAL IMPACT AND OUR ECONOMY, AND OF COURSE, JOBS, BOTH DIRECT AND INDIRECT. SO I DO WANT TO MAKE SURE, JUST FOR CLARITY'S SAKE, THIS PARTICULAR AGREEMENT IS NOT WITH THE VENUE, SUNSET AMPHITHEATER, FOLKS. IT IS AN AGREEMENT BETWEEN THE TOURIST BOARD AND THE CITY OF MCKINNEY TO BE ABLE TO ALLOCATE TOURIST DOLLARS TO FUND THIS PORTION OF THE PROJECT. STAFF IS RECOMMENDING APPROVAL. I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE, AND I'VE GOT OUR LEGAL COUNSEL BEHIND ME AS WELL. THANK YOU, MISS ARNOLD.ARE THERE QUESTIONS? YES. WHAT WHAT IS THE IMPACT OF THE DOJ AND THE FEDERAL TRADE COMMISSION LAWSUITS ON WHAT MIGHT HAPPEN TO THIS PROJECT? WELL, WE THAT'S A GREAT QUESTION. WE SPENT A LOT OF TIME TALKING WITH THEM ABOUT THAT. IT HAS DEFINITELY IMPACTED SOME OF THE DISCUSSIONS THEY'VE HAD ON THE OPERATOR. AS OF RIGHT NOW, VENUE AND SUNSET AMPHITHEATER WOULD BE A SELF SELF-OPERATING, BUT THEY ARE STILL VERY MUCH IN DISCUSSIONS WITH OTHER POTENTIAL OPERATORS, AND THEY ARE ALSO KIND OF WAITING TO SEE WHAT'S HAPPENING AT THAT, THAT LAWSUIT LEVEL, FOR HOW THEY MIGHT BE ABLE TO PARTNER WITH
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OTHER POTENTIAL PROVIDERS. I DON'T KNOW IF YOU HAVE ANYTHING ELSE TO ADD ON THAT MARK. I MEAN, I'VE HEARD THAT THE THE CASE IS GOING TO BE HEARD HEARING, YOU KNOW, EARLY THIS NEXT YEAR. I MEAN, IS THERE ANYTHING THAT'S DRIVING I MEAN, WHAT'S THE TIMELINE OF WHEN THIS HAS TO BE APPROVED? MISTER HALE, MARK, OUR CITY ATTORNEY, NONE OF THAT AFFECTS THE TIMELINE OF THIS. THIS HAS ALWAYS BEEN AN ANTICIPATED FUNDING SOURCE FOR THE PROJECT.AND AS JENNIFER SAID, IT'S KIND OF A FUNDING ITSELF PROGRAM EXCEPT FOR THE EARLY YEARS, THE.
THE PROGRAMING IS SUPPOSED TO BE STARTING NEXT YEAR. WE'RE HERE, WE'RE HEARING FROM VENUE, AND AS YOU MENTIONED, THE LAWSUIT MAY OR MAY NOT BE RESOLVED BY THEN, BUT THEY ARE CONFIDENT THAT THEY CAN OPERATE THIS VENUE AS WELL AS ANYONE. AND THAT'S THE REASON THAT IT'S NOT AFFECTING MR. HAUSER ALONG THOSE LINES. CORRECT ME WHERE I'M WRONG ON THIS. WE HAVE SOME THINGS WE'RE DOING WITH RESPECT TO INFRASTRUCTURE ON THIS THING, AND ULTIMATELY THEY ARE BUILDING THE REST OF IT. AND ULTIMATELY, WHEN THEY GET THEIR CERTIFICATE OF OCCUPANCY, THEY WILL BE ENTITLED TO HOLD THEIR SHOWS AND THEY WILL BE ENTITLED TO US DEEDING OVER ESSENTIALLY THE LAND AT THAT POINT AND RELIEVING THEM OF SOME LIENS, ESSENTIALLY, THAT WE HAVE AGAINST IT. THE INCENTIVES BEYOND THAT ARE ALL PERFORMANCE BASED. AND SO IF THEY AREN'T IN THE BUSINESS OF DOING SHOWS, THEY AREN'T GETTING ANYTHING. AND WE'VE GOT A COUPLE HUNDRED TO $300 MILLION TAXABLE ASSET SITTING IN HERE FOR THE TOURS. SO IT'S HARD TO SEE WHAT THE LITIGATION OF THIS LAWSUIT IS GOING TO BE. IT'S HARDER TO SEE THAT THERE WON'T BE ANY CONCERTS. AND BUT ULTIMATELY THEY HAVE EVERY INCENTIVE TO HAVE THOSE CONCERTS IN ORDER TO QUALIFY FOR A, MAKING MONEY AS A BUSINESS BUT BE QUALIFYING FOR INCENTIVES IS AM I WRONG? YOU'RE NOT WRONG, SIR. THERE'S A MINIMUM REQUIREMENT FOR SHOWS. THERE'S ALL KINDS OF OTHER TRIGGERS THAT RELATE TO THE CITY'S OBLIGATION TO REPAY INCENTIVES. AND THE LITIGATION IS