2022 02 03 MDD Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
February 3, 2022
The Board of Directors of the Baytown Municipal Development District (MDD) met in a
Regular Meeting on Thursday, February 3, 2022, at 5:03 P.M., in the Council Chamber of the
Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Chris Presley Vice President
Laura Alvarado Secretary
Suhey Rios-Alvarez Director
Mary Hernandez Director
Charles Johnson Director •
Jacob Powell Director
Mike Lester Director
David P. Jirrels Director
Gary Englert Director
Bandon Capetillo President
Rick Davis General Manager
Trevor Fanning General Counsel
Angela Jackson Assistant Secretary
President Brandon Capetillo convened the February 3, 2022, MDD Board Regular Meeting with
a quorum present at 5:03 P.M., all members were present with the exception of Director Heather
Betancourth, who was absent.
1. MINUTES
a. Consider approving the minutes of the Municipal Development District Regular
Meeting held on November 4, 2021.
b. Consider approving the minutes of the Municipal Development District Regular
Meeting held on December 2, 2021.
A motion was made by Secretary Laura Alvarado and seconded by Director Jacob Powell to
approve the Minutes Agenda Items l.a. and 1.b., as submitted. The vote was as follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Secretary
Laura Alvarado, Director Suhey Rios-Alvarez, Director Mary Hernandez,
Director Charles Johnson, Director Jacob Powell, Director Mike Lester,
Director David P. Jirrels, and Director Gary Englert
Nays: None
MDD Board Regular Meeting Minutes
February 3,2022
Page 2 of 4
Other: Director Heather Betancourth (Absent)
Approved
2. EXECUTIVE SESSION
a. Recess into and conduct an executive session pursuant to Sections 551.071 of the
Texas Government Code to seek the advice of the District's attorneys on legal matters
related to the Baytown Hotel and Convention Center Project.
At 5:04 P.M., President Capetillo recess and convened into executive session pursuant to
Sections 551.071 of the Texas Government Code to seek the advice of the District's attorneys on
legal matters related to the Baytown Hotel and Convention Center Project.
At 6:15 P.M., Mayor Capetillo reconvened the open meeting of the Baytown Municipal
Development District's Regular Meeting and announced that in accordance with Section 551.102
of the Texas Open Meetings Act, no action was taken in the executive session.
3. PROPOSED RESOLUTIONS
a. Consider a resolution approving an amendment to the Design Build Agreement, a
revised budget, an Initial Guaranteed Maximum Price, and other matters related to the
Baytown Hotel and Convention Center Project.
President Capetillo noted there were three individuals present via Zoom: Mr. Stephen Galbreath,
Mr. Chris Janning, and Mr. Davis Dawson, who were representatives of Garfield Public/Private
LLC.
Mr. Galbreath noted that despite the last few months of price escalations, they had been able to
maintain the quality and the amenities of the hotel. The construction company, DPR
Construction, had been making great progress on the site. Mr. Galbreath noted that of the almost
50,000 yd3 of dirt being put on the site, half had already been installed, and at this time, they are
in the middle of doing the auger cast piles. They had worked with the City staff to get to the
presented resolution with DPR for the Guaranteed Maximum Price (GMP) to be executed.
President Capetillo relayed it was to his understanding there was a signed Initial Guaranteed
Maximum Price (IGMP) attached to the item and Mr. Galbreath affirmed there was. President
Capetillo assumed there would be continued efforts for additional cost reductions to be made
without undermining the build quality of the hotel, and Mr. Galbreath concurred and noted that
they expect that the final GMP will be at, if not lower, than the amount presented.
Director Gary Englert asked if they had a signed guarantee from Hyatt, or anything that states
that Hyatt can at some point back out. General Counsel Trevor Fanning verified Hyatt had signed
and were locked into the agreement. General Manager Rick Davis noted they had a Hotel
Services Agreement and a Technical Services Agreement with Hyatt. Vice President Presley
MDD Board Regular Meeting Minutes
February 3,2022
Page 3 of 4
presumed they had then made a payment to Hyatt and Mr. Davis confirmed they had made
payment on the Technical Services Agreement.
Vice President Presley requested that moving forward, in the spirit of improved transparency,
they had a standing item on every MDD meeting where the Board Members are provided formal
updates by the construction manager of the project, Broadus. President Capetillo agreed and Mr.
Davis forwarded the request to Assistant Secretary Angela Jackson. He further specified that on
every MDD agenda there be a construction update given by Broadus and a financial update given
by Finance Director Victor Brownlees.
A motion was made by Secretary Laura Alvarado and seconded by Director Mary Hernandez to
approve Resolution No. 439, related to Item 3.a., with the addition of a monthly project and
financial update be given on the Hotel and Convention Center. The vote was as follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Secretary
Laura Alvarado, Director Suhey Rios-Alvarez, Director Mary Hernandez,
Director Charles Johnson, Director Jacob Powell, Director Mike Lester,
Director David P. Jirrels, and Director Gary Englert
Nays: None
Other: Director Heather Betancourth (Absent)
Approved
RESOLUTION NO. 439
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT APPROVING AN AMENDMENT
TO THE DESIGN BUILD AGREEMENT, A REVISED BUDGET, AN
INITIAL GUARANTEED MAXIMUM PRICE, AND OTHER MATTERS
RELATED TO THE CONVENTION CENTER HOTEL PROJECT.
4. REPORTS
a. Receive the Baytown Municipal Development District's Quarterly Financial and
Investment Reports for the Quarter Ending December 31, 2021.
Finance Director Victor Brownlees began the report by relaying that sales tax continues to be
remarkably robust as they were 14% up year over year, and about 18% over budgeted
expectations. In the first quarter alone, they had turned in almost a quarter of a million in
additional receipts.
On the expenditures side, the Economic Development Budget lines had not been allocated and
that is why it appeared fairly low in terms of the spending in the first quarter. All other
expenditures were on track, even with the expenditures on the predicted Parks project.
MDD Board Regular Meeting Minutes
February 3,2022
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Overall, the MDD's position appeared healthy and the fund balance was growing once again.
MDD had previously spent money to get the Hotel Convention Center project underway which
they had allocated more funding to—not within the current budget. Mr. Brownlees was confident
that if sales tax continued as it did, they could recover up to three quarters of a million in
additional revenue for the current year.
5. MANAGER'S REPORT
a. The next Baytown Municipal Development District meeting is scheduled for
Thursday, March 3, 2022, at 5:03 P.M., in the Council Chamber located at City Hall, 2401
Market Street, Baytown, Texas, 77520.
General Manager Rick Davis stated he had nothing more to add for this item.
6. ADJOURN
With there being no further business to discuss, President Capetillo adjourned the February 3,
2022, MDD Board Regular Meeting at 6:23 P.M.
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