TICKETMASTER AND LIVE NATION, AND THERE ARE OTHER OPERATORS IN THE COUNTRY THAT OBVIOUSLY BOOK ACTS AT THE SAME EXTENT AS LIVE NATION. THANK YOU. I HAVE ANOTHER QUESTION. THIS IS AS MUCH FOR THE THE CITY COUNCIL PERSONS AS ANYBODY IS. IS MCKINNEY READY TO HANDLE THE 700,000 PEOPLE THAT THEY'RE PROJECTING TO BE A PART OF THIS? BECAUSE, YOU KNOW, FROM WHAT I COULD LOOK UP, WE ALREADY ONLY HAVE LIKE 150,000 VISITORS A YEAR, AND 700,000 IS LIKE 1.7 TIMES THAT. SO IT'S ORDERS OF MAGNITUDE. AND YOU KNOW, WHAT I HEAR FROM CONSTITUENTS ARE, YOU KNOW, TRAFFIC AND NOISE CONCERNS, VENUES DONE SOME TO, YOU KNOW, DEAL WITH THE NOISE CONCERNS WITH SOME DIFFERENT RECONFIGURATIONS AND, AND WALLS AND THINGS LIKE THAT. BUT I MEAN, JUST THE VOLUME OF TRAFFIC. AND WE ALREADY HAVE SPUR 399 WORK GOING ON. SO THERE'S ALREADY GOING TO BE WORK GOING ON. YOU WERE NOT WRONG. OUR ENGINEERING TEAM IS ACTUALLY MEETING WITH THE VENUE TEAM WEEKLY. THERE ARE A NUMBER OF OFF SITE IMPROVEMENTS THAT HAVE ALREADY BEEN IDENTIFIED THAT ARE THAT ARE AN OBLIGATION OF THE PROJECT TO ALLOW OR TO ENSURE THAT WE'VE GOT PEOPLE ABLE TO MOVE IN AND OUT OF THE SITE EFFECTIVELY. SO TURN LANES AND CAPACITY IMPROVEMENTS, NEW SIGNALS AND THINGS OF THE LIKE TO ENSURE THAT NOW, AS IT RELATES TO THE HOTEL OCCUPANCIES AND CAPACITIES, I DO THINK THAT THAT WAS ONE OF THE POSITIVE OUTCOMES OF HAVING A VENUE LIKE THIS HERE IS IT DOES HELP TO DRIVE THAT DEMAND, AND OUR GOAL IS TO BE ABLE TO RECAPTURE THAT. SOME OF THAT DEMAND HERE IN THE CITY OF MCKINNEY. SO WILL THAT. WILL WE HAVE IT OUT OF THE GATE ON DAY ONE? MAYBE NOT, BUT THAT'S THE GOAL IS TO USE THAT AS DEMAND, TO BE ABLE TO CREATE AND REALIZE SOME ADDITIONAL HOTELS, RETAIL SERVICES AND THINGS OF THE LIKE THAT ARE GOING TO COME ALONG WITH IT. JENNIFER, THE SIX AND A HALF OF OFFSITE QUALIFIED, THAT WAS THE AGREEMENT THAT WE PAY. YES, LIKE FIVE AND THEN 50% UP TO EIGHT. THAT'S CORRECT. BUT WE ALSO PUT IN THERE THAT IF WE HAD SOME SORT OF OTHER ENTITY THAT WAS GOING TO ASSIST WITH THAT, THAT IT WOULD LESSEN THAT FOR US FIRST. THAT IS CORRECT. YES. YOU'RE ABSOLUTELY CORRECT. AND WE HAVE BEEN WORKING WITH THE RTC, THE REGIONAL COUNCIL OF GOVERNMENTS, THE TOTAL 6.5 MILLION INCLUDED IN THIS REQUEST IS AN UP TO AMOUNT. IT JUST PROVIDES THAT OPPORTUNITY FOR US TO DRAW DOWN ON THOSE FUNDS IN CASE WE NEED THEM. BUT THE GOAL IS TO BE ABLE TO UTILIZE THOSE OTHER SOURCES BEFORE WE WOULD NEED TO TAP INTO THE 6.5. BUT FROM THE STANDPOINT OF THE ACCOUNTING BETWEEN THE CITY AND THE TURFS, IF IF THE CITY DOESN'T SPEND THAT, THE TOURS ISN'T GOING TO IN TERMS OF. THAT'S RIGHT. IT WOULDN'T WE WOULDN'T IDENTIFY NEW PROJECTS TO INFLATE UP TO 6.5 THERE. WE WOULDN'T MOVE THE FULL 6.5, AND THEN THE CITY JUST HAVE AN EXTRA $2 MILLION
[00:55:05]
SITTING IN THERE. THAT'S CORRECT. YEAH. OKAY. OTHER QUESTIONS? COMMENTS, MR. MAYOR, AND LACK OF ANY OTHER COMMENTS, I WILL MOVE THAT. WE APPROVE THIS ITEM. WE HAVE A MOTION BY COUNCILMAN CLAUDIA TO APPROVE THE ITEM. AS FOR STAFF RECOMMENDATION, I'LL SECOND.SECOND BY COUNCILMAN FRANKLIN, IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR, RAISE YOUR HAND.
ALL THOSE OPPOSED? SAME SIGN. THAT MOTION CARRIES BY A VOTE OF EIGHT IN FAVOR AND ONE
[Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with UB33 McKinney LLC for a Fire Suppression, Environmental Remediation, and Critical Maintenance Project Located at 308 W Virginia Street]
AGAINST. OUR NEXT ITEM IS 253286. CONSIDER 380. AGREEMENT AND PROJECT PLAN WITH UB 33 MCKINNEY, LLC FOR FIRE SUPPRESSION, ENVIRONMENTAL REMEDIATION, AND CRITICAL CRITICAL MAINTENANCE PROJECT AT 308 WEST VIRGINIA STREET. GREAT. THANK YOU. WE WILL JUMP RIGHT IN. SO THIS BUILDING, THIS IS A VIEW OF IT IN 1985 AS WELL AS 2005. IT IS AT 308 WEST VIRGINIA. IT WAS ORIGINALLY BUILT CIRCA 1930. THE PROPERTY ITSELF WAS CONSIDERED A MEDIUM PRIORITY. THE UNION BEAR PROJECT IS AN ADAPTIVE REUSE OF THAT HERITAGE HARDWARE FLOORS BUILDING. THIS IS LOCATED IN THE HISTORIC OVERLAY, THE MCKINNEY TOWN CENTER AND THE PROJECT AREA. IN YOUR PACKET, YOU WOULD HAVE SEEN QUITE A FEW ATTACHMENTS. THESE ARE ALL OF THE EXPENDITURES THAT THEY ARE REQUESTING THAT WE FUND. THE SCOPE OF WORK INCLUDES UTILITY INFRASTRUCTURE, FIRE SUPPRESSION, ENVIRONMENTAL REMEDIATION, AND CRITICAL MAINTENANCE. THEY ARE ASKING FOR $943,103.64. THIS APPLICATION WAS SUBMITTED POST WORK AND THEY ARE NOT PROVIDING A TRADITIONAL MATCH. HOWEVER, THEY DO HAVE SOME INFORMATION IN THERE ABOUT THEIR TOTAL PROJECT INVESTMENT AS WELL AS THEIR TOTAL TOURS. ELIGIBLE COSTS. SO THE IMPACT IS THAT IT DOES INCLUDE ELIGIBLE WORK. HOWEVER, IT DOES NOT MEET OUR FUNDING POLICY REQUIREMENTS. ADDITIONALLY, THIS WOULD EXCEED THE FISCAL YEAR 2026 VACANT UNDER UTILIZED BUDGET, SO THAT WOULD REQUIRE A BUDGET AMENDMENT. SO BECAUSE OF THAT, STAFF IS RECOMMENDING DENIAL OF THE APPLICANTS REQUEST AND HAS SUGGESTED AN ADJUSTED TOURIST FUNDING OF $125,739.12. THAT WOULD REQUIRE THE 50 OVER 50 MATCH IN THE SPECIFIC CATEGORIES NEEDED, WHICH ARE FIRE SUPPRESSION AND CRITICAL MAINTENANCE, AS WELL AS MEETS THE PROJECT CAPS. AND IT'S UNDER THE FUNDING LIMITS AND WOULD NOT FUND ANY OF THE UTILITY INFRASTRUCTURE REQUEST BECAUSE THAT WOULD REQUIRE A BUDGET AMENDMENT. NO MATTER WHAT STAFF WILL STAND FOR ANY QUESTIONS. THE APPLICANT IS ALSO HERE AND WANTS TO MAKE A PRESENTATION. KASEY, IF YOU LOOK AT THE FIRE SUPPRESSION ONLY, WHAT WAS THAT AND WHAT WAS HALF OF THAT? FIRE SUPPRESSION SYSTEMS? $94,854 I GOT IT WAS THE TOTAL. THANK YOU.OKAY. AND WHAT WERE THE OTHER QUALIFIED EXPENSES ON THERE OUTSIDE OF FIRE SUPPRESSION THAT GOT YOU TO THE 125 ASBESTOS? YOU SAID MOST OF IT. YES. SO THERE WAS ENVIRONMENTAL REMEDIATION. THERE WAS CRITICAL MAINTENANCE. AND THEN THE FIRE SUPPRESSION. OKAY. OTHER QUESTIONS OF STAFF. OKAY. THANK YOU. IS THAT ADJUSTED AMOUNT? IS THAT ADJUSTED AMOUNT. IS THAT JUST LIMITED BY A 50 OVER 50. OR IS THERE JUST A, YOU KNOW, RUN OUT OF BUDGET IN THE CATEGORY? THERE'S ALSO CAPS ON THE DIFFERENT CATEGORIES. SO FOR EXAMPLE ENVIRONMENTAL REMEDIATION HAS A $50,000 CAP. HOWEVER THEY WERE BELOW THAT CAP. FIRE SUPPRESSION HAS $100,000 CAP. SO IF THE PROJECT IS 200,000 IT'LL BE UP TO 100,000. SAME WITH CRITICAL MAINTENANCE. OKAY, I'M DEFINITELY INTERESTED IN HEARING FROM THE APPLICANT TO UNDERSTAND WHERE THAT $900,000 NUMBER COMES FROM. OKAY. THANK YOU, THANK YOU. THANK YOU KASEY.
GOOD EVENING, COUNCIL MEMBERS. I APPRECIATE YOU HAVING ME TONIGHT. MY NAME IS PRESTON LANCASTER AND I'M HERE TONIGHT ON BEHALF OF 33 RESTAURANT GROUP. WE OWN AND OPERATE THREE LOCALLY OWNED ESTABLISHMENTS IN THE HEART OF DOWNTOWN MCKINNEY CADILLAC PIZZA PUB, THE YARD
[01:00:01]
AND NOW UNION BEAR MCKINNEY AT 308 WEST VIRGINIA. WE'VE BEEN A PART OF THIS COMMUNITY FOR OVER A DECADE, AND THIS MOST RECENT PROJECT REPRESENTS OUR LARGEST, LONGEST, AND MOST CHALLENGING DOWNTOWN DEVELOPMENT TO DATE. WE'VE BEEN AT THIS PARTICULAR PROJECT SINCE 2020, AND IT'S BEEN A TRUE LABOR OF LOVE. WE TOOK A LONG VACANT, HISTORICALLY SIGNIFICANT BUILDING, ONE THAT HAD BEEN DETERIORATING FOR YEARS AND BROUGHT IT BACK TO LIFE. THE RESULT NOW IS A WELCOMING, VIBRANT SPACE THAT DRAWS THOUSANDS OF GUESTS EACH WEEK, GENERATES OVER 6 MILLION IN ANNUALIZED TAXABLE SALES, SUPPORTS 90 PLUS JOBS, ENHANCES THE CAPACITY FOR FUTURE DEVELOPMENT ALONG CHURCH AND VIRGINIA STREETS, AND BRINGS NEW FOOT TRAFFIC AND ENERGY TO THE DISTRICT. JUST AS IMPORTANTLY, WE PRESERVE. WE PRESERVE THE ARCHITECTURAL CHARACTER OF THE BUILDING AND RETAIN MUCH NEEDED DOWNTOWN PARKING, WHICH IS INCREASINGLY HARD TO COME BY. THIS IS A PROJECT WE APPROACHED WITH INTENTION, WITH RESPECT FOR THE DISTRICT'S HISTORY AND WITH THE COMMITMENT TO DOING THINGS RIGHT. OUR TOTAL INVESTMENT HAS EXCEEDED $8.5 MILLION, 3.6 MILLION SPENT DIRECTLY ON THE BUILDING AND 1.2 MILLION ON THE SURROUNDING SITE. WE'VE SPENT OVER 4.8 MILLION IN CONSTRUCTION THAT BENEFITS NOT JUST OUR BUSINESS, BUT THE BROADER PUBLIC REALM. TONIGHT, I'D LIKE TO CHANGE THINGS A BIT IN OUR REQUEST. I WANT TO FOCUS SQUARELY ON THE PUBLIC INFRASTRUCTURE WORK. THIS WAS DEFINITELY THE MOST COMPLEX AND COSTLY PART OF THE PROJECT, AND FRANKLY, THE REASON I'M HERE REQUESTING THE TOUR'S FUNDING. FROM THE START, WE KNEW THE BUILDING WOULD NEED HEAVY INVESTMENT, SO I'M NOT ASKING FOR REIMBURSEMENT ON THE BUILDING SIDE TONIGHT. WE DIDN'T REALIZE THE SCOPE OF WORK THAT WAS GOING TO BE NEEDED. AS WE GOT INTO THE UNDERGROUND UTILITIES BENEATH VIRGINIA AND CHURCH STREETS, THEY'RE IN TERRIBLE CONDITION, YOU KNOW, I KNOW YOU'VE HEARD A LITTLE BIT OF THIS TONIGHT, BUT CAST IRON CLAY PIPES, SHALLOW LINES, SHALLOWER SHALLOW SEWER SYSTEMS, WE HAD DISCONNECTED SEGMENTS. A LOT OF THESE WERE, YOU KNOW, DECADES OLD. AND THEN SOME OF THE NEWER THINGS LIKE AT&T FIBER LINES OR INTERNET LINES, WERE NOT IN THE PLACES THAT YOU GUYS THAT THE CITY KNEW ABOUT OR, OR THAT WHERE IT WAS MARKED. BUT IT WAS AN ARDUOUS PROCESS, COMPLETED ACROSS MULTIPLE PHASES IN THE PUBLIC RIGHT OF WAY. AND WE, YOU KNOW, DID OUR BEST TO TRY TO KEEP TRAFFIC AND SERVICES FLOWING. WORKING CLOSELY WITH THE CITY, WE REPLACED THE DOMESTIC WATER, SANITARY SEWER, STORM AND FIRE WATER LINES. THESE ARE CORE SYSTEMS THAT SERVE NOT ONLY OUR PROJECT BUT THE SURROUNDING DISTRICT. FUTURE DEVELOPMENTS AND NEIGHBORING BUILDINGS NOW HAVE ACCESS TO MODERN, APPROPRIATELY SIZED UTILITIES. WE ALSO IMPLEMENTED MAJOR STREETSCAPE IMPROVEMENTS, WITH PHASE CONSTRUCTION COORDINATED TO MINIMIZE DISRUPTION, THOUGH IT STILL DELAYED OUR PROJECT BY OVER SIX MONTHS. THIS WASN'T JUST A WATER LINE TO OUR BUILDING, IT WAS A FULL INFRASTRUCTURE REBUILD DONE IN THE PUBLIC INTEREST. WE DID ALL OF THIS AT OUR OWN COST. WE DIDN'T CUT ANY CORNERS, AND WE BELIEVE THESE IMPROVEMENTS DIRECTLY ALIGN WITH THE PROGRAM PROGRAM'S MISSION TO REDUCE INFRASTRUCTURE BARRIERS AND PROMOTE PUBLIC FACING DEVELOPMENT IN THE HISTORIC CORE. SO WE INCURRED OVER 1.3 MILLION ON ELIGIBLE TOURS COSTS. OUR TOURS APPLICATION TOTALS 943,000. IN REIMBURSABLE EXPENSES TONIGHT. WANT TO SIMPLIFY THINGS AND MAKE A FOCUS. AND WE THINK VERY FAIR REQUEST. WE'RE SEEKING $622,000 IN 100 $622,161.90 IN REIMBURSEMENT TO COVER THE UTILITY INFRASTRUCTURE PORTION OF THIS INVESTMENT. THAT'S SPECIFICALLY THE DOMESTIC WATER, SANITARY SEWER AND STORM WATER SYSTEMS THAT DOES NOT INCLUDE FIRE SUPPRESSION OR THE FIRE WATER LINE FROM THE FROM A PUBLIC UTILITY PERSPECTIVE, JUST A LITTLE BIT MORE ON THIS SIDE OF THE PROJECT, YOU KNOW, ARDUOUS TO SAY THE LEAST SIGNIFICANT DELAYS WE WE INCURRED OVER SIX MONTHS JUST DUE TO THE PHASING AND THE LIMITED WORK HOURS THAT WE HAD TO PERFORM THIS IN THE DOWNTOWN AREA EACH DAY. WE HAD TO REMOVE PLATES FROM OUR TRENCHING AND AND PUT THOSE BACK. CAN I SHOW YOU GUYS SOME PICTURES AS I TALK HERE? LET'S SEE. THIS IS GOING TO GO THROUGH. OKAY. COOL. I WON'T TAKE YOU THROUGH I THINK 50 PAGES OF PRESENTATION HERE. SO HERE YOU CAN SEE SOME OF THE SOME OF THE TRENCHING.THAT OCCURRED. IT WAS IT WAS PRETTY PRETTY SERIOUS WORK. BUT YOU CAN SEE SOME OF THE PLATES HERE. THIS IS CHURCH I BELIEVE RIGHT HERE. THOSE HAD TO BE REPLACED EVERY MORNING AND PUT
[01:05:01]
BACK AT NIGHT, ALONG WITH THE THE BARRICADES WHICH THE BARRICADES WERE A VERY COSTLY PART OF THIS. THE BARRICADES IN THE PLATING WERE OVER WE FEEL LIKE THERE WAS A LOT OF PUBLIC GOOD WITH LONG TERM VALUE HERE. WE DIDN'T CUT CORNERS. WE DIDN'T JUST PATCH WHAT WAS NEEDED. WE MADE THESE IMPROVEMENTS THE RIGHT WAY. THE PERMANENT UPGRADES TO SHARED UTILITY SYSTEMS. FUTURE DEVELOPMENTS IN THIS AREA WON'T HAVE TO REPEAT THE WORK WE DID, NOR WILL THE CITY WHEN IT COMES TO EFFORTS TO MODERNIZE THIS AREA WITH DOWNTOWN INFRASTRUCTURE. WE UNDERSTAND THE AGE AND THE UNIQUENESS OF THE AREA WE'RE GOING TO IN THIS PART OF TOWN, AND WE FEEL LIKE THAT'S ONE OF THE BIG REASONS WHY THE TOURIST PROGRAM EXISTS TO HELP ADDRESS THESE KINDS OF GAPS AND CHALLENGES FOR BUSINESS OWNERS LIKE US. SO WE'RE NOT ASKING FOR ASSISTANCE WITH THE BUILDING COSTS. WITH STREETSCAPE IMPROVEMENTS, WHICH THERE WAS A LOT OF STREETSCAPE IMPROVEMENTS. WE'RE NOT EVEN ASKING FOR CRITICAL MAINTENANCE, WHICH THERE WAS A LOT FOR THE BUILDING ITSELF. IT WAS LITERALLY FALLING APART. THE ROOF WAS SAGGING, THE WALLS WERE CAVING IN. SO YOU CAN SEE IN THIS PICTURE IN THE TOP RIGHT CORNER, WE DID SOME BANDING AROUND THE BUILDING, WHICH IS WHICH IS LIKE A STRUCTURAL EFFORT TO MAINTAIN THE WALLS OF THE BUILDING. IT WAS REALLY IMPORTANT FOR US TO DO, YOU KNOW, THE RIGHT WAY. WE OWN THE BUILDING AND WE PLAN TO BE IN DOWNTOWN MCKINNEY FOR A VERY LONG TIME. AND SO WE'RE ASKING FOR REIMBURSEMENT FOR THE HARD UNDERGROUND PUBLIC FACING WORK VERIFIED BY THIRD PARTY CONTRACTORS AND ENGINEERS. THIS PROJECT, WE FEEL, MEETS THE SPIRIT AND LETTER OF THE GUIDELINES. AGAIN, IT TURNS A VACANT, UNDERUTILIZED STRUCTURE INTO A THRIVING COMMUNITY ASSET. WE FEEL IT PRESERVES THE HISTORIC BUILDING RATHER THAN DEMOLISHING AND REPLACING IT. AND IT DELIVERS HIGH SALES TAX, PROPERTY TAX AND JOB CREATION.AND IT DOES SO WHILE ABSORBING THE MAJOR, WHILE ABSORBING THE COSTS OF MAJOR INFRASTRUCTURE IMPROVEMENTS THAT BENEFIT THE WHOLE DISTRICT. SO WE RESPECTFULLY REQUEST THAT THE BOARD CONSIDER OUR REQUEST UNDER THE VACANT AND UNDERUTILIZED CATEGORY, WITH A MERITORIOUS EXCEPTION FOR THE EXTRAORDINARY SCOPE AND COST OF THE UTILITY INFRASTRUCTURE REQUIRED TO BRING THIS SITE INTO SERVICE. WE'VE ALWAYS OPERATED WITH INTEGRITY AND FAIRNESS, AND WE'RE GRATEFUL TO BE DOING BUSINESS IN A CITY THAT VALUES THOSE SAME PRINCIPLES. WE HOPE YOU'LL AGREE THIS IS A WORTHY PROJECT, A FAIR REQUEST, AN INVESTMENT IN THE LONG TERM SUCCESS OF DOWNTOWN MCKINNEY. I'D BE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU FOR YOUR CONSIDERATION, MR. LANCASTER. SO THAT THAT NUMBER THAT YOU GAVE US, THE 600,000 IS SEWER, WATER AND AND DOMESTIC. DOMESTIC. YES, SIR. OKAY. YEP. THAT INCLUDE ANYTHING ELSE BUT THOSE ITEMS. RIGHT. CORRECT. CORRECT. AND THOSE ARE BID TABS ON FILE WITH THE CITY. CASSIDY. CASSIDY HAS THAT OKAY. YEAH. WHY THE ASK POST-PROJECT COMPLETION. YOU KNOW, HONESTLY, I THOUGHT THAT'S THE WAY YOU WERE SUPPOSED TO DO IT. I THOUGHT THIS WAS A REIMBURSEMENT. SO THAT'S UNDER THE. THAT WAS UNDER THE. THAT WAS HOW WE OPERATED. WE WERE UNDER THE ASSUMPTION THAT THIS WAS A REIMBURSEMENT, THAT YOU DID IT AND YOU CAME TO YOU GUYS. BUT WE NEVER GOT TO SEE ANY BIDS, COMPETITIVE BIDS OR ANYTHING.
RIGHT? I MEAN, WE CORRECT. YEAH. YOU JUST DID IT. YEAH, WE DID WE I NOTICED ON THE PRESENTATION THERE WAS SOMETHING ABOUT BIDS OUR CONTRACTORS HERE. SO ALL OF OUR ANY TRADES THAT WERE CONSIDERED MAJOR TRADES ON THIS PROJECT OVER $25,000, ESPECIALLY MECHANICAL, PLUMBING, ELECTRICAL ENGINEERING, THOSE WERE THOSE WERE BID OUT TO AT LEAST TWO TO AT LEAST TWO VENDORS, CONTRACTORS, WHATEVER YOU CALL THEM. IN THIS CASE, WE WENT WITH A COMPANY THAT ACTUALLY WAS NOT THE LOWEST COST. WE WENT WITH THE COMPANY THAT OUR GC HAD EXPERIENCE WITH AND THAT WE KNEW HAD EXPERIENCE WITH THIS TYPE OF CITY INFRASTRUCTURE WORK, WHICH WAS IMPORTANT FOR US AND I THINK IMPORTANT TO THE CITY. SO WE DID CONSIDER OTHER VENDORS WHEN IT CAME TO THIS. IS IT, IS IT SAFE TO SAY THAT A LOT OF THESE COSTS YOU DIDN'T FIND OUT TO INTO UNTIL YOU WERE IN THE PROJECT, CORRECT? YES. THAT'S CORRECT. I MEAN, THERE WAS THERE WERE A LOT OF SURPRISES. YEAH. AND IT JUST KIND OF KEPT SNOWBALLING BECAUSE WE WOULD YOU CAN SEE IN THESE PICTURES WE WOULD DO WORK IN ONE AREA, AND THEN WE'D HAVE TO JUMP AROUND AND DO WORK IN ANOTHER AREA BECAUSE OF SOMETHING THAT WAS FOUND. OH, WE FOUND LIKE A DATA BANK OF, OF WIRES FROM AT&T, WHICH OBVIOUSLY AREN'T HISTORIC. BUT THERE WAS STUFF LIKE THAT THAT HAPPENED ALL THE TIME. OKAY. ARE THERE QUESTIONS
[01:10:03]
OF THE APPLICANT, ANYONE? OR OF STAFF HAVE QUESTIONS FOR STAFF? OKAY. CASSIDY. SO WHENEVER, WHENEVER. AND THIS IS MORE OF A KIND OF A GENERAL STAFF QUESTION. WHENEVER YOU'RE DOING ACTUALLY A NEW BILL THAT REQUIRES A POOLING OF WATER AND SEWER OUT TO A LOCATION, USUALLY THAT IS A VERY SIZABLE DOLLAR AMOUNT. AND THEN AS NEW, AT LEAST FROM A COUNTY PERSPECTIVE, WHENEVER WE'VE SEEN IT, WHEN PEOPLE THEN SUBSEQUENTLY HOOK UP, SOME OF THAT COST GETS RETURNED TO THE ORIGINAL DEVELOPER. AND WHY CAN'T WE DO SOMETHING LIKE THAT WITH THIS? BECAUSE I DON'T WANT TO DISCOUNT THE OTHER VALID APPLICANT CATEGORIES THAT HE'S PUT IN. I MEAN, IF HE'S ENTITLED TO ASK FOR THESE OTHER THINGS, YOU KNOW, THAT'S ONE THING THAT I SUPPORT, BUT SEPARATELY, WHY CAN'T WE WORK SOMETHING OUT TO THEN RETURN? AS HE STATED, YOU KNOW, THERE'S NOW A FACILITY THERE FOR EVERYONE THAT AS OTHER PEOPLE HOOK UP, YOU KNOW, MINUS WHAT IT COSTS FOR SOMEONE NEW TO HOOK UP TO THE SYSTEM, THEN ALSO RETURN SOME OF THAT SHARED COST THROUGH THE COST THAT GETS CHARGED TO CONNECT UP TO THE CITY, BECAUSE THAT LINE COSTS A LOT. IF SOMEONE NEW WERE TO GO THERE, IT'S GOING TO IT WOULD HAVE BEEN JUST AS MUCH FOR THEM TO CONNECT IN. I'M NOT SURE THAT WE'VE EVER DONE ANYTHING LIKE THAT BEFORE. HOWEVER, I COULD SPEAK WITH STAFF AND SEE. MR. ARNOLD. DID YOU OR MR. QUINT OR MR. GRAHAM HAVE SOME INPUT? A WHOLE LOT OF SIDE CONVERSATIONS. SO I MAY HAVE MISSED THE QUESTION, BUT I THINK YOU ASKED, IS THERE AN ARRANGEMENT WHERE IF SOMEBODY INSTALLS INFRASTRUCTURE THAT THEY CAN GET REPAID FOR SOME OF THAT, IS THAT BASICALLY THE GENESIS. CORRECT. AS, AS NEW NEW HOOKUPS HAPPEN AND AS NEW PEOPLE COME IN, SOME OF THAT, THAT HIGH INITIAL EXPENSE IS THEN RETURNED TO THE ORIGINAL SPENDER BY SUBSEQUENT HOOKUPS FOR EACH ADDITIONAL BUSINESS, BECAUSE THEN THE COST IS GOING TO BE SUBSTANTIALLY LOWER TO HOOK UP FOR EACH ADDITIONAL BUSINESS. SURE. SO WE DO HAVE SOMETHING CALLED A PRO RATA AGREEMENT, BASICALLY FOR INFRASTRUCTURE THAT IS 12IN IN SIZE OR LESS, THEY CAN ENTER INTO A PRO RATA AGREEMENT WITH THE CITY WHEREIN WHEN ANOTHER DEVELOPMENT TIES INTO THAT INFRASTRUCTURE, THEY WOULD PAY A PRO RATA SHARE FOR THE LINEAR FRONTAGE THAT THAT NEW DEVELOPMENT HAS ON THAT LINE. IN THIS CASE, WHERE THE INFRASTRUCTURE WAS INSTALLED, THERE'S REALLY NOT OTHER PROPERTIES THAT WOULD TIE INTO IT. SO YES, WE COULD ENTER INTO A PRO RATA AGREEMENT WITH THE APPLICANT, BUT THERE'S NOT A LOT OF OTHER DEVELOPMENT HAPPENING THAT ISN'T EXISTING. FOR EXAMPLE, ON THE EAST SIDE, ALL THAT'S EXISTING, THERE'S A PUBLIC PARKING LOT. TO THE SOUTH, THERE'S MITCHELL PARK. IT'S NOT GOING TO BE REDEVELOPED ON THE WEST SIDE. THERE'S AN EXISTING BUILDING. NOW, IF THAT WERE TO REDEVELOP AND THEY WOULD TAP INTO THAT LINE, THEN YES, YOU COULD GET PRO RATA, BUT WE'VE NOT RECEIVED ANY INCLINATION FROM THAT PROPERTY OWNER TO THE WEST THAT THEY'D BE INTERESTED IN REDEVELOPING THEIR PROPERTY, PAYING INTO THAT PRO RATA. SO ON SOME LEVEL THE INFRASTRUCTURE COST WAS BORN. THAT WAS BORN FOR THIS PROJECT IS REALLY KIND OF NECESSARY ONLY FOR THIS PROJECT. OKAY. OTHER QUESTIONS? COMMENTS. MR. QUINT, THANK YOU, I APPRECIATE THAT. YEAH, I'LL MAKE A COMMENT. I'VE SAID THIS FOR A WHILE. I THINK WE'RE BEHIND ON ROAD IMPROVEMENTS AND STREET AND UTILITY IMPROVEMENTS AND ALL THOSE THINGS. AND WHILE WE HAVE DONE A BUNCH TO ADD TO OUR CAPACITY AND OUR CIP, WE STILL HAVE HUGE GAPS IN THAT. AND THAT'S ONE OF THE BARRIERS TO REINVESTING IN DOWNTOWNS. AND SO WE WE WE HAD HUGS UP HERE A MINUTE AGO. HUGS HAD THE BENEFIT OF NOT HAVING TO DO ANY OF THIS, BECAUSE WE JUST DID IT WITH GREEN AND ANDREWS. AND THAT'S JUST A CIP PROJECT THAT WE DID. AND IF THEY WERE DEVELOPING BEFORE WE DID THAT, THEY WOULD CARRY THIS TYPE OF COST AS WELL, BECAUSE THEY WOULD HAVE TO INCREASE WATER CAPACITY AND SEWER CAPACITY AND ROAD CAPACITY AND ALL THOSE THINGS THAT WE, WE, WE TOOK ON. AND THIS SORT OF THING TO ME IS, IS A THIS IS THIS IS A ISSUE WITH OUR HOW FAR WE ARE BEHIND ON KIND OF THIS, THIS OLD INFRASTRUCTURE AND THE ISSUES THAT WE'VE GOT TO DEAL WITH. AND SO I'M, I'M OKAY WITH THE, THE, THE ALTERED REQUEST. I, I UNDERSTAND THE ISSUES THAT THEY FACE. AND THIS IS, THIS IS THE BARRIER TO, TO INVESTMENT. SO[01:15:02]
WE'VE GOT TO FIND WAYS TO, TO ENCOURAGE IT. I, I CONCUR WITH MR. BOWLER ON THIS ISSUE. I THINK WE'RE SENDING A WRONG MESSAGE TO PEOPLE THAT WANT TO BE DOWNTOWN AND THEY GET INTO THESE PROJECTS. AND I'M NOT SO SURE THAT PRESTON WOULDN'T HAVE SAID, HEY, I DIDN'T KNOW ABOUT THESE COSTS. I'M NOT GOING TO BUILD HERE. AND THIS IS SOMETHING THAT SHOULD BE THE IN MY OPINION, THE CITY'S RESPONSIBILITY. AND AT SOME POINT WE WOULD HAVE TO DO IT ANYWAY IF NOBODY WENT THERE. YOU'RE GOING TO WANT TO PUT IN THAT INFRASTRUCTURE. SO I CONCUR WITH MR. BELLA. THERE'S ACTUALLY PRECEDENT TOO, BECAUSE WE HAD A VERY SIMILAR SITUATION WITH ONE OF THE HOUSING DEVELOPMENTS WHERE THE BATTERY REMEDIATION HAD TO HAPPEN, AND THE COST FOR THE BATTERY REMEDIATION CAME IN FAR, FAR HIGHER. I THINK IT WAS IN EXCESS OF $500,000. SO ARE YOU TALKING ABOUT THE ROBERT SHAW APARTMENTS ACROSS HIGHWAY FIVE? YES, THAT WAS A $2 MILLION JUST TO GET REMEDIATION OF THE SOIL, PER MY MEMORY. AND TOURS CAME IN WITH A HALF MILLION OF THAT $2 MILLION COST. YEAH, BUT THAT WAS UNACCEPTABLE PROPERTY. THAT WAS WASTELAND PROPERTY. YEAH. I'LL SAY THIS, PRESTON, YOU GUYS HAVE BEEN A MAGNIFICENT PARTNER DOWNTOWN. MAGNIFICENT. YOU HIT HOME RUNS, MAN, AND EVERYBODY ELSE, NOT EVERYBODY ELSE. BUT A LOT OF PEOPLE HAVE A TOUGH TIME HITTING A SINGLE OR DOUBLE. BUT THAT THING IS GREAT. I OFFICE ACROSS THE STREET. I WATCHED YOU GO THROUGH IT. I DIDN'T ENVY YOU GOING THROUGH IT. I WATCHED THE METAL PLATES GET MOVED. I DROVE OVER THE METAL PLATES A MILLION TIMES, YOU KNOW. BUT WHAT YOU'RE HEARING HERE AND WHAT MAYBE YOUR FEELING IS SOME LEVEL OF FRUSTRATION. BECAUSE WE ARE WHERE WE ARE, RIGHT? YOU KNOW, WE WE ARE IN THIS THING.I'VE OFFICE DOWNTOWN FOR 28 YEARS NOW. IT HAS BEEN BLOOD, SWEAT AND TEARS FROM A LOT OF PEOPLE. I AM GOING TO BE DISCIPLINED, THOUGH. I UNDERSTAND EXACTLY WHAT THESE GUYS ARE SAYING AND I AND I GET IT. BUT I WISH THAT THE CITY HAD HAD A BITE AT THE APPLE TO GO AHEAD AND DO THAT. AND YOU CAN SAY, WELL, WE DID HAVE BITE THE APPLE BECAUSE IT WAS CRAPPY UNDER THERE AND YOU COULD HAVE DONE SOMETHING. WELL, WE DIDN'T AND WE DIDN'T GET AROUND TO IT.
AND MONEY'S MONEY. I ENTERED THIS THING BEING FOR HALF OF YOUR FIRE SUPPRESSION, BUT I'M GOING TO LEAVE THIS THING BEING FOR WHAT STAFF'S RECOMMENDATION IS. I'M NOT GOING TO NECESSARILY MAKE A MOTION ON IT RIGHT NOW, BUT I HAVE TO BE DISCIPLINED TO GET FIRE SUPPRESSION IN THE BUILDINGS DOWNTOWN. THAT IS MY FIRST CONCERN. AND YOU DID IT ON THAT ONE. I'M GRATEFUL FOR IT. I'M GLAD YOU'RE SUCCESSFUL. BUT THAT'S GOING TO BE MY POSITION, MR. MAYOR. THANK YOU. OTHER COMMENTS. ANYONE HAVE A MOTION? I MOVE FOR APPROVAL FOR 500,000 TO MATCH WHAT WE HAD DONE BEFORE, PLUS THE STAFF RECOMMENDATION AS IT STANDS. SO IT'D BE A 600 AND I DON'T KNOW WHAT THE TOTAL AMOUNT WOULD BE. WELL, IF YOU'RE MAKING THE MOTION, THAT SHOULD BE SOMETHING, YOU KNOW, WHAT WAS THE WELL, WHAT WAS THE I CLOSED 623. YOU'RE I THINK YOU'RE 23. I CLOSED OUT MY I CLOSED OUT MY OKAY, OKAY. MY SCREEN. YOU'RE MAKING A MOTION ON THE 623,000. CORRECT. RIGHT. I'LL SECOND, WE HAVE A MOTION BY COMMISSIONER HALE TO APPROVE THE AMOUNT OF $623,000. THAT WAS THE AMOUNT WITHIN A THOUSAND, RIGHT? $623,000 A SECOND BY COUNCILMAN FRANKLIN. IS THERE ANY DISCUSSION? ALL RIGHT, ALL THOSE IN FAVOR, RAISE YOUR HAND. ALL THOSE OPPOSED? SAME SIGN. NO. I BELIEVE THERE WERE THREE NO'S. FELL ASLEEP ON ME. OKAY. THE MOTION CARRIES BY A VOTE OF SIX IN FAVOR AND THREE AGAINST.
THANK YOU FOR THE PRESENTATION, KATHY. YOU AS WELL. THAT IS THE LAST ITEM ON OUR AGENDA. WE DO NOT HAVE AN EXECUTIVE SESSION, SO WE WILL NEED A MOTION TO ADJOURN. SO MOVED. SECOND, WE HAVE A MOTION BY MAYOR PRO TEM FELTON AND A SECOND BY COUNCILMAN CLAUDIA TO ADJOURN.
ALL THOSE IN FAVOR SAY AYE. THOSE OPPOSED? SAME SIGN. 614. AND WE'RE ADJOURNED. MR. RYAN, HOW LONG DO YOU NEED? FIVE MINUTES. WE'LL START OUR
* This transcript was compiled from uncorrected Closed Captioning